HF 2995

as introduced - 87th Legislature (2011 - 2012) Posted on 04/18/2012 10:13am

A bill for an act
relating to stadiums; providing for a new National Football League Stadium
in Minnesota; establishing a Minnesota Stadium Authority; abolishing the
Metropolitan Sports Facilities Commission; providing for use of certain local
tax revenue; authorizing electronic pull-tabs and bingo; authorizing the sale
and issuance of state appropriation bonds; appropriating money; amending
Minnesota Statutes 2010, sections 3.971, subdivision 6; 3.9741, by adding a
subdivision; 13.55, subdivision 1; 297A.71, by adding subdivisions; 349.12,
subdivisions 3b, 3c, 5, 6a, 12a, 18, 25b, 25c, 25d, 29, 31, 32, by adding
subdivisions; 349.13; 349.151, subdivisions 4b, 4c, by adding a subdivision;
349.161, subdivisions 1, 5; 349.162, subdivision 5; 349.163, subdivisions 1, 5,
6; 349.1635, subdivisions 2, 3, by adding a subdivision; 349.17, subdivisions
6, 7, 8, by adding a subdivision; 349.1721; 349.18, subdivision 1; 349.19,
subdivisions 2, 3, 5, 10; 349.211, subdivision 1a; 352.01, subdivision 2a;
473.121, subdivision 5a; 473.164; 473.565, subdivision 1; Minnesota Statutes
2011 Supplement, sections 10A.01, subdivision 35; 340A.404, subdivision 1;
proposing coding for new law in Minnesota Statutes, chapter 16A; proposing
coding for new law as Minnesota Statutes, chapter 473J; repealing Minnesota
Statutes 2010, sections 473.551; 473.552; 473.553, subdivisions 1, 2, 3, 4, 5, 6,
7, 8, 9, 10, 11, 12, 13; 473.556, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
13, 14, 16, 17; 473.561; 473.564, subdivisions 2, 3; 473.572; 473.581; 473.592,
subdivision 1; 473.595; 473.598; 473.599; 473.76.

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

ARTICLE 1

MINNESOTA STADIUM AUTHORITY

Section 1.

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 16A.50 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 Stadium Authority, 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. 2.

Minnesota Statutes 2010, section 3.9741, is amended by adding a subdivision
to read:

Subd. 4.

Minnesota Stadium Authority.

Upon the audit of the financial accounts
and affairs of the Minnesota Stadium Authority, the authority is liable to the state for the
total cost and expenses of the audit, including the salaries paid to the examiners while
actually engaged in making the examination. The legislative auditor may bill the authority
either monthly or at the completion of the audit. All collections received for the audits
must be deposited in the general fund.

Sec. 3.

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
Research;

(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;

(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 15.01 or 15.06, or the state chief information
officer;

(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 473.755;

(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
section 97A.056; or

(24) a citizen member of the Clean Water Council established in section 114D.30.; or

(25) member or chief executive of the Minnesota Stadium Authority established
in section 473J.07.

Sec. 4.

Minnesota Statutes 2010, section 297A.71, is amended by adding a subdivision
to read:

Subd. 43.

Building materials; football stadium.

Materials and supplies used or
consumed in, and equipment incorporated into, the construction or improvement of the
football stadium and stadium infrastructure as defined in section 473J.03, subdivisions 7
and 9, are exempt. The same exemption applies to all supplies used in, and equipment
incorporated into, the construction or improvement of the stadium-related off-site roadway
and transportation improvements. This subdivision expires one year after the date that the
first National Football League game is played in the stadium for materials, supplies, and
equipment used in the construction and equipping of the stadium, and five years after the
issuance of the first bonds under article 2 for materials, supplies, and equipment used in
the public infrastructure, including the stadium-related off-site roadway and transportation
improvements.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5.

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:

(1) hotels;

(2) restaurants;

(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
section 340A.419;

(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by
the Minnesota Stadium Authority;

(5) (6) sports facilities located on land owned by the Metropolitan Sports
Commission; and

(6) (7) 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
metropolitan area.

(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. 6.

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
unclassified service;

(15) persons who are employed by the Department of Commerce as a peace officer
in the Insurance Fraud Prevention Division under section 45.0135 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 352.029 does not apply; and

(18) employees of the Minnesota Government Engineers Council to whom section
352.029 does not apply.; and

(19) employees of the Minnesota Stadium 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 352.04. 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
that employer.

Sec. 7.

[473J.01] PURPOSE.

The purpose of this chapter is to provide for the construction, financing, and
long-term use of a stadium and related stadium infrastructure as a venue for professional
football and a broad range of other civic, community, athletic, educational, cultural,
and commercial activities. The legislature finds and declares that the expenditure of
public money for this purpose is necessary and serves a public purpose, and that property
acquired by the county and/or the Minnesota Stadium Authority for the construction of the
stadium and related stadium infrastructure is acquired for a public use or public purpose
under chapter 117. The legislature further finds and declares that any provision in a lease
or use agreement with a professional football team that requires the team to play all of its
home games in a publicly funded stadium for the duration of the lease or use agreement,
with the occasional exception of a game played elsewhere as set forth in such agreement,
serves a unique public purpose for which the remedies of specific performance and
injunctive relief are essential to its enforcement. The legislature further finds and declares
that government assistance to facilitate the presence of professional football provides to
the state of Minnesota and its citizens highly valued intangible benefits that are virtually
impossible to quantify and, therefore, not recoverable even if the government receives
monetary damages in the event of a team's breach of contract. Minnesota courts are,
therefore, charged with protecting those benefits through the use of specific performance
and injunctive relief as provided in this chapter and in the lease and use agreements.

Section 8.

[473J.03] DEFINITIONS.

Subdivision 1.

Application.

For the purposes of this chapter, the terms defined in
this section have the meanings given them, except as otherwise expressly provided or
indicated by the context.

Subd. 2.

Authority.

"Authority" means the Minnesota Stadium Authority
established under section 473J.07.

Subd. 3.

Authority/NFL team agreement.

"Authority/NFL team agreement"
means the agreement or agreements to be entered into between the authority and the
NFL team.

Subd. 4.

City.

"City" means the city of Arden Hills.

Subd. 5.

County.

"County" means Ramsey County.

Subd. 6.

County/NFL team agreement.

"County/NFL team agreement" means
the definitive agreement or agreements to be entered into between the county and the
NFL team.

Subd. 7.

County/authority agreement.

"County/authority agreement" means the
agreement or agreements to be entered into between the county and the authority.

Subd. 8.

Development area.

"Development area" means the approximately 170 acre
portion of the Twin Cities Army Ammunitions Plant property in Arden Hills, on which
private development will occur as further described in the county/NFL team agreement.

Subd. 9.

Land acquisition costs.

"Land acquisition costs" mean the costs of
acquiring the land for the stadium project, which includes the cost for remediating the
site to allow commercial-industrial development to occur.

Subd. 10.

Infrastructure costs.

"Infrastructure costs" mean the costs of the
stadium-related infrastructure.

Subd. 11.

NFL.

The "NFL" means the National Football League.

Subd. 12.

NFL team.

"NFL team" means the owner and operator of the NFL
professional football team known, as of the effective date of this chapter, as the Minnesota
Vikings or any team owned and operated by someone who purchases or otherwise takes
ownership or control of or reconstitutes the NFL team known as the Minnesota Vikings.

Subd. 13.

Site.

"Site" means the 430-acre parcel included within the Twin Cities
Army Ammunition Plant property in Arden Hills to be purchased by the county from the
United States of America.

Subd. 14.

Stadium.

"Stadium" means the stadium suitable for professional football
to be designed, constructed, and financed under this chapter. A stadium must have a roof
that covers the stadium, as set forth in section 473J.11, subdivision 3.

Subd. 15.

Stadium costs.

"Stadium costs" means the costs of designing,
constructing, equipping, and financing a stadium suitable for professional football.

Subd. 16.

Stadium infrastructure.

"Stadium infrastructure" means all property
facilities, and improvements determined by the authority as necessary or desirable to
facilitate the development and use of the stadium, including but not limited to property,
facilities and improvements for drainage, water management, parking, on-site roadways
and public rights-of-way, walkways, skyways, pedestrian bridges, bicycle paths, and
transit improvements to facilitate public access to the stadium, lighting, landscaping,
utilities, streets, and streetscapes. Stadium infrastructure does not include off-site roadway
and other transportation infrastructure improvements.

Subd. 17.

Stadium project.

"Stadium project" means the stadium and
accompanying on-site infrastructure. It does not include ancillary private real estate
development.

Subd. 18.

Stadium area.

"Stadium area" means the approximately 260 acre portion
of the Twin Cities Army Ammunitions Plant property in Arden Hills the definitive
boundaries of which shall be determined by the county and agreed to by the NFL team.

Subd. 19.

Streetscape.

"Streetscape" means on-site improvements to streets and
sidewalks or other public rights-of-way for the purpose of enhancing the movement,
safety, convenience, or enjoyment of stadium patrons and other pedestrians, including
decorative lighting and surfaces, plantings, display and exhibit space, adornments, seating,
and transit and but shelters.

Subd. 20.

Watershed district.

"Watershed district" means the Rice Creek
Watershed District.

Sec. 9.

[473J.05] MINNESOTA STADIUM AUTHORITY.

Subdivision 1.

Established.

The Minnesota Stadium Authority is established as a
public body, corporate and politic, and political subdivision of the state. The authority is
not a joint powers entity or an agency or instrumentality of the city or county.

Subd. 2.

Membership.

The authority shall consist of five members:

(a) The chair and one member shall be appointed by the governor. The member
appointed by the governor shall serve until December 31 of the third year following
appointment and the chair shall serve until December 31 of the fourth year following
appointment. Thereafter, members appointed by the governor shall serve four-year terms,
beginning January 1. Each member serves until a successor is appointed and takes office.
The chair serves at the pleasure of the governor.

(b) The county shall appoint two members to the authority. One member appointed
by the county shall serve until December 31 of the third year following appointment and
one member shall serve until December 31 of the fourth year following appointment.
Thereafter, members appointed by the county shall serve four-year terms beginning
January 1. The city shall appoint one member to the authority, who shall serve until
December 31 of the third year following appointment. Thereafter, the member appointed
by the city shall serve a four-year term beginning January 1. Each member serves until a
successor is appointed and takes office. Members appointed under this paragraph may
reside within the county and city and may be appointed officials of a political subdivision.

(c) The initial members of the authority must be appointed not later than 30 days
after the date of enactment of this chapter.

Subd. 3.

Compensation.

The authority may compensate its members, including
the chair, as provided in section 15.0575.

Subd. 4.

Chair.

The chair presides at all meetings of the authority, if present, and
performs all other assigned duties and functions. The authority may appoint from among
its members a vice-chair to act for the chair during the temporary absence or disability of
the chair, and any other officers the authority determines are necessary or convenient.

Subd. 5.

Removal.

A member, other than the chair, may be removed by the
appointing authority only for misfeasance, malfeasance, or nonfeasance in office, upon
written charges, and after an opportunity to be heard in defense of the charges.

Subd. 6.

Bylaws.

