relating to stadiums; providing for a new National Football League stadium in
Minnesota; establishing a Minnesota Sports Facilities Authority; authorizing the
sale and issuance of state appropriation bonds; abolishing the Metropolitan Sports
Facilities Commission; providing for use of certain local tax revenue; providing
for electronic pull-tab games, electronic linked bingo games, and sports-themed
tipboard games; providing for the conditional imposition of certain taxes and
collection of other revenues; modifying certain rates of tax on lawful gambling;
appropriating money;amending Minnesota Statutes 2010, sections 3.971,
subdivision 6; 3.9741, by adding a subdivision; 297A.71, by adding subdivisions;
297E.01, subdivisions 7, 8, 9; 297E.02, subdivisions 1, 3, 6, 7, 10, 11, by adding
a subdivision; 297E.13, subdivision 5; 349.12, subdivisions 3b, 3c, 5, 6a, 12a,
18, 25, 25b, 25c, 25d, 29, 31, 32, 34, 35, by adding subdivisions; 349.13;
349.151, subdivisions 4b, 4c, by adding subdivisions; 349.155, subdivisions 3, 4;
349.161, subdivisions 1, 5; 349.162, subdivision 5; 349.163, subdivisions 1, 5,
6; 349.1635, subdivisions 2, 3, by adding a subdivision; 349.165, subdivision
2; 349.17, subdivisions 6, 7, 8, by adding a subdivision; 349.1711, subdivisions
1, 2; 349.1721; 349.18, subdivision 1; 349.19, subdivisions 2, 3, 5, 10;
349.211, subdivisions 1a, 2c; 352.01, subdivision 2a; Minnesota Statutes 2011
Supplement, sections 10A.01, subdivision 35; 297A.75, subdivisions 1, 2, 3;
340A.404, subdivision 1; Laws 1986, chapter 396, sections 4, as amended; 5, as
amended; proposing coding for new law in Minnesota Statutes, chapters 3; 16A;
245; 297A; 297E; 349A; proposing coding for new law as Minnesota Statutes,
chapter 473J; repealing Minnesota Statutes 2010, sections 297E.02, subdivision
4; 349.15, subdivision 3; 349.19, subdivision 2a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.28MINNESOTA SPORTS FACILITIES AUTHORITY
Section 1. [3.8842] LEGISLATIVE COMMISSION ON MINNESOTA SPORTS
1.31 Subdivision 1. Purpose. The Legislative Commission on Minnesota Sports Facilities
1.32is established by and under the authority of the Legislative Coordinating Commission
2.1to oversee the Minnesota Sports Facilities Authority's operating and capital budgets.
2.2The legislature finds that continuous legislative review of the financial management of
2.3the authority is necessary to promote fiscal responsibility and good management, and
2.4strengthen the accountability of the authority. The commission is charged with:
2.5(1) providing financial oversight of the authority as described in subdivision 8;
2.6(2) adoption of a statewide authority structure for the operation and management
2.7of sports facilities and entertainment venues under the jurisdiction of the authority. The
2.8authority membership shall represent the interests of both the metropolitan area and
2.9greater Minnesota; and
2.10(3) creating a comprehensive management plan that alleviates booking and
2.11scheduling concerns regarding the sports facilities and entertainment venues under the
2.12jurisdiction of the authority.
2.13 Subd. 2. Membership. The commission consists of three senators appointed by
2.14the senate majority leader, three senators appointed by the senate minority leader, three
2.15state representatives appointed by the speaker of the house, and three state representatives
2.16appointed by the house minority leader. The appointing authorities must ensure balanced
2.17geographic representation. Each appointing authority must make appointments as
2.18soon as possible after the opening of the next regular session of the legislature in each
2.20 Subd. 3. Terms; vacancies. Members of the commission serve for a two-year term
2.21beginning upon appointment and expiring upon appointment of a successor after the
2.22opening of the next regular session of the legislature in the odd-numbered year. A vacancy
2.23in the membership of the commission must be filled for the unexpired term in a manner
2.24that will preserve the representation established by this section.
2.25 Subd. 4. Chair. The commission must meet as soon as practicable after members
2.26are appointed in each odd-numbered year to elect its chair and other officers as it may
2.27determine necessary. A chair serves a two-year term, expiring in the odd-numbered year
2.28after a successor is elected. The chair must alternate biennially between the senate and the
2.29house of representatives.
2.30 Subd. 5. Compensation. Members serve without compensation but may be
2.31reimbursed for their reasonable expenses as members of the legislature.
2.32 Subd. 6. Staff. Legislative staff must provide administrative and research assistance
2.33to the commission.
2.34 Subd. 7. Meetings; procedures. The commission meets at least semiannually.
2.35If there is a quorum, the commission may take action by a simple majority vote of
2.36commission members present.
3.1 Subd. 8. Powers; duties; Minnesota Sports Facilities Authority, budget
3.2oversight. The commission must monitor, review, and make recommendations to the
3.3authority and to the legislature for the following calendar year on:
3.4(1) any proposed increases in the rate or dollar amount of tax;
3.5(2) any proposed increases in the debt of the authority;
3.6(3) the overall work and role of the authority;
3.7(4) the authority's proposed operating and capital budgets;
3.8(5) the authority's implementation of the operating and capital budgets; and
3.9(6) any other topics as deemed necessary by the commission to fulfill the purpose
3.10described in subdivision 1.
3.11 Subd. 9. Report. The commission shall report on January 15 of the even-numbered
3.12year on the effectiveness and future prospects of the commission.
Sec. 2. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read:
Subd. 6. Financial audits.
The legislative auditor shall audit the financial
statements of the state of Minnesota required by section
and, as resources permit,
shall audit Minnesota State Colleges and Universities, the University of Minnesota,
state agencies, departments, boards, commissions, courts, and other state organizations
subject to audit by the legislative auditor, including the State Agricultural Society,
Agricultural Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota
Historical Society, Labor Interpretive Center, Minnesota Partnership for Action Against
Tobacco, Metropolitan Sports Facilities Commission, Minnesota Sports Facilities
Metropolitan Airports Commission, and Metropolitan Mosquito Control
District. Financial audits must be conducted according to generally accepted government
auditing standards. The legislative auditor shall see that all provisions of law respecting
the appropriate and economic use of public funds are complied with and may, as part of a
financial audit or separately, investigate allegations of noncompliance.
Sec. 3. Minnesota Statutes 2010, section 3.9741, is amended by adding a subdivision
3.29 Subd. 4. Minnesota Sports Facilities Authority. Upon the audit of the financial
3.30accounts and affairs of the Minnesota Sports Facilities Authority, the authority is liable
3.31to the state for the total cost and expenses of the audit, including the salaries paid to the
3.32examiners while actually engaged in making the examination. The legislative auditor may
3.33bill the authority either monthly or at the completion of the audit. All collections received
3.34for the audits must be deposited in the general fund.
Sec. 4. Minnesota Statutes 2011 Supplement, section 10A.01, subdivision 35, is
amended to read:
Subd. 35. Public official.
"Public official" means any:
(1) member of the legislature;
(2) individual employed by the legislature as secretary of the senate, legislative
auditor, chief clerk of the house of representatives, revisor of statutes, or researcher,
legislative analyst, or attorney in the Office of Senate Counsel and Research or House
(3) constitutional officer in the executive branch and the officer's chief administrative
(4) solicitor general or deputy, assistant, or special assistant attorney general;
(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section
, or the state chief information
(6) member, chief administrative officer, or deputy chief administrative officer of a
state board or commission that has either the power to adopt, amend, or repeal rules under
chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
(7) individual employed in the executive branch who is authorized to adopt, amend,
or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
(8) executive director of the State Board of Investment;
(9) deputy of any official listed in clauses (7) and (8);
(10) judge of the Workers' Compensation Court of Appeals;
(11) administrative law judge or compensation judge in the State Office of
Administrative Hearings or unemployment law judge in the Department of Employment
and Economic Development;
(12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;
(13) member or chief administrator of a metropolitan agency;
(14) director of the Division of Alcohol and Gambling Enforcement in the
Department of Public Safety;
(15) member or executive director of the Higher Education Facilities Authority;
(16) member of the board of directors or president of Enterprise Minnesota, Inc.;
(17) member of the board of directors or executive director of the Minnesota State
High School League;
(18) member of the Minnesota Ballpark Authority established in section
(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
(20) manager of a watershed district, or member of a watershed management
organization as defined under section
103B.205, subdivision 13
(21) supervisor of a soil and water conservation district;
(22) director of Explore Minnesota Tourism;
(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in
citizen member of the Clean Water Council established in section
5.8(25) member or chief executive of the Minnesota Sports Facilities Authority
5.9established in section 473J.07.
Sec. 5. [16A.726] SPORTS FACILITIES TRANSFERS; APPROPRIATIONS.
5.11 (a) If state appropriation bonds have not been issued under section 16A.965, amounts
5.12not to exceed the increased revenues estimated by the commissioner of management and
5.13budget under section 297E.021, subdivision 2, are appropriated from the general fund to
5.14the commissioner of management and budget to make transfers to the Minnesota Sports
5.15Facilities Authority for stadium costs as defined under section 473J.03, subdivision 8.
5.16 (b) The commissioner shall make transfers to the Minnesota Sports Facilities
5.17Authority required to make the state payments under section 473J.13, subdivisions 2 and
5.184, and for the amount of Minneapolis taxes withheld under section 297A.994, subdivision
5.194, paragraph (a), clause (5). Amounts sufficient to make the transfers are appropriated to
5.20the commissioner from the general fund.
5.21(c) $2,700,000 is annually appropriated from the general fund from fiscal year 2014
5.22through fiscal year 2033 to the commissioner of management and budget for a grant to the
5.23city of St. Paul for the operating or capital costs of new or existing sports facilities.
Sec. 6. Minnesota Statutes 2010, section 297A.71, is amended by adding a subdivision
5.26 Subd. 43. Building materials; football stadium. Materials and supplies used or
5.27consumed in, and equipment incorporated into, the construction or improvement of the
5.28football stadium and stadium infrastructure as defined in section 473J.03, subdivisions 8
5.29and 10, are exempt. This subdivision expires one year after the date that the first National
5.30Football League game is played in the stadium for materials, supplies, and equipment
5.31used in the construction and equipping of the stadium, and five years after the issuance
5.32of the first bonds under section 16A.965 for materials, supplies, and equipment used in
5.33the public infrastructure.
5.34EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 7. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 1, is
amended to read:
Subdivision 1. Cities.
(a) A city may issue an on-sale intoxicating liquor license to
the following establishments located within its jurisdiction:
(3) bowling centers;
(4) clubs or congressionally chartered veterans organizations with the approval of
the commissioner, provided that the organization has been in existence for at least three
years and liquor sales will only be to members and bona fide guests, except that a club
may permit the general public to participate in a wine tasting conducted at the club under
6.13(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by
6.14the Minnesota Sports Facilities Authority;
sports facilities located on land owned by the Metropolitan Sports
exclusive liquor stores.
(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license,
or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local
ordinance, or charter provision. A license issued under this paragraph authorizes sales on
all days of the week to persons attending events at the theater.
(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license,
or an on-sale malt liquor license to a convention center within the city, notwithstanding
any law, local ordinance, or charter provision. A license issued under this paragraph
authorizes sales on all days of the week to persons attending events at the convention
center. This paragraph does not apply to convention centers located in the seven-county
(d) A city may issue an on-sale wine license and an on-sale malt liquor license to
a person who is the owner of a summer collegiate league baseball team, or to a person
holding a concessions or management contract with the owner, for beverage sales at a
ballpark or stadium located within the city for the purposes of summer collegiate league
baseball games at the ballpark or stadium, notwithstanding any law, local ordinance, or
charter provision. A license issued under this paragraph authorizes sales on all days of the
week to persons attending baseball games at the ballpark or stadium.
Sec. 8. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read:
Subd. 2a. Included employees.
(a) "State employee" includes:
(1) employees of the Minnesota Historical Society;
(2) employees of the State Horticultural Society;
(3) employees of the Minnesota Crop Improvement Association;
(4) employees of the adjutant general whose salaries are paid from federal funds and
who are not covered by any federal civilian employees retirement system;
(5) employees of the Minnesota State Colleges and Universities who are employed
under the university or college activities program;
(6) currently contributing employees covered by the system who are temporarily
employed by the legislature during a legislative session or any currently contributing
employee employed for any special service as defined in subdivision 2b, clause (8);
(7) employees of the legislature who are appointed without a limit on the duration
of their employment and persons employed or designated by the legislature or by a
legislative committee or commission or other competent authority to conduct a special
inquiry, investigation, examination, or installation;
(8) trainees who are employed on a full-time established training program
performing the duties of the classified position for which they will be eligible to receive
immediate appointment at the completion of the training period;
(9) employees of the Minnesota Safety Council;
(10) any employees who are on authorized leave of absence from the Transit
Operating Division of the former Metropolitan Transit Commission and who are employed
by the labor organization which is the exclusive bargaining agent representing employees
of the Transit Operating Division;
(11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
Control Commission unless excluded under subdivision 2b or are covered by another
public pension fund or plan under section
473.415, subdivision 3
(12) judges of the Tax Court;
(13) personnel who were employed on June 30, 1992, by the University of
Minnesota in the management, operation, or maintenance of its heating plant facilities,
whose employment transfers to an employer assuming operation of the heating plant
facilities, so long as the person is employed at the University of Minnesota heating plant
by that employer or by its successor organization;
(14) personnel who are employed as seasonal employees in the classified or
(15) persons who are employed by the Department of Commerce as a peace officer
in the Insurance Fraud Prevention Division under section
who have attained the
mandatory retirement age specified in section
43A.34, subdivision 4
(16) employees of the University of Minnesota unless excluded under subdivision
2b, clause (3);
(17) employees of the Middle Management Association whose employment began
after July 1, 2007, and to whom section
does not apply;
(18) employees of the Minnesota Government Engineers Council to whom section
does not apply
8.10(19) employees of the Minnesota Sports Facilities Authority.
(b) Employees specified in paragraph (a), clause (13), are included employees under
paragraph (a) if employer and employee contributions are made in a timely manner in the
amounts required by section
. Employee contributions must be deducted from
salary. Employer contributions are the sole obligation of the employer assuming operation
of the University of Minnesota heating plant facilities or any successor organizations to
Sec. 9. [473J.01] PURPOSE.
8.18The purpose of this chapter is to provide for the construction, financing, and
8.19long-term use of a stadium and related stadium infrastructure as a venue for professional
8.20football and a broad range of other civic, community, athletic, educational, cultural,
8.21and commercial activities. The legislature finds and declares that the expenditure of
8.22public money for this purpose is necessary and serves a public purpose, and that property
8.23acquired by the Minnesota Sports Facilities Authority for the construction of the stadium
8.24and related stadium infrastructure is acquired for a public use or public purpose under
8.25chapter 117. The legislature further finds and declares that any provision in a lease or use
8.26agreement with a professional football team that requires the team to play all of its home
8.27games in a publicly funded stadium for the duration of the lease or use agreement, serves
8.28a unique public purpose for which the remedies of specific performance and injunctive
8.29relief are essential to its enforcement. The legislature further finds and declares that
8.30government assistance to facilitate the presence of professional football provides to the
8.31state of Minnesota and its citizens highly valued intangible benefits that are virtually
8.32impossible to quantify and, therefore, not recoverable even if the government receives
8.33monetary damages in the event of a team's breach of contract. Minnesota courts are,
8.34therefore, charged with protecting those benefits through the use of specific performance
8.35and injunctive relief as provided in this chapter and in the lease and use agreements.
Sec. 10. [473J.03] DEFINITIONS.
9.2 Subdivision 1. Application. For the purposes of this chapter, the terms defined in
9.3this section have the meanings given them, except as otherwise expressly provided or
9.4indicated by the context.
9.5 Subd. 2. Annual adjustment factor. "Annual adjustment factor" means for any
9.6year, the increase, if any, in the amounts of the city of Minneapolis taxes, imposed under a
9.7special law originally enacted in 1986, that are received by the commissioner of revenue
9.8in the preceding year over the amount received in the year prior to the preceding year,
9.9expressed as a percentage of the amount received in the year prior to the preceding year;
9.10provided that the adjustment factor for any year must not be less than zero percent nor
9.11more than five percent.
9.12 Subd. 3. Authority. "Authority" means the Minnesota Sports Facilities Authority
9.13established under section 473J.07.
9.14 Subd. 4. City. "City" means the city of Minneapolis.
9.15 Subd. 5. Net actual taxes. "Net actual taxes" means the amount of revenues
9.16collected from the taxes in that year minus any refunds and costs of collection.
9.17 Subd. 6. NFL. The "NFL" means the National Football League.
9.18 Subd. 7. NFL team. "NFL team" means the owner and operator of the NFL
9.19professional football team known, as of the effective date of this chapter, as the Minnesota
9.20Vikings or any team owned and operated by someone who purchases or otherwise takes
9.21ownership or control of or reconstitutes the NFL team known as the Minnesota Vikings.
9.22 Subd. 8. Stadium. "Stadium" means the stadium suitable for professional football
9.23to be designed, constructed, and financed under this chapter. A stadium must have a roof
9.24that covers the stadium, as set forth in section 473J.11, subdivision 3.
9.25 Subd. 9. Stadium costs. "Stadium costs" means the costs of acquiring land, the
9.26costs of stadium infrastructure, and of designing, constructing, equipping, and financing a
9.27stadium suitable for professional football.
9.28 Subd. 10. Stadium infrastructure. "Stadium infrastructure" means plazas, parking
9.29structures, rights of way, connectors, skyways and tunnels, and other such property,
9.30facilities, and improvements, owned by the authority or determined by the authority to
9.31facilitate the use and development of the stadium.
9.32 Subd. 11. Stadium plaza. "Stadium plaza" means the open air portion of the
9.33stadium adjacent to the stadium.
9.34 Subd. 12. Stadium site. "Stadium site" means all or portions of the current site of
9.35the existing football stadium and adjacent areas, bounded generally by Park and Eleventh
10.1Avenues and Third and Sixth Streets in the city of Minneapolis, the definitive boundaries
10.2of which shall be determined by the authority and agreed to by the NFL team.
Sec. 11. [473J.07] MINNESOTA SPORTS FACILITIES AUTHORITY.
10.4 Subdivision 1. Established. The Minnesota Sports Facilities Authority is
10.5established as a public body, corporate and politic, and political subdivision of the state.
10.6The authority is not a joint powers entity or an agency or instrumentality of the city.
10.7 Subd. 2. Membership. (a) The authority shall consist of five members.
10.8(b) The chair and two members shall be appointed by the governor. One member
10.9appointed by the governor shall serve until December 31 of the third year following
10.10appointment and one member shall serve until December 31 of the fourth year following
10.11appointment. Thereafter, members appointed by the governor shall serve four-year terms,
10.12beginning January 1. Each member serves until a successor is appointed and takes office.
10.13The chair serves at the pleasure of the governor.
10.14(c) The mayor of the city shall appoint two members to the authority. One member
10.15appointed by the mayor of the city shall serve until December 31 of the third year
10.16following appointment and one member shall serve until December 31 of the fourth year
10.17following appointment. Thereafter, members appointed under this paragraph shall serve
10.18four-year terms beginning January 1. Each member serves until a successor is appointed
10.19and takes office. Members appointed under this paragraph may reside within the city and
10.20may be appointed officials of a political subdivision.
10.21(d) The initial members of the authority must be appointed not later than 30 days
10.22after the date of enactment of this chapter.
10.23 Subd. 3. Compensation. The authority may compensate its members, other than the
10.24chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided
10.25by other law, a salary in an amount fixed by the authority, and shall be reimbursed for
10.26reasonable expenses to the same extent as a member.
10.27 Subd. 4. Chair. The chair presides at all meetings of the authority, if present, and
10.28performs all other assigned duties and functions. The authority may appoint from among
10.29its members a vice-chair to act for the chair during the temporary absence or disability of
10.30the chair, and any other officers the authority determines are necessary or convenient.
10.31 Subd. 5. Removal. A member, other than the chair, may be removed by the
10.32appointing authority only for misfeasance, malfeasance, or nonfeasance in office, upon
10.33written charges, and after an opportunity to be heard in defense of the charges.
10.34 Subd. 6. Bylaws. The authority shall adopt bylaws to establish rules of procedure,
10.35the powers and duties of its officers, and other matters relating to the governance of the
11.1authority and the exercise of its powers. Except as provided in this section, the bylaws
11.2adopted under this subdivision must be similar in form and substance to bylaws adopted
11.3by the Minnesota Ballpark Authority pursuant to section 473.755.
11.4 Subd. 7. Audit. The legislative auditor shall audit the books and accounts of the
11.5authority once each year or as often as the legislative auditor's funds and personnel permit.
11.6The authority shall pay the total cost of the audit pursuant to section 3.9741.
11.7 Subd. 8. Executive director; employees. The authority may appoint an executive
11.8director to serve as the chief executive officer of the authority. The executive director
11.9serves at the pleasure of the authority and receives compensation as determined by the
11.10authority. The executive director may be responsible for the operation, management, and
11.11promotion of activities of the authority, as prescribed by the authority. The executive
11.12director has the powers necessarily incident to the performance of duties required and
11.13powers granted by the authority, but does not have authority to incur liability or make
11.14expenditures on behalf of the authority without general or specific directions by the
11.15authority, as shown by the bylaws or minutes of a meeting of the authority. The executive
11.16director is responsible for hiring, supervision, and dismissal of all other employees of
11.18 Subd. 9. Web site. The authority shall establish a Web site for purposes of providing
11.19information to the public concerning all actions taken by the authority. At a minimum, the
11.20Web site must contain a current version of the authority's bylaws, notices of upcoming
11.21meetings, minutes of the authority's meetings, and contact telephone, electronic mail, and
11.22facsimile numbers for public comments.
11.23 Subd. 10. Quorum; approvals. Any three members shall constitute a quorum for
11.24the conduct of business and action may be taken upon the vote of a majority of members
11.25present at a meeting duly called and held. During the design and construction stages of the
11.26stadium, a four-fifths vote of the authority is required for authority decisions related to
11.27zoning, land use, exterior design of the stadium, related parking, the plaza area, and the
11.28selection of the authority's lead representative during design and construction.
Sec. 12. [473J.075] SPORTS FACILITIES OF THE AUTHORITY.
11.30 Subdivision 1. General. This section describes the sports facilities that the
11.31Minnesota Sports Facilities Authority controls, operates, and has responsibility over
11.32pursuant to this chapter and as directed by law.
11.33 Subd. 2. Sports facilities. (a) The following sports facilities are part of the
11.34Minnesota Sports Facilities Authority:
11.35(1) the professional football stadium constructed under this chapter; and
12.1(2) any other sports facility constructed or acquired by the authority.