The authority shall adopt bylaws to establish rules of procedure,
the powers and duties of its officers, and other matters relating to the governance of the
authority and the exercise of its powers. Except as provided in this section, the bylaws
adopted under this subdivision must be similar in form and substance to bylaws adopted
by the Minnesota Ballpark Authority pursuant to section 473.755.

Subd. 7.

Audit.

The legislative auditor shall audit the books and accounts of the
authority once each year or as often as the legislative auditor's funds and personnel permit.
The authority shall pay the total cost of the audit pursuant to section 3.9741.

Subd. 8.

Executive director; employees.

The authority may appoint an executive
director to serve as the chief executive officer of the authority. The executive director
serves at the pleasure of the authority and receives compensation as determined by the
authority. The executive director may be responsible for the operation, management, and
promotion of activities of the authority, as prescribed by the authority. The executive
director has the powers necessarily incident to the performance of duties required and
powers granted by the authority, but does not have authority to incur liability or make
expenditures on behalf of the authority without general or specific directions by the
authority, as shown by the bylaws or minutes of a meeting of the authority. The executive
director is responsible for hiring, supervision, and dismissal of all other employees of
the authority.

Subd. 9.

Web site.

The authority shall establish a Web site for purposes of providing
information to the public concerning all actions taken by the authority. At a minimum, the
Web site must contain a current version of the authority's bylaws, notices of upcoming
meetings, minutes of the authority's meetings, and contact telephone, electronic mail, and
facsimile numbers for public comments.

Subd. 10.

Quorum; approvals.

Any three members shall constitute a quorum for
the conduct of business and action may be taken upon the vote of a majority of members
present at a meeting duly called and held. During the design and construction stages of the
stadium, a four-fifths vote of the authority is required for authority decisions related to
zoning, land use, exterior design of the stadium, related parking, and the selection of the
authority's lead representative during design and construction.

Sec. 10.

[473J.07] LOCATION.

The stadium to be constructed under this chapter shall be located in the stadium area
of the Twin Cities Army Ammunitions Plant property in the city of Arden Hills. The
stadium is expected to be open and operational for the 2016 professional football season.

Sec. 11.

[473J.08] POWERS, DUTIES OF THE AUTHORITY.

Subdivision 1.

Actions.

The authority may sue and be sued. The authority is a public
body and the stadium and stadium infrastructure are public improvements within the
meaning of chapter 562. The authority is a municipality within the meaning of chapter 466.

Subd. 2.

Acquisition of property.

The authority may acquire from any public or
private entity by lease, purchase, gift, or devise all necessary right, title, and interest in
and to real property, air rights, and personal property deemed necessary to the purposes
contemplated by this chapter.

Subd. 3.

Disposition of property.

The authority may sell, lease, or otherwise
dispose of any real or personal property acquired by the authority that is no longer required
for accomplishment of the authority's purposes. The property may be sold in accordance
with the procedures provided by section 469.065, except subdivisions 6 and 7, to the
extent the authority deems it to be practical and consistent with this chapter. Title to the
stadium must not be transferred or sold by the authority prior to the effective date of
enactment of any legislation approving such transfer or sale.

Subd. 4.

Data practices; open meetings.

Except as otherwise provided in this
chapter, the authority is subject to chapters 13 and 13D.

Subd. 5.

Facility operation.

The authority may, with the approval of the NFL
team, develop, construct, equip, improve, own, operate, manage, maintain, finance, and
control the stadium, stadium infrastructure, and related facilities constructed or acquired
under this chapter, or may delegate all or a portion of such duties through an agreement,
subject to the rights and obligations transferred to and assumed by the authority, the NFL
team, other user, third-party manager, or program manager, under the terms of a lease,
use agreement, or development agreement.

Subd. 6.

Employees; contracts for services.

The authority may employ persons
and contract for services necessary to carry out its functions, including the utilization of
employees and consultants retained by other governmental entities.

Subd. 7.

Gifts, grants, loans.

The authority may accept monetary contributions,
property, services, and grants or loans of money or other property from the United States,
the state, any subdivision of the state, any agency of those entities, or any person for any
of its purposes, and may enter into any agreement required in connection with the gifts,
grants, or loans. The authority shall hold, use, and dispose of the money, property, or
services according to the terms of the monetary contributions, grant, loan, or agreement.

Subd. 8.

Use agreements.

The authority may lease, license, or enter into use
agreements and may fix, alter, charge, and collect rents, fees, and charges for the use,
occupation, and availability of part or all of any premises, property, or facilities under
its ownership, operation, or control for purposes that will provide athletic, educational,
cultural, commercial, or other entertainment, instruction, or activity for the citizens of
Minnesota and visitors. The use agreements may provide that the other contracting party
has exclusive use of the premises at the times agreed upon, as well as the right to retain
some or all revenues from ticket sales, suite licenses, concessions, advertising, naming
rights, NFL team designated broadcast/media, club seats, signage, and other revenues
derived from the stadium. In no case may a lease or use agreement permit smoking in the
stadium.

Subd. 9.

Personal seat licenses.

The authority shall own and retain the exclusive
right to sell personal seat licenses (PSLs) in the stadium, although the authority may
contract with the team to act as the authority's agent in marketing and selling such
licenses. The NFL team shall receive the proceeds from the sale of such licenses up to a
maximum amount of $125,000,000. The authority shall remit any sale proceeds in excess
of $125,000,000 to the commissioner of revenue for deposit in the general fund for the
purposes set out in article 4, section 6, subdivision 4, paragraph (a), of this chapter.

Subd. 10.

Research.

The authority may conduct research studies and programs;
collect and analyze data; prepare reports, maps, charts, and tables; and conduct all
necessary hearings and investigations in connection with its functions.

Subd. 11.

Insurance.

The authority may require any employee to obtain and file
with the authority an individual bond or fidelity insurance policy. The authority may
procure insurance in the amounts the authority considers necessary against liability of the
authority or its officers and employees for personal injury or death and property damage or
destruction, consistent with chapter 466, and against risks of damage to or destruction of
any of its facilities, equipment, or other property.

Subd. 12.

Exemption from Metropolitan Council review; Business Subsidy Act.

The acquisition and betterment of a stadium and stadium infrastructure by the authority
must be conducted pursuant to this chapter and are not subject to sections 473.165 and
473.173. Section 116J.994 does not apply to any transactions of the authority or other
governmental entity related to the stadium or stadium infrastructure or to any tenant or
other users of the stadium or stadium infrastructure. The Metropolitan Council shall waive
any sewer access charges or similar fees and charges customarily imposed attributable to
the design and construction of the stadium and stadium infrastructure.

Subd. 13.

Incidental powers.

In addition to the powers expressly granted in this
chapter, the authority has all powers necessary or incidental thereto.

Sec. 12.

[473J.09] SITE ACQUISITION AND REMEDIATION.

Subdivision 1.

Site acquisition.

The stadium and development areas will be
acquired by the county pursuant to the terms in the agreement dated December 28, 2011,
entitled "Offer to Purchase between Ramsey County and the United States of America
Acting by and Through the Administration of General Services." The NFL team or a
related entity, will immediately thereafter acquire the development area from the county.
The county is authorized to buy property from the United States of America and sell a
portion directly to the NFL team at the county's acquisition price per acre, notwithstanding
any law or ordinance to the contrary. The stadium project is intended to act as the catalyst
for the redevelopment and revitalization of the development area. The NFL team shall
retain development rights for at least ten years from the date of enactment of this chapter.
If the team has not commenced development or provided the county with a reasonably
acceptable plan to develop the private land within five years after the opening of the
stadium, the county shall have the option, but shall not be required, to purchase the
private land from the team at the price per acre that the county paid to the United States
government for the property.

Subd. 2.

Site remediation.

The county will be responsible for the remediation of
the stadium and development areas pursuant to the terms of the agreement dated February
7, 2012, entitled "Agreement Between Ramsey County and Carl Bolander & Sons Co.
for Hazardous Material Abatement, Demolition and Site Remediation – Former Twin
Cities Army Ammunition Plant." The site will be remediated to a commercial/industrial
standard. Should the private development of the development area require that the land
be remediated to a higher standard, the NFL team shall pay for any additional costs
associated with such remediation.

Subd. 3.

Acquisition and remediation costs.

The county and NFL team shall be
responsible for the land acquisition costs, which includes the cost of the land purchase
from the United States government and the cost of the environmental remediation.

Subd. 4.

Cost allocation.

The cost to acquire the stadium and development areas
and the cost of remediating the site to a commercial/industrial standard will be allocated
between the county and the NFL team based on the number of acres owned by each
once the development area is sold to the NFL team or its affiliates. A mechanism will be
provided in the county NFL team agreement that will allow for public access between
the stadium and development areas. A mechanism will also be included in the county
NFL team agreement to provide the NFL team with flexibility in determining the final
composition of the development area for purposes of locating the stadium footprint and
future private development, to be mutually agreed upon by the county, authority, NFL
team and other key stakeholders, as appropriate.

Subd. 5.

Transfer of title.

The county will transfer title to the stadium area to the
authority, at no cost to the authority, upon completion of the environmental remediation
of the stadium area. The county/authority agreement will provide for the terms and
conditions of the transfer of title.

Sec. 13.

[473J.11] STADIUM DESIGN AND CONSTRUCTION.

Subdivision 1.

Contracts.

(a) The site preparation, design, development, and
construction of the stadium shall be a collaborative process between the authority, county
and the NFL team, exempt from the requirements of section 16B.335. The authority,
county and the NFL team shall establish a process to reach consensus on key elements of
the site preparation, stadium program and design, development, and construction.

(b) Unless the authority, county and the NFL team agree otherwise:

(1) the county shall be responsible for the acquisition and environmental remediation
of the stadium area;

(2) the authority shall create a stadium design and construction group, including
representatives of the authority, county and the NFL team, to manage the design of the
stadium and oversee construction;

(3) this group shall engage an owner's representative to act on behalf of the group.
The cost of the owner's representative shall be a stadium cost; and

(4) the authority and the NFL team shall enter into an authority/NFL team agreement
providing for the rights and responsibilities of the authority and the NFL team, the design
and construction group, and the owner's representative for design and construction of the
stadium, including but not limited to establishment of minimum design standards.

(5) the NFL team shall be responsible for cost overruns in the design, development
and construction of the stadium, stadium infrastructure and stadium-related off-site
roadway and transportation infrastructure improvements and accordingly, shall have
final decision-making authority with respect to the design, development and construction
of the stadium and stadium infrastructure.

(c) Subject to the terms and conditions of the authority/NFL team agreement, the
authority, and entities under contract with the authority, may take the actions in clauses
(1) to (5).

(1) The authority may enter into an agreement with any other entity relating to the
design, construction, financing, operation, maintenance, and use of the stadium and related
facilities and stadium infrastructure. The authority may contract for materials, supplies,
and equipment in accordance with section 471.345, except that the authority may employ
or contract with persons, firms, or corporations to perform one or more or all of the
functions of architect, engineer, construction manager, or program manager with respect
to all or any part of the design, construction, financing, operation, maintenance, and use of
the stadium and stadium infrastructure under the traditional separate design and build,
integrated design-build, construction manager at risk, or public and private partnership
(P3) structures, or in a combination thereof.

(2) The authority and the NFL team may prepare a request for proposals for one
or more of the functions described in clause (1). The request must be published in the
State Register and shall include, at a minimum, such requirements that are agreed to by
the authority and the NFL team. The authority and the NFL team may prequalify offerors
by issuing a request for qualifications, in advance of the request for proposals, and select a
short list of responsible offerors prior to discussions and evaluations. Alternatively, for
one or more of the functions, the authority and the NFL team may use the existing county
short-list of proposals submitted to the county on or before March 1, 2012, in response to
a county request for qualifications.

(3) The authority, with the participation of the NFL team, may conduct discussions
and negotiations with responsible offerors in order to determine which proposal is
most advantageous to the authority and the NFL team and to negotiate the terms of an
agreement. In conducting discussions, there shall be no disclosure of any information
derived from proposals submitted by competing offerors and the content of all proposals is
nonpublic data under chapter 13 until such time as a notice to award a contract is given by
the authority. The agreement shall be subject to the approval of the NFL team.

(4) The construction manager or program manager may enter into contracts with
contractors for labor, materials, supplies, and equipment for the construction of the
stadium and related stadium infrastructure through the process of public bidding, except
that the construction manager or program manager may, with the consent of the authority
or the NFL team if the NFL team has retained responsibility for construction:

(i) narrow the listing of eligible bidders to those which the construction manager
or program manager determines to possess sufficient expertise to perform the intended
functions;

(ii) award contracts to the contractors that the construction manager or program
manager determines provide the best value under a request for proposals as described in
section 16C.28, subdivision 1, paragraphs (a), clause (2), and (c), which are not required
to be the lowest responsible bidder; and

(iii) for work the construction manager or program manager determines to be critical
to the completion schedule, award contracts on the basis of competitive proposals, or
perform work with its own forces without soliciting competitive bids if the construction
manager or program manager provides evidence of competitive pricing.

(5) Without limiting the responsibility of the NFL team pursuant to subdivision 1,
paragraph (b), clause (5), the authority and the NFL team may require that the construction
manager or program manager certify, before the contract is signed, a fixed and stipulated
construction price and completion date to the authority and post a performance bond in an
amount at least equal to 100 percent of the certified price or such other security satisfactory
to the authority, to cover any costs which may be incurred in excess of the certified price
including, but not limited to, costs incurred by the authority or loss of revenues resulting
from incomplete construction on the completion date. The authority may secure surety
bonds as provided in section 574.26, securing payment of just claims in connection with
all public work undertaken by the authority. Persons entitled to the protection of the
bonds may enforce them as provided in sections 574.28 to 574.32 and are not entitled to a
lien on any property of the authority under the provisions of sections 514.01 to 514.16.
The construction of the stadium is a project as that term is defined in section 177.42,
subdivision 2, and is subject to the prevailing wage law under sections 177.41 to 177.43.

(6) Alternatively, at the request of the NFL team, the NFL team may manage the
construction of the stadium and related stadium infrastructure in a manner consistent with
the agreed minimum design standards and design documents, subject to the terms of this
act, including responsibility for cost overruns in the design, development and construction
of the stadium, pursuant to subdivision 1, paragraph (b), clause (5).

Subd. 2.

Changes.

Unless otherwise agreed to by the authority and the NFL team, if
any party requests a change in minimum design standards, and this change is responsible
for requiring the project to exceed the stated budget, the requesting party is liable for any
cost overruns or associated liabilities associated with such change.

Subd. 3.

Stadium design.

The stadium and stadium infrastructure shall be designed
and constructed incorporating the following general program and design elements:

(1) unless otherwise agreed to by the authority and the NFL team, the stadium
shall comprise approximately 1,600,000 square feet with approximately 65,000 seats,
expandable to 72,000, shall meet or exceed NFL program requirements, and include
approximately 150 suites and approximately 7,500 club seats or other such components as
agreed to by the authority and the NFL team;

(2) space for NFL team-related exhibitions and sales, which shall include the
following: NFL team museum and Hall of Fame, retail merchandise and gift shop retail
venues, and themed concessions and restaurants;

(3) year-round space for the NFL team administrative operations, sales, and
marketing, including a ticket office, team meeting space, locker, and training rooms;

(4) space for administrative offices of the authority;

(5) parking spaces for up to 21,000 cars and trucks, including tailgate parking and
premium parking area with a separate entrance and exit;

(6) elements sufficient to provide community and civic uses as determined by the
authority; and

(7) a roof that is fixed or retractable, provided that if the roof is retractable, it is
accomplished without any increase to the funding provided by the state or the county.

Sec. 14.

[473J.112] COMMEMORATIVE BRICKS.

The authority shall sell commemorative bricks to be displayed at a prominent
location in the new stadium, for an amount to be determined by the authority. The
authority shall work with the commissioner to ensure that purchase of a brick is a tax
deductible donation on the part of the donating person or organization. Funds raised
through this section shall be appropriated to the commissioner of management and budget
for a grant to the Minnesota Stadium Authority.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 15.

[473J.12] EMPLOYMENT.

Subdivision 1.

Hiring and recruitment.

In the design, development, construction,
management, operation, maintenance and capital repair, replacement and improvement
of the stadium and stadium infrastructure, the NFL team and the authority shall make
every effort to employ and cause the construction manager and other subcontractors,
vendors, and concessionaires to employ women and members of minority communities
when hiring. Further, goals for construction contracts to be awarded to women and
minority-owned businesses will be in a percentage at least equal to the minimum used
for county development projects, and the other construction workforce will establish
workforce utilization goals at least equal to current city goals and include workers from
county zip codes that have high rates of poverty and unemployment.

Subd. 2.

Other required agreements.

The NFL team and the authority shall give
food, beverage, retail, and concession workers presently employed by the NFL team or the
Minnesota Sports Facilities Commission or its vendors at the existing football stadium the
opportunity to continue their employment in comparable positions at the new stadium.
Workers who are presently represented under a collective bargaining agreement may seek
to continue such representation in the facility and designate such, or another collective
bargaining unit, as their representative.

Sec. 16.

[473J.13] STADIUM OPERATIONS; CAPITAL IMPROVEMENTS.

Subdivision 1.

Stadium operation.

The NFL team will operate and manage the
stadium and parking facilities, or contract with the authority or other entity to manage
the stadium and parking facilities, pursuant to the authority/NFL team agreement. The
stadium shall be operated in a first class manner similar to and consistent with that of
other comparable NFL stadiums. The team shall be responsible for all aspects of stadium
operation. All revenues, net of generally applicable taxes and fees, derived from the
operations of the stadium for all NFL team games, NFL team owned major league soccer
games and other NFL team events agreed to by the authority, except as otherwise provided
herein or in the authority/NFL team agreement or the county/NFL team agreement, shall
belong to the team.

Subd. 2.

Operating expenses.

The team shall bear all the costs of operation of
the stadium and parking facilities in lieu of rent. In addition, the team shall pay any
and all NFL game day expenses, including responsibility for any and all costs incurred
for municipal services including, but not limited to, police and security, traffic control,
fire prevention, emergency medical, street cleaning and trash removal, and other similar
services provided for events held by the team. The team and the authority, in coordination
with the city, shall cooperatively determine appropriate public and private staffing levels
for police and security, traffic control, fire prevention, emergency medical, street cleaning
and trash removal, and other similar services based upon anticipated attendance for NFL
games and any other events held at the stadium. The authority, however, in coordination
with the city, shall have final approval over appropriate staffing and service levels.
The authority, in coordination with the city, shall use a "reasonableness standard" in
determining appropriate staffing and service levels. In the event that the parties cannot
agree on appropriate staffing and service levels, the team shall have the right to submit
such dispute to a mutually agreed upon mediator or to arbitration for accelerated dispute
resolution. Notwithstanding the foregoing, if the authority, in coordination with the city,
determines that an emergency public safety issue exists with respect to a particular NFL
game or event, the authority, in coordination with the city, shall have the right to determine
and impose the staffing level for such event. Sponsors of civic, noncommercial events and
uses shall be responsible for any and all incremental costs incurred for municipal services
provided for its events, as determined by the authority.

Subd. 3.

Public access.

The authority will work to maximize access for public and
amateur sports, community, and civic events, and other public events in type and on terms
consistent with those currently held at the existing football stadium, as defined in section
473.551, subdivision 9. The authority may provide that these events have exclusive use of
the premises at agreed-upon times subject to the scheduling rights of the NFL team under
the lease or use agreement. The NFL team will be reimbursed by the authority for the
incremental, out-of-pocket expenses to operate the stadium during such events and uses.

Subd. 4.

Capital improvements.

(a) The NFL team shall be responsible for
making, or for causing others to make, all capital repairs, replacements, and improvements
for the stadium and stadium infrastructure and shall establish a capital reserve fund for
such purposes. The NFL team shall maintain, or cause others to maintain, the stadium
and stadium infrastructure in a safe, clean, attractive, and first class manner so as to cause
them to remain in a condition comparable to that of other comparable NFL facilities
of similar design and age. The NFL team shall maintain, or cause others to maintain,
the stadium and parking facilities in a manner that is consistent with all applicable
requirements imposed by the NFL, and with the original design and construction program
of the stadium and parking facilities. The NFL team shall make, or cause others to make,
all necessary or appropriate repairs, renewals, and replacements, whether structural or
nonstructural, interior or exterior, ordinary or extraordinary, foreseen or unforeseen, in a
prompt and timely manner. The authority, with approval of the NFL team, may enter into
an agreement with a program manager to perform some or all of the responsibilities of the
NFL team in this subdivision and to assume and accept financial liability for the cost of
performing the responsibilities.

(b) The NFL team must contribute $1,500,000 each year for the term of the lease or
use agreement to the capital reserve fund, increased by a three percent annual inflation rate.

(c) The NFL team, with input from the authority, shall develop short-term and
long-term capital funding plans and shall use those plans to guide the future capital needs
of the stadium and stadium infrastructure. The NFL team, after consultation with the
authority, shall make the final determination with respect to funding capital needs. Any
capital improvement proposed by the authority, except those intended primarily to provide
revenue enhancements to the NFL team shall be paid for by the authority, unless otherwise
agreed to by the NFL team.

Subd. 5.

Cooperation with financing.

The authority will cooperate with the
NFL team to facilitate the financing of the NFL team's contribution. Such agreement to
cooperate shall not require the authority to incur any additional costs or provide conduit
financing. The lease, license, and other transaction documents shall include provisions
customarily required by lenders in stadium financings.

Sec. 17.

[473J.15] CRITERIA AND CONDITIONS.

Subdivision 1.

Binding and enforceable.

In developing the stadium and entering
into related contracts, the authority must follow and enforce the criteria and conditions in
this section, provided that a determination by the authority that those criteria or conditions
have been met under any agreement or otherwise shall be conclusive.

Subd. 2.

NFL team/private contribution; timing of expenditures.