12.2(b) The Target Center in Minneapolis, Xcel Energy Center in St. Paul, and Target
12.3Field in Minneapolis may join the facilities of the authority upon satisfaction of the
12.4following factors and upon the approval of the authority:
12.5(1) the governing body of the facility must make the request to the authority to
12.6become a sports facility under this section;
12.7(2) the governing body and the authority must negotiate an agreement with respect to
12.8the transfer of all obligations and responsibilities, including, but not limited to, outstanding
12.9debt, revenue sources, finance, funding, operations, equipment, repair and replacements,
12.10capital improvements, reserves, contracts, and agreements;
12.11(3) the governing body and the professional sports team who is the primary user of
12.12the facility must make a joint recommendation to the authority;
12.13(4) the authority must find that the inclusion of a facility under the authority will not
12.14have a negative impact on the authority, the general fund, or become an obligation of the
12.15state of Minnesota; and
12.16(5) any other information or requirements requested by the authority.
Sec. 13. [473J.09] POWERS, DUTIES OF THE AUTHORITY.
12.18 Subdivision 1. Actions. The authority may sue and be sued. The authority is a public
12.19body and the stadium and stadium infrastructure are public improvements within the
12.20meaning of chapter 562. The authority is a municipality within the meaning of chapter 466.
12.21 Subd. 2. Acquisition of property. The authority may acquire from any public or
12.22private entity by lease, purchase, gift, or devise all necessary right, title, and interest in
12.23and to real property, air rights, and personal property deemed necessary to the purposes
12.24contemplated by this chapter. The authority may acquire, by the exercise of condemnation
12.25powers under chapter 117, land, other real property, air rights, personal property, and other
12.26right, title, and interest in property, within the stadium site and stadium infrastructure.
12.27 Subd. 3. Disposition of property. The authority may sell, lease, or otherwise
12.28dispose of any real or personal property acquired by the authority that is no longer required
12.29for accomplishment of the authority's purposes. The property may be sold in accordance
12.30with the procedures provided by section 469.065, except subdivisions 6 and 7, to the
12.31extent the authority deems it to be practical and consistent with this chapter. Title to the
12.32stadium must not be transferred or sold by the authority prior to the effective date of
12.33enactment of any legislation approving such transfer or sale.
12.34 Subd. 4. Data practices; open meetings. Except as otherwise provided in this
12.35chapter, the authority is subject to chapters 13 and 13D.
13.1 Subd. 5. Facility operation. The authority may develop, construct, equip, improve,
13.2own, operate, manage, maintain, finance, and control the stadium, stadium infrastructure,
13.3and related facilities constructed or acquired under this chapter, or may delegate such
13.4duties through an agreement, subject to the rights and obligations transferred to and
13.5assumed by the authority, the NFL team, other user, third-party manager, or program
13.6manager, under the terms of a lease, use agreement, or development agreement.
13.7 Subd. 6. Employees; contracts for services. The authority may employ persons
13.8and contract for services necessary to carry out its functions, including the utilization of
13.9employees and consultants retained by other governmental entities. The authority shall
13.10enter into an agreement with the city regarding traffic control for the stadium.
13.11 Subd. 7. Gifts, grants, loans. The authority may accept monetary contributions,
13.12property, services, and grants or loans of money or other property from the United States,
13.13the state, any subdivision of the state, any agency of those entities, or any person for any
13.14of its purposes, and may enter into any agreement required in connection with the gifts,
13.15grants, or loans. The authority shall hold, use, and dispose of the money, property, or
13.16services according to the terms of the monetary contributions, grant, loan, or agreement.
13.17 Subd. 8. Use agreements. The authority may lease, license, or enter into use
13.18agreements and may fix, alter, charge, and collect rents, fees, and charges for the use,
13.19occupation, and availability of part or all of any premises, property, or facilities under
13.20its ownership, operation, or control for purposes that will provide athletic, educational,
13.21cultural, commercial, or other entertainment, instruction, or activity for the citizens of
13.22Minnesota and visitors. The use agreements may provide that the other contracting party
13.23has exclusive use of the premises at the times agreed upon, as well as the right to retain
13.24some or all revenues from ticket sales, suite licenses, concessions, advertising, naming
13.25rights, NFL team designated broadcast/media, club seats, signage, and other revenues
13.26derived from the stadium. The lease or use agreement with an NFL team must provide for
13.27the payment by the NFL team of an agreed-upon portion of operating and maintenance
13.28costs and expenses and provide other terms in which the authority and NFL team agree. In
13.29no case may a lease or use agreement permit smoking in the stadium.
13.30 Subd. 9. Research. The authority may conduct research studies and programs;
13.31collect and analyze data; prepare reports, maps, charts, and tables; and conduct all
13.32necessary hearings and investigations in connection with its functions.
13.33 Subd. 10. Insurance. The authority may require any employee to obtain and file
13.34with the authority an individual bond or fidelity insurance policy. The authority may
13.35procure insurance in the amounts the authority considers necessary against liability of the
13.36authority or its officers and employees for personal injury or death and property damage or
14.1destruction, consistent with chapter 466, and against risks of damage to or destruction of
14.2any of its facilities, equipment, or other property.
14.3 Subd. 11. Exemption from Metropolitan Council review; Business Subsidy Act.
14.4The acquisition and betterment of a stadium and stadium infrastructure by the authority
14.5must be conducted pursuant to this chapter and are not subject to sections 473.165 and
14.6473.173. Section 116J.994 does not apply to any transactions of the authority or other
14.7governmental entity related to the stadium or stadium infrastructure or to any tenant or
14.8other users of the stadium or stadium infrastructure.
14.9 Subd. 12. Incidental powers. In addition to the powers expressly granted in this
14.10chapter, the authority has all powers necessary or incidental thereto.
14.11 Subd. 13. Legislative report. The authority must report to the chairs and ranking
14.12minority members of the legislative committees with jurisdiction over state government
14.13finance by January 15 of each year on the following:
14.14(a) any recommended increases in the rate or dollar amount of tax;
14.15(b) any recommended increases in the debt of the authority;
14.16(c) the overall work and role of the authority;
14.17(d) the authority's proposed operating and capital budgets; and
14.18(e) the authority's implementation of the operating and capital budgets.
14.19 Subd. 14. Study; raffle. The authority shall study the feasibility of conducting a
14.20raffle for chances to win a pair or other limited numbers of prime seats (such as lower
14.21deck, 50 yard line seats) in the stadium for professional football games for the duration of
14.22the lease or use agreement. In conducting the study, the authority must consult with the
14.23NFL team. If the authority determines that conducting the raffle is financially feasible,
14.24the authority in cooperation with the director of the Gambling Control Board shall
14.25conduct the raffle. The proceeds of the raffle must be transmitted to the commissioner
14.26of revenue for deposit in the general fund and are appropriated to the commissioner of
14.27management and budget for prepayment of principal and interest on appropriation bonds
14.28under section 16A.965.
Sec. 14. [473J.10] LOCATION.
14.30The stadium to be constructed under this chapter shall be located at the stadium
14.31site in the city of Minneapolis.
Sec. 15. [473J.11] STADIUM DESIGN AND CONSTRUCTION.
14.33 Subdivision 1. Contracts. (a) The design, development, and construction of the
14.34stadium shall be a collaborative process between the authority and the NFL team. The
15.1authority and the NFL team shall establish a process to reach consensus on key elements
15.2of the stadium program and design, development, and construction.
15.3(b) Unless the authority and the NFL team agree otherwise:
15.4(1) the authority shall create a stadium design and construction group, including
15.5representatives of the authority and the NFL team, to manage the design of the stadium
15.6and oversee construction;
15.7(2) this group shall engage an owner's representative to act on behalf of the group.
15.8The cost of the owner's representative shall be a stadium cost; and
15.9(3) the authority and the NFL team shall enter into a development administration
15.10agreement providing for rights and responsibilities of the authority and the NFL team, the
15.11design and construction group, and the owner's representative for design and construction
15.12of the stadium, including, but not limited to, establishment of minimum design standards.
15.13This development administration agreement shall provide for binding arbitration in
15.14the event that the authority and the NFL team are unable to agree on minimum design
15.15standards or other material aspects of the design.
15.16(c) The authority may enter into an agreement with the NFL team and any other
15.17entity relating to the design, construction, financing, operation, maintenance, and use of
15.18the stadium and related facilities and stadium infrastructure. The authority may contract
15.19for materials, supplies, and equipment in accordance with section 471.345, except that
15.20the authority may employ or contract with persons, firms, or corporations to perform one
15.21or more or all of the functions of architect, engineer, construction manager, or program
15.22manager with respect to all or any part of the design, construction, financing, operation,
15.23maintenance, and use of the stadium and stadium infrastructure under the traditional
15.24separate design and build, integrated design-build, construction manager at risk, or
15.25public/private partnership (P3) structures, or a combination thereof.
15.26To the extent practicable, the agreement must provide that at least 25 percent of the
15.27materials, supplies, and equipment used in the construction, operation, maintenance, and
15.28use of the stadium and related facilities and stadium infrastructure, other than the material
15.29subject to section 473J.15, subdivision 11, paragraph (c), must be made or produced
15.30by Minnesota businesses.
15.31(d) The authority and the NFL team shall prepare a request for proposals for one or
15.32more of the functions described in paragraph (c). The request must be published in the
15.33State Register and shall include, at a minimum, such requirements that are agreed to by
15.34the authority and the NFL team. The authority and the NFL team may prequalify offerors
15.35by issuing a request for qualifications, in advance of the request for proposals, and select a
15.36short list of responsible offerors prior to discussions and evaluations.
16.1(e) As provided in the request for proposals, the authority, and the NFL team, may
16.2conduct discussions and negotiations with responsible offerors in order to determine
16.3which proposal is most advantageous to the authority and the NFL team and to negotiate
16.4the terms of an agreement. In conducting discussions, there shall be no disclosure of any
16.5information derived from proposals submitted by competing offerors and the content of all
16.6proposals is nonpublic data under chapter 13 until such time as a notice to award a contract
16.7is given by the authority. The agreement shall be subject to the approval of the NFL team.
16.8(f) Prior to the time the authority enters into a construction contract with a
16.9construction manager or program manager certifying a maximum price and a completion
16.10date as provided in paragraph (h), at the request of the NFL team, the authority may
16.11authorize, such authorization not to be unreasonably withheld or delayed, the NFL team
16.12to provide for management of the construction of the stadium and related stadium
16.13infrastructure, in which event the NFL team must assume the role and responsibilities
16.14of the authority for completion of construction in a manner consistent with the agreed
16.15minimum design standards and design documents, subject to the terms of this act,
16.16including responsibility for cost overruns.
16.17(g) For each contract for supplies, materials, labor, equipment, or services for
16.18the construction of the stadium or infrastructure, the construction manager or program
16.19manager shall require: (1) that the contract specify a guaranteed maximum price; and (2)
16.20if the amount charged under the contract is less than the guaranteed maximum price, the
16.21authority shall pay as follows: (i) half of the difference to the contract holder; and (ii) half
16.22of the difference to the state for transfer to the authority for capital reserves.
16.23(h) The construction manager or program manager may enter into contracts with
16.24contractors for labor, materials, supplies, and equipment for the construction of the
16.25stadium and related stadium infrastructure through the process of public bidding, except
16.26that the construction manager or program manager may, with the consent of the authority
16.27or the NFL team if the NFL team has assumed responsibility for construction:
16.28(1) narrow the listing of eligible bidders to those which the construction manager
16.29or program manager determines to possess sufficient expertise to perform the intended
16.31(2) award contracts to the contractors that the construction manager or program
16.32manager determines provide the best value under a request for proposals as described in
16.33section 16C.28, subdivision 1, paragraphs (a), clause (2), and (c), which are not required
16.34to be the lowest responsible bidder; and
16.35(3) for work the construction manager or program manager determines to be critical
16.36to the completion schedule, award contracts on the basis of competitive proposals, or
17.1perform work with its own forces without soliciting competitive bids if the construction
17.2manager or program manager provides evidence of competitive pricing.
17.3(i) The authority and the NFL team shall require that the construction manager
17.4or program manager certify, before the contract is signed, a guaranteed maximum
17.5construction price and completion date to the authority and post a performance bond in an
17.6amount at least equal to 100 percent of the certified price or such other security satisfactory
17.7to the authority, to cover any costs which may be incurred in excess of the certified price
17.8including, but not limited to, costs incurred by the authority or loss of revenues resulting
17.9from incomplete construction on the completion date. The authority may secure surety
17.10bonds as provided in section 574.26, securing payment of just claims in connection with
17.11all public work undertaken by the authority. Persons entitled to the protection of the
17.12bonds may enforce them as provided in sections 574.28 to 574.32 and are not entitled to a
17.13lien on any property of the authority under the provisions of sections 514.01 to 514.16.
17.14The construction of the stadium is a project as that term is defined in section 177.42,
17.15subdivision 2, and is subject to the prevailing wage law under sections 177.41 to 177.43.
17.16The authority's contract with the construction manager or program manager shall provide
17.17that if the construction manager's or program manager's fees charged under the contract
17.18are less than the guaranteed maximum price, the authority shall pay: (1) half of the
17.19difference to the contract holder; and (2) half of the difference to the state for transfer to
17.20the authority for capital reserves. Costs or fees above the agreed guaranteed maximum
17.21price shall be the responsibility of the construction manager or program manager.
17.22 Subd. 2. Changes. Unless otherwise agreed to by the authority and the NFL team,
17.23if either party requests an agreed upon change in minimum design standards, and this
17.24change is responsible for requiring the project to exceed the stated budget, the requesting
17.25party is liable for any cost overruns or associated liabilities.
17.26 Subd. 3. Stadium design. The stadium and stadium infrastructure shall be designed
17.27and constructed incorporating the following general program and design elements:
17.28(1) unless otherwise agreed to by the authority and the NFL team, the stadium
17.29shall comprise approximately 1,500,000 square feet with approximately 65,000 seats,
17.30expandable to 72,000, shall meet or exceed NFL program requirements, and include
17.31approximately 150 suites and approximately 7,500 club seats or other such components as
17.32agreed to by the authority and the NFL team;
17.33(2) space for NFL team-related exhibitions and sales, which shall include the
17.34following: NFL team museum and Hall of Fame, retail merchandise and gift shop retail
17.35venues, and themed concessions and restaurants;
18.1(3) year-round space for the NFL team administrative operations, sales, and
18.2marketing, including a ticket office, team meeting space, locker, and training rooms;
18.3(4) space for administrative offices of the authority;
18.4(5) 2,000 parking spaces within one block of the stadium, connected by skyway or
18.5tunnel to the stadium, and 500 parking spaces within two blocks of the stadium, with a
18.6dedicated walkway on game days;
18.7(6) elements sufficient to provide community and civic uses as determined by the
18.9(7) a roof that is fixed or retractable, provided that if the roof is retractable, it is
18.10accomplished without any increase to the funding provided by the state or the city.
18.11 Subd. 4. Cost overruns, savings. (a) Within the limits of paragraph (b), the
18.12authority may accept financial obligations relating to cost overruns associated with
18.13acquisition of the stadium site, stadium infrastructure, and stadium design, development,
18.14and construction, provided that the authority shall bid project construction in a manner
18.15that any cost overruns are the responsibility of the successful bidder and not the authority
18.16or the state. The authority shall not accept responsibility for cost overruns and shall not
18.17be responsible for cost overruns if the authority has authorized the NFL team to provide
18.18for management of construction of the stadium under subdivision 1. Cost savings or
18.19additional funds obtained by the authority or the NFL team for the stadium or stadium
18.20infrastructure may be used first to fund additional stadium or stadium infrastructure, as
18.21agreed to by the authority and the NFL team, if any, and then to fund capital reserves.
18.22 (b) The state share of stadium costs shall be limited to $348,000,000 for construction
18.23of a new stadium, as permitted under section 16A.726. The city of Minneapolis share shall
18.24be limited to no more than a $150,000,000 contribution for construction, and the annual
18.25operating cost and capital contributions contained under section 473J.13.
Sec. 16. [473J.112] COMMEMORATIVE BRICKS.
18.27The authority shall sell commemorative bricks to be displayed at a prominent
18.28location in the new stadium, for an amount to be determined by the authority. Funds raised
18.29through this section shall be appropriated to the commissioner of management and budget
18.30for transfer to the Minnesota Sports Facilities Authority.
18.31EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 17. [473J.12] EMPLOYMENT.
18.33 Subdivision 1. Hiring and recruitment. In the design, development, construction,
18.34management, operation, maintenance and capital repair, replacement and improvement of
19.1the stadium and stadium infrastructure, the authority shall make every effort to employ,
19.2and cause the NFL team, the construction manager and other subcontractors, vendors, and
19.3concessionaires to employ women and members of minority communities when hiring.
19.4In addition, the authority shall contract with an employment assistance firm, preferably
19.5minority-owned, or owned by a disabled individual or a woman, to create an employment
19.6program to recruit, hire, and retain minorities for the stadium facility. The authority
19.7shall hold a job fair and recruit and advertise at Minneapolis Urban League, Sabathani,
19.8American Indian OIC, Youthbuild organizations, and other such organizations. Further,
19.9goals for construction contracts to be awarded to women- and minority-owned businesses
19.10will be in a percentage at least equal to the minimum used for city of Minneapolis
19.11development projects, and the other construction workforce will establish workforce
19.12utilization goals at least equal to current city goals and include workers from city zip
19.13codes that have high rates of poverty and unemployment.
19.14 Subd. 2. Other required agreements. The NFL team or the authority shall give
19.15food, beverage, retail, and concession workers presently employed by the NFL team or
19.16the Metropolitan Sports Facilities Commission or its vendors at the existing football
19.17stadium the opportunity to continue their employment in comparable positions at the new
19.18stadium. Workers who are presently represented under a collective bargaining agreement
19.19may seek to continue such representation in the facility and designate such, or another
19.20collective bargaining unit, as their representative.
Sec. 18. [473J.13] STADIUM OPERATIONS; CAPITAL IMPROVEMENTS.
19.22 Subdivision 1. Stadium operation. The stadium shall be operated in a first-class
19.23manner, similar to and consistent with other comparable NFL stadiums. The authority
19.24and the team will mutually agree on a third-party management company or individual to
19.25manage the stadium and on certain major vendors to the stadium. The authority, with the
19.26approval of the NFL team, may enter into an agreement with a program manager for
19.27management of the stadium, for a maximum of 30 years.
19.28 Subd. 2. Operating expenses. (a) The authority must pay or cause to be paid
19.29all operating expenses of the stadium. The authority must require in the lease or use
19.30agreement with the NFL team that the NFL team pay the authority, beginning January 1,
19.312016, or other date as mutually agreed upon by the parties, toward operating costs of the
19.32stadium, $8,500,000 each year, increased by a three percent annual inflation rate.
19.33(b) Beginning January 1, 2016, or other date as mutually agreed upon by the
19.34parties, and continuing through 2020, the state shall pay the authority operating expenses,
19.35$6,000,000 each year, increased by an annual adjustment factor. The payment of
20.1$6,000,000 per year beginning in 2016 is a payment by the state, which shall be repaid to
20.2the state, using funds as provided under section 297A.994, subdivision 4, clause (4). After
20.32020, the state shall assume this payment, using funds generated in accordance with the
20.4city of Minneapolis as specified under section 297A.994, subdivision 4, clause (3).
20.5(c) The authority may establish an operating reserve to cover operating expense
20.6shortfalls and may accept funds from any source for deposit in the operating reserve. The
20.7establishment or funding of an authority operating reserve must not decrease the amounts
20.8required to be paid to the authority toward operating costs under this subdivision unless
20.9agreed to by the authority.
20.10(d) The authority will be responsible for operating cost overruns.
20.11(e) After the joint selection of the third-party manager or program manager, the
20.12authority may agree with a program manager or other third-party manager of the stadium
20.13on a fixed cost operating, management, or employment agreement with operating
20.14cost protections under which the program manager or third-party manager assumes
20.15responsibility for stadium operating costs and shortfalls. The agreement with the manager
20.16must require the manager to prepare an initial and ongoing operating plan and operating
20.17budgets for approval by the authority in consultation with the NFL team. The manager
20.18must agree to operate the stadium in accordance with the approved operating plan and
20.20 Subd. 3. Public access. The authority will work to maximize access for public and
20.21amateur sports, community, and civic events, and other public events in type and on terms
20.22consistent with those currently held at the existing football stadium, as defined in section
20.23473.551, subdivision 9. The authority may provide that these events have exclusive use
20.24of the premises at agreed-upon times subject to the scheduling rights of the NFL team
20.25under the lease or use agreement.
20.26 Subd. 4. Capital improvements. (a) The authority shall establish a capital
20.27reserve fund. The authority shall be responsible for making, or for causing others to
20.28make, all capital repairs, replacements, and improvements for the stadium and stadium
20.29infrastructure. The authority shall maintain, or cause others to maintain, the stadium and
20.30stadium infrastructure in a safe, clean, attractive, and first-class manner so as to cause
20.31them to remain in a condition comparable to that of other comparable NFL facilities of
20.32similar design and age. The authority shall make, or cause others to make, all necessary
20.33or appropriate repairs, renewals, and replacements, whether structural or nonstructural,
20.34interior or exterior, ordinary or extraordinary, foreseen or unforeseen, in a prompt and
20.35timely manner. In addition, the authority, with approval of the NFL team, may enter into
20.36an agreement with a program manager to perform some or all of the responsibilities of the
21.1authority in this subdivision and to assume and accept financial liability for the cost of
21.2performing the responsibilities.
21.3(b) The NFL team must contribute $1,500,000 each year, beginning in 2016 or as
21.4otherwise determined for the term of the lease or use agreement to the capital reserve fund,
21.5increased by a three percent annual inflation rate.
21.6(c) The state shall contribute $1,500,000 each year, beginning in 2016 or as otherwise
21.7determined for the term of the lease to the capital reserve fund. The contributions of the
21.8state are subject to increase by an annual adjustment factor. The contribution under this
21.9paragraph by the state from 2016 through 2020 shall be repaid to the state using funds in
21.10accordance with section 297A.994, subdivision 4, clause (4).
21.11(d) The authority with input from the NFL team shall develop short-term and
21.12long-term capital funding plans and shall use those plans to guide the future capital needs
21.13of the stadium and stadium infrastructure. The authority shall make the final determination
21.14with respect to funding capital needs. Any capital improvement proposed by the NFL
21.15team intended primarily to provide revenue enhancements to the NFL team shall be paid
21.16for by the NFL team, unless otherwise agreed to with the authority.