The NFL
team/private contribution, including stadium builder license proceeds, for stadium costs
must be made in cash in the amount of at least $425,000,000. Prior to the first issuance
of bonds under section 16A.965, the first portion of the NFL team/private contribution
in the amount of $50,000,000 must be deposited to the construction fund to pay for
the initial stadium costs, as costs are incurred, or the team must provide security or
other credit worthiness in the amount of $50,000,000, subject to the satisfaction of the
authority. After the first $50,000,000 of stadium costs have been paid from the initial
NFL team/private contribution, state funds shall be deposited to the construction fund
to pay for the next $50,000,000 of costs of the project. Prior to any state funds being
deposited in the construction fund, the NFL team must provide security or a financing
commitment reasonably satisfactory to the authority for the balance of the required NFL
team/private contribution and for payment of cost overruns if the NFL team assumes
responsibility for stadium construction under section 473J.11. In the event the stadium
project terminates before the initial contributions are expended by the parties under this
subdivision, the parties shall be reimbursed in the amounts they have deposited to the
construction fund proportionate to the aggregate amount contributed by each at the time
the project is terminated.

Subd. 3.

Lease or use agreements; 30-year term.

The authority must enter into
a long-term lease or use agreement with the NFL team for the NFL team's use of the
stadium. The NFL team must agree to play all regularly scheduled and postseason home
games at the stadium, with the occasional exception of a game played elsewhere as agreed
to in the lease or use agreement. Preseason games may also be scheduled and played at
the stadium. Training facilities must remain in Minnesota during the term of the lease
or use agreement. If the NFL team elects to construct a new corporate headquarters or
training complex, such development shall be within the stadium area of the site unless
the authority and county consent to another location. The lease or use agreement must
be for a term of at least 30 years from the date of substantial completion of the stadium
for professional football games. The lease or use agreement may provide options for the
NFL team to extend the term for up to four additional periods of five years. The lease or
use agreement must include terms for default, termination, and breach of the agreement.
Recognizing that the presence of professional football provides to the state of Minnesota
and its citizens highly valued, intangible benefits that are virtually impossible to quantify
and, therefore, not recoverable in the event of an NFL team owner's breach of contract,
the lease and use agreements must provide for specific performance and injunctive relief
to enforce provisions relating to use of the stadium for professional football and must
not include escape clauses or buyout provisions. The NFL team must not enter into or
accept any agreement or requirement with or from any entity that is inconsistent with the
NFL team's binding commitment to the 30-year term of the lease or use agreement or
that would in any manner dilute, interfere with, or negate the provisions of the lease or
use agreement, providing for specific performance or injunctive relief. The legislature
conclusively determines, as a matter of public policy, that the lease or use agreement, and
any grant agreement under this chapter that includes a specific performance clause:

(1) explicitly authorizes specific performance as a remedy for breach;

(2) is made for adequate consideration and upon terms which are otherwise fair
and reasonable;

(3) has not been included through sharp practice, misrepresentation, or mistake;

(4) if specifically enforced, does not cause unreasonable or disproportionate hardship
or loss to the NFL team or to third parties; and

(5) involves performance in a manner and the rendering of services of a nature and
under circumstances that the beneficiary cannot be adequately compensated in damages.

Subd. 4.

Lease or use agreements; revenues; payments.

A lease or use agreement
shall include all fees and expenses to be paid by the NFL team. The authority shall agree
to provide in the lease or use agreement for the NFL team to receive all NFL game day
revenues, including but not limited to suite revenues, advertising, concessions, signage,
broadcast and media, and club seat revenue, except to the extent otherwise provided
in this chapter. The agreement shall also provide that all naming rights to the stadium
are retained by the NFL team, subject to the approval of the name or names by the
authority consistent with those criteria set out in the lease or use agreement. The authority
shall have naming rights to the parking lots within the stadium area as provided in the
authority/NFL team agreement. The authority shall receive all event revenues other than
from NFL team games, NFL team owned major league soccer games, and other NFL team
events agreed to by the authority.

Subd. 5.

Notice of breach or default.

Until 30 years from the date of stadium
completion, the NFL team must provide written notice to the authority not less than 180
days prior to any action, including any action imposed upon the NFL team by the NFL,
which would result in a breach or default of provisions of the lease or use agreements
required to be included under subdivision 3. If this notice provision is violated and the
NFL team has already breached or been in default under the required provisions, the
authority or the state of Minnesota may specifically enforce the lease or use agreement
and Minnesota courts shall fashion equitable remedies so that the NFL team fulfills the
conditions of the lease and use agreements.

Subd. 6.

Enforceable financial commitments.

The authority must determine before
stadium construction begins that all public and private funding sources for construction,
operating expenses, and capital improvements and repairs of the stadium are included in
written agreements. The committed funds must be adequate to design, construct, furnish,
and equip the stadium, and pay projected operating expenses and the costs of capital
improvements and repairs during the term of the lease or use agreement with the NFL
team. The NFL team must provide the authority access to NFL team financial or other
information, which the authority deems necessary for such determination. Any financial
information obtained by the authority under this subdivision is nonpublic data under
section 13.02, subdivision 9.

Subd. 7.

Environmental requirements.

The authority must comply with all
environmental requirements imposed by regulatory agencies for the stadium, site, and
structure, except as provided by section 473J.09, subdivision 2, or 473J.17.

Subd. 8.

Public share on sale of NFL team.

The lease or use agreement must
provide that, if the NFL team is sold or an interest in the NFL team is sold after the
effective date of this chapter, a portion of the sale price must be paid to the authority and
deposited in a reserve fund for improvements to the stadium or expended as the authority
may otherwise direct. The portion required to be so paid to the authority is 18 percent
of the amount in excess of the purchase price of the NFL team by the selling owner or
owners, declining to zero 15 years after commencement of stadium construction in
increments of 1.2 percent each year. The agreement must provide exceptions for sales
to members of the owners' family and entities and trusts beneficially owned by family
members, sales to employees of equity interests aggregating up to ten percent, sales related
to capital infusions not distributed to the owners, and sales amongst existing owners not
exceeding 20 percent equity interest in the NFL team.

Subd. 9.

Authority's access to NFL team financial information.

The lease/license
or other transaction documents shall provide the authority access to annual audited
financial statements of the team and other financial books and records that the authority
deems necessary to determine compliance by the team with this act, and to enforce the
terms of any lease/license or other transaction documents entered into under this act.
Any financial information obtained by the authority under this subdivision is nonpublic
data under section 13.02, subdivision 9.

Subd. 10.

NFL team name retained.

The lease or use agreement must provide
that the NFL team and NFL will transfer to the state of Minnesota the Minnesota Vikings'
heritage and records, including the name, logo, colors, history, playing records, trophies,
and memorabilia if the NFL team is in violation of the lease or use agreement.

Subd. 11.

Stadium design.

(a) The authority and the NFL team will strive to build a
stadium that is environmentally and energy efficient and will make an effort to build a
stadium that is eligible to receive the Leadership in Energy and Environmental Design
(LEED) certification for environmental design, and to the extent practicable, will strive to
make the stadium design architecturally significant.

(b) The stadium design must, to the extent feasible, follow sustainable building
guidelines established under section 16B.325.

(c) The authority and the team must ensure that the stadium be, to the greatest extent
practicable, constructed of American-made steel.

Subd. 12.

Necessary approvals.

The authority and the NFL team must secure
any necessary approvals to the terms of the lease and use agreement and the design and
construction plans for the stadium, including prior approval of the NFL.

Subd. 13.

Affordable access.

The lease or use agreement must provide for an
agreed-upon number of affordable tickets to the professional sporting events held in the
stadium.

Subd. 14.

Stadium builder's licenses.

The authority shall own and retain the
exclusive right to sell stadium builder's licenses in the stadium. The authority will retain
the NFL team to act as the authority's agent in marketing and selling such licenses.

Subd. 15.

Major league soccer.

The authority shall, for five years after the first
NFL team home game is played in the stadium, grant the NFL team the exclusive right to
establish major league soccer at the stadium. The authority and the NFL team may enter
into an agreement providing the terms and conditions of such an arrangement, provided:

(1) if any of the NFL team owners whose family owns at least three percent of
the NFL team purchases full or partial ownership in a major league soccer franchise,
such franchise may play in the stadium under a use agreement with similar terms as are
applicable to the NFL team; and

(2) capital improvements required by a major league soccer franchise must be
financed by the owners of the major league soccer team.

Subd. 16.

NFL team-related entities.

Subject to the prior approval of the authority,
which shall not be unreasonably withheld, any of the obligations by the NFL team may
be performed by the NFL team, a related entity, or a third party, and the NFL team, any
entity related to the NFL team or third party may receive any revenues to which the NFL
team is entitled hereunder; provided, however, the NFL team shall remain liable if any
obligations are assigned to a related entity or third party, including liability for all capital
and operating costs.

Sec. 18.

[473J.17] COUNTY ACTIVITIES.

Subdivision 1.

Property acquisition and disposition.

The county may, to the
extent legally permissible, acquire land, air rights, and other property interests within the
stadium area and convey them to the authority without consideration, prepare a site for
development as a stadium, and acquire and construct any related stadium infrastructure,
if any, as provided in the county/authority agreement. To the extent property parcels or
interests acquired are more extensive than the stadium infrastructure requirements, the
county may sell or otherwise dispose of the excess. The legislature intends that, except
as expressly limited herein, the county may acquire, remediate, and dispose of the
development area within the site.

Subd. 2.

Claims.

Except as may be mutually agreed to by the county and the
authority, the county has no interest in or claim to any assets or revenues of the authority.

Subd. 3.

Environmental; planning and zoning.

The county is the responsible
governmental unit for an environmental impact statement for the stadium project
prepared under section 116D.04, if an environmental impact statement is necessary.
Notwithstanding section 116D.04, subdivision 2b, and implementing rules:

(1) the environmental impact statement shall not be required to consider alternative
stadium sites; and

(2) the environmental impact statement must be determined to be adequate before
commencing work on the foundation of the stadium, but the stadium and stadium
infrastructure may otherwise be started and all preliminary and final government decisions
and actions may be made and taken including, but not limited to, acquiring land; obtaining
financing; granting permits or other land use approvals; entering into grant, lease, or use
agreements; or preparing the site or related stadium infrastructure prior to a determination
of the adequacy of the environmental impact statement.

Subd. 4.

County expenditure.

The county may make expenditures or grants for
other costs incidental and necessary to further the purposes of this chapter and may, by
agreement, reimburse in whole or in part, any entity that has granted, loaned, or advanced
funds to the county to further the purposes of this chapter. Notwithstanding any law,
ordinance, or charter provision to the contrary, exercise by the county of its powers under
this section does not affect the amount that the county may otherwise spend, borrow,
tax, or receive.

Subd. 5.

County authority.

The legislature intends that, except as expressly limited
herein, the county may enter into contracts with the authority, the NFL team and other
governmental or nongovernmental entities, appropriate funds, and make employees,
consultants, and other revenues available for those purposes.

Subd. 6.

Stadium implementation committee; city review.