21.17(e) The NFL team has authority to determine the design of a retractable roof feature
21.18for the stadium. The NFL team must cooperate with the authority in designing the feature
21.19to minimize any additional operating cost. The design must not result in a material
21.20marginal increase in the operating or capital costs of the stadium, considering current
21.21collections and reserves.
21.22 Subd. 5. Game-day payments. In addition to operating expense contributions
21.23of the NFL team under subdivision 2, the NFL team shall pay all NFL game day, NFL
21.24team-owned major league soccer, as provided in section 473J.15, subdivision 15, and
21.25other NFL team-sponsored event expenses within the stadium and stadium plaza areas.
21.26 Subd. 6. Cooperation with financing. The authority shall cooperate with the
21.27NFL team to facilitate the financing of the NFL team's contribution. Such agreement to
21.28cooperate shall not require the authority to incur any additional costs or provide conduit
21.29financing. The lease, license, and other transaction documents shall include provisions
21.30customarily required by lenders in stadium financings.
Sec. 19. [473J.15] CRITERIA AND CONDITIONS.
21.32 Subdivision 1. Binding and enforceable. In developing the stadium and entering
21.33into related contracts, the authority must follow and enforce the criteria and conditions in
21.34this section, provided that a determination by the authority that those criteria or conditions
21.35have been met under any agreement or otherwise shall be conclusive.
22.1 Subd. 2. NFL team/private contribution; timing of expenditures. (a) The NFL
22.2team/private contribution, including stadium builder license proceeds, for stadium costs
22.3must be made in cash in the amount of at least $477,000,000.
22.4(b) Prior to the initial deposit of funds under this section, the team must provide
22.5security or other credit worthiness in the amount of $50,000,000, subject to the satisfaction
22.6of the authority. Prior to the first issuance of bonds under section 16A.965, the first portion
22.7of the NFL team/private contribution in the amount of $50,000,000 must be deposited as
22.8costs are incurred to the construction fund to pay for the initial stadium costs.
22.9(c) After the first $50,000,000 of stadium costs have been paid from the initial
22.10NFL team/private contribution, state funds shall be deposited as costs are incurred to the
22.11construction fund to pay for the next $50,000,000 of costs of the project. Prior to any state
22.12funds being deposited in the construction fund, the NFL team must provide security or a
22.13financing commitment reasonably satisfactory to the authority for the balance of the
22.14required NFL team/private contribution and for payment of cost overruns if the NFL
22.15team assumes responsibility for stadium construction under section 473J.11. Thereafter,
22.16budgeted project costs shall be borne by the authority and the NFL team/private
22.17contributions in amounts proportionate to their remaining funding commitments.
22.18(d) In the event the project terminates before the initial $100,000,000 in contributions
22.19are expended by the parties under this subdivision, the parties shall be reimbursed in the
22.20amounts they have deposited to the construction fund proportionate to project funding
22.21percentages, in the amounts of 51 percent by the authority and 49 percent by the NFL
22.23 Subd. 3. Lease or use agreements; 30-year term. The authority must enter into
22.24a long-term lease or use agreement with the NFL team for the NFL team's use of the
22.25stadium. The NFL team must agree to play all preseason, regular season, and postseason
22.26home games at the stadium. However, the team may play up to three home games outside
22.27of the United States during the first 15 years of the lease or use agreement and up to
22.28three home games outside of the United States in the next 15 years of the lease or use
22.29agreement. Training facilities must remain in Minnesota during the term of the lease or
22.30use agreement. The lease or use agreement must be for a term of at least 30 years from
22.31the date of substantial completion of the stadium for professional football games. The
22.32lease or use agreement may provide options for the NFL team to extend the term for up
22.33to four additional periods of five years. The lease or use agreement must include terms
22.34for default, termination, and breach of the agreement. Recognizing that the presence of
22.35professional football provides to the state of Minnesota and its citizens highly valued,
22.36intangible benefits that are virtually impossible to quantify and, therefore, not recoverable
23.1in the event of the NFL team owner's breach of contract, the lease and use agreements
23.2must provide for specific performance and injunctive relief to enforce provisions relating
23.3to use of the stadium for professional football and must not include escape clauses
23.4or buyout provisions. The NFL team must not enter into or accept any agreement or
23.5requirement with or from any entity that is inconsistent with the NFL team's binding
23.6commitment to the 30-year term of the lease or use agreement or that would in any manner
23.7dilute, interfere with, or negate the provisions of the lease or use agreement, providing for
23.8specific performance or injunctive relief. The legislature conclusively determines, as a
23.9matter of public policy, that the lease or use agreement, and any grant agreement under
23.10this chapter that includes a specific performance clause:
23.11(1) explicitly authorizes specific performance as a remedy for breach;
23.12(2) is made for adequate consideration and upon terms which are otherwise fair
23.14(3) has not been included through sharp practice, misrepresentation, or mistake;
23.15(4) if specifically enforced, does not cause unreasonable or disproportionate hardship
23.16or loss to the NFL team or to third parties; and
23.17(5) involves performance in a manner and the rendering of services of a nature and
23.18under circumstances that the beneficiary cannot be adequately compensated in damages.
23.19 Subd. 4. Lease or use agreements; revenues, payments. A lease or use agreement
23.20shall include rent and other fees and expenses to be paid by the NFL team. The authority
23.21shall agree to provide in the lease or use agreement for the NFL team to receive all NFL
23.22and team event related revenues, including but not limited to, suite revenues, advertising,
23.23concessions, signage, broadcast and media, and club seat revenue. The agreement shall
23.24also provide that all naming rights to the stadium are retained by the NFL team, subject to
23.25the approval of the name or names by the authority consistent with those criteria set out
23.26in the lease or use agreement. The agreement shall provide for the authority to receive
23.27all general ticket revenues and other event revenues other than from NFL team games,
23.28NFL team-owned major league soccer games, and other NFL team events agreed to by
23.30 Subd. 5. Notice of breach or default. Until 30 years from the date of stadium
23.31completion, the NFL team must provide written notice to the authority not less than 180
23.32days prior to any action, including any action imposed upon the NFL team by the NFL,
23.33which would result in a breach or default of provisions of the lease or use agreements
23.34required to be included under subdivision 3. If this notice provision is violated and the
23.35NFL team has already breached or been in default under the required provisions, the
23.36authority or the state of Minnesota may specifically enforce the lease or use agreement
24.1and Minnesota courts shall fashion equitable remedies so that the NFL team fulfills the
24.2conditions of the lease and use agreements.
24.3 Subd. 6. Enforceable financial commitments. The authority must determine before
24.4stadium construction begins that all public and private funding sources for construction,
24.5operating expenses, and capital improvements and repairs of the stadium are included in
24.6written agreements. The committed funds must be adequate to design, construct, furnish,
24.7and equip the stadium, and pay projected operating expenses and the costs of capital
24.8improvements and repairs during the term of the lease or use agreement with the NFL
24.9team. The NFL team must provide the authority access to NFL team financial or other
24.10information, which the authority deems necessary for such determination. Any financial
24.11information obtained by the authority under this subdivision is nonpublic data under
24.12section 13.02, subdivision 9.
24.13 Subd. 7. Environmental requirements. The authority must comply with all
24.14environmental requirements imposed by regulatory agencies for the stadium, site, and
24.15structure, except as provided by section 473J.09, subdivision 11, or by section 473J.17.
24.16 Subd. 8. Public share on sale of NFL team. (a) The lease or use agreement must
24.17provide that if the NFL team is sold, or an interest in the NFL team is sold after the effective
24.18date of this section, a portion of the sale price, determined according to the schedule in
24.19paragraph (b), is the public share and must be paid to the state and the city, in amounts
24.20proportionate to the expenditures made by the state and from city taxes, respectively, for
24.21the purposes of this chapter. If any portion of the public share of the sale price remains
24.22after the state and city have been paid, that amount must be deposited in the general fund.
24.23(b) The portion of the sale price required to be paid under paragraph (a) is:
24.24(1) 25 percent of the amount in excess of the purchase price of the NFL team by the
24.25selling owner or owners for ten years, beginning on the effective date of this section;
24.26(2) 15 percent during years 11 to 15 after the effective date of this section; and
24.27(3) ten percent during years 16 to 20 after the effective date of this section.
24.28Thereafter, no portion of the sale price is required to be paid under paragraph (a).
24.29(c) The agreement must provide exceptions for sales to members of the owners'
24.30families and entities and trusts beneficially owned by family members, sales to employees
24.31of equity interests aggregating up to ten percent, sales related to capital infusions not
24.32distributed to the owners, and sales among existing owners not exceeding 20 percent
24.33equity interest in the NFL team.
24.34 Subd. 9. Authority's access to NFL team financial information. A notice
24.35provision for a material breach shall be agreed to between the authority and the NFL team.
24.36In the event there is a material breach by the NFL team under the lease or use agreement,
25.1the lease or use agreement must provide the authority access to audited financial statements
25.2of the NFL team and other financial information that the authority deems necessary to
25.3enforce the terms of any lease or use agreements. Any financial information obtained by
25.4the authority under this subdivision is nonpublic data under section 13.02, subdivision 9.
25.5 Subd. 10. NFL team name retained. The lease or use agreement must provide
25.6that the NFL shall retain the Minnesota Vikings' heritage and records, including the name,
25.7logo, colors, history, playing records, trophies, and memorabilia in the event of relocation
25.8of the NFL team in violation of the lease or use agreement, and shall not permit use of
25.9these rights except for a team located in the state of Minnesota.
25.10 Subd. 11. Stadium design. (a) To the extent practicable, the authority and the
25.11NFL team will build a stadium that is environmentally and energy efficient and will
25.12make an effort to build a stadium that is eligible to receive the Leadership in Energy and
25.13Environmental Design (LEED) certification or the Green Building Initiative Green Globes
25.14certification for environmental design, and to the extent practicable, will strive to make the
25.15stadium design architecturally significant.
25.16(b) To the extent practicable, the stadium design must, to the extent that the costs
25.17of following the guidelines have a payback in energy savings in 30 years or less, follow
25.18sustainable building guidelines established under section 16B.325. The authority and
25.19NFL team must work with local utility companies to establish a base utility cost under
25.20the state energy codes and calculate energy cost savings resulting from complying with
25.21the guidelines. The authority and NFL team must fully utilize conservation improvement
25.22assistance under section 216B.241 and other energy savings programs available to them.
25.23(c) To the extent practicable, the authority and the team must ensure that the stadium
25.24be built with American-made steel that is made from Minnesota iron ore.
25.25 Subd. 12. Necessary approvals. The authority and the NFL team must secure
25.26any necessary approvals to the terms of the lease and use agreement and the design and
25.27construction plans for the stadium, including prior approval of the NFL.
25.28 Subd. 13. Affordable access. The lease or use agreement must provide for an
25.29agreed-upon number of affordable tickets to the professional sporting events held in the
25.31 Subd. 14. Stadium builder's licenses. The authority shall own and retain the
25.32exclusive right to sell stadium builder's licenses in the stadium. The authority will retain
25.33the NFL team to act as the authority's agent in marketing and selling such licenses.
25.34 Subd. 15. Major league soccer. The authority shall, for five years after the first
25.35NFL team home game is played in the stadium, grant the NFL team the exclusive right to
26.1establish major league soccer at the stadium. The authority and the NFL team may enter
26.2into an agreement providing the terms and conditions of such an arrangement, provided:
26.3(1) if any of the NFL team owners whose family owns at least three percent of
26.4the NFL team purchases full or partial ownership in a major league soccer franchise,
26.5such franchise may play in the stadium under a use agreement with similar terms as are
26.6applicable to the NFL team which shall include rent based on market conditions but not
26.7less than a provision of payment of game-day costs and reasonable marginal costs incurred
26.8by the authority as a result of the major league soccer team; and
26.9(2) capital improvements required by a major league soccer franchise must be
26.10financed by the owners of the major league soccer team, unless otherwise agreed to by
26.12 Subd. 16. NFL team-related entities. Subject to the prior approval of the authority,
26.13which shall not be unreasonably withheld, any of the obligations by the NFL team may
26.14be performed by the NFL team, a related entity, or a third party, and the NFL team, any
26.15entity related to the NFL team or third party may receive any revenues to which the NFL
26.16team is entitled hereunder; provided, however, the NFL team shall remain liable if any
26.17obligations are assigned to a related entity or third party.
Sec. 20. [473J.17] MUNICIPAL ACTIVITIES.
26.19 Subdivision 1. Property acquisition and disposition. The city may, to the extent
26.20legally permissible, acquire land, air rights, and other property interests within the
26.21development area for the stadium site and stadium infrastructure and convey it to the
26.22authority with or without consideration, prepare a site for development as a stadium, and
26.23acquire and construct any related stadium infrastructure. To the extent property parcels or
26.24interests acquired are more extensive than the stadium infrastructure requirements, the city
26.25may sell or otherwise dispose of the excess.
26.26 Subd. 2. Claims. Except as may be mutually agreed to by the city and the authority,
26.27the city has no interest in or claim to any assets or revenues of the authority.
26.28 Subd. 3. Environmental; planning and zoning. The authority is the responsible
26.29governmental unit for an environmental impact statement for the stadium prepared under
26.30section 116D.04, if an environmental impact statement is necessary. Notwithstanding
26.31section 116D.04, subdivision 2b, and implementing rules: (1) the environmental
26.32impact statement shall not be required to consider alternative stadium sites; and (2) the
26.33environmental impact statement must be determined to be adequate before commencing
26.34work on the foundation of the stadium, but the stadium and stadium infrastructure may
26.35otherwise be started and all preliminary and final government decisions and actions may
27.1be made and taken including, but not limited to, acquiring land; obtaining financing;
27.2granting permits or other land use approvals; entering into grant, lease, or use agreements;
27.3or preparing the site or related stadium infrastructure prior to a determination of the
27.4adequacy of the environmental impact statement.
27.5 Subd. 4. Local government expenditure. The city may make expenditures or
27.6grants for other costs incidental and necessary to further the purposes of this chapter and
27.7may, by agreement, reimburse in whole or in part, any entity that has granted, loaned, or
27.8advanced funds to the city to further the purposes of this chapter. The city may reimburse
27.9the authority or a local governmental entity or make a grant to the authority or such a
27.10governmental unit or be reimbursed by the authority or local governmental entity for site
27.11acquisition, preparation of the site for stadium development, and stadium infrastructure.
27.12 Subd. 5. Municipal authority. The legislature intends that, except as expressly
27.13limited herein, the city may acquire and develop stadium infrastructure, enter into contracts
27.14with the authority and other governmental or nongovernmental entities, appropriate funds,
27.15and make employees, consultants, and other revenues available for those purposes.
27.16 Subd. 6. Stadium Implementation Committee; city review. In order to accomplish
27.17the objectives of this act within the required time frame, it is necessary to establish an
27.18alternative process for municipal land use and development review. It is hereby found
27.19and declared that the construction of a stadium within the development area is consistent
27.20with the adopted area plan, is the preferred stadium location, and is a permitted land use.
27.21This subdivision establishes a procedure for all land use and development reviews and
27.22approvals by the city of Minneapolis for the stadium and related stadium infrastructure
27.23and supersedes all land use and development rules and restrictions and procedures
27.24imposed by other law, charter, or ordinance, including without limitation section 15.99.
27.25No later than 30 days after timely compliance of the city as provided in article 3, section 7,
27.26of this act, the city of Minneapolis shall establish a stadium implementation committee
27.27to make recommendations on the design plans submitted for the stadium, and stadium
27.28infrastructure, and related improvements. The implementation committee must take
27.29action to issue its recommendations within the time frames established in the planning
27.30and construction timetable issued by the authority which shall provide for no less than 60
27.31days for the committee's review. The recommendations of the implementation committee
27.32shall be forwarded to the city of Minneapolis Planning Commission for an advisory
27.33recommendation and then to the city council for final action in a single resolution, which
27.34final action must be taken within 45 days of the submission of the recommendations to the
27.35planning commission. The city council shall not impose any unreasonable conditions on
27.36the recommendations of the implementation committee, nor take any action or impose
28.1any conditions that will result in delay from the time frames established in the planning
28.2and construction timetable or in additional overall costs. Failure of the city council to act
28.3within the 45-day period shall be deemed to be approval. The authority may seek de novo
28.4review in the district court of any city council action. The district court or any appellate
28.5court shall expedite review to the maximum extent possible and timely issue relief, orders,
28.6or opinions as necessary to give effect to the provisions and objectives in this act.
Sec. 21. [473J.19] PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENTS.
28.8Any real or personal property acquired, owned, leased, controlled, used, or occupied
28.9by the authority for any of the purposes of this chapter, is acquired, owned, leased,
28.10controlled, used, and occupied for public, governmental, and municipal purposes. The
28.11stadium and stadium infrastructure are exempt from ad valorem taxation by the state
28.12or any political subdivision of the state provided that the properties are subject to
28.13special assessments levied by a political subdivision for a local improvement in amounts
28.14proportionate to and not exceeding the special benefit received by the properties from the
28.15improvement. No possible use of any of the properties in any manner different from their
28.16use under this chapter may be considered in determining the special benefit received by
28.17the properties. Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal
28.18property which is subject to a lease or use agreement between the authority and another
28.19person for uses related to the purposes of this chapter, including the operation of the
28.20stadium and related parking facilities, is exempt from taxation regardless of the length of
28.21the lease or use agreement or the characteristics of the entity leasing or using the property.
28.22This section, insofar as it provides an exemption or special treatment, does not apply to
28.23any real property that is leased for residential, business, or commercial development or to
28.24a restaurant that is open for general business more than 200 days a year, or other purposes
28.25different from those contemplated in this chapter.
Sec. 22. [473J.21] LIQUOR LICENSES.
28.27At the request of the authority, the city may issue intoxicating liquor licenses that are
28.28reasonably required for the premises of the stadium site. These licenses are in addition to
28.29the number authorized by law. All provisions of chapter 340A not inconsistent with this
28.30section apply to the licenses authorized under this section.
Sec. 23. [473J.23] LOCAL TAXES.
28.32No new or additional local sales or use tax shall be imposed on sales at the stadium
28.33site unless the tax is applicable throughout the taxing jurisdiction. Except for a tax
29.1imposed under section 16A.1524, no new or additional local tax shall be imposed on sales
29.2of tickets and admissions to NFL team, NFL team-owned major league soccer, or other
29.3team related events at the stadium, notwithstanding any law or ordinance, unless the tax
29.4is applicable throughout the taxing jurisdiction. The admissions and amusements tax
29.5currently imposed by the city of Minneapolis pursuant to Laws 1969, chapter 1092, may
29.6apply to admissions for football and NFL team related events, including NFL team-owned
29.7major league soccer, as provided in section 473J.15, subdivision 15, at the stadium.
Sec. 24. [473J.25] METROPOLITAN SPORTS FACILITIES COMMISSION
29.9ASSETS; LIABILITIES TO AUTHORITY.
29.10 Subdivision 1. Authority expenses. The Metropolitan Sports Facilities Commission
29.11shall pay the operating expenses of the authority including salaries, compensation, and
29.12other personnel, office, equipment, consultant and any other costs, until the commission is
29.13abolished pursuant to subdivision 3.
29.14 Subd. 2. Transfer. Within 90 days of the enactment of this chapter, the Metropolitan
29.15Sports Facilities Commission shall pay its outstanding obligations, settle its accounts, and
29.16transfer its remaining assets, liabilities, and obligations to the authority, for its purposes.
29.17 Subd. 3. Metropolitan Sports Facilities Commission abolished; interim powers
29.18conferred on authority. Upon transfer to the authority of all remaining assets, liabilities,
29.19and obligations of the Metropolitan Sports Facilities Commission, in subdivision 2, the
29.20Metropolitan Sports Facilities Commission is abolished. When the remaining assets,
29.21liabilities, and obligations of the Metropolitan Sports Facilities Commission have been
29.22transferred to the authority and the commission has been abolished, the powers and duties
29.23of the commission under sections 473.551 to 473.599, and any other law shall devolve
29.24upon the authority, in addition to the powers and duties of the authority under chapter
29.25473J, until the first NFL home game is played at the stadium.
29.26 Subd. 4. Employees. Upon transfer of ownership all persons employed by the
29.27Metropolitan Sports Facilities Commission shall be transferred to the Minnesota Sports
29.28Facilities Authority without loss of right or privilege. Nothing in this section shall be
29.29construed to give any such person the right or privilege to continue in the same level or
29.30classification of employment previously held. The Minnesota Sports Facilities Authority
29.31may assign any such person to an employment level and classification which it deems
29.32appropriate and desirable in accordance with its personnel code.
29.33 Subd. 5. Conforming changes. The Metropolitan Sports Facilities Commission
29.34shall submit a technical bill to the 2013 legislature making any cross-reference,
30.1grammatical, or other conforming changes necessary as a result of this act. This bill
30.2shall be submitted by February 12, 2013.
Sec. 25. EFFECTIVE DATE.
30.4Except as otherwise provided, this article is effective the day following final
30.7STATE STADIUM FUNDING
Section 1. [16A.965] STADIUM APPROPRIATION BONDS.
30.9 Subdivision 1. Definitions. (a) The definitions in this subdivision and in chapter
30.10473J apply to this section.
30.11(b) "Appropriation bond" means a bond, note, or other similar instrument of the state
30.12payable during a biennium from one or more of the following sources:
30.13(1) money appropriated by law from the general fund in any biennium for debt
30.14service due with respect to obligations described in subdivision 2, paragraph (b);
30.15(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);
30.16(3) payments received for that purpose under agreements and ancillary arrangements
30.17described in subdivision 2, paragraph (d); and
30.18(4) investment earnings on amounts in clauses (1) to (3).
30.19(c) "Debt service" means the amount payable in any biennium of principal, premium,
30.20if any, and interest on appropriation bonds.
30.21 Subd. 2. Authorization to issue appropriation bonds. (a) Subject to the
30.22limitations of this subdivision, the commissioner may sell and issue appropriation bonds
30.23of the state under this section for public purposes as provided by law, including, in
30.24particular, the financing of all or a portion of the acquisition, construction, improving,
30.25and equipping of the stadium project of the Minnesota Sports Facilities Authority as
30.26provided by chapter 473J. Proceeds of the appropriation bonds must be credited to a
30.27special appropriation stadium bond proceeds fund in the state treasury. Net income from
30.28investment of the proceeds, as estimated by the commissioner, must be credited to the
30.29special appropriation stadium bond proceeds fund.
30.30(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of
30.31the commissioner, are necessary to provide sufficient funds, not to exceed $498,000,000
30.32net of costs of issuance, revenue generated under section 16A.6455, and allocated by the
30.33commissioner of management and budget for this purpose and costs of credit enhancement
30.34for achieving the purposes authorized as provided under paragraph (a), and pay debt
31.1service including capitalized interest, pay costs of issuance, make deposits to reserve
31.2funds, pay the costs of credit enhancement, or make payments under other agreements
31.3entered into under paragraph (d); provided, however, that appropriation bonds issued and
31.4unpaid shall not exceed $600,000,000 in principal amount, excluding refunding bonds
31.5sold and issued under subdivision 4.
31.6(c) Appropriation bonds may be issued from time to time in one or more series on
31.7the terms and conditions the commissioner determines to be in the best interests of the
31.8state, but the term on any series of appropriation bonds may not exceed 30 years. The
31.9appropriation bonds of each issue and series thereof shall be dated and bear interest,
31.10and may be includable in or excludable from the gross income of the owners for federal
31.11income tax purposes.
31.12(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
31.13time thereafter, so long as the appropriation bonds are outstanding, the commissioner may
31.14enter into agreements and ancillary arrangements relating to the appropriation bonds,
31.15including but not limited to trust indentures, grant agreements, lease or use agreements,
31.16operating agreements, management agreements, liquidity facilities, remarketing or
31.17dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
31.18reimbursement agreements, indexing agreements, or interest exchange agreements. Any
31.19payments made or received according to the agreement or ancillary arrangement shall be
31.20made from or deposited as provided in the agreement or ancillary arrangement. The
31.21determination of the commissioner included in an interest exchange agreement that the
31.22agreement relates to an appropriation bond shall be conclusive.
31.23(e) The commissioner may enter into written agreements or contracts relating to the
31.24continuing disclosure of information necessary to comply with, or facilitate the issuance
31.25of appropriation bonds in accordance with federal securities laws, rules, and regulations,
31.26including Securities and Exchange Commission rules and regulations in Code of Federal
31.27Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
31.28with purchasers and holders of appropriation bonds set forth in the order or resolution
31.29authorizing the issuance of the appropriation bonds, or a separate document authorized
31.30by the order or resolution.
31.31(f) The appropriation bonds are not subject to chapter 16C.
31.32 Subd. 3. Form; procedure. (a) Appropriation bonds may be issued in the form
31.33of bonds, notes, or other similar instruments, and in the manner provided in section
31.3416A.672. In the event that any provision of section 16A.672 conflicts with this section,
31.35this section shall control.
32.1(b) Every appropriation bond shall include a conspicuous statement of the limitation
32.2established in subdivision 6.
32.3(c) Appropriation bonds may be sold at either public or private sale upon such terms
32.4as the commissioner shall determine are not inconsistent with this section and may be sold
32.5at any price or percentage of par value. Any bid received may be rejected.
32.6(d) Appropriation bonds must bear interest at a fixed or variable rate.
32.7(e) Notwithstanding any other law, appropriation bonds issued under this section
32.8shall be fully negotiable.
32.9 Subd. 4. Refunding bonds. The commissioner from time to time may issue
32.10appropriation bonds for the purpose of refunding any appropriation bonds then
32.11outstanding, including the payment of any redemption premiums on the bonds, any
32.12interest accrued or to accrue to the redemption date, and costs related to the issuance and
32.13sale of the refunding bonds. The proceeds of any refunding bonds may, in the discretion of
32.14the commissioner, be applied to the purchase or payment at maturity of the appropriation
32.15bonds to be refunded, to the redemption of the outstanding appropriation bonds on any
32.16redemption date, or to pay interest on the refunding bonds and may, pending application,
32.17be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any
32.18escrowed proceeds, pending such use, may be invested and reinvested in obligations that
32.19are authorized investments under section 11A.24. The income earned or realized on the
32.20investment may also be applied to the payment of the appropriation bonds to be refunded
32.21or interest or premiums on the refunded appropriation bonds, or to pay interest on the
32.22refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the
32.23proceeds and any investment income may be returned to the general fund or, if applicable,
32.24the special appropriation stadium bond proceeds fund for use in any lawful manner. All
32.25refunding bonds issued under this subdivision must be prepared, executed, delivered, and
32.26secured by appropriations in the same manner as the appropriation bonds to be refunded.
32.27 Subd. 5. Appropriation bonds as legal investments. Any of the following entities
32.28may legally invest any sinking funds, money, or other funds belonging to them or under
32.29their control in any appropriation bonds issued under this section:
32.30(1) the state, the investment board, public officers, municipal corporations, political
32.31subdivisions, and public bodies;
32.32(2) banks and bankers, savings and loan associations, credit unions, trust companies,
32.33savings banks and institutions, investment companies, insurance companies, insurance
32.34associations, and other persons carrying on a banking or insurance business; and
32.35(3) personal representatives, guardians, trustees, and other fiduciaries.
33.1 Subd. 6. No full faith and credit; state not required to make appropriations.
33.2The appropriation bonds are not public debt of the state, and the full faith, credit, and
33.3taxing powers of the state are not pledged to the payment of the appropriation bonds or to
33.4any payment that the state agrees to make under this section. Appropriation bonds shall
33.5not be obligations paid directly, in whole or in part, from a tax of statewide application
33.6on any class of property, income, transaction, or privilege. Appropriation bonds shall be
33.7payable in each fiscal year only from amounts that the legislature may appropriate for debt
33.8service for any fiscal year, provided that nothing in this section shall be construed to
33.9require the state to appropriate funds sufficient to make debt service payments with respect
33.10to the appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and
33.11shall no longer be outstanding on the earlier of (1) the first day of a fiscal year for which
33.12the legislature shall not have appropriated amounts sufficient for debt service, or (2) the
33.13date of final payment of the principal of and interest on the appropriation bonds.
33.14 Subd. 7. Appropriation of proceeds. The proceeds of appropriation bonds and
33.15interest credited to the special appropriation stadium bond proceeds fund are appropriated
33.16to the commissioner for payment of capital expenses including capitalized interest, debt
33.17service on outstanding indebtedness of the state, and for the operating and capital reserves
33.18of the authority, each as permitted by state and federal law, and nonsalary expenses
33.19incurred in conjunction with the sale of the appropriation bonds, and such proceeds may
33.20be granted, loaned, or otherwise provided to the authority for the public purpose provided
33.21by subdivision 2, paragraph (a).
33.22 Subd. 8. Appropriation for debt service and other purposes. The amount
33.23needed to pay principal and interest on appropriation bonds issued under this section is
33.24appropriated each fiscal year from the general fund to the commissioner, subject to repeal,
33.25unallotment under section 16A.152, or cancellation, otherwise pursuant to subdivision 6,
33.26for deposit into the bond payments account established for such purpose in the special
33.27appropriation stadium bond proceeds fund.
33.28 Subd. 9. Waiver of immunity. The waiver of immunity by the state provided for
33.29by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any
33.30ancillary contracts to which the commissioner is a party.
33.31 Subd. 10. Validation. (a) Appropriation bonds issued under this section may be
33.32validated in the manner provided by this subdivision. If comparable appropriation bonds
33.33are judicially determined to be valid, nothing in this subdivision shall be construed
33.34to prevent the sale or delivery of any appropriation bonds or notes without entry of a
33.35judgment of validation by the Minnesota Supreme Court pursuant to this subdivision with
33.36respect to the appropriation bonds authorized under this section.
34.1(b) Any appropriation bonds issued under this section that are validated shall be
34.2validated in the manner provided by this subdivision.
34.3(c) The Minnesota Supreme Court shall have original jurisdiction to determine the
34.4validation of appropriation bonds and all matters connected therewith.
34.5(d) The commissioner may determine the commissioner's authority to issue
34.6appropriation bonds and the legality of all proceedings in connection with issuing bonds.
34.7For this purpose, a complaint shall be filed by the commissioner in the Minnesota Supreme
34.8Court against the state and the taxpayers and citizens.
34.9(e) As a condition precedent to filing of a complaint for the validation of
34.10appropriation bonds, the commissioner shall take action providing for the issuance of
34.11appropriation bonds in accordance with law.
34.12(f) The complaint shall set out the state's authority to issue appropriation bonds, the
34.13action or proceeding authorizing the issue and its adoption, all other essential proceedings
34.14had or taken in connection with issuing bonds, the amount of the appropriation bonds to
34.15be issued and the maximum interest they are to bear, and all other pertinent matters.
34.16(g) The Minnesota Supreme Court shall issue an order directed against the state and
34.17taxpayers, citizens, and others having or claiming any right, title, or interest affected by
34.18the issuance of appropriation bonds, or to be affected by the bonds, allowing all persons,
34.19in general terms and without naming them, and the state through its attorney general, to
34.20appear before the Minnesota Supreme Court at a designated time and place and show
34.21why the complaint should not be granted and the proceedings and appropriation bonds
34.22validated. A copy of the complaint and order shall be served on the attorney general at
34.23least 20 days before the time fixed for hearing. The attorney general shall examine the
34.24complaint, and, if it appears or there is reason to believe that it is defective, insufficient, or
34.25untrue, or if in the opinion of the attorney general the issuance of the appropriation bonds
34.26in question has not been duly authorized, defense shall be made by the attorney general as
34.27the attorney general deems appropriate.
34.28(h) Before the date set for hearing, as directed by the Minnesota Supreme Court,
34.29either the clerk of the Minnesota appellate courts or the commissioner shall publish a copy
34.30of the order in a legal newspaper of general circulation in Ramsey County and the state, at
34.31least once each week for two consecutive weeks, commencing with the first publication,
34.32which shall not be less than 20 days before the date set for hearing. By this publication,
34.33all taxpayers, citizens, and others having or claiming any right, title, or interest in the
34.34state, are made parties defendant to the action and the Minnesota Supreme Court has
34.35jurisdiction of them to the same extent as if named as defendants in the complaint and
34.36personally served with process.
35.1(i) Any taxpayer, citizen, or person interested may become a party to the action by
35.2moving against or pleading to the complaint at or before the time set for hearing. The
35.3Minnesota Supreme Court shall determine all questions of law and fact and make orders
35.4that will enable it to properly try and determine the action and render a final judgment
35.5within 30 days of the hearing with the least possible delay.
35.6(j) If the judgment validates appropriation bonds, the judgment is forever conclusive
35.7as to all matters adjudicated and as against all parties affected and all others having or
35.8claiming any right, title, or interest affected by the issuance of appropriation bonds, or to
35.9be affected in any way by issuing the bonds, and the validity of appropriation bonds or of
35.10any revenues pledged for the payment of the bonds, or of the proceedings authorizing the
35.11issuance of the bonds, including any remedies provided for their collection, shall never
35.12be called in question in any court by any person or party.
35.13(k)(1) Appropriation bonds, when validated under this section, shall have stamped
35.14or written on the bonds, by the proper officers of the state issuing them, a statement
35.15in substantially the following form: "This appropriation bond is one of a series of
35.16appropriation bonds which were validated by judgment of the Supreme Court of the State
35.17of Minnesota, rendered on ……. , ....... (year)".
35.18(2) A certified copy of the judgment or decree shall be received as evidence in any
35.19court in this state.
35.20(l) The costs shall be paid by the state, except when a taxpayer, citizen, or other
35.21person contests the action or intervenes, the court may tax the whole or any part of the
35.22costs against the person that is equitable.
35.23(m) A justice of the Minnesota Supreme Court is not disqualified in any validation
35.24action because the justice is a landowner or taxpayer of the state.
35.26MINNEAPOLIS CONVENTION CENTER
Section 1. [297A.994] CITY OF MINNEAPOLIS SALES TAX; ALLOCATION
35.29 Subdivision 1. Scope. Notwithstanding the provisions of section 297A.99,
35.30subdivision 11, the provisions of this section govern the remittance of the proceeds of
35.31taxes imposed by the city of Minneapolis under the special law.
35.32 Subd. 2. Definitions. (a) For purposes of this section, the following definitions
35.34(b) "City" means the city of Minneapolis.
35.35(c) "Special law" means Laws 1986, chapter 396, sections 4 and 5, as amended.
36.1(d) "Tax" means the sales taxes imposed by the city under the special law.
36.2(e) The terms defined under section 473J.03 apply for purposes of this section.
36.3 Subd. 3. General allocation of revenues. The commissioner shall remit the
36.4revenues from the taxes, less the deductions listed in this subdivision, to the city at least
36.5quarterly. The commissioner shall make the following deductions in the order listed
36.6before distribution to the city:
36.7(1) refunds of any of these taxes due to taxpayers, if any;
36.8 (2) the direct and indirect costs of the department to administer, audit, and collect the
36.9tax, according to the applicable law and agreements between the commissioner and the
36.10city. For revenues from the general local sales and use tax, the commissioner must deduct
36.11a proportionate share of costs described in section 297A.99, subdivision 11; and
36.12(3) notwithstanding the provisions of any agreement between the commissioner and
36.13the city providing for collection and remittance of these taxes, the commissioner must
36.14deposit to the general fund the amounts specified in subdivision 4.
36.15 Subd. 4. General fund allocations. The commissioner must retain and deposit to
36.16the general fund the following amounts, as required by subdivision 3, clause (3):
36.17(1) for state bond debt service support beginning in calendar year 2021, and for each
36.18calendar year thereafter through calendar year 2046, periodic amounts so that not later
36.19than December 31, 2046, an aggregate amount equal to a present value of $150,000,000
36.20has been deposited in the general fund. To determine aggregate present value, the
36.21commissioner must consult with the commissioner of management and budget regarding
36.22the present value dates, discount rate or rates, and schedules of annual amounts. The
36.23present value date or dates must be based on the date or dates bonds are sold under section
36.2416A.965, or the date or dates other state funds, if any, are deposited into the construction
36.25fund. The discount rate or rates must be based on the true interest cost of the bonds
36.26issued under section 16A.965, or an equivalent 30-year bond index, as determined by the
36.27commissioner of management and budget. The schedule of annual amounts must be
36.28certified to the commissioner by the commissioner of management and budget and the
36.29finance officer of the city;
36.30(2) for the capital improvement reserve appropriation to the sports facilities authority
36.31beginning in calendar year 2021, and for each calendar year thereafter through calendar
36.32year 2046, an aggregate annual amount equal to the amount paid by the state for this
36.33purpose in that calendar year under section 473J.13, subdivision 4;
36.34(3) for the operating expense appropriation to sports facilities authority beginning in
36.35calendar year 2021, and for each calendar year thereafter through calendar year 2046, an
37.1aggregate annual amount equal to the amount paid by the state for this purpose in that
37.2calendar year under section 473J.13, subdivision 2;
37.3(4) for recapture of state advances for capital improvements and operating expenses
37.4for calendar years 2016 through 2020 beginning in calendar year 2021, and for each
37.5calendar year thereafter until all amounts under this clause have been paid, proportionate
37.6amounts periodically until an aggregate amount equal to the present value of all amounts
37.7paid by the state have been deposited in the general fund. To determine the present
37.8value of the amounts paid by the state to the authority and the present value of amounts
37.9deposited to the general fund under this clause, the commissioner shall consult with the
37.10commissioner of management and budget regarding the present value dates, discount rate
37.11or rates, and schedule of annual amounts. The present value dates must be based on
37.12the dates state funds are paid to the authority, or the dates the commissioner of revenue
37.13deposits taxes for purposes of this clause to the general fund. The discount rates must be
37.14based on the reasonably equivalent cost of state funds as determined by the commissioner
37.15of management and budget. The schedule of annual amounts must be revised to reflect
37.16amounts paid under section 473J.13, subdivision 2, paragraph (b) for 2016 to 2020, and
37.17subdivision 4, paragraph (c) for 2016 to 2020, and taxes deposited to the general fund from
37.18time to time under this clause, and the schedule and revised schedules must be certified
37.19to the commissioner by the commissioner of management and budget and the finance
37.20officer of the city, and are transferred as accrued from the general fund for repayment of
37.21advances made by the state to the authority; and
37.22(5) to capture increases in taxes imposed under the special law, for the benefit of
37.23the sports facilities authority, beginning in calendar year 2013 and for each calendar year
37.24thereafter through 2046, there shall be deposited to the general fund in proportionate
37.25periodic payments in the following year, an amount equal to the following:
37.26(i) 50 percent of the difference, if any, by which the amount of the net annual taxes
37.27for the previous year exceeds the sum of the net actual taxes in calendar year 2011 plus
37.28$1,000,000, inflated at two percent per year since 2011, minus
37.29(ii) 25 percent of the difference, if any, by which the amount of the net annual taxes
37.30for the preceding year exceeds the sum of the net actual taxes in calendar year 2011 plus
37.31$3,000,000, inflated at two percent per year since 2011.
Sec. 2. Laws 1986, chapter 396, section 4, as amended by Laws 1987, chapter 55,
sections 5 and 6, and Laws 2009, chapter 88, article 4, sections 11 and 12, is amended to
Sec. 4. SALES AND USE TAX.
Subdivision 1. Imposition.
Notwithstanding Minnesota Statutes, section
or any other contrary provision of law, ordinance, or city charter, upon approval by
the city's board of estimate and taxation by a vote of at least five members, the city of
Minneapolis may by ordinance impose an additional sales tax of up to one-half of one
percent on sales taxable pursuant to Minnesota Statutes, chapter 297A that occur within
the city, and may also by ordinance impose an additional compensating use tax of up to
one-half of one percent on uses of property within the city, the sale of which would be
subject to the additional sales tax but for the fact such property was sold outside the city.
may not be imposed on gross receipts from sales of intoxicating liquor that are
38.10 exempt from taxation under sections
297A.257 or other provision of chapter
38.11 297A exempting sales of intoxicating liquor and use from taxation, including amendments
38.12 adopted after enactment of this act is imposed on the tax base defined in Minnesota
38.13Statutes, section 297A.99, subdivision 4, and is subject to the exemptions and credits in
38.14Minnesota Statutes, section 297A.99, subdivisions 7 and 8
For purposes of this subdivision, sales that occur within the city shall not include (a)
38.16 the sale of tangible personal property (i) which, without intermediate use, is shipped or
38.17 transported outside Minneapolis by the purchaser and thereafter used in a trade or business
38.18 or is stored, processed, fabricated or manufactured into, attached to or incorporated into
38.19 other tangible personal property transported or shipped outside Minneapolis and thereafter
38.20 used in a trade or business outside Minneapolis, and which is not thereafter returned to a
38.21 point within Minneapolis, except in the course of interstate or intrastate commerce (storage
38.22 shall not constitute intermediate use); or (ii) which the seller delivers to a common carrier
38.23 for delivery outside Minneapolis, places in the United States mail or parcel post directed
38.24 to the purchaser outside Minneapolis, or delivers to the purchaser outside Minneapolis by
38.25 means of the seller's own delivery vehicles, and which is not thereafter returned to a point
38.26 within Minneapolis, except in the course of interstate or intrastate commerce; or (b) sales
38.27 which would be described in clause (e) or (u) of Minnesota Statutes, section 297A.25,
38.28 subdivision 1 if the word "Minneapolis" were substituted for the words "Minnesota" or
38.29 "state of Minnesota" in such clauses. A tax may be imposed under this section only if
38.30 the taxes imposed under section 5 are imposed at the maximum rate allowed under that
The tax authorized by this section
shall be imposed, must not be terminated before
38.32January 1, 2047. The tax must be imposed
and may be adjusted periodically by the city
council in conformity with Minnesota Statutes, section 297A.99, subdivision 12,
the rate imposed, rounded to the next highest one-tenth of one percent,
does not exceed
38.35 the rate estimated to be required to produce produces
revenue sufficient to finance the
3 and 4, and in Minnesota Statutes,
39.2section 297A.994, but in no case may the rate exceed one-half of one percent
Subd. 2. Enforcement; collection.
(a) Except as provided in paragraph (b),
these taxes shall be subject to the same interest,
and other rules imposed
under Minnesota Statutes, chapter 297A. The commissioner of revenue may enter into
appropriate agreements with the city to provide for collection of these taxes by the state
on behalf of the city. The commissioner may charge the city a reasonable fee for its
collection from the proceeds of any taxes, as provided in Minnesota Statutes, section
39.9297A.99, subdivision 11
(b) A taxpayer located outside of the city of Minneapolis who collects use tax under
this section in an amount that does not exceed $10 in a reporting period is not required to
remit that tax until the amount of use tax collected is $10.
Subd. 3. Use of property.
Revenues received by the city
from the tax may only
(1) to pay costs of collection;
39.16 (2) (1)
to pay or secure the payment of any principal of, premium or interest on
bonds issued in accordance with this act;
to pay costs to acquire, design, equip, construct, improve, maintain, operate,
administer, or promote the convention center or related facilities, and other capital projects
39.20or economic developments under subdivision 4,
including financing costs related to them;
to pay reasonable and appropriate costs determined by the city to replace
housing and the ice arena removed from the site;
to maintain reserves for the foregoing purposes deemed reasonable and
appropriate by the city; and
to fund projects and for other purposes
under subdivision 4.
Money for replacement housing shall be made available by the city only for new
construction, conversion of nonresidential buildings, and for rehabilitation of vacant
residential structures, only if all of the units in the newly constructed building, converted
nonresidential building, or rehabilitated residential structure are to be used for replacement
Subd. 4. Minneapolis downtown and neighborhood projects.
(a) For revenues
collected in calendar years 2009 and 2010, to the extent that revenues from the tax
authorized in subdivision 1 exceeds the amount needed to fund the purposes in subdivision
3, the city may use the excess revenue to fund any city services. The total amount used in
both years for this purpose may not exceed the total amount of aid and credit reductions
under Minnesota Statutes, sections
in calendar years
2008, 2009, and 2010 due to a governor's unallotment or due to statutory reductions.
(b) Beginning with revenues collected in calendar year 2011, to the extent that
revenues from the
authorized in subdivision 1
exceeds or in section 5 exceed
the amount needed to fund the purposes in subdivision 3, the city may use the excess
revenue in any year to fund capital projects to further residential, cultural, commercial,
and economic development in both downtown Minneapolis and the Minneapolis
neighborhoods, to fund other city expenditures in support of the basketball arena, other
40.9capital projects, or for other economic development, provided the city may direct excess
40.10revenue first to convention center debt, operations, capital improvements, and marketing.
40.11The city may issue bonds to fund any such projects or improvements using these taxes or
40.12any other available city resources to finance or secure the bonds
Sec. 3. Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special
Session chapter 5, article 12, section 87, is amended to read:
Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.