In order to accomplish
the objectives of this act within the required time frame, it is necessary to establish an
alternative process for municipal land use and development review. It is hereby found
and declared that the construction of a stadium within the stadium area is consistent
with the city's adopted comprehensive plan, is the preferred stadium location, and is a
permitted land use. This subdivision establishes a procedure for all land and water use
and development reviews and approvals by the city and watershed district for the stadium
and related stadium infrastructure and supersedes all land use and development rules
and restrictions and procedures imposed by other law, charter, or ordinance including,
without limitation, section 15.99 and chapters 103A to 103G. No later than 30 days after
enactment, the city shall establish a stadium implementation committee with representation
from the city, county, and watershed district to make recommendations on the design
plans submitted for the stadium, stadium infrastructure, and related improvements.
The implementation committee must take action to issue its recommendations within
the time frames established in the planning and construction timetable issued by the
authority, which shall provide for no less than 60 days for the committee's review. The
recommendations of the implementation committee shall be forwarded to the city's
planning commission for an advisory recommendation and then to the city council for
final action in a single resolution. Final action must be taken within 45 days of the
submission of the recommendations to the planning commission. The watershed district
must act within 45 days of the implementation committee's recommendations. The city
council and watershed district shall not impose any unreasonable conditions on the
recommendations of the implementation committee, nor take any action or impose any
conditions that will result in delay from the time frames established in the planning
and construction timetable or in additional overall costs. Failure of the city council or
watershed district to act within the 45-day period shall be deemed to be approval by that
entity of the implementation committee's recommendations. The authority or county
may seek de novo review in the district court of any city council or watershed district
action. The district court or any appellate court shall expedite review to the maximum
extent possible and timely issue relief, orders, or opinions necessary to give effect to
the provisions and objectives in this act.

Subd. 7.

Suburban Ramsey County referendum and tax.

Subject to approval by
a referendum in all municipalities within Ramsey County, with the exception of a city of
the first class, and notwithstanding section 477A.016, the county is authorized to impose a
sales tax of two percent on the sale of fermented malt beverages, retail on-sale liquor, and
food purchased at restaurants and other commercial establishments located in Ramsey
County except for those sales within a city of the first class. The referendum shall be
conducted as part of the 2012 general election. If the referendum receives the approval
of a majority voting on the issue, the county shall impose the taxes approved and the
revenue raised shall be remitted to the commissioner of revenue for deposit in the general
fund. The commissioner shall allocate the revenues deposited toward payment of the
costs associated with the off-site roadway and transportation infrastructure improvements
along marked Interstate Highway 694 including the marked Interstate Highway 35/694
interchange as identified by the Ramsey County Department of Public Works. The ballot
question shall state that the proposed tax revenues are legally required to be used for the
specified roadway and transportation infrastructure improvements.

Sec. 19.

[473J.19] PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENTS.

Any real or personal property acquired, owned, leased, controlled, used, or occupied
within the stadium area by the authority for any of the purposes of this chapter, is acquired,
owned, leased, controlled, used, and occupied for public, governmental, and municipal
purposes. The stadium and stadium infrastructure are exempt from ad valorem taxation by
the state or any political subdivision of the state provided that the properties are subject to
special assessments levied by a political subdivision for a local improvement in amounts
proportionate to and not exceeding the special benefit received by the properties from the
improvement. No possible use of any of the properties in any manner different from their
use under this chapter may be considered in determining the special benefit received by
the properties. Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal
property which is subject to a lease or use agreement between the authority and another
person for uses related to the purposes of this chapter, including the operation of the
stadium and related parking facilities, is exempt from taxation regardless of the length
of the lease or use agreement or the characteristics of the entity leasing or using the
property. This section, insofar as it provides an exemption or special treatment within the
stadium area, does not apply to any real property that is leased for residential, business, or
commercial development, or to a restaurant that is open for general business more than
200 days a year, or other purposes different from those contemplated in this chapter.

Sec. 20.

[473J.21] LIQUOR LICENSES.

At the request of the authority, the city may issue intoxicating liquor licenses that are
reasonably requested for the premises of the stadium site. These licenses are in addition to
the number authorized by law. All provisions of chapter 340A not inconsistent with this
section apply to the licenses authorized under this section.

Sec. 21.

[473J.23] SITE REVENUES.

Subdivision 1.

Surcharge.

No surcharge or new or additional local sales or use tax
shall be imposed on sales at the stadium site, except as provided in this section.

Subd. 2.

Ticket surcharge.

A three percent surcharge shall be imposed on sales of
tickets and admissions to NFL team games, NFL team owned major league soccer games,
and other team-related events at the stadium, notwithstanding any law or ordinance.

Subd. 3.

Site tax.

A three percent food, beverage, liquor and lodging tax shall be
imposed for all sales occurring within the stadium and development areas in accordance
with article 4, section 1, of this chapter.

Subd. 4.

Expiration.

The surcharge and taxes imposed under subdivisions 2 and 3
must only be collected for the later of: (1) the duration of bonds or any refunding bonds
sold to pay for the stadium and related infrastructure; or (2) the term of the lease, and must
be ended within six months after that date. Excess revenues from these taxes may only be
used for the purposes allowed under this chapter.

Sec. 22.

[473J.25] METROPOLITAN SPORTS FACILITIES COMMISSION
ASSETS; LIABILITIES TO AUTHORITY.

Subdivision 1.

Authority expenses.

The Metropolitan Sports Facilities Commission
shall pay the operating expenses of the authority including salaries, compensation, and
other personnel, office, equipment, consultant and any other costs, until the commission is
abolished pursuant to subdivision 3.

Subd. 2.

Sale.

Once the team concludes its 2015 football season, the Metropolitan
Sports Facilities Commission shall sell the Metrodome property at public sale for fair
market value. Upon sale of the Metrodome property and after payment of all outstanding
obligations, including those under Laws 2006, chapter 257, the Metropolitan Sports
Facilities Commission shall remit the remainder of the sale proceeds to the commissioner
of revenue for deposit in the general fund to be used for the purposes set out in article
4, section 4, subdivision 4, paragraph (a), of this act. The net value of such property is
currently estimated at $36,000,000.

Subd. 3.

Metropolitan Sports Facilities Commission abolished.

Upon transfer to
the authority of all remaining assets, liabilities, and obligations of the Metropolitan Sports
Facilities Commission in subdivision 1, the Metropolitan Sports Facilities Commission is
abolished.

Subd. 4.

Employees.

Upon transfer of ownership all persons employed by the
Metropolitan Sports Facilities Commission shall be transferred to the Minnesota Stadium
Authority without loss of right or privilege. Nothing in this section shall be construed to
give any such person the right or privilege to continue in the same level or classification
of employment previously held. The Minnesota Stadium Authority may assign any such
person to an employment level and classification which it deems appropriate and desirable
in accordance with its personnel code.

Sec. 23. EFFECTIVE DATE.

Except as otherwise provided, this article is effective the day following final
enactment.

ARTICLE 2

STATE STADIUM FUNDING

Section 1.

[16A.965] STADIUM APPROPRIATION BONDS.

Subdivision 1.

Definitions.

(a) The definitions in this subdivision and in chapter
473J apply to this section.

(b) "Appropriation bond" means a bond, note, or other similar instrument of the state
payable during a biennium from one or more of the following sources:

(1) money appropriated by law from the general fund, including, without limitation,
revenues deposited in the general fund as provided in articles 4 and 5, in any biennium for
debt service due with respect to obligations described in subdivision 2, paragraph (b);

(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);

(3) payments received for that purpose under agreements and ancillary arrangements
described in subdivision 2, paragraph (d); and

(4) investment earnings on amounts in clauses (1) to (3).

(c) "Debt service" means the amount payable in any biennium of principal, premium,
if any, and interest on appropriation bonds.

Subd. 2.

Authorization to issue appropriation bonds.

(a) Subject to the limitations
of this subdivision, the commissioner may sell and issue appropriation bonds of the state
under this section for public purposes as provided by law, including, in particular, the
financing of all or a portion of the acquisition, construction, improving, and equipping
of the stadium project of the Minnesota Stadium Authority as provided by chapter 473J.
Proceeds of the appropriation bonds must be credited to a special appropriation stadium
bond proceeds fund in the state treasury. Net income from investment of the proceeds,
as estimated by the commissioner, must be credited to the special appropriation stadium
bond proceeds fund.

(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of the
commissioner, are necessary to provide sufficient funds, not to exceed $650,000,000 net of
costs of issuance, deposits for debt service reserve funds, and costs of credit enhancement
for achieving the purposes authorized as provided under paragraph (a), and pay debt
service, pay costs of issuance, make deposits to reserve funds, pay the costs of credit
enhancement, or make payments under other agreements entered into under paragraph (d).

(c) Appropriation bonds may be issued from time to time in one or more series on
the terms and conditions the commissioner determines to be in the best interests of the
state, but the term on any series of appropriation bonds may not exceed 30 years. The
appropriation bonds of each issue and series thereof shall be dated and bear interest,
and may be includable in or excludable from the gross income of the owners for federal
income tax purposes.

(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
time thereafter, so long as the appropriation bonds are outstanding, the commissioner may
enter into agreements and ancillary arrangements relating to the appropriation bonds,
including but not limited to trust indentures, grant agreements, lease or use agreements,
operating agreements, management agreements, liquidity facilities, remarketing or
dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
reimbursement agreements, indexing agreements, or interest exchange agreements. Any
payments made or received according to the agreement or ancillary arrangement shall be
made from or deposited as provided in the agreement or ancillary arrangement. The
determination of the commissioner included in an interest exchange agreement that the
agreement relates to an appropriation bond shall be conclusive.

(e) The commissioner may enter into written agreements or contracts relating to the
continuing disclosure of information necessary to comply with, or facilitate the issuance
of appropriation bonds in accordance with federal securities laws, rules, and regulations,
including Securities and Exchange Commission rules and regulations in Code of Federal
Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
with purchasers and holders of appropriation bonds set forth in the order or resolution
authorizing the issuance of the appropriation bonds, or a separate document authorized
by the order or resolution.

(f) The appropriation bonds are not subject to chapter 16C.

Subd. 3.

Form; procedure.

(a) Appropriation bonds may be issued in the form
of bonds, notes, or other similar instruments, and in the manner provided in section
16A.672. In the event that any provision of section 16A.672 conflicts with this section,
this section shall control.

(b) Every appropriation bond shall include a conspicuous statement of the limitation
established in subdivision 6.

(c) Appropriation bonds may be sold at either public or private sale upon such terms
as the commissioner shall determine are not inconsistent with this section and may be sold
at any price or percentage of par value. Any bid received may be rejected.

(d) Appropriation bonds must bear interest at a fixed or variable rate.

(e) Notwithstanding any other law, appropriation bonds issued under this section
shall be fully negotiable.

Subd. 4.

Refunding bonds.

The commissioner from time to time may issue
appropriation bonds for the purpose of refunding any appropriation bonds then
outstanding, including the payment of any redemption premiums on the bonds, any
interest accrued or to accrue to the redemption date, and costs related to the issuance and
sale of the refunding bonds. The proceeds of any refunding bonds may, in the discretion of
the commissioner, be applied to the purchase or payment at maturity of the appropriation
bonds to be refunded, to the redemption of the outstanding appropriation bonds on any
redemption date, or to pay interest on the refunding bonds and may, pending application,
be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any
escrowed proceeds, pending such use, may be invested and reinvested in obligations that
are authorized investments under section 11A.24. The income earned or realized on the
investment may also be applied to the payment of the appropriation bonds to be refunded
or interest or premiums on the refunded appropriation bonds, or to pay interest on the
refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the
proceeds and any investment income may be returned to the general fund or, if applicable,
the special appropriation stadium bond proceeds fund for use in any lawful manner. All
refunding bonds issued under this subdivision must be prepared, executed, delivered, and
secured by appropriations in the same manner as the appropriation bonds to be refunded.