The city may, by resolution, levy in addition to taxes authorized by other law:
(1) a sales tax of not more than three percent on the gross receipts on retail on-sales
of intoxicating liquor and fermented malt beverages
described in section
40.19 occurring in the when sold at licensed on-sale liquor establishments located within the
downtown taxing area, provided that this tax may not be imposed if sales of intoxicating
liquor and fermented malt beverages are exempt from taxation under chapter 297A;
(2) a sales tax of not more than three percent on the gross receipts from the furnishing
for consideration of lodging
described in section
473.592 for a period of less than 30 days
40.24at a hotel, motel, rooming house, tourist court, or trailer camp located within the city
hotel or motel which has more than 50 rooms available for lodging; the tax imposed under
this clause shall be at a rate that, when added to the sum of the rate of the sales tax imposed
under Minnesota Statutes, chapter 297A, the rate of the sales tax imposed under section 4,
and the rate of any other taxes on lodging in the city of Minneapolis, equals 13 percent; and
(3) a sales tax of not more than three percent on the gross receipts on all sales of food
primarily for consumption on or off the premises by restaurants and places of refreshment
as defined by resolution of the city that occur within the downtown taxing area.
40.32The taxes authorized by this section must not be terminated before January 1, 2047. The
40.33taxes shall be imposed and may be adjusted periodically by the city council such that the
40.34rates imposed produce revenue sufficient, together with the tax imposed under section 4,
40.35to finance the purposes described in Minnesota Statutes, section 297A.994, and section
41.14, subdivisions 3 and 4.
These taxes shall be applied, first, as provided in Minnesota
41.2Statutes, section 297A.994, subdivision 3, clauses (1) to (3), and then,
solely to pay
41.3 of collection and to pay or,
secure, maintain, and fund
the payment of any principal of,
and interest on any bonds or any
costs referred to other purposes
in section 4,
subdivision 3 or 4
. The commissioner of revenue may enter into appropriate agreements
with the city to provide for the collection of these taxes by the state on behalf of the city.
The commissioner may charge the city a reasonable fee for its collection from the proceeds
41.8 of any taxes.
These taxes shall be subject to the same interest,
provisions as the taxes imposed under
473.592 Minnesota Statutes, chapter 297A
Sec. 4. CHARTER LIMITATIONS, REQUIREMENTS NOT TO APPLY.
41.11Any amounts expended, indebtedness, or obligation incurred including, but not
41.12limited to, the issuance of bonds, or actions taken by the city under this act, are deemed
41.13not an expenditure or other use of city resources within the meaning of any law or charter
41.14provision. The city may exercise any of its powers under this act to spend, borrow, tax, or
41.15incur any form of indebtedness or other obligation for the improvement, including, but not
41.16limited to, acquisition, development, construction, or betterment of any public building,
41.17stadium, or other capital improvement project, without regard to any charter limitation,
41.18requirement, or provision, including any referendum requirement. Any tax exemption
41.19established under this act shall be deemed not an expenditure or other use of city resources
41.20within the meaning of any charter provision.
Sec. 5. SEVERABILITY; SAVINGS.
41.22If any part of this article is found to be invalid because it is in conflict with a
41.23provision of the Minnesota Constitution or for any other reason, all other provisions of
41.24this article shall remain valid and any rights, remedies, and privileges that have been
41.25otherwise accrued by this article, shall remain in effect and may be proceeded with and
41.26concluded under the provisions of this article.
Sec. 6. LOCAL SALES TAX REQUIREMENTS NOT TO APPLY.
41.28 The taxes authorized under Laws 1986, chapter 396, sections 4 and 5, as amended,
41.29are exempt from the requirements of Minnesota Statutes, section 297A.99, subdivisions
41.302 and 3.
Sec. 7. EFFECTIVE DATE; LOCAL APPROVAL.
42.1This article is effective the day after the governing body of the city of Minneapolis
42.2and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
42.32 and 3. Notwithstanding any law to the contrary, the city of Minneapolis and its chief
42.4clerical officer have 30 calendar days following final enactment of this act, to comply with
42.5Minnesota Statutes, section 645.021, subdivisions 2 and 3.
Section 1. Minnesota Statutes 2010, section 297E.01, subdivision 7, is amended to read:
Subd. 7. Gambling product.
"Gambling product" means bingo hard cards, bingo
linked bingo paper sheets, or electronic linked bingo games
42.11electronic pull-tab games;
tipboards; paddle tickets and paddle ticket cards; raffle tickets;
or any other ticket, card, board, placard, device, or token that represents a chance, for
which consideration is paid, to win a prize.
42.14EFFECTIVE DATE.This section is effective July 1, 2012.
Sec. 2. Minnesota Statutes 2010, section 297E.01, subdivision 8, is amended to read:
Subd. 8. Gross receipts.
"Gross receipts" means all receipts derived from lawful
gambling activity including, but not limited to, the following items:
(1) gross sales of bingo hard cards
paper sheets, linked bingo paper sheets, and
42.19electronic linked bingo games
before reduction for prizes, expenses, shortages, free plays,
or any other charges or offsets;
(2) the ideal gross of pull-tab, electronic pull-tab games,
and tipboard deals or games
less the value of unsold and defective tickets and before reduction for prizes, expenses,
shortages, free plays, or any other charges or offsets;
(3) gross sales of raffle tickets and paddle tickets before reduction for prizes,
expenses, shortages, free plays, or any other charges or offsets;
(4) admission, commission, cover, or other charges imposed on participants in
lawful gambling activity as a condition for or cost of participation; and
(5) interest, dividends, annuities, profit from transactions, or other income derived
from the accumulation or use of gambling proceeds.
Gross receipts does not include proceeds from rental under section
42.32EFFECTIVE DATE.This section is effective July 1, 2012.
Sec. 3. Minnesota Statutes 2010, section 297E.01, subdivision 9, is amended to read:
Subd. 9. Ideal gross.
"Ideal gross" means the total amount of receipts that would be
received if every individual ticket in the pull-tab, electronic pull-tab games
deal, paddle wheel game, and raffle ticket
was sold at its face value. In the calculation
of ideal gross and prizes, a free play ticket pull-tab or electronic pull-tab
shall be valued
at face value. Ideal gross also means the total amount of receipts that would be received
43.7if every bingo paper sheet, linked bingo paper sheet, and electronic linked bingo games
43.8were sold at face value.
43.9EFFECTIVE DATE.This section is effective July 1, 2012.
Sec. 4. Minnesota Statutes 2010, section 297E.02, subdivision 1, is amended to read:
Subdivision 1. Imposition.
A tax is imposed on all lawful gambling other than (1)
43.12paper or electronic
pull-tab deals or games; (2) tipboard deals or games;
43.13linked bingo; and (4)
items listed in section
297E.01, subdivision 8
, clauses (4) and (5), at
the rate of 8.5 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
and all local taxes and license fees except a fee authorized under
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.
43.20EFFECTIVE DATE.This section is effective for games reported as played after
43.21June 30, 2012.
Sec. 5. Minnesota Statutes 2010, section 297E.02, subdivision 3, is amended to read:
Subd. 3. Collection; disposition. (a)
Taxes imposed by this section
other than in
43.24 subdivision 4
are due and payable to the commissioner when the gambling tax return
is required to be filed.
Taxes imposed by subdivision 4 are due and payable to the
43.26 commissioner on or before the last business day of the month following the month in
43.27 which the taxable sale was made. Distributors must file their monthly sales figures with
43.28the commissioner on a form prescribed by the commissioner.
Returns covering the taxes
imposed under this section must be filed with the commissioner on or before the 20th day
of the month following the close of the previous calendar month. The commissioner
may require that the returns be filed via magnetic media or electronic data transfer. The
proceeds, along with the revenue received from all license fees and other fees under
, must be paid to the commissioner of
management and budget for deposit in the general fund.
44.3(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by
44.4the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards
44.5by the organization is exempt from taxes imposed by chapter 297A and is exempt from all
44.6local taxes and license fees except a fee authorized under section 349.16, subdivision 8.
44.7(c) One-half of one percent of the revenue deposited in the general fund under
44.8paragraph (a), is appropriated to the commissioner of human services for the compulsive
44.9gambling treatment program established under section 245.98. One-half of one percent
44.10of the revenue deposited in the general fund under paragraph (a), is appropriated to
44.11the commissioner of human services for a grant to the state affiliate recognized by
44.12the National Council on Problem Gambling to increase public awareness of problem
44.13gambling, education and training for individuals and organizations providing effective
44.14treatment services to problem gamblers and their families, and research relating to problem
44.15gambling. Money appropriated by this paragraph must supplement and must not replace
44.16existing state funding for these programs.
44.17EFFECTIVE DATE.This section is effective July 1, 2012.
Sec. 6. Minnesota Statutes 2010, section 297E.02, subdivision 6, is amended to read:
Subd. 6. Combined net receipts tax. (a)
In addition to the taxes imposed under
, a tax is imposed on the combined receipts of the organization. As
used in this section, "combined net
receipts" is the sum of the organization's gross receipts
from lawful gambling less gross receipts directly derived from the conduct of paper
raffles, and paddle wheels, as defined in section
297E.01, subdivision 8
, and less the net
44.24prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddle
for the fiscal year. The combined net
receipts of an organization are subject to a
tax computed according to the following schedule:
45.7(b) On or before April 1, 2016, the commissioner shall estimate the total amount of
45.8revenue, including interest and penalties, that will be collected for fiscal year 2016 from
45.9taxes imposed under this chapter. If the amount estimated by the commissioner equals
45.10or exceeds $94,800,000, the commissioner shall certify that effective July 1, 2016, the
45.11rates under this paragraph apply in lieu of the rates under paragraph (a) and shall publish a
45.12notice to that effect in the state register and notify each taxpayer by June 1, 2016. If the
45.13rates under this section apply, the combined net receipts of an organization are subject to a
45.14tax computed according to the following schedule:
||If the combined net
receipts for the fiscal year
||The tax is:
but not over
|1.7$7,875 plus 18 percent of the
but not over
|$3,400$14,175 plus 3.427 percent of
the amount over
but not over
|$10,200$23,625 plus 5.136 percent
of the amount over
45.26(c) Gross receipts derived from sports-themed tipboards are exempt from taxation
45.27under this section. For purposes of this paragraph, a sports-themed tipboard means a
45.28sports-themed tipboard as defined in section 349.12, subdivision 34, under which the
45.29winning numbers are determined by the numerical outcome of a professional sporting
45.31EFFECTIVE DATE.This section is effective July 1, 2012.
||If the combined net
receipts for the fiscal year
||The tax is:
||Not over $87,500
||Over $87,500, but not over
||$7,438 plus 17 percent of the amount
over $87,500, but not over $122,500
||Over $122,500, but not
||$13,388 plus 25.5 percent of the
amount over $122,500, but not over
||$22,313 plus 34 percent of the
amount over $157,500
Sec. 7. Minnesota Statutes 2010, section 297E.02, is amended by adding a subdivision
45.34 Subd. 6a. Unaccounted games. If a licensed distributor cannot account for a
45.35pull-tab game, an electronic pull-tab game, a tipboard deal, paddletickets, an electronic
45.36linked bingo game, bingo paper sheets, or linked bingo paper sheets, the distributor must
45.37report the sheets or games to the commissioner as lost and remit a tax of six percent
45.38on the ideal gross of the sheets or games.
46.1EFFECTIVE DATE.This section is effective July 1, 2012.
Sec. 8. Minnesota Statutes 2010, section 297E.02, subdivision 7, is amended to read:
Subd. 7. Untaxed gambling product.
(a) In addition to penalties or criminal
sanctions imposed by this chapter, a person, organization, or business entity possessing or
selling a pull-tab, electronic pull-tab game
or tipboard upon which the tax imposed by
subdivision 4 this chapter
has not been paid is liable for a tax of six percent of the ideal
gross of each pull-tab, electronic pull-tab game,
or tipboard. The tax on a partial deal
must be assessed as if it were a full deal.
(b) In addition to penalties and criminal sanctions imposed by this chapter, a person
not licensed by the board who conducts bingo, linked bingo, electronic linked bingo,
raffles, or paddle wheel games is liable for a tax of six percent of the gross receipts
from that activity.
(c) The tax must be assessed by the commissioner. An assessment must be
considered a jeopardy assessment or jeopardy collection as provided in section
The commissioner shall assess the tax based on personal knowledge or information
available to the commissioner. The commissioner shall mail to the taxpayer at the
taxpayer's last known address, or serve in person, a written notice of the amount of tax,
demand its immediate payment, and, if payment is not immediately made, collect the tax
by any method described in chapter 270C, except that the commissioner need not await the
expiration of the times specified in chapter 270C. The tax assessed by the commissioner
is presumed to be valid and correctly determined and assessed. The burden is upon the
taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision
does not apply to gambling that is exempt from taxation under subdivision 2.
46.24EFFECTIVE DATE.This section is effective July 1, 2012.
Sec. 9. Minnesota Statutes 2010, section 297E.02, subdivision 10, is amended to read:
Subd. 10. Refunds; appropriation.
A person who has, under this chapter, paid
to the commissioner an amount of tax for a period in excess of the amount legally due
for that period, may file with the commissioner a claim for a refund of the excess. The
amount necessary to pay the refunds under this subdivision
and subdivision 4, paragraph
is appropriated from the general fund to the commissioner.
46.31EFFECTIVE DATE.This section is effective July 1, 2012.
Sec. 10. Minnesota Statutes 2010, section 297E.02, subdivision 11, is amended to read:
Unplayed or Defective pull-tabs or tipboards gambling products. If a
47.2 deal of pull-tabs or tipboards registered with the board or bar coded in accordance with this
47.3 chapter and chapter 349 and upon which the tax imposed by subdivision 4 has been paid is
47.4 returned unplayed to the distributor, the commissioner shall allow a refund of the tax paid.
If a defective deal registered with the board or bar coded in accordance with this
chapter and chapter 349
and upon which the taxes have been paid
is returned to the
manufacturer, the distributor shall submit to the commissioner of revenue certification
from the manufacturer that the deal was returned and in what respect it was defective.
The certification must be on a form prescribed by the commissioner and must contain
additional information the commissioner requires.
The commissioner may require
that no refund
under this subdivision
47.12 unless the that all defective and
have been, paddle tickets,
47.13paper bingo sheets, and linked bingo paper sheets be
set aside for inspection by the
Reductions in previously paid taxes authorized by this subdivision must be made
when and in the manner prescribed by the commissioner.
47.17EFFECTIVE DATE.This section is effective for games sold by a licensed
47.18distributor after June 30, 2012.
Sec. 11. [297E.021] SPECIAL ALLOCATION OF REVENUES.
47.20 Subdivision 1. Application; revenues not pledged. The provisions of this
47.21subdivision apply only after the issuance of appropriation bonds under section 16A.965,
47.22subdivision 2, but do not constitute a pledge of available revenues as security for payment
47.23of principal and interest on appropriation bonds issued under section 16A.965.
47.24 Subd. 2. Determination of revenue increase. By March 15 of each fiscal year,
47.25the commissioner of management and budget, in consultation with the commissioner,
47.26shall determine the estimated increase in revenues received from taxes imposed under
47.27this chapter over the estimated revenues under the February 2012 state budget forecast for
47.28that fiscal year. For fiscal years after fiscal year 2015, the commissioner of management
47.29and budget shall use the February 2012 state budget forecast for fiscal year 2015 as the
47.30baseline. All calculations under this subdivision must be made net of estimated refunds
47.31of the taxes required to be paid.
47.32 Subd. 3. Available revenues. For purposes of this section, "available revenues"
47.33equals the amount determined under subdivision 2:
47.34(1) reduced by the following amounts paid for the fiscal year under:
48.1 (i) the appropriation to principal and interest on appropriation bonds under section
48.216A.965, subdivision 8;
48.3 (ii) the appropriation from the general fund to make operating expense payments
48.4under section 473J.13, subdivision 2, paragraph (b);
48.5 (iii) the appropriation for contributions to the capital reserve fund under section
48.6473J.13, subdivision 4, paragraph (c);
48.7 (iv) the appropriations under this article for administration and any successor
48.9 (v) the reduction in revenues resulting from the sales tax exemptions under section
48.10297A.71, subdivision 43;
48.11 (vi) reimbursements authorized by section 473J.15, subdivision 2, paragraph (d);
48.12 (vii) the compulsive gambling appropriations under section 297E.02, subdivision 3,
48.13paragraph (c), and any successor appropriation; and
48.14(viii) the appropriation for the city of St. Paul under section 16A.726, paragraph
48.16 (2) increased by the revenue deposited in the general fund under section 297A.994,
48.17subdivision 4, clauses (1) to (3), for the fiscal year.
48.18 Subd. 4. Appropriation; general reserve account. To the extent the commissioner
48.19determines that revenues are available under subdivision 3 for the fiscal year, those
48.20amounts are appropriated from the general fund for deposit in a general reserve account
48.21established by order of the commissioner of management and budget. Amounts in
48.22this reserve are appropriated as necessary for application against any shortfall in the
48.23amounts deposited to the general fund under section 297A.994 or, after consultation with
48.24the legislative commission on planning and fiscal policy, amounts in this reserve are
48.25appropriated to the commissioner of management and budget for other uses related to the
48.26stadium authorized under section 473J.03, subdivision 7, that the commissioner deems
48.27financially prudent including but not limited to reimbursements for capital and operating
48.28costs relating to the stadium, refundings, and prepayment of debt. In no event, shall
48.29available revenues be pledged, nor shall the appropriations of available revenues made by
48.30this section constitute a pledge of available revenues as security for the prepayment of
48.31principal and interest on the appropriation bonds under section 16A.965.
Sec. 12. Minnesota Statutes 2010, section 297E.13, subdivision 5, is amended to read:
Subd. 5. Untaxed gambling equipment.
It is a gross misdemeanor for a person to
possess gambling equipment for resale in this state that has not been stamped or bar-coded
in accordance with this chapter and chapter 349 and upon which the taxes imposed by
chapter 297A or section
, subdivision 4 ,
have not been paid. The director of
alcohol and gambling enforcement or the commissioner or the designated inspectors
and employees of the director or commissioner may seize in the name of the state of
Minnesota any unregistered or untaxed gambling equipment.
49.5EFFECTIVE DATE.This section is effective for actions occurring after June
Sec. 13. Minnesota Statutes 2010, section 349.12, subdivision 3b, is amended to read:
Subd. 3b. Bar operation.
"Bar operation" means a method of selling and redeeming
gambling equipment by an employee of the lessor
within a leased premises
which is licensed for the on-sale of alcoholic beverages
where such sales and redemptions
49.11 are made by an employee of the lessor from a common area where food and beverages
49.12 are also sold
Sec. 14. Minnesota Statutes 2010, section 349.12, subdivision 3c, is amended to read:
Subd. 3c. Bar bingo.
"Bar bingo" is a bingo occasion conducted at a permitted
premises in an area where intoxicating liquor or 3.2 percent malt beverages are sold and
where the licensed organization conducts another form of lawful gambling. Bar bingo
49.17does not include bingo games linked to other permitted premises.
Sec. 15. Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read:
Subd. 5. Bingo occasion.
"Bingo occasion" means a single gathering or session at
which a series of one or more successive bingo games is played. There is no limit on the
number of games conducted during a bingo occasion
A bingo occasion must not last
longer than eight consecutive hours
., except that linked bingo games played on electronic
49.23bingo devices may be played during regular business hours of the permitted premises,
49.24and all play during this period is considered a bingo occasion for reporting purposes. For
49.25permitted premises where the primary business is bingo, regular business hours shall be
49.26defined as the hours between 8:00 a.m. and 2:00 a.m.
Sec. 16. Minnesota Statutes 2010, section 349.12, subdivision 6a, is amended to read:
Subd. 6a. Booth operation.
"Booth operation" means a method of selling and
gambling equipment by an employee of a licensed organization in
a premises the organization leases or owns
where such sales and redemptions are made
49.31 within a separate enclosure that is distinct from areas where food and beverages are sold
Sec. 17. Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:
Subd. 12a. Electronic bingo device.
"Electronic bingo device" means
50.3handheld and portable
electronic device that:
used by a bingo player to:
monitor bingo paper sheets or a facsimile of a bingo paper sheet
at the time and place of an organization's bingo occasion
and which (1)
50.7 provides a means for bingo players to, or to play an electronic bingo game that is linked
50.8with other permitted premises;
activate numbers announced
by a bingo caller; (2) compares or displayed, and
entered by the player
to the bingo faces previously stored in
the memory of the device;
a winning bingo pattern
. or game requirement; and
50.13(4) play against other bingo players;
50.14(b) limits the play of bingo faces to 36 faces per game;
50.15(c) requires coded entry to activate play but does not allow the use of a coin,
50.16currency, or tokens to be inserted to activate play;
50.17(d) may only be used for play against other bingo players in a bingo game;
50.18(e) has no additional function as an amusement or gambling device other than as an
50.19electronic pull-tab game defined under section 349.12, subdivision 12c;
50.20(f) has the capability to ensure adequate levels of security internal controls;
50.21(g) has the capability to permit the board to electronically monitor the operation of
50.22the device and the internal accounting systems; and
50.23(h) has the capability to allow use by a player who is visually impaired.
50.24 Electronic bingo device does not mean any device into which coin, currency, or tokens are
50.25 inserted to activate play.
Sec. 18. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
50.28 Subd. 12b. Electronic pull-tab device. "Electronic pull-tab device" means a
50.29handheld and portable electronic device that:
50.30(1) is used to play one or more electronic pull-tab games;
50.31(2) requires coded entry to activate play but does not allow the use of coin, currency,
50.32or tokens to be inserted to activate play;
50.33(3) requires that a player must activate or open each electronic pull-tab ticket and
50.34each individual line, row, or column of each electronic pull-tab ticket;
51.1(4) maintains information pertaining to accumulated win credits that may be applied
51.2to games in play or redeemed upon termination of play;
51.3(5) has no spinning reels or other representations that mimic a video slot machine;
51.4(6) has no additional function as a gambling device other than as an electronic-linked
51.5bingo game played on a device defined under section 349.12, subdivision 12a;
51.6(7) may incorporate an amusement game feature as part of the pull-tab game but
51.7may not require additional consideration for that feature or award any prize, or other
51.8benefit for that feature;
51.9(8) may have auditory or visual enhancements to promote or provide information
51.10about the game being played, provided the component does not affect the outcome of
51.11a game or display the results of a game;
51.12(9) maintains, on nonresettable meters, a printable, permanent record of all
51.13transactions involving each device and electronic pull-tab games played on the device;
51.14(10) is not a pull-tab dispensing device as defined under subdivision 32a; and
51.15 (11) has the capability to allow use by a player who is visually impaired.
Sec. 19. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
51.18 Subd. 12c. Electronic pull-tab game. "Electronic pull-tab game" means a pull-tab
51.20(a) facsimiles of pull-tab tickets that are played on an electronic pull-tab device;
51.21(b) a predetermined, finite number of winning and losing tickets, not to exceed
51.23(c) the same price for each ticket in the game;
51.24(d) a price paid by the player of not less than 25 cents per ticket;
51.25(e) tickets that are in conformance with applicable board rules for pull-tabs;
51.26(f) winning tickets that comply with prize limits under section 349.211;
51.27(g) a unique serial number that may not be regenerated;
51.28(h) an electronic flare that displays the game name, form number, predetermined,
51.29finite number of tickets in the game, and prize tier; and
51.30(i) no spinning reels or other representations that mimic a video slot machine.
Sec. 20. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
51.33 Subd. 12d. Electronic pull-tab game system. "Electronic pull-tab game system"
51.34means the equipment leased from a licensed distributor and used by a licensed organization
52.1to conduct, manage, and record electronic pull-tab games, and to report and transmit the
52.2game results as prescribed by the board and the Department of Revenue. The system must
52.3provide security and access levels sufficient so that internal control objectives are met as
52.4prescribed by the board. The system must contain a point of sale station.
Sec. 21. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
52.7 Subd. 15b. 501(c)(19) organization. "501(c)(19) organization" is an organization
52.8exempt from the payment of federal income taxes under section 501(c)(19) of the Internal
Sec. 22. Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read:
Subd. 18. Gambling equipment.
"Gambling equipment" means
52.12equipment that is either disposable or permanent gambling equipment.
52.13(a) Disposable gambling equipment includes the following:
bingo hard cards or paper sheets, including
linked bingo paper sheets
, devices for
52.15 selecting bingo numbers, electronic bingo devices,;
52.16(2) paper and electronic
, paddle wheels, paddle wheel tables,;
paddle ticket cards
promotional tickets that mimic a pull-tab or tipboard
, pull-tab dispensing devices,
52.21 and programmable electronic devices that have no effect on the outcome of a game and
52.22 are used to provide a visual or auditory enhancement of a game
52.23(b) Permanent gambling equipment includes the following:
52.24(1) devices for selecting bingo numbers;
52.25(2) electronic bingo devices;
52.26(3) electronic pull-tab devices;
52.27(4) pull-tab dispensing devices;
52.28(5) programmable electronic devices that have no effect on the outcome of a game
52.29and are used to provide a visual or auditory enhancement of a game;
52.30(6) paddle wheels; and
52.31(7) paddle wheel tables.
Sec. 23. Minnesota Statutes 2010, section 349.12, subdivision 25, is amended to read:
Subd. 25. Lawful purpose.
(a) "Lawful purpose" means one or more of the
(1) any expenditure by or contribution to a 501(c)(3) or festival organization, as
defined in subdivision 15a, provided that the organization and expenditure or contribution
are in conformity with standards prescribed by the board under section
standards must apply to both types of organizations in the same manner and to the same
(2) a contribution to or expenditure for goods and services for an individual or
family suffering from poverty, homelessness, or disability, which is used to relieve the
effects of that suffering;
(3) a contribution to a program recognized by the Minnesota Department of Human
Services for the education, prevention, or treatment of problem gambling;
(4) a contribution to or expenditure on a public or private nonprofit educational
institution registered with or accredited by this state or any other state;
(5) a contribution to an individual, public or private nonprofit educational institution
registered with or accredited by this state or any other state, or to a scholarship fund of a
nonprofit organization whose primary mission is to award scholarships, for defraying the
cost of education to individuals where the funds are awarded through an open and fair
(6) activities by an organization or a government entity which recognize military
service to the United States, the state of Minnesota, or a community, subject to rules
of the board, provided that the rules must not include mileage reimbursements in the
computation of the per diem reimbursement limit and must impose no aggregate annual
limit on the amount of reasonable and necessary expenditures made to support:
(i) members of a military marching or color guard unit for activities conducted
within the state;
(ii) members of an organization solely for services performed by the members at
(iii) members of military marching, color guard, or honor guard units may be
reimbursed for participating in color guard, honor guard, or marching unit events within
the state or states contiguous to Minnesota at a per participant rate of up to $35 per diem; or
(iv) active military personnel and their immediate family members in need of
(7) recreational, community, and athletic facilities and activities intended primarily
for persons under age 21, provided that such facilities and activities do not discriminate on
the basis of gender and the organization complies with section
349.154, subdivision 3a
(8) payment of local taxes authorized under this chapter, taxes imposed by the
United States on receipts from lawful gambling, the taxes imposed by section
5, and 6, and the tax imposed on unrelated business income by section
54.4290.05, subdivision 3
(9) payment of real estate taxes and assessments on permitted gambling premises
owned by the licensed organization paying the taxes, or wholly leased by a licensed
veterans organization under a national charter recognized under section 501(c)(19) of the
Internal Revenue Code;
(10) a contribution to the United States, this state or any of its political subdivisions,
or any agency or instrumentality thereof other than a direct contribution to a law
enforcement or prosecutorial agency;
(11) a contribution to or expenditure by a nonprofit organization which is a church
or body of communicants gathered in common membership for mutual support and
edification in piety, worship, or religious observances;
(12) an expenditure for citizen monitoring of surface water quality by individuals
or nongovernmental organizations that is consistent with section
115.06, subdivision 4
and Minnesota Pollution Control Agency guidance on monitoring procedures, quality
assurance protocols, and data management, provided that the resulting data is submitted
to the Minnesota Pollution Control Agency for review and inclusion in the state water
(13) a contribution to or expenditure on projects or activities approved by the
commissioner of natural resources for:
(i) wildlife management projects that benefit the public at large;
(ii) grant-in-aid trail maintenance and grooming established under sections
, and other trails open to public use, including purchase or lease of equipment
for this purpose; and
(iii) supplies and materials for safety training and educational programs coordinated
by the Department of Natural Resources, including the Enforcement Division;
(14) conducting nutritional programs, food shelves, and congregate dining programs
primarily for persons who are age 62 or older or disabled;
(15) a contribution to a community arts organization, or an expenditure to sponsor
arts programs in the community, including but not limited to visual, literary, performing,
or musical arts;
(16) an expenditure by a licensed fraternal organization or a licensed veterans
organization for payment of water, fuel for heating, electricity, and sewer costs for:
(i) up to 100 percent for a building wholly owned or wholly leased by and used as
the primary headquarters of the licensed veteran or fraternal organization; or
(ii) a proportional amount subject to approval by the director and based on the
portion of a building used as the primary headquarters of the licensed veteran or fraternal
(17) expenditure by a licensed veterans organization of up to $5,000 in a calendar
year in net costs to the organization for meals and other membership events, limited to
members and spouses, held in recognition of military service. No more than $5,000 can be
expended in total per calendar year under this clause by all licensed veterans organizations
sharing the same veterans post home;
(18) payment of fees authorized under this chapter imposed by the state of Minnesota
to conduct lawful gambling in Minnesota;
(19) a contribution or expenditure to honor an individual's humanitarian service
as demonstrated through philanthropy or volunteerism to the United States, this state,
or local community;
(20) a contribution by a licensed organization to another licensed organization with
prior board approval, with the contribution designated to be used for one or more of the
following lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25);
(21) an expenditure that is a contribution to a parent organization, if the parent
organization: (i) has not provided to the contributing organization within one year of the
contribution any money, grants, property, or other thing of value, and (ii) has received
prior board approval for the contribution that will be used for a program that meets one or
more of the lawful purposes under subdivision 7a;
(22) an expenditure for the repair, maintenance, or improvement of real property
and capital assets owned by an organization, or for the replacement of a capital asset that
can no longer be repaired, with a fiscal year limit of five percent of gross profits from
the previous fiscal year, with no carryforward of unused allowances. The fiscal year is
July 1 through June 30. Total expenditures for the fiscal year may not exceed the limit
unless the board has specifically approved the expenditures that exceed the limit due to
extenuating circumstances beyond the organization's control. An expansion of a building
or bar-related expenditures are not allowed under this provision.
(i) The expenditure must be related to the portion of the real property or capital asset
that must be made available for use free of any charge to other nonprofit organizations,
community groups, or service groups,
is used for the organization's primary
mission or headquarters.
(ii) An expenditure may be made to bring an existing building that the organization
owns into compliance with the Americans with Disabilities Act.
(iii) An organization may apply the amount that is allowed under item (ii) to the
erection or acquisition of a replacement building that is in compliance with the Americans
with Disabilities Act if the board has specifically approved the amount. The cost of
the erection or acquisition of a replacement building may not be made from gambling
proceeds, except for the portion allowed under this item;
(23) an expenditure for the acquisition or improvement of a capital asset with a cost
greater than $2,000, excluding real property, that will be used exclusively for lawful
purposes under this section if the board has specifically approved the amount;
(24) an expenditure for the acquisition, erection, improvement, or expansion of real
property, if the board has first specifically authorized the expenditure after finding that the
real property will be used exclusively for lawful purpose under this section;
(25) an expenditure, including a mortgage payment or other debt service payment,
for the erection or acquisition of a comparable building to replace an organization-owned
building that was destroyed or made uninhabitable by fire or catastrophe or to replace an
organization-owned building that was taken or sold under an eminent domain proceeding.
The expenditure may be only for that part of the replacement cost not reimbursed by
insurance for the fire or catastrophe or compensation not received from a governmental
unit under the eminent domain proceeding, if the board has first specifically authorized
56.22(26) a contribution to a 501(c)(19) organization that does not have an organization
56.23license under section 349.16 and is not affiliated with the contributing organization, and
56.24whose owned or leased property is not a permitted premises under section 349.165. The
56.25501(c)(19) organization may only use the contribution for lawful purposes under this
56.26subdivision or for the organization's primary mission. The 501(c)(19) organization may
56.27not use the contribution for expansion of a building or for bar-related expenditures. A
56.28contribution may not be made to a statewide organization representing a consortia of
(b) Expenditures authorized by the board under clauses (24) and (25) must be
51 percent completed within two years of the date of board approval; otherwise the
organization must reapply to the board for approval of the project. "Fifty-one percent
completed" means that the work completed must represent at least 51 percent of the value
of the project as documented by the contractor or vendor.
(c) Notwithstanding paragraph (a), "lawful purpose" does not include:
(1) any expenditure made or incurred for the purpose of influencing the nomination
or election of a candidate for public office or for the purpose of promoting or defeating a
(2) any activity intended to influence an election or a governmental decision-making
(3) a contribution to a statutory or home rule charter city, county, or town by a
licensed organization with the knowledge that the governmental unit intends to use the
contribution for a pension or retirement fund; or
(4) a contribution to a 501(c)(3) organization or other entity with the intent or effect
of not complying with lawful purpose restrictions or requirements.
57.11EFFECTIVE DATE.This section is effective July 1, 2012.
Sec. 24. Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read:
Subd. 25b. Linked bingo game provider.
"Linked bingo game provider" means
any person who provides the means to link bingo
prizes in a linked bingo game, who
57.15 provides linked bingo paper sheets to the participating organizations games
, who provides
linked bingo prize management, and who provides the linked bingo game system.
Sec. 25. Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read:
Subd. 25c. Linked bingo game system.
"Linked bingo game system" means the
equipment used by the linked bingo provider to conduct, transmit, and track a linked
bingo game. The system must be approved by the board before its use in this state and
it must have
dial-up or other the
capability to permit the board to electronically
its operation remotely. For linked electronic bingo games, the system includes electronic
Sec. 26. Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read:
Subd. 25d. Linked bingo prize pool.
"Linked bingo prize pool" means the total
of all prize money that each participating organization has contributed to a linked bingo
game prize and includes any portion of the prize pool that is carried over from one
to another in a progressive linked bingo game.
Sec. 27. Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read:
Subd. 29. Paddle wheel.
"Paddle wheel" means a vertical
wheel marked off into
sections containing one or more numbers, and which, after being turned or spun, uses a
pointer or marker to indicate winning chances, and may only be used to determine a
58.1winning number or numbers matching a winning paddle ticket purchased by a player. A
58.2paddle wheel may be an electronic device that simulates a paddle wheel
Sec. 28. Minnesota Statutes 2010, section 349.12, subdivision 31, is amended to read:
Subd. 31. Promotional ticket.
created and printed by a licensed manufacturer with the words "no purchase necessary" and
"for promotional use only" and for which no consideration is given is a promotional ticket.
Sec. 29. Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read:
Subd. 32. Pull-tab.
"Pull-tab" means a single folded or banded paper
multi-ply card with perforated break-open tabs, or a facsimile of a paper pull-tab ticket
58.10used in conjunction with an electronic pull-tab device,
the face of which is initially
covered to conceal one or more numbers or symbols, and
where one or more of each set of
cards, or facsimiles
has been designated in advance as a winner.
Sec. 30. Minnesota Statutes 2010, section 349.12, subdivision 34, is amended to read:
Subd. 34. Tipboard.
"Tipboard" means a board, placard or other device containing
a seal that conceals the winning number or symbol, and that serves as the game flare for a
tipboard game. A sports-themed tipboard is a board, placard, or other device that contains a
58.17grid of predesignated numbers for which the winning numbers are determined in whole or
58.18in part by the numerical outcome of one or more professional sporting events, serves as the
58.19game flare for player registration, but is not required to contain a seal. For a sports-themed
58.20tipboard, the winning numbers must be determined solely by the numerical outcome.
Sec. 31. Minnesota Statutes 2010, section 349.12, subdivision 35, is amended to read:
Subd. 35. Tipboard ticket.
"Tipboard ticket" is a single folded or banded ticket,
or multi-ply card, the face of which is initially covered or otherwise hidden from view
to conceal a number, symbol, or set of symbols, some of which have been designated in
advance and at random as prize winners. For a sports-themed tipboard, the tipboard ticket
58.26contains a set of numbers used to determine the winner based on the numerical outcome
58.27of a professional sporting event.
Sec. 32. Minnesota Statutes 2010, section 349.13, is amended to read:
58.29349.13 LAWFUL GAMBLING.
Lawful gambling is not a lottery or gambling within the meaning of sections
if it is conducted under this chapter. A pull-tab dispensing device, electronic
59.1bingo device, and electronic pull-tab device
permitted under this chapter and
rule is not a gambling device within the meaning of sections
299L. An electronic game device allowed under this chapter may not be a slot machine.
59.4Electronic game devices, including but not limited to electronic bingo devices, electronic
59.5paddle wheels, and electronic pull-tab devices authorized under this chapter, may only
59.6be used in the conduct of lawful gambling permitted under this chapter and board rule
59.7and may not display or simulate any other form of gambling or entertainment, except
59.8as otherwise allowed under this chapter.
Sec. 33. Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:
Subd. 4b. Pull-tab sales from dispensing devices.
The board may by rule
authorize but not require the use of pull-tab dispensing devices.
(b) Rules adopted under paragraph (a):
59.13 (1) must limit the number of pull-tab dispensing devices on any permitted premises
59.14 to three; and
59.15 (2) must limit the use of pull-tab dispensing devices to a permitted premises which is
59.16 (i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages;
59.17 or (ii) a premises where bingo is conducted and admission is restricted to persons 18
59.18 years or older.
59.19 (c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices
59.20 may be used in establishments licensed for the off-sale of intoxicating liquor, other than
59.21 drugstores and general food stores licensed under section
340A.405, subdivision 1 .
Sec. 34. Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read:
Subd. 4c. Electronic bingo devices.
(a) The board may by rule authorize but not
require the use of electronic bingo devices.
(b) Rules adopted under paragraph (a):
59.26 (1) must limit the number of bingo faces that can be played using an electronic
59.27 bingo device to 36;
59.28 (2) must require that an electronic bingo device be used with corresponding bingo
59.29 paper sheets or a facsimile, printed at the point of sale, as approved by the board;
59.30 (3) must require that the electronic bingo device site system have dial-up capability
59.31 to permit the board to remotely monitor the operation of the device and the internal
59.32 accounting systems; and
59.33 (4) must prohibit the price of a face played on an electronic bingo device from being
59.34 less than the price of a face on a bingo paper sheet sold at the same occasion.
60.1(b) The board, or the director if authorized by the board, may require the deactivation
60.2of an electronic bingo device for violation of a law or rule and to implement any other
60.3controls deemed necessary to ensure and maintain the integrity of electronic bingo devices
60.4and the electronic bingo games played on the devices.
Sec. 35. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision
60.7 Subd. 4d. Electronic pull-tab devices and electronic pull-tab game system. (a)
60.8The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab
60.9devices, the electronic pull-tab games played on the devices, and the electronic pull-tab
60.10game system necessary to operate them.
60.11(b) The board may not require an organization to use electronic pull-tab devices.
60.12(c) Before authorizing the lease or sale of electronic pull-tab devices and the
60.13electronic pull-tab game system, the board shall examine electronic pull-tab devices
60.14allowed under section 349.12, subdivision 12b. The board may contract for the
60.15examination of the game system and electronic pull-tab devices and may require a working
60.16model to be transported to locations the board designates for testing, examination, and
60.17analysis. The manufacturer must pay all costs of any testing, examination, analysis, and
60.18transportation of the model. The system must be approved by the board before its use in
60.19the state and must have the capability to permit the board to electronically monitor its
60.20operation and internal accounting systems.
60.21(d) The board may require a manufacturer to submit a certificate from an independent
60.22testing laboratory approved by the board to perform testing services, stating that the
60.23equipment has been tested, analyzed, and meets the standards required in this chapter
60.24and any applicable board rules.
60.25(e) The board, or the director if authorized by the board, may require the deactivation
60.26of an electronic pull-tab device for violation of a law or rule and to implement any other
60.27controls deemed necessary to ensure and maintain the integrity of electronic pull-tab
60.28devices and the electronic pull-tab games played on the devices.
Sec. 36. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision
60.31 Subd. 4e. Sports-themed tipboard rules. The board may adopt rules for the
60.32conduct of tipboards for which the winning numbers are determined in whole or in part
60.33by the numerical outcome of one or more professional sporting events. The rules must
60.34provide for operation procedures, internal control standards, posted information, records,
61.1and reports. The rules must provide for the award of prizes, method of payout, wagers,
61.2determination of winners, and the specifications of these tipboards.
Sec. 37. Minnesota Statutes 2010, section 349.155, subdivision 3, is amended to read:
Subd. 3. Mandatory disqualifications.
(a) In the case of licenses for manufacturers,
distributors, distributor salespersons, linked bingo game providers, and gambling
managers, the board may not issue or renew a license under this chapter, and shall revoke
a license under this chapter, if the applicant or licensee, or a director, officer, partner,
governor, or person in a supervisory or management position of the applicant or licensee:
(1) has ever been convicted of a felony or a crime involving gambling;
(2) has ever been convicted of (i) assault, (ii) a criminal violation involving the use
of a firearm, or (iii) making terroristic threats;
(3) is or has ever been connected with or engaged in an illegal business;
(4) owes $500 or more in delinquent taxes as defined in section
(5) had a sales and use tax permit revoked by the commissioner of revenue within
the past two years; or
(6) after demand, has not filed tax returns required by the commissioner of revenue.
The board may deny or refuse to renew a license under this chapter, and may revoke a
license under this chapter, if any of the conditions in this paragraph are applicable to
an affiliate or direct or indirect holder of more than a five percent financial interest in
the applicant or licensee.
(b) In the case of licenses for organizations, the board may not issue a license under
this chapter, and shall revoke a license under this chapter, if the organization, or an officer
or member of the governing body of the organization:
(1) has been convicted of a felony or gross misdemeanor involving theft or fraud; or
(2) has ever been convicted of a crime involving gambling
61.26 (3) has had a license issued by the board or director permanently revoked for
61.27 violation of law or board rule.
Sec. 38. Minnesota Statutes 2010, section 349.155, subdivision 4, is amended to read:
Subd. 4. License revocation, suspension, denial; censure. (a)
The board may by
order (i) deny, suspend, revoke, or refuse to renew a license or premises permit, or (ii)
censure a licensee or applicant, if it finds that the order is in the public interest and that the
applicant or licensee, or a director, officer, partner, governor, person in a supervisory or
management position of the applicant or licensee, an employee eligible to make sales on
behalf of the applicant or licensee, or direct or indirect holder of more than a five percent
financial interest in the applicant or licensee:
(1) has violated or failed to comply with any provision of this chapter or chapter
297E or 299L, or any rule adopted or order issued thereunder;
(2) has filed an application for a license that is incomplete in any material respect, or
contains a statement that, in light of the circumstances under which it was made, is false,
misleading, fraudulent, or a misrepresentation;
(3) has made a false statement in a document or report required to be submitted to
the board or the commissioner of revenue, or has made a false statement to the board, the
compliance review group, or the director;
(4) has been convicted of a crime in another jurisdiction that would be a felony if
committed in Minnesota;
(5) is permanently or temporarily enjoined by any gambling regulatory agency from
engaging in or continuing any conduct or practice involving any aspect of gambling;
(6) has had a gambling-related license revoked or suspended, or has paid or been
required to pay a monetary penalty of $2,500 or more, by a gambling regulator in another
state or jurisdiction;
(7) has been the subject of any of the following actions by the director of alcohol
and gambling enforcement or commissioner of public safety: (i) had a license under
chapter 299L denied, suspended, or revoked, (ii) been censured, reprimanded, has paid or
been required to pay a monetary penalty or fine, or (iii) has been the subject of any other
discipline by the director or commissioner;
(8) has engaged in conduct that is contrary to the public health, welfare, or safety, or
to the integrity of gambling; or
(9) based on past activities or criminal record poses a threat to the public interest or
to the effective regulation and control of gambling, or creates or enhances the dangers of
unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gambling
or the carrying on of the business and financial arrangements incidental to the conduct of
62.30 (b) The revocation or suspension of an organization's license may not exceed a
62.31period of ten years, including any revocation or suspension imposed by the board prior to
62.32the effective date of this paragraph, except that:
62.33 (1) any prohibition placed by the board on who may be involved in the conduct,
62.34oversight, or management of the revoked organization's lawful gambling activity is
63.1 (2) a revocation or suspension will remain in effect until any taxes, fees, and fines
63.2that are delinquent have been paid by the organization to the satisfaction of the board.
Sec. 39. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read:
Subdivision 1. Prohibited acts; licenses required.
(a) No person may:
(1) sell, offer for sale, or furnish gambling equipment for use within the state other
than for lawful gambling exempt or excluded from licensing, except to an organization
licensed for lawful gambling;
(2) sell, offer for sale, or furnish gambling equipment for use within the state without
having obtained a distributor license or a distributor salesperson license under this section
except that an organization authorized to conduct bingo by the board may loan bingo
hard cards and devices for selecting bingo numbers to another organization authorized to
conduct bingo and a linked bingo game provider may provide electronic bingo devices for
63.13linked electronic bingo games
(3) sell, offer for sale, or furnish gambling equipment for use within the state that is
not purchased or obtained from a manufacturer or distributor licensed under this chapter; or
(4) sell, offer for sale, or furnish gambling equipment for use within the state that
has the same serial number as another item of gambling equipment of the same type sold
or offered for sale or furnished for use in the state by that distributor.