Subd. 5.

Appropriation bonds as legal investments.

Any of the following entities
may legally invest any sinking funds, money, or other funds belonging to them or under
their control in any appropriation bonds issued under this section:

(1) the state, the investment board, public officers, municipal corporations, political
subdivisions, and public bodies;

(2) banks and bankers, savings and loan associations, credit unions, trust companies,
savings banks and institutions, investment companies, insurance companies, insurance
associations, and other persons carrying on a banking or insurance business; and

(3) personal representatives, guardians, trustees, and other fiduciaries.

Subd. 6.

No full faith and credit; state not required to make appropriations.

The appropriation bonds are not public debt of the state, and the full faith, credit, and
taxing powers of the state are not pledged to the payment of the appropriation bonds or to
any payment that the state agrees to make under this section. Appropriation bonds shall
not be obligations paid directly, in whole or in part, from a tax of statewide application
on any class of property, income, transaction, or privilege. Appropriation bonds shall be
payable in each fiscal year only from amounts that the legislature may appropriate for debt
service for any fiscal year, provided that nothing in this section shall be construed to
require the state to appropriate funds sufficient to make debt service payments with respect
to the appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and
shall no longer be outstanding on the earlier of (1) the first day of a fiscal year for which
the legislature shall not have appropriated amounts sufficient for debt service, or (2) the
date of final payment of the principal of and interest on the appropriation bonds.

Subd. 7.

Appropriation of proceeds.

The proceeds of appropriation bonds and
interest credited to the special appropriation stadium bond proceeds fund are appropriated
to the commissioner for payment of capital expenses, debt service on outstanding
indebtedness of the state, operating and capital reserves of the authority, and the funding
of debt service reserves for the appropriation bonds, each as permitted by state and federal
law, and nonsalary expenses incurred in conjunction with the sale of the appropriation
bonds, and such proceeds may be granted, loaned, or otherwise provided to the authority
for the public purpose provided by subdivision 2, paragraph (a).

Subd. 8.

Commissioner; determination of available revenues.

(a) By March 15
of each fiscal year, the commissioner, in consultation with the commissioner of revenue,
shall determine the estimated increase in revenues received from taxes imposed under
chapter 297E over the estimated revenues under the February 2012 revenue forecast for
that fiscal year. For fiscal years after fiscal year 2015, the commissioner shall use the
February 2012 revenue forecast for fiscal year 2015 as the baseline. All calculations under
this paragraph must be made net of estimated refunds of the taxes required to be paid.

(b) Available revenues for purposes of subdivision 9 and section 297E.02,
subdivision 12, equal the amount determined under paragraph (a), less the following
amounts for the fiscal year:

(1) the appropriation to principal and interest on appropriation bonds under
paragraph (a);

(2) the appropriation to make the payments required under section 473J.13,
subdivision 2;

(3) the appropriation to make the payments required under section 473J.13,
subdivision 4, paragraph (c);

(4) the appropriations under article 5, section 40, paragraph (a), for administration
and any successor appropriation;

(5) the reduction in revenues resulting from the sales tax exemptions under section
297A.68, subdivision 43;

(6) reimbursements authorized by section 473J.15, subdivision 2; and

(7) payment of compulsive gambling appropriations under article 5, section 40,
paragraph (b), and any successor appropriation.

(c) Available revenues, as determined under paragraph (b), are allocated:

(1) .. percent to be used for appropriations under paragraph (b); and

(2) .. percent for payment of gambling tax rebates or gambling tax reductions under
chapter 297E.

(d) The provisions of this subdivision apply only after the issuance of appropriation
bonds under subdivision 2.

Subd. 9.

Appropriation for debt service and other purposes.

(a) The amount
needed to pay principal and interest on appropriation bonds issued under this section is
appropriated each year from the general fund to the commissioner, subject to repeal,
unallotment under section 16A.152, or cancellation otherwise pursuant to subdivision 6,
for deposit into the bond payment accounts established for such purpose in the special
appropriation stadium bond proceeds fund.

(b) To the extent the commissioner determines revenues are available under the
provisions of subdivision 8, paragraph (b), for the fiscal year, the following amounts
are appropriated from the general fund:

(1) to replenish the amount on deposit in any debt service reserve account established
with respect to the appropriation bonds to the debt service reserve requirement amount as
determined by order of the commissioner; and

(2) to the extent not required under clause (1), for deposit to any general reserve
account established by order of the commissioner for application against any shortfall in
the amounts deposited to the general fund pursuant to article 4, section 1, subdivision 3,
paragraph (b), clauses (1), (2), (3), and (4).

Subd. 10.

Waiver of immunity.

The waiver of immunity by the state provided for
by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any
ancillary contracts to which the commissioner is a party.

Subd. 11.

Validation.

(a) Appropriation bonds issued under this section may be
validated in the manner provided by this subdivision. If comparable appropriation bonds
are judicially determined to be valid, nothing in this subdivision shall be construed
to prevent the sale or delivery of any appropriation bonds or notes without entry of a
judgment of validation by the Minnesota Supreme Court pursuant to this subdivision with
respect to the appropriation bonds authorized under this section.

(b) Any appropriation bonds issued under this section that are validated shall be
validated in the manner provided by this subdivision.

(c) The Minnesota Supreme Court shall have original jurisdiction to determine the
validation of appropriation bonds and all matters connected therewith.

(d) The commissioner may determine the commissioner's authority to issue
appropriation bonds and the legality of all proceedings in connection with issuing bonds.
For this purpose, a complaint shall be filed by the commissioner in the Minnesota Supreme
Court against the state and the taxpayers and citizens.

(e) As a condition precedent to filing of a complaint for the validation of
appropriation bonds, the commissioner shall take action providing for the issuance of
appropriation bonds in accordance with law.

(f) The complaint shall set out the state's authority to issue appropriation bonds, the
action or proceeding authorizing the issue and its adoption, all other essential proceedings
had or taken in connection with issuing bonds, the amount of the appropriation bonds to
be issued and the maximum interest they are to bear, and all other pertinent matters.

(g) The Minnesota Supreme Court shall issue an order directed against the state and
taxpayers, citizens, and others having or claiming any right, title, or interest affected by
the issuance of appropriation bonds, or to be affected by the bonds, allowing all persons,
in general terms and without naming them, and the state through its attorney general, to
appear before the Minnesota Supreme Court at a designated time and place and show
why the complaint should not be granted and the proceedings and appropriation bonds
validated. A copy of the complaint and order shall be served on the attorney general at
least 20 days before the time fixed for hearing. The attorney general shall examine the
complaint, and, if it appears or there is reason to believe that it is defective, insufficient, or
untrue, or if in the opinion of the attorney general the issuance of the appropriation bonds
in question has not been duly authorized, defense shall be made by the attorney general as
the attorney general deems appropriate.

(h) Before the date set for hearing, as directed by the Minnesota Supreme Court,
either the clerk of the Minnesota appellate courts or the commissioner shall publish a copy
of the order in a legal newspaper of general circulation in Ramsey County and the state, at
least once each week for two consecutive weeks, commencing with the first publication,
which shall not be less than 20 days before the date set for hearing. By this publication,
all taxpayers, citizens, and others having or claiming any right, title, or interest in the
state, are made parties defendant to the action and the Minnesota Supreme Court has
jurisdiction of them to the same extent as if named as defendants in the complaint and
personally served with process.

(i) Any taxpayer, citizen, or person interested may become a party to the action by
moving against or pleading to the complaint at or before the time set for hearing. The
Minnesota Supreme Court shall determine all questions of law and fact and make orders
that will enable it to properly try and determine the action and render a final judgment
within 30 days of the hearing with the least possible delay.

(j) If the judgment validates appropriation bonds, the judgment is forever conclusive
as to all matters adjudicated and as against all parties affected and all others having or
claiming any right, title, or interest affected by the issuance of appropriation bonds, or to
be affected in any way by issuing the bonds, and the validity of appropriation bonds or of
any revenues pledged for the payment of the bonds, or of the proceedings authorizing the
issuance of the bonds, including any remedies provided for their collection, shall never
be called in question in any court by any person or party.

(k)(1) Appropriation bonds, when validated under this section, shall have stamped
or written on the bonds, by the proper officers of the state issuing them, a statement
in substantially the following form: "This appropriation bond is one of a series of
appropriation bonds which were validated by judgment of the Supreme Court of the State
of Minnesota, rendered on ……. , ....... (year)"

(2) A certified copy of the judgment or decree shall be received as evidence in any
court in this state.

(l) The costs shall be paid by the state, except when a taxpayer, citizen, or other
person contests the action or intervenes, the court may tax the whole or any part of the
costs against the person that is equitable.

(m) A justice of the Minnesota Supreme Court is not disqualified in any validation
action because the justice is a landowner or taxpayer of the state.

ARTICLE 3

CONFORMING CHANGES

Section 1.

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 16A.50 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, 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. 2.

Minnesota Statutes 2010, section 13.55, subdivision 1, is amended to read:

Subdivision 1.

Not public classification.

The following data received, created, or
maintained by or for publicly owned and operated convention facilities, or civic center
authorities, or the Metropolitan Sports Facilities Commission are classified as nonpublic
data pursuant to section 13.02, subdivision 9; or private data on individuals pursuant
to section 13.02, subdivision 12:

(a) a letter or other documentation from any person who makes inquiry to or who is
contacted by the facility regarding the availability of the facility for staging events;

(b) identity of firms and corporations which contact the facility;

(c) type of event which they wish to stage in the facility;

(d) suggested terms of rentals; and

(e) responses of authority staff to these inquiries.

Sec. 3.

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:

(1) hotels;

(2) restaurants;

(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
section 340A.419; and

(5) sports facilities located on land owned by the Metropolitan Sports Commission;
and

(6) 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
metropolitan area.

(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. 4.

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
unclassified service;

(15) persons who are employed by the Department of Commerce as a peace officer
in the Insurance Fraud Prevention Division under section 45.0135 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 352.029 does not apply; and

(18) employees of the Minnesota Government Engineers Council to whom section
352.029 does not apply.

(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 352.04. 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
that employer.

Sec. 5.

Minnesota Statutes 2010, section 473.121, subdivision 5a, is amended to read:

Subd. 5a.

Metropolitan agency.

"Metropolitan agency" means the Metropolitan
Parks and Open Space Commission, and the Metropolitan Airports Commission, and
Metropolitan Sports Facilities Commission.

Sec. 6.

Minnesota Statutes 2010, section 473.164, is amended to read:

473.164 SPORTS, AIRPORT COMMISSIONS TO PAY COUNCIL COSTS.

Subdivision 1.

Annually reimburse.