(b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling
equipment for use within the state without being employed by a licensed distributor or
owning a distributor license.
63.22(c) No distributor or distributor salesperson may also be licensed as a linked bingo
63.23game provider under section 349.1635.
Sec. 40. Minnesota Statutes 2010, section 349.161, subdivision 5, is amended to read:
Subd. 5. Prohibition.
(a) No distributor, distributor salesperson, or other employee
of a distributor, may also be a wholesale distributor of alcoholic beverages or an employee
of a wholesale distributor of alcoholic beverages.
(b) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor, may: (1) be involved in the conduct of lawful gambling
by an organization; (2) keep or assist in the keeping of an organization's financial records,
accounts, and inventories; or (3) prepare or assist in the preparation of tax forms and other
reporting forms required to be submitted to the state by an organization.
(c) No distributor, distributor salesperson, or any representative, agent, affiliate,
or other employee of a distributor may provide a lessor of gambling premises any
compensation, gift, gratuity, premium, or other thing of value.
(d) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may provide an employee or agent of the organization
any compensation, gift, gratuity, premium, or other thing of value greater than $25 per
organization in a calendar year.
(e) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may participate in any gambling activity at any gambling
site or premises where gambling equipment purchased or leased
from that distributor or
distributor salesperson is being used in the conduct of lawful gambling.
(f) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may alter or modify any gambling equipment, except to
add a "last ticket sold" prize sticker for a paper pull-tab game
(g) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may: (1) recruit a person to become a gambling manager
of an organization or identify to an organization a person as a candidate to become
gambling manager for the organization; or (2) identify for an organization a potential
(h) No distributor or distributor salesperson may purchase or lease
equipment for resale or lease
to a person for use within the state from any person not
licensed as a manufacturer under section
, except for gambling equipment
returned from an organization licensed under section
, or exempt or excluded from
licensing under section
(i) No distributor or distributor salesperson may sell gambling equipment, except
gambling equipment identified as a promotional ticket, to any person for use in Minnesota
other than (i) a licensed organization or organization excluded or exempt from licensing,
or (ii) the governing body of an Indian tribe.
(j) No distributor or distributor salesperson may sell or otherwise provide a paper
pull-tab or tipboard deal with the symbol required by section
349.163, subdivision 5
paragraph (d), visible on the flare to any person other than in Minnesota to a licensed
organization or organization exempt from licensing.
Sec. 41. Minnesota Statutes 2010, section 349.162, subdivision 5, is amended to read:
Subd. 5. Sales from facilities.
(a) All gambling equipment purchased or possessed
by a licensed distributor for resale or lease
to any person for use in Minnesota must, prior
to the equipment's resale or lease
, be unloaded into a storage facility located in Minnesota
which the distributor owns or leases; and which has been registered, in advance and in
writing, with the Division of Alcohol and Gambling Enforcement as a storage facility of
the distributor. All unregistered gambling equipment and all unaffixed registration stamps
owned by, or in the possession of, a licensed distributor in the state of Minnesota shall be
stored at a storage facility which has been registered with the Division of Alcohol and
Gambling Enforcement. No gambling equipment may be moved from the facility unless
the gambling equipment has been first registered with the board or the Department of
Revenue. A distributor must notify the board of the method that it will use to sell and
65.10transfer electronic pull-tab games to licensed organizations, and must receive approval of
65.11the board before implementing or making changes to the approved method.
(b) Notwithstanding section
349.163, subdivisions 5, 6, and 8
, a licensed
manufacturer may ship into Minnesota approved or unapproved gambling equipment if the
licensed manufacturer ships the gambling equipment to a Minnesota storage facility that
is: (1) owned or leased by the licensed manufacturer; and (2) registered, in advance and
in writing, with the Division of Alcohol and Gambling Enforcement as a manufacturer's
storage facility. No gambling equipment may be shipped into Minnesota to the
manufacturer's registered storage facility unless the shipment of the gambling equipment
is reported to the Department of Revenue in a manner prescribed by the department.
No gambling equipment may be moved from the storage facility unless the gambling
equipment is sold to a licensed distributor and is otherwise in conformity with this chapter,
is shipped to an out-of-state site and the shipment is reported to the Department of
Revenue in a manner prescribed by the department, or is otherwise sold and shipped as
permitted by board rule. A manufacturer must notify the board of the method that it will
65.25use to sell and transfer electronic pull-tab games to licensed distributors, and must receive
65.26approval of the board before implementing or making changes to the approved method.
(c) All storage facilities owned, leased, used, or operated by a licensed distributor
or manufacturer may be entered upon and inspected by the employees of the Division of
Alcohol and Gambling Enforcement, the Division of Alcohol and Gambling Enforcement
director's authorized representatives, employees of the Gambling Control Board or its
authorized representatives, employees of the Department of Revenue, or authorized
representatives of the director of the Division of Special Taxes of the Department of
Revenue during reasonable and regular business hours. Obstruction of, or failure to
permit, entry and inspection is cause for revocation or suspension of a manufacturer's or
distributor's licenses and permits issued under this chapter.
(d) Unregistered gambling equipment found at any location in Minnesota other than
the manufacturing plant of a licensed manufacturer or a registered storage facility are
contraband under section
. This paragraph does not apply:
(1) to unregistered gambling equipment being transported in interstate commerce
between locations outside this state, if the interstate shipment is verified by a bill of lading
or other valid shipping document; and
(2) to gambling equipment registered with the Department of Revenue for
distribution to the tribal casinos.
Sec. 42. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read:
Subdivision 1. License required.
No manufacturer of gambling equipment may
sell any gambling equipment to any person for use or resale within the state, unless the
manufacturer has a current and valid license issued by the board under this section and has
satisfied other criteria prescribed by the board by rule. A manufacturer licensed under this
66.14section may also be licensed as a linked bingo game provider under section 349.1635.
A manufacturer licensed under this section may not also be directly or indirectly
licensed as a distributor under section
Sec. 43. Minnesota Statutes 2010, section 349.163, subdivision 5, is amended to read:
Subd. 5. Paper pull-tab and tipboard flares.
(a) A manufacturer may not ship or
cause to be shipped into this state or sell for use or resale in this state any deal of paper
pull-tabs or tipboards that does not have its own individual flare as required for that deal
by this subdivision and rule of the board. A person other than a manufacturer may not
manufacture, alter, modify, or otherwise change a flare for a deal of paper
tipboards except as allowed by this chapter or board rules.
(b) The flare of each paper
pull-tab and tipboard game must have affixed to
or imprinted at the bottom a bar code that provides all information required by the
commissioner of revenue under section
297E.04, subdivision 2
The serial number included in the bar code must be the same as the serial number
of the tickets included in the deal. A manufacturer who manufactures a deal of paper
pull-tabs must affix to the outside of the box containing that game the same bar code that
is affixed to or imprinted at the bottom of a flare for that deal.
(c) No person may alter the bar code that appears on the outside of a box containing
a deal of paper
pull-tabs and tipboards. Possession of a box containing a deal of paper
pull-tabs and tipboards that has a bar code different from the bar code of the deal inside
the box is prima facie evidence that the possessor has altered the bar code on the box.
(d) The flare of each deal of paper
pull-tabs and tipboards sold by a manufacturer for
use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high
and one inch wide consisting of an outline of the geographic boundaries of Minnesota
with the letters "MN" inside the outline. The flare must be placed inside the wrapping of
the deal which the flare describes.
(e) Each paper
pull-tab and tipboard flare must bear the following statement printed
in letters large enough to be clearly legible:
"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in
-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and
-- the serial number imprinted on the bar code at the bottom of this sheet is the same
as the serial number on the pull-tab (or tipboard) ticket you have purchased."
(f) The flare of each paper
pull-tab and tipboard game must have the serial number
of the game imprinted on the bar code at the bottom of the flare in numerals at least
one-half inch high.
Sec. 44. Minnesota Statutes 2010, section 349.163, subdivision 6, is amended to read:
Subd. 6. Samples of gambling equipment. (a)
The board shall require each
licensed manufacturer to submit to the board one or more samples of each item of gambling
the manufacturer manufactures manufactured
for use or resale in this state.
67.20For purposes of this subdivision, a manufacturer is also required to submit the applicable
67.21version of any software necessary to operate electronic devices and related systems.
The board shall inspect and test all the equipment, including software and
it deems necessary to determine the equipment's compliance with
law and board rules. Samples required under this subdivision must be approved by the
board before the equipment being sampled is shipped into or sold for use or resale in this
state. The board shall impose a fee of $25 for each item of gambling equipment that the
manufacturer submits for approval or for which the manufacturer requests approval. The
board shall impose a fee of $100 for each sample of gambling equipment that it tests.
The board may require samples of gambling equipment to be tested by an
independent testing laboratory prior to submission to the board for approval. All costs
of testing by an independent testing laboratory must be borne by the manufacturer. An
independent testing laboratory used by a manufacturer to test samples of gambling
equipment must be approved by the board before the equipment is submitted to the
laboratory for testing.
The board may request the assistance of the commissioner of public safety and
the director of the State Lottery in performing the tests.
Sec. 45. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read:
Subd. 2. License application.
The board may issue a license to a linked bingo game
provider or to a manufacturer licensed under section 349.163
who meets the qualifications
of this chapter and the rules promulgated by the board. The application shall be on a form
prescribed by the board. The license is valid for two years and the fee for a linked bingo
game provider license is $5,000 per year.
Sec. 46. Minnesota Statutes 2010, section 349.1635, subdivision 3, is amended to read:
Subd. 3. Attachments to application.
An applicant for a linked bingo game
provider license must attach to its application:
(1) evidence of a bond in the principal amount of $100,000 payable to the state of
Minnesota conditioned on the payment of all linked bingo prizes and any other money due
and payable under this chapter;
(2) detailed plans and specifications for the operation of the linked bingo game and
the linked bingo system, along with a proposed fee schedule for the cost of providing
services and equipment to licensed organizations which may not exceed 15 percent of
68.18gross profits, unless a higher percentage, not to exceed 20 percent, is authorized by the
68.19board. The fee schedule must incorporate costs paid to distributors for services provided
68.20under subdivision 5
(3) any other information required by the board by rule.
Sec. 47. Minnesota Statutes 2010, section 349.1635, is amended by adding a
subdivision to read:
68.24 Subd. 5. Linked bingo game services requirements. (a) A linked bingo game
68.25provider must contract with licensed distributors for linked bingo game services including,
68.26but not limited to, the solicitation of agreements with licensed organizations, and
68.27installation, repair, or maintenance of the linked bingo game system.
68.28(b) A distributor may not charge a fee to licensed organizations for services
68.29authorized and rendered under paragraph (a).
68.30(c) A linked bingo game provider may not contract with any distributor on an
69.1(d) A linked bingo game provider may refuse to contract with a licensed distributor
69.2if the linked bingo game provider demonstrates that the licensed distributor is not capable
69.3of performing the services under the contract.
Sec. 48. Minnesota Statutes 2010, section 349.165, subdivision 2, is amended to read:
Subd. 2. Contents of application.
An application for a premises permit must
(1) the name and address of the applying organization;
(2) a description of the site for which the permit is sought, including its address and,
where applicable, its placement within another premises or establishment;
(3) if the site is leased, the name and address of the lessor and information about the
lease the board requires, including all rents and other charges for the use of the site. The
lease term is concurrent with the term of the premises permit. The lease must contain a
termination clause. No lease is required for the conduct of a raffle; and
(4) other information the board deems necessary to carry out its purposes.
An organization holding a premises permit must notify the board in writing within
ten days whenever any material change is made in the above information.
Sec. 49. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:
Subd. 6. Conduct of bingo. The price of a face played on an electronic bingo
69.19device may not be less than the price of a face on a bingo paper sheet sold for the same
69.20game at the same occasion.
A game of bingo begins with the first letter and number called
. Each player must cover, mark, or activate the numbers when bingo numbers
are randomly selected
, and or
displayed to the players
, either manually
69.23 or with a flashboard and monitor
. The game is won when a player, using bingo paper,
bingo hard card, or a facsimile of a bingo paper sheet, has completed, as described in the
bingo program, a previously designated pattern or previously determined requirements
of the game and declared bingo. The game is completed when a winning card, sheet, or
facsimile is verified and a prize awarded pursuant to subdivision 3.
Sec. 50. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read:
Subd. 7. Bar bingo.
An organization may conduct bar bingo subject to the
(1) the bingo is conducted at a site the organization owns or leases and which has a
license for the sale of intoxicating beverages on the premises under chapter 340A; and
(2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper
sheets purchased from a licensed distributor or licensed linked bingo game provider
70.3 (3) no rent may be paid for a bar bingo occasion.
Sec. 51. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:
Subd. 8. Linked bingo games.
(a) A licensed organization may conduct or
not more than two
linked bingo games
per occasion, one of which may be a,
in which a portion of the prize is carried over from
to another until won by a player achieving a valid
70.9 predetermined amount of bingo numbers called based upon a predetermined and posted
Each participating licensed organization shall contribute to each prize awarded in
70.12 a linked bingo game in an amount not to exceed $300. Linked bingo games may only be
70.13conducted by licensed organizations who have a valid agreement with the linked bingo
(c) An electronic bingo device as defined in section
349.12, subdivision 12a
be used for a linked bingo game.
(d) The board may adopt rules to:
(1) specify the manner in which a linked bingo game must be played and how the
linked bingo prizes must be awarded;
(2) specify the records to be maintained by a linked bingo game provider;
(3) require the submission of periodic reports by the linked bingo game provider and
specify the content of the reports;
(4) establish the qualifications required to be licensed as a linked bingo game
(5) any other matter involving the operation of a linked bingo game.
Sec. 52. Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision
70.28 Subd. 9. Linked bingo games played exclusively on electronic bingo devices. In
70.29addition to the requirements of subdivision 8, the following requirements and restrictions
70.30apply when linked bingo games are played exclusively on electronic bingo devices.
70.31(a) The permitted premises must be:
70.32(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
70.33malt beverages, except for a general food store or drug store permitted to sell alcoholic
70.34beverages under section 340A.405, subdivision 1; or
71.1(2) a premises where bingo is conducted as the primary business and has a seating
71.2capacity of at least 100.
71.3(b) The number of electronic bingo devices is limited to:
71.4(1) no more than six devices in play for permitted premises with 200 seats or less;
71.5(2) no more than 12 devices in play for permitted premises with 201 seats or more;
71.7(3) no more than 50 devices in play for permitted premises where bingo is the
71.9Seating capacity is determined as specified under the local fire code.
71.10(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the
71.11participating organizations, must provide to the board a bingo program in a format
71.12prescribed by the board.
71.13(d) Before participating in the play of a linked bingo game, a player must present
71.14and register a valid picture identification card that includes the player's address and
71.15date of birth.
71.16(e) An organization may remove from play a device that a player has not maintained
71.17in an activated mode for a specified period of time determined by the organization. The
71.18organization must provide the notice in its house rules.
Sec. 53. Minnesota Statutes 2010, section 349.1711, subdivision 1, is amended to read:
Subdivision 1. Sale of tickets. (a)
Tipboard games must be played using only
tipboard tickets that are either (1) attached to a placard and arranged in columns or rows,
or (2) separate from the placard and contained in a receptacle while the game is in play.
The placard serves as the game flare.
71.24(b) Except for a sports-themed tipboard,
the placard must contain a seal that conceals
the winning number or symbol. When a tipboard ticket is purchased and opened from a
game containing more than 32 tickets, each player having a tipboard ticket with one or
more predesignated numbers or symbols must sign the placard at the line indicated by the
number or symbol on the tipboard ticket.
Sec. 54. Minnesota Statutes 2010, section 349.1711, subdivision 2, is amended to read:
Subd. 2. Determination of winners.
When the predesignated numbers or symbols
have all been purchased, or all of the tipboard tickets for that game have been sold,
the seal must be removed to reveal a number or symbol that determines which of the
predesignated numbers or symbols is the winning number or symbol. A tipboard may also
contain consolation winners, or winning chances that are determined in whole or in part
72.1by the numerical outcome of one or more professional sporting events,
that need not be
determined by the use of the seal.
Sec. 55. Minnesota Statutes 2010, section 349.1721, is amended to read:
72.4349.1721 CONDUCT OF PULL-TABS.
Subdivision 1. Cumulative or carryover games.
The board shall by rule permit
pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games with
cumulative or carryover prizes. The rules shall also apply to electronic pull-tab games.
Subd. 2. Event games.
The board shall by rule permit pull-tab games in which
certain winners are determined by the random selection of one or more bingo numbers
or by another method approved by the board. The rules shall also apply to electronic
72.12 Subd. 3. Pull-tab dispensing device location restrictions and requirements.
72.13The following pertain to pull-tab dispensing devices as defined under section 349.12,
72.15(a) The use of any pull-tab dispensing device must be at a permitted premises
72.17(1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt
72.19(2) a premises where bingo is conducted as the primary business; or
72.20(3) an establishment licensed for the off-sale of intoxicating liquor, other than drug
72.21stores and general food stores licensed under section 340A.405, subdivision 1.
72.22(b) The number of pull-tab dispensing devices located at any permitted premises
72.23is limited to three.
72.24 Subd. 4. Electronic pull-tab device requirements and restrictions. The following
72.25pertain to the use of electronic pull-tab devices as defined under section 349.12,
72.27(a) The use of any electronic pull-tab device may only be at a permitted premises
72.29(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
72.30malt beverages, except for a general food store or drug store permitted to sell alcoholic
72.31beverages under section 340A.405, subdivision 1; or
72.32(2) a premises where bingo is conducted as the primary business and has a seating
72.33capacity of at least 100; and
72.34(3) where the licensed organization sells paper pull-tabs.
72.35(b) The number of electronic pull-tab devices is limited to:
73.1(1) no more than six devices in play at any permitted premises with 200 seats or less;
73.2(2) no more than 12 devices in play at any permitted premises with 201 seats
73.3or more; and
73.4(3) no more than 50 devices in play at any permitted premises where the primary
73.5business is bingo.
73.6Seating capacity is determined as specified under the local fire code.
73.7(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.
73.8(d) All electronic pull-tab games must be sold and played on the permitted premises
73.9and may not be linked to other permitted premises.
73.10(e) Electronic pull-tab games may not be transferred electronically or otherwise to
73.11any other location by the licensed organization.
73.12(f) Electronic pull-tab games may be commingled if the games are from the same
73.13family of games and manufacturer and contain the same game name, form number, type
73.14of game, ticket count, prize amounts, and prize denominations. Each commingled game
73.15must have a unique serial number.
73.16(g) An organization may remove from play a device that a player has not maintained
73.17in an activated mode for a specified period of time determined by the organization. The
73.18organization must provide the notice in its house rules.
73.19(h) Before participating in the play of an electronic pull-tab game, a player must
73.20present and register a valid picture identification card that includes the player's address
73.21and date of birth.
73.22(i) Each player is limited to the use of one device at a time.
73.23 Subd. 5. Multiple chance games. The board may permit pull-tab games in which
73.24the holders of certain predesignated winning tickets, with a prize value not to exceed $75
73.25each, have the option of turning in the winning tickets for the chance to win a prize of
Sec. 56. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read:
Subdivision 1. Lease or ownership required; rent limitations.
(a) An organization
may conduct lawful gambling only on premises it owns or leases. Leases must be on a
form prescribed by the board. The term of the lease is concurrent with the premises permit.
Leases approved by the board must specify that the board may authorize an organization
to withhold rent from a lessor for a period of up to 90 days if the board determines that
illegal gambling occurred on the premises or that the lessor or its employees participated
in the illegal gambling or knew of the gambling and did not take prompt action to stop the
gambling. The lease must authorize the continued tenancy of the organization without
the payment of rent during the time period determined by the board under this paragraph.
Copies of all leases must be made available to employees of the board and the Division of
Alcohol and Gambling Enforcement on request.
(b) Rent paid by an organization for leased premises for the conduct of
74.5 tipboards, and paddle wheels lawful gambling
is subject to the following limits and
(1) For booth operations,
including booth operations where a pull-tab dispensing
74.8 device is located, booth operations where a bar operation is also conducted, and booth
74.9 operations where both a pull-tab dispensing device is located and a bar operation is also
74.10 conducted, the maximum rent is: monthly rent may not exceed ten percent of gross profits
74.11for that month. Total rent paid to a lessor from all organizations from leases governed by
74.12this clause may not exceed $1,750 per month.
74.13 (i) in any month where the organization's gross profit at those premises does not
74.14 exceed $4,000, up to $400; and
74.15 (ii) in any month where the organization's gross profit at those premises exceeds
74.16 $4,000, up to $400 plus not more than ten percent of the gross profit for that month in
74.17 excess of $4,000;
(2) For bar operations,
including bar operations where a pull-tab dispensing device
74.19 is located but not including bar operations subject to clause (1), and for locations where
74.20 only a pull-tab dispensing device is located: monthly rent may not exceed:
74.21(i) 15 percent of the gross profits for that month from electronic pull-tab games and
74.22electronic linked bingo games; and
74.23(ii) more than 20 percent of gross profits from all other forms of lawful gambling.
74.24 (i) in any month where the organization's gross profit at those premises does not
74.25 exceed $1,000, up to $200; and
74.26 (ii) in any month where the organization's gross profit at those premises exceeds
74.27 $1,000, up to $200 plus not more than 20 percent of the gross profit for that month
74.28 in excess of $1,000;
a lease not governed by clauses (1) and (2) must be approved by the board before
74.30 becoming effective; For electronic linked bingo games and electronic pull-tab games that
74.31are operated for separate time periods within a business day by an organization and the
74.32lessor, monthly rent may not be more than:
74.33(i) 15 percent of the gross profits for that month for the time periods operated by
74.34the lessor. The lessor is responsible for cash shortages that occur during the time periods
74.35the games are operated by the lessor; and
75.1(ii) ten percent of gross profits for that month for the time periods operated by the
75.2organization. The organization is responsible for cash shortages that occur during the time
75.3periods the games are operated by the organization.
75.4 (4) total rent paid to a lessor from all organizations from leases governed by clause
75.5 (1) may not exceed $1,750 per month.