The Metropolitan Sports Facilities
Commission and the Metropolitan Airports Commission shall annually reimburse the
council for costs incurred by the council in the discharge of its responsibilities relating to
the commission. The costs may be charged against any revenue sources of the commission
as determined by the commission.

Subd. 2.

Estimates, budget, transfer.

On or before May 1 of each year, the council
shall transmit to each the commission an estimate of the costs which the council will
incur in the discharge of its responsibilities related to the commission in the next budget
year including, without limitation, costs in connection with the preparation, review,
implementation and defense of plans, programs and budgets of the commission. Each The
commission shall include the estimates in its budget for the next budget year and may
transmit its comments concerning the estimated amount to the council during the budget
review process. Prior to December 15 of each year, the amount budgeted by each the
commission for the next budget year may be changed following approval by the council.
During each budget year, the commission shall transfer budgeted funds to the council in
advance when requested by the council.

Subd. 3.

Final statement.

At the conclusion of each budget year, the council, in
cooperation with each the commission, shall adopt a final statement of costs incurred by the
council for each the commission. Where costs incurred in the budget year have exceeded
the amount budgeted, each the commission shall transfer to the council the additional
moneys needed to pay the amount of the costs in excess of the amount budgeted, and shall
include a sum in its next budget. Any excess of budgeted costs over actual costs may be
retained by the council and applied to the payment of budgeted costs in the next year.

Sec. 7.

Minnesota Statutes 2010, section 473.565, subdivision 1, is amended to read:

Subdivision 1.

In MSRS; exceptions.

All employees of the former commission
shall be members of the Minnesota State Retirement System with respect to service
rendered on or after May 17, 1977, except as provided in this section.

Sec. 8. REPEALER.

Minnesota Statutes 2010, sections 473.551; 473.552; 473.553, subdivisions 1, 2, 3,
4, 5, 6, 7, 8, 9, 10, 11, 12, and 13; 473.556, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12,
13, 14, 16, and 17; 473.561; 473.564, subdivisions 2 and 3; 473.572; 473.581; 473.592,
subdivision 1; 473.595; 473.598; 473.599; and 473.76, are repealed.

Sec. 9. EFFECTIVE DATE.

This article is effective June 30, 2013.

ARTICLE 4

SITE REVENUES

Section 1. LIQUOR, LODGING, AND RESTAURANT TAXES.

Subdivision 1.

Imposition of site taxes.

The city shall, by resolution, levy in
addition to taxes authorized by other law:

(1) a sales tax of three percent on the gross receipts on retail on-sales of intoxicating
liquor and fermented malt beverages when sold at the stadium or within the stadium
area or at licensed on-sale liquor establishments located within the development area,
provided that this tax may not be imposed if sales of intoxicating liquor and fermented
malt beverages are exempt from taxation under Minnesota Statutes, chapter 297A;

(2) a sales tax of three percent on the gross receipts from the furnishing for
consideration of lodging at a hotel, motel, tourist court, or trailer camp located within the
stadium or development areas; and

(3) a sales tax of three percent on the gross receipts on all sales of food primarily for
consumption in the stadium or for consumption on or off the premises of the stadium or by
restaurants and places of refreshment within the stadium or development areas.

Subd. 2.

Duration, limitation.

The taxes authorized by this section shall be
imposed until January 1, 2047. 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 the collection of the
taxes from the tax proceeds. The city shall have no financial responsibility for the stadium
project beyond the imposition of the taxes authorized by this section.

Sec. 2. PARKING REVENUES.

The authority/NFL team agreement shall provide for the authority to receive all
revenues from parking within the stadium area, net of costs directly associated with
vehicle parking services, from all events at the stadium. Additionally, the authority/NFL
team agreement shall grant the authority all revenues received through the sale of naming
rights to the various parking lots within the stadium area.

Sec. 3. STATE COMMERCIAL-INDUSTRIAL TAX LEVY.

For 2012, the base amount for the state general levy, as defined in Minnesota Statutes,
section 275.025, subdivision 1, is zero dollars for the stadium and development areas. For
taxes payable in subsequent years, beginning in 2013, the general levy base amount will
increase due to private commercial development and/or private ownership of land and
buildings within the stadium and development areas. The resulting revenue from the state
general levy shall be collected by the county and remitted to the commissioner of revenue.

Sec. 4. ADMISSIONS SURCHARGE.

The authority shall remit the revenues from the three percent ticket and admissions
surcharge, authorized pursuant to article 1, section 21, to the commissioner of revenue.

Sec. 5. METRODOME SITE.

The authority shall remit the net proceeds from the demolition and sale of the
Metrodome, authorized pursuant to article 1, section 22, of this act, to the commissioner of
revenue.

Sec. 6. STATE SALES TAX GROWTH.

The commissioner of revenue shall determine the amount of state general
sales tax paid at the Arden Hills stadium in 2016 for tickets, concessions, and other
transactions taxable pursuant to the state general sales tax provisions of chapter 297A.
The commissioner of revenue shall similarly determine the amount of state general sales
tax paid in 2015 at the Metrodome. The commissioner of revenue shall then calculate
the amount by which the general sales tax proceeds at the Arden Hills stadium in 2016
exceed those collected at the Metrodome in 2015, which amount shall be designated
as the site-based general sales tax growth.

Sec. 7. USE OF REVENUES.

Subdivision 1.

Site tax revenues.

From the revenues collected by the commissioner
of revenue from the sources identified in section 1, subdivision 1, paragraphs (a) to
(c), the commissioner of revenue shall apply the proceeds as follows, notwithstanding
the limitations provided in Minnesota Statutes, section 297A.99, subdivision 11, on the
use of proceeds:

(1) the commissioner must deduct the costs of collecting and administering the taxes
authorized in section 2, according to the applicable state laws and agreements between
the commissioner of revenue and the city;

(2) after deducting the costs in clause (1), the commissioner of revenue must deduct
refunds of any of these taxes due to taxpayers, if any; and

(3) after making the deductions provided in clause (2), notwithstanding the
provisions of any agreement between the commissioner of revenue and the city providing
for collection and remittance of these taxes, the commissioner of revenue must deposit
the remaining amount in the general fund.

Subd. 2.

Parking revenue.

The authority shall remit to the commissioner of
revenue the amounts collected from the parking lot admissions and the sale of parking lot
naming rights authorized under section 2 for deposit in the general fund.

Subd. 3.

State general levy revenues.

The county shall remit to the commissioner
of revenue the amounts of increased state general levy revenue derived from taxable
private development within the stadium and development areas for deposit in the general
fund.

Subd. 4.

Site-based sales tax growth.

The commissioner of revenue must designate
for each year, beginning in 2016 through 2047, the site-based general tax growth for that
year compared to the general sales tax paid at the Metrodome in 2015 as determined
pursuant to section 6.

Subd. 5.

Revenue deposits.

From the revenues identified in subdivisions 1 to 4
and sections 4 and 5, the commissioner of revenue must deposit to the general fund for
state bond debt service support beginning in calendar year 2016, and for each calendar
year thereafter through calendar year 2046, proportionate amounts periodically so that
not later than December 31, 2046, an aggregate annual amount equal to a present value
of $270,000,000 shall have been deposited in the general fund. To determine aggregate
present value, the commissioner of revenue must consult with the commissioner of
management and budget regarding the present value dates, discount rate or rates, and
schedules of annual amounts. The present value date or dates must be based on the date
or dates bonds are sold under Minnesota Statutes, section 16A.965, or the date or dates
other state funds, if any, are deposited into the construction fund. The discount rate or
rates must be based on the all in true interest cost of the bonds issued under Minnesota
Statutes, section 16A.965, or equivalent 30-year bond index, as determined by the
commissioner of management and budget. The schedule of annual amounts must be
certified to the commissioner of revenue by the commissioner of management and budget
and the finance officer of the city.

Sec. 8. EFFECTIVE DATE; LOCAL APPROVAL.

This article is effective the day after the governing body of the city of Arden Hills
and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
2 and 3. Notwithstanding any law to the contrary, the city of Arden Hills and its chief
clerical officer have 30 calendar days following final enactment of this act, to comply with
Minnesota Statutes, section 645.021, subdivisions 2 and 3.

Sec. 9. SEVERABILITY; SAVINGS.

If any part of this article is found to be invalid because it is in conflict with a
provision of the Minnesota Constitution or for any other reason, all other provisions of
this article shall remain valid and any rights, remedies, and privileges that have been
otherwise accrued by this article, shall remain in effect and may be proceeded with and
concluded under the provisions of this article.

ARTICLE 5

LAWFUL GAMBLING

Section 1.

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
disposable 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
are made by an employee of the lessor from a common area where food and beverages
are also sold.

Sec. 2.

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
does not include bingo games linked to other permitted premises.

Sec. 3.

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 but. A bingo occasion must not last
longer than eight consecutive hours., except that linked bingo games played on electronic
bingo devices may be played during regular business hours of the permitted premises and
all play during this period is considered a bingo occasion for reporting purposes. For
permitted premises where the primary business is bingo, regular business hours shall be
defined as the hours between 8:00 a.m. and 2:00 a.m.

Sec. 4.

Minnesota Statutes 2010, section 349.12, subdivision 6a, is amended to read:

Subd. 6a.

Booth operation.

"Booth operation" means a method of selling and
redeeming disposable gambling equipment by an employee of a licensed organization in
a premises the organization leases or owns where such sales and redemptions are made
within a separate enclosure that is distinct from areas where food and beverages are sold.

Sec. 5.

Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:

Subd. 12a.

Electronic bingo device.

"Electronic bingo device" means an a
handheld and portable electronic device that:

(a) is used by a bingo player to:

(1) monitor bingo paper sheets or a facsimile of a bingo paper sheet when purchased
and played at the time and place of an organization's bingo occasion and which (1)
provides a means for bingo players to, or to play an electronic bingo game that is linked
with other permitted premises;

(2) activate numbers announced by a bingo caller; (2) compares or displayed, and
to compare the numbers entered by the player to the bingo faces previously stored in
the memory of the device; and

(3) identifies identify a winning bingo pattern. or game requirement; and

(4) play against other bingo players;

(b) limits the play of bingo faces to 36 faces per game;

(c) requires coded entry to activate play but does not allow the use of a coin,
currency, or tokens to be inserted to activate play;

(d) may only be used for play against other bingo players in a bingo game;

(e) has no additional function as an amusement or gambling device;

(f) has the capability to ensure adequate levels of security and internal controls; and

(g) has the capability to permit the board to electronically monitor the operation of
the device and the internal accounting systems.

Electronic bingo device does not mean any device into which coin, currency, or tokens are
inserted to activate play.

Sec. 6.

Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
to read:

Subd. 12b.

Electronic pull-tab device.