75.6 (c) Rent paid by an organization for leased premises for the conduct of bingo is
75.7 subject to either of the following limits at the option of the parties to the lease:
75.8 (1) (4) For bingo conducted at a leased premises where the primary business is
75.9bingo, rent is limited to either
not more than ten percent of the monthly gross profit from
all lawful gambling activities held during bingo occasions,
excluding bar bingo or at a
rate based on a cost per square foot not to exceed 110 percent of a comparable cost per
square foot for leased space as approved by the director
75.13 (2) (5)
No rent may be paid for bar bingo as defined in section 349.12, subdivision 3c
75.14(6) A lease not governed by clauses (1) to (5) must be approved by the director
75.15before becoming effective.
Amounts paid as rent under leases are all-inclusive. No other services or
expenses provided or contracted by the lessor may be paid by the organization, including,
but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn
services, electricity, heat, security, security monitoring, storage, and
other utilities or
and, in the case of bar operations, cash shortages,
unless approved by the
director. The lessor shall be responsible for the cost of any communications network or
75.22service required to conduct electronic pull-tab games or electronic bingo games.
other expenditure made by an organization that is related to a leased premises must be
approved by the director. For bar operations, the lessor is responsible for cash shortages.
An organization may not provide any compensation or thing of value to a lessor or the
lessor's employees from any fund source other than its gambling account. Rent payments
may not be made to an individual.
Notwithstanding paragraph (b), an organization may pay a lessor for food
or beverages or meeting room rental if the charge made is comparable to similar charges
made to other individuals or groups.
(f) No entity other than the (e) A
licensed organization may not
conduct any activity
within a booth operation on behalf of the lessor
on a leased premises.
Sec. 57. Minnesota Statutes 2010, section 349.19, subdivision 2, is amended to read:
Subd. 2. Accounts.
(a) Gross receipts from lawful gambling by each organization
must be segregated from all other revenues of the conducting organization and placed in a
separate gambling bank account.
(b) All expenditures for allowable expenses, taxes, and lawful purposes must be
made from the separate account except (1) in the case of expenditures previously approved
by the organization's membership for emergencies as defined by board rule, (2) as provided
in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment
of taxes for the organization as a whole, the organization may transfer the amount of taxes
related to the conduct of gambling to the general account at the time when due and payable.
(c) The name and address of the bank, the account number for the separate account,
and the names of organization members authorized as signatories on the separate account
must be provided to the board when the application is submitted. Changes in the
information must be submitted to the board at least ten days before the change is made.
(d) Except for gambling receipts from electronic pull-tab games and linked
76.15electronic bingo games,
gambling receipts must be deposited into the gambling bank
account within four business days of completion of the bingo occasion, deal, or game from
which they are received.
A deal of paper
pull-tabs is considered complete when either the last pull-tab of
the deal is sold or the organization does not continue the play of the deal during the next
scheduled period of time in which the organization will conduct pull-tabs.
A tipboard game is considered complete when the seal on the game flare is
uncovered or the organization does not continue the play of the deal during the next
scheduled period of time in which the organization will conduct tipboards.
76.24(e) Gambling receipts from all electronic pull-tab games and all linked electronic
76.25bingo games must be recorded on a daily basis and deposited into the gambling bank
76.26account within two business days.
Deposit records must be sufficient to allow determination of deposits made
from each bingo occasion, deal, or game at each permitted premises.
The person who accounts for gambling gross receipts and profits may not be
the same person who accounts for other revenues of the organization.
Sec. 58. Minnesota Statutes 2010, section 349.19, subdivision 3, is amended to read:
Subd. 3. Expenditures.
(a) All expenditures of gross profits from lawful gambling
must be itemized as to payee, purpose, amount, and date of payment.
(b) Each licensed organization must report monthly to the board
on a form in an
prescribed by the board each expenditure or contribution of net profits
from lawful gambling. The reports must provide for each expenditure or contribution:
(1) the name of the recipient of the expenditure or contribution;
(2) the date the expenditure or contribution was approved by the organization;
(3) the date, amount, and check number or electronic transfer confirmation number
of the expenditure or contribution;
(4) a brief description of how the expenditure or contribution meets one or more of
the purposes in section
349.12, subdivision 25
(5) in the case of expenditures authorized under section
349.12, subdivision 25
paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily
benefits male or female participants.
(c) Authorization of the expenditures must be recorded in the monthly meeting
minutes of the licensed organization.
(d) Checks or authorizations for electronic fund transfers for expenditures of gross
profits must be signed by at least two persons authorized by board rules to sign the
checks or authorizations.
(e) Expenditures of gross profits from lawful gambling for local, state, and federal
taxes as identified in section
349.12, subdivision 25
, paragraph (a), clause (8), may be
transferred electronically from the organization's gambling account directly to bank
accounts identified by local, state, or federal agencies if the organization's gambling
account monthly bank statement specifically identifies the payee by name, the amount
transferred, and the date of the transaction.
(f) Expenditures of gross profits from lawful gambling for payments for lawful
purpose expenditures and allowable expenses may be transferred electronically from the
organization's gambling account directly to bank accounts identified by the vendor if the
organization's gambling account monthly bank statement specifically identifies the payee
by name, the amount transferred, the account number of the account into which the funds
were transferred, and the date of the transaction.
(g) Expenditures of gross profits from lawful gambling for payroll compensation
to an employee's account and for the payment of local, state, and federal withholding
taxes may be transferred electronically to and from the account of a payroll processing
firm provided that the firm:
(1) is currently registered with and meets the criteria of the Department of Revenue
as a third-party bulk filer under section
290.92, subdivision 30
(2) is able to provide proof of a third-party audit and an annual report and statement
of financial condition;
(3) is able to provide evidence of a fidelity bond; and
(4) can provide proof of having been in business as a third-party bulk filer for the
most recent three years.
(h) Electronic payments of taxes, lawful purpose expenditures, and allowable
expenses are permitted only if they have been authorized by the membership, the
organization maintains supporting documentation, and the expenditures can be verified.
78.9EFFECTIVE DATE.This section is effective July 1, 2012.
Sec. 59. Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read:
Subd. 5. Reports. (a)
A licensed organization must report monthly
Department of Revenue board in an electronic format prescribed by the board
and to its
monthly, or quarterly in the case of a licensed organization which does not
78.14 report more than $1,000 in gross receipts from lawful gambling in any calendar quarter,
on its gross receipts, expenses, profits, and expenditure of profits from lawful gambling
78.16for each permitted premises. The organization must account for and report on each form
78.17of lawful gambling conducted
must include a reconciliation of
the organization's profit carryover with its cash balance on hand.
If the organization
78.19 conducts both bingo and other forms of lawful gambling, the figures for both must be
78.20 reported separately.
The organization must report
annually to its membership and annually file with
78.22 the board a financial summary report in a format prescribed by the board that identifies the
78.23 organization's receipts and use of lawful gambling proceeds, including: monthly to the
78.24commissioner of revenue as required under section 297E.06.
78.25 (1) gross receipts;
78.26 (2) prizes paid;
78.27 (3) allowable expenses;
78.28 (4) lawful purpose expenditures, including annual totals for types of charitable
78.29 contributions and all taxes and fees as per section
349.12, subdivision 25 , paragraph
78.30 (a), clauses (8) and (18);
78.31 (5) the percentage of annual gross profits used for charitable contributions; and
78.32 (6) the percentage of annual gross profits used for all taxes and fees as per section
78.33 349.12, subdivision 25 , paragraph (a), clauses (8) and (18).
78.34EFFECTIVE DATE.This section is effective July 1, 2012.
Sec. 60. Minnesota Statutes 2010, section 349.19, subdivision 10, is amended to read:
Subd. 10. Pull-tab records.
(a) The board shall by rule require a licensed
organization to require each winner of a paper
pull-tab prize of $50 or more to present
identification in the form of a driver's license, Minnesota identification card, or other
identification the board deems sufficient to allow the identification and tracking of the
winner. The rule must require the organization to retain winning paper
pull-tabs of $50 or
more, and the identification of the winner of the pull-tab, for 3-1/2 years.
(b) An organization must maintain separate cash banks for each deal of paper
pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the
organization uses a cash register, of a type approved by the board, which records all
sales of paper
pull-tabs by separate deals.
(c) The board shall:
(1) by rule adopt minimum technical standards for cash registers that may be used
by organizations, and shall approve for use by organizations any cash register that meets
the standards; and
(2) before allowing an organization to use a cash register that commingles receipts
from several different paper
pull-tab games in play, adopt rules that define how cash
registers may be used and that establish a procedure for organizations to reconcile all
pull-tab games in play at the end of each month.
Sec. 61. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read:
Subd. 1a. Linked bingo prizes.
Prizes for a linked bingo game shall be limited
no organization may contribute more than $300 per linked bingo game to a
79.24 linked bingo prize pool for linked bingo games played without electronic bingo devices,
79.25an organization may not contribute to a linked bingo game prize pool more than $300
79.26per linked bingo game per site
79.27(2) for linked bingo games played exclusively with electronic bingo devices, an
79.28organization may not contribute more than 85 percent of the gross receipts per permitted
79.29premises to a linked bingo game prize pool;
no organization may award more than $200 for a linked bingo game
consolation prize. For purposes of this subdivision, a linked bingo game consolation
prize is a prize awarded by an organization after a prize from the linked bingo prize pool
has been won;
79.34 (3) (4)
for a progressive linked bingo game, if no player declares a valid bingo
within the for a progressive prize or prizes based on a
amount of bingo
80.1 numbers called and posted win determination
, a portion of the
prize is gross receipts
carried over to another
until the accumulated progressive
is won. The portion of the prize that is not carried over must be awarded to the first
player or players who declares a valid bingo as additional numbers are called. If a valid
bingo is declared
within the predetermined amount of bingo numbers called
, the entire
prize pool for that game is awarded to the winner
. The annual limit for progressive bingo
80.7 game prizes contained in subdivision 2 must be reduced by the amount an organization
80.8 contributes to progressive linked bingo games during the same calendar year.; and
80.9(5) for linked bingo games played exclusively with electronic bingo devices, linked
80.10bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the
80.11player within three business days. Winners of linked bingo prizes in excess of $599 will
80.12be given a receipt or claim voucher as proof of a win.
Sec. 62. Minnesota Statutes 2010, section 349.211, subdivision 2c, is amended to read:
Subd. 2c. Tipboard prizes. (a)
The maximum prize which may be awarded for
a tipboard ticket is $599 for $2 and under tipboard tickets, $899 for $3 tipboard tickets,
$1,199 for $4 tipboard tickets, and $1,499 for $5 tipboard tickets, not including any
cumulative or carryover prizes. Cumulative or carryover prizes in tipboard games shall
not exceed $2,500. An organization may not sell any tipboard ticket for more than $5.
80.19(b) For sports-themed tipboards, the total prize payout may not exceed the amount in
80.20section 349.2113, and each chance or ticket may not be sold for more than $10.
Sec. 63. DEPARTMENT OF PUBLIC SAFETY; OVERSIGHT OF
80.23The Department of Public Safety shall exercise oversight over all background
80.24checks on manufacturers and distributors who supply machines, games, software, or other
80.25gambling materials used in electronic pull-tabs, electronic bingo, or professional sports
80.26tipboards, to ensure the integrity of new forms of gambling entering the Minnesota market.
Sec. 64. SEVERABILITY.
80.28If any provision of this act is found to be invalid because it is in conflict with a
80.29provision of the Minnesota Constitution or the Constitution of the United States, or for any
80.30other reason, all other provisions of this act shall remain valid and any rights, remedies,
80.31and privileges that have been otherwise accrued by this act, shall remain in effect and may
80.32be proceeded with and concluded under this act.
Sec. 65. APPROPRIATION.
81.2(a) $1,219,000 in fiscal year 2013 is appropriated from the lawful gambling
81.3regulation account in the special revenue fund to the Gambling Control Board for
81.4operating expenses related to the regulatory oversight of lawful gambling for electronic
81.5pull-tabs and electronic linked bingo.
81.6(b) $250,000 in fiscal year 2013 is appropriated from the lawful gambling regulation
81.7account in the special revenue fund to the Department of Public Safety for expenses related
81.8to the oversight of lawful gambling for electronic pull-tabs and electronic linked bingo.
Sec. 66. REPEALER.
81.10Minnesota Statutes 2010, sections 297E.02, subdivision 4; 349.15, subdivision 3;
81.11and 349.19, subdivision 2a, are repealed.
81.12EFFECTIVE DATE.This section is effective for games sold by a licensed
81.13distributor after June 30, 2012, and the commissioner of revenue retains the authority to
81.14issue refunds under Minnesota Statutes 2010, section 297E.02, subdivision 4, paragraph
81.15(d), for games sold before July 1, 2012.
Sec. 67. EFFECTIVE DATE.
81.17Unless otherwise specifically provided, this act is effective the day following final
Section 1. [245.981] COMPULSIVE GAMBLING ANNUAL REPORT.
81.22(a) Each year by February 15, 2014, and thereafter, the commissioner of human
81.23services shall report to the chairs and ranking minority members of the legislative
81.24committees having jurisdiction over compulsive gambling on the percentage of gambling
81.25revenues that come from gamblers identified as problem gamblers, or a similarly defined
81.26term, as defined by the National Council on Problem Gambling. The report must
81.27disaggregate the revenue by the various types of gambling, including, but not limited to:
81.28lottery; electronic and paper pull-tabs; bingo; linked bingo; and pari-mutuel betting.
81.29(b) By February 15, 2013, the commissioner shall provide a preliminary update for
81.30the report required under paragraph (a) to the chairs and ranking minority members of the
81.31legislative committees having jurisdiction over compulsive gambling and the estimated
81.32cost of the full report.
Sec. 2. Minnesota Statutes 2010, section 297A.71, is amended by adding a subdivision
82.3 Subd. 44. Building materials, capital projects. Materials and supplies used or
82.4consumed in and equipment incorporated into the construction or improvement of a
82.5capital project funded partially or wholly under section 297A.9905 are exempt, provided
82.6that the project has a total construction cost of at least $40,000,000 within a 24-month
82.7period. The tax on purchases exempt under this provision must be imposed and collected
82.8as if the rate under section 297A.62, subdivision 1, applied and then refunded in the
82.9manner provided in section 297A.75.
82.10EFFECTIVE DATE.This section is effective for sales and purchases made after
82.11June 30, 2013.
Sec. 3. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 1, is
amended to read:
Subdivision 1. Tax collected.
The tax on the gross receipts from the sale of the
following exempt items must be imposed and collected as if the sale were taxable and the
rate under section
297A.62, subdivision 1
, applied. The exempt items include:
(1) capital equipment exempt under section
297A.68, subdivision 5
(2) building materials for an agricultural processing facility exempt under section
82.19297A.71, subdivision 13
(3) building materials for mineral production facilities exempt under section
82.21297A.71, subdivision 14
(4) building materials for correctional facilities under section
(5) building materials used in a residence for disabled veterans exempt under section
82.25297A.71, subdivision 11
(6) elevators and building materials exempt under section
297A.71, subdivision 12
(7) building materials for the Long Lake Conservation Center exempt under section
82.28297A.71, subdivision 17
(8) materials and supplies for qualified low-income housing under section
(9) materials, supplies, and equipment for municipal electric utility facilities under
297A.71, subdivision 35
(10) equipment and materials used for the generation, transmission, and distribution
of electrical energy and an aerial camera package exempt under section
(11) tangible personal property and taxable services and construction materials,
supplies, and equipment exempt under section
, subdivision 41;
(12) commuter rail vehicle and repair parts under section
3, clause (11);
(13) materials, supplies, and equipment for construction or improvement of projects
and facilities under section
297A.71, subdivision 40
(14) materials, supplies, and equipment for construction or improvement of a meat
processing facility exempt under section
297A.71, subdivision 41
(15) materials, supplies, and equipment for construction, improvement, or expansion
of an aerospace defense manufacturing facility exempt under section
(16) enterprise information technology equipment and computer software for use in
a qualified data center exempt under section
297A.68, subdivision 42; and
83.14(17) materials, supplies, and equipment for qualifying capital projects under section
83.15297A.71, subdivision 34
Sec. 4. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 2, is
amended to read:
Subd. 2. Refund; eligible persons.
Upon application on forms prescribed by the
commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
must be paid to the applicant. Only the following persons may apply for the refund:
(1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
(2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental
(3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits
provided in United States Code, title 38, chapter 21;
(4) for subdivision 1, clause (6), the applicant must be the owner of the homestead
(5) for subdivision 1, clause (8), the owner of the qualified low-income housing
(6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
a joint venture of municipal electric utilities;
(7) for subdivision 1, clauses (10), (11), (14), (15), and (16), the owner of the
qualifying business; and
(8) for subdivision 1, clauses (12)
(13), and (17),
the applicant must be the
governmental entity that owns or contracts for the project or facility.
Sec. 5. Minnesota Statutes 2011 Supplement, section 297A.75, subdivision 3, is
amended to read:
Subd. 3. Application.
(a) The application must include sufficient information
to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11),
(12), (13), (14), (15),
(16), or (17),
the contractor, subcontractor, or builder must
furnish to the refund applicant a statement including the cost of the exempt items and the
taxes paid on the items unless otherwise specifically provided by this subdivision. The
provisions of sections
apply to refunds under this section.
(b) An applicant may not file more than two applications per calendar year for
refunds for taxes paid on capital equipment exempt under section
297A.68, subdivision 5
(c) Total refunds for purchases of items in section
297A.71, subdivision 40
, must not
exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
of items in sections
297A.70, subdivision 3
, paragraph (a), clause (11), and
subdivision 40, must not be filed until after June 30, 2009.
84.16EFFECTIVE DATE.This section is effective for sales and purchases made after
84.17June 30, 2013.
Sec. 6. [297A.9905] USE OF LOCAL TAX REVENUES BY CITIES OF THE
84.20(a) Notwithstanding section 297A.99, or other general or special law or charter
84.21provision, if the revenues from any local tax imposed on retail sales under special law
84.22by a city of the first class exceeds the amount needed to fund the uses authorized in the
84.23special law, the city may expend the excess revenue from the tax to fund other capital
84.24projects of regional significance.
84.25(b) For purposes of this section:
84.26(1) "city of the first class" has the meaning given in section 410.01; and
84.27(2) "capital project of regional significance" means construction, expansion, or
84.28renovation of a sports facility or convention or civic center, that has a construction cost
84.29of at least $40,000,000.
84.30EFFECTIVE DATE.This section is effective the day following final enactment.
Sec. 7. USE OF THE STADIUM.
84.32 Subdivision 1. Amateur sports use. The lessee of the stadium must make the
84.33facilities of the stadium available to the Minnesota Amateur Sports Commission up to
85.1ten days each year on terms satisfactory to the commission for amateur sports activities
85.2consistent with Minnesota Statutes, chapter 240A, each year during the time the bonds
85.3issued pursuant to this act are outstanding. The commission must negotiate in good faith
85.4and may be required to pay no more than actual out-of-pocket expenses for the time
85.5it uses the stadium.
85.6 Subd. 2. High school league. The lessee of the stadium must make the facilities of
85.7the stadium available for use by the Minnesota State High School League for at least seven
85.8days each year for high school soccer and football tournaments. The lessee of the stadium
85.9must provide, and may not charge the league a fee for, this use, including security, ticket
85.10takers, custodial or cleaning services, or other similar services in connection with this use.
85.12STADIUM BLINK-ON FUNDING
Section 1. [16A.1524] BACKUP REVENUES; FOOTBALL STADIUM
85.15 (a) If the commissioner of management and budget determines that the amount
85.16of revenues under section 297E.021, subdivision 2, for the next fiscal year will be less
85.17than the amounts specified in section 297E.021, subdivision 3, paragraph (a), clause
85.18(1), items (i) to (iii), for that fiscal year, the commissioner may implement the revenue
85.19options authorized in this article; provided that this section does not constitute a pledge of
85.20tax revenues as security for the payment of principal and interest on appropriation bonds
85.21issued under section 16A.695. If the commissioner determines to exercise the authority
85.22under this section for a fiscal year, the commissioner must implement the revenue options,
85.23as necessary, in the following order:
85.24 (1) a sports-themed lottery game under section 349A.20; and
85.25(2) a tax on suites as provided under section 473J.14.
85.26 (b) Revenue raised under the authority granted by this section must be deposited
85.27in the general fund.
85.28 (c) If the commissioner determines to implement one or more of the revenue options
85.29authorized by this section, each subsequent year the commissioner must determine if
85.30the revenue is needed and will be imposed and collected for the next fiscal year. If the
85.31commissioner determines that one or more revenue options implemented for a fiscal year
85.32are not needed for a subsequent fiscal year, the commissioner must terminate them in the
85.33reverse order they were required to be implemented by paragraph (a) with the last option
85.34implemented terminated first and so forth.
86.1 (d) Before implementing a revenue source authorized under this section, the
86.2commissioner must report the intent to do so to the Legislative Commission on Planning
86.3and Fiscal Policy. The commissioner must inform the commission of determinations to
86.4continue or discontinue each revenue source for a subsequent fiscal year.
86.5(e) The provisions of this section no longer apply after the Minnesota Sports
86.6Facilities Authority certifies to the commissioner that it has determined that the revenues
86.7of the general fund under section 297A.994, the increased revenues under chapter 297E,
86.8and other available resources of the authority provide adequate financial security for
86.9the state and the authority.
Sec. 2. [349A.20] STADIUM, SPORTS-THEMED GAMES.
86.11 The State Lottery shall conduct games based on stadium or professional sports
86.12themes to generate a minimum of $2,100,000 in additional revenue for the fiscal year for
86.13the general fund. Games issued under this section must comply with all NFL policies
86.14on use of trademarks, images, and logos.
86.15EFFECTIVE DATE.This section is effective pursuant to the authority granted
86.16under section 1, on the day following final enactment.
Sec. 3. [473J.14] SUITES TAX.
86.18 (a) Upon notification by the commissioner of management and budget under section
86.1916A.1524, the authority shall by resolution impose and maintain a ten percent tax on the
86.20gross receipts received for the rental of suites, sky boxes, and similar in the NFL stadium.
86.21(b) The tax must be imposed in the years specified by the commissioner of
86.22management and budget. The suites rental tax under paragraph (a) applies to the gross
86.23receipts, as defined under section 297A.61, received by the seller, as defined in section
86.24297A.61, and is a debt owed by the seller to the authority. A tax imposed under this
86.25section is recoverable at law by the authority from the seller in the same manner as other
86.26debts. Every person granting, selling, or renting suites, sky boxes, or similar may be
86.27required, as provided in resolutions of the authority, to secure a permit, to file returns, to
86.28deposit security for the payment of the tax, and to pay the penalties for nonpayment and
86.29interest on late payments, as the authority deems necessary or expedient to assure the
86.30prompt and uniform collection of either or both of the taxes.
86.31 (c) The authority shall remit the proceeds of a tax imposed under this section to the
86.32commissioner of management and budget for deposit in the state's general fund.