"Electronic pull-tab device" means a
handheld and portable electronic device that:

(a) is used to play one or more electronic pull-tab games;

(b) requires coded entry to activate play but does not allow the use of coin, currency,
or tokens to be inserted to activate play;

(c) allows a player the option to activate the opening of:

(1) all tabs of a ticket at the same time; or

(2) each tab of a ticket separately;

(d) records and maintains information pertaining to accumulated win credits that
may be applied to games in play or redeemed upon termination of play;

(e) has no spinning symbols or other representations that mimic a video slot machine;

(f) has no additional function as a gambling device;

(g) may incorporate an amusement game feature as part of the pull-tab game but
may not require additional consideration for that feature or contain or award any points,
prizes, or other benefit for that feature;

(h) may have auditory or visual enhancements to promote or provide information
about the game being played, provided the component does not affect the outcome of
a game or display the results of a game;

(i) maintains, on nonresettable meters, a printable, permanent record of all
transactions involving each device and electronic pull-tab games played on the device; and

(j) is not a pull-tab dispensing device as defined under subdivision 32a.

Sec. 7.

Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
to read:

Subd. 12c.

Electronic pull-tab game.

"Electronic pull-tab game" means a pull-tab
game containing:

(a) facsimiles of pull-tab tickets that are played on an electronic pull-tab device;

(b) a predetermined finite number of winning and losing tickets;

(c) the same price for each ticket in the game;

(d) a price paid by the player of not less than 25 cents per ticket;

(e) tickets that are in conformance with applicable board rules for pull-tabs;

(f) winning tickets that comply with prize limits under section 349.211;

(g) a unique serial number that may not be regenerated;

(h) an electronic flare that displays the game name, form number, predetermined
finite number of tickets in the game, and prize tier; and

(i) no spinning symbols or other representations that mimic a video slot machine.

Sec. 8.

Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
to read:

Subd. 12d.

Electronic pull-tab game system.

"Electronic pull-tab game system"
means the equipment leased from a licensed distributor and used by a licensed organization
to conduct, manage, and record electronic pull-tab games, and to report and transmit the
game results as prescribed by the board and the Department of Revenue. The system must
provide security and access levels sufficient so that internal control objectives are met as
prescribed by the board. The system must contain a point of sale station.

Sec. 9.

Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read:

Subd. 18.

Gambling equipment.

"Gambling equipment" means: gambling
equipment that is either disposable or permanent gambling equipment.

(a) Disposable gambling equipment includes the following:

(1) bingo hard cards or paper sheets, including linked bingo paper sheets, devices for
selecting bingo numbers, electronic bingo devices,;

(2) paper and electronic pull-tabs,;

(3) jar tickets, paddle wheels, paddle wheel tables,;

(4) paddle tickets, and paddle ticket cards,;

(5) tipboards, and tipboard tickets,; and

(6) promotional tickets that mimic a pull-tab or tipboard, pull-tab dispensing devices,
and programmable electronic devices that have no effect on the outcome of a game and
are used to provide a visual or auditory enhancement of a game.

(b) Permanent gambling equipment includes the following:

(1) devices for selecting bingo numbers;

(2) electronic bingo devices;

(3) electronic pull-tab devices;

(4) pull-tab dispensing devices;

(5) programmable electronic devices that have no effect on the outcome of a game
and are used to provide a visual or auditory enhancement of a game;

(6) paddle wheels; and

(7) paddle wheel tables.

Sec. 10.

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
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. 11.

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 monitor
its operation remotely. For linked electronic bingo games, the system includes electronic
bingo devices.

Sec. 12.

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
occasion game to another in a progressive linked bingo game.

Sec. 13.

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
winning number or numbers matching a winning paddle ticket purchased by a player. A
paddle wheel may be an electronic device that simulates a paddle wheel.

Sec. 14.

Minnesota Statutes 2010, section 349.12, subdivision 31, is amended to read:

Subd. 31.

Promotional ticket.

A paper pull-tab ticket or paper tipboard 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. 15.

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 ticket or a,
multi-ply card with perforated break-open tabs, or a facsimile of a paper pull-tab ticket
used 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
tickets or, cards, or facsimiles has been designated in advance as a winner.

Sec. 16.

Minnesota Statutes 2010, section 349.13, is amended to read:

349.13 LAWFUL GAMBLING.

Lawful gambling is not a lottery or gambling within the meaning of sections 609.75
to 609.76 if it is conducted under this chapter. A pull-tab dispensing device, electronic
bingo device, and electronic pull-tab device permitted under this chapter and by board
rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter
299L. An electronic game device allowed under this chapter may not be a slot machine.
Electronic game devices, including but not limited to electronic bingo devices, electronic
paddle wheels, and electronic pull-tab devices authorized under this chapter, may only
be used in the conduct of lawful gambling permitted under this chapter and board rule
and may not display or simulate any other form of gambling or entertainment, except
as otherwise allowed under this chapter.

Sec. 17.

Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:

Subd. 4b.

Pull-tab sales from dispensing devices.

(a) The board may by rule
authorize but not require the use of pull-tab dispensing devices.

(b) Rules adopted under paragraph (a):

(1) must limit the number of pull-tab dispensing devices on any permitted premises
to three; and

(2) must limit the use of pull-tab dispensing devices to a permitted premises which is
(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages;
or (ii) a premises where bingo is conducted and admission is restricted to persons 18
years or older.

(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices
may be used in establishments licensed for the off-sale of intoxicating liquor, other than
drugstores and general food stores licensed under section 340A.405, subdivision 1.

Sec. 18.

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):

(1) must limit the number of bingo faces that can be played using an electronic
bingo device to 36;

(2) must require that an electronic bingo device be used with corresponding bingo
paper sheets or a facsimile, printed at the point of sale, as approved by the board;

(3) must require that the electronic bingo device site system have dial-up capability
to permit the board to remotely monitor the operation of the device and the internal
accounting systems; and

(4) must prohibit the price of a face played on an electronic bingo device from being
less than the price of a face on a bingo paper sheet sold at the same occasion.

(b) The board, or the director if authorized by the board, may require the deactivation
of an electronic bingo device for violation of a law or rule and to implement any other
controls deemed necessary to ensure and maintain the integrity of electronic bingo devices
and the electronic bingo games played on the devices.

Sec. 19.

Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision
to read:

Subd. 4d.

Electronic pull-tab devices and electronic pull-tab game system.

(a)
The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab
devices, the electronic pull-tab games played on the devices, and the electronic pull-tab
game system necessary to operate them.

(b) The board may not require an organization to use electronic pull-tab devices.

(c) Before authorizing the lease or sale of electronic pull-tab devices and the
electronic pull-tab game system, the board shall examine electronic pull-tab devices
allowed under section 349.12, subdivision 12b. The board may contract for the
examination of the game system and electronic pull-tab devices and may require a working
model to be transported to locations the board designates for testing, examination, and
analysis. The manufacturer must pay all costs of any testing, examination, analysis, and
transportation of the model. The system must be approved by the board before its use in
the state and must have the capability to permit the board to electronically monitor its
operation and internal accounting systems.

(d) The board may require a manufacturer to submit a certificate from an independent
testing laboratory approved by the board to perform testing services, stating that the
equipment has been tested, analyzed, and meets the standards required in this chapter
and any applicable board rules.

(e) The board, or the director if authorized by the board, may require the deactivation
of an electronic pull-tab device for violation of a law or rule and to implement any other
controls deemed necessary to ensure and maintain the integrity of electronic pull-tab
devices and the electronic pull-tab games played on the devices.

Sec. 20.

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
linked 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.

(c) No distributor or distributor salesperson may also be licensed as a linked bingo
game provider under section 349.1635.

Sec. 21.

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
gambling location.

(h) No distributor or distributor salesperson may purchase or lease gambling
equipment for resale or lease to a person for use within the state from any person not
licensed as a manufacturer under section 349.163, except for gambling equipment
returned from an organization licensed under section 349.16, or exempt or excluded from
licensing under section 349.166.

(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. 22.

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
transfer electronic pull-tab games to licensed organizations, and must receive approval of
the 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
use to sell and transfer electronic pull-tab games to licensed distributors, and must receive
approval 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 349.2125. 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. 23.

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
section 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 349.161.

Sec. 24.

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 pull-tabs or
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
Minnesota unless:

-- 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. 25.

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
equipment the manufacturer manufactures manufactured for use or resale in this state.
For purposes of this subdivision, a manufacturer is also required to submit the applicable
version of any software necessary to operate electronic devices and related systems.

(b) The board shall inspect and test all the equipment, including software and
software upgrades, 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.

(c) 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.

(d) The board may request the assistance of the commissioner of public safety and
the director of the State Lottery in performing the tests.

Sec. 26.

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. 27.

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 ... percent of
gross profits. The fee schedule must incorporate costs paid to distributors for services
provided under subdivision 5; and

(3) any other information required by the board by rule.

Sec. 28.

Minnesota Statutes 2010, section 349.1635, is amended by adding a
subdivision to read:

Subd. 5.

Linked bingo game services requirements.

(a) A linked bingo game
provider must contract with licensed distributors for linked bingo game services including,
but not limited to, the solicitation of agreements with licensed organizations, and
installation, repair, or maintenance of the linked bingo game system.

(b) A distributor may not charge a fee to licensed organizations for services
authorized and rendered under paragraph (a).

(c) A linked bingo game provider may not contract with any distributor on an
exclusive basis.

(d) A linked bingo game provider may refuse to contract with a licensed distributor
if the linked bingo game provider demonstrates that the licensed distributor is not capable
of performing the services under the contract.

Sec. 29.

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
device may not be less than the price of a face on a bingo paper sheet sold for the same
game at the same occasion. A game of bingo begins with the first letter and number called
or displayed. Each player must cover, mark, or activate the numbers when bingo numbers
are randomly selected, and announced, and or displayed to the players, either manually
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. 30.

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
following restrictions:

(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; and.

(3) no rent may be paid for a bar bingo occasion.

Sec. 31.

Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:

Subd. 8.

Linked bingo games.

(a) A licensed organization may conduct or
participate in not more than two linked bingo games per occasion, one of which may be,
including a progressive game in which a portion of the prize is carried over from one
occasion game to another until won by a player achieving a bingo within a predetermined
amount of bingo numbers called.

(b) Each participating licensed organization shall contribute to each prize awarded in
a linked bingo game in an amount not to exceed $300. Linked bingo games may only be
conducted by licensed organizations who have a valid agreement with the linked bingo
game provider.

(c) An electronic bingo device as defined in section 349.12, subdivision 12a, may
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
provider; and

(5) any other matter involving the operation of a linked bingo game.

Sec. 32.

Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision
to read:

Subd. 9.

Linked bingo games played exclusively on electronic bingo devices.

In
addition to the requirements of subdivision 8, the following requirements and restrictions
apply when linked bingo games are played exclusively on electronic bingo devices:

(a) The permitted premises must be:

(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
malt beverages, except for a general food store or drug store permitted to sell alcoholic
beverages under section 340A.405, subdivision 1; or

(2) a premises where bingo is conducted as the primary business and has a seating
capacity of at least 100.

(b) The number of electronic bingo devices is limited to:

(1) no more than six devices in play for permitted premises with 200 seats or less;

(2) no more than 12 devices in play for permitted premises with 201 seats or more;
and

(3) no more than 50 devices in play for permitted premises where bingo is the
primary business.

Seating capacity is determined as specified under the local fire code.

(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the
participating organizations, must provide to the board a bingo program in a format
prescribed by the board.

(d) Before participating in the play of a linked bingo game, a player must present
and register a valid picture identification card that includes the player's address and
date of birth.

(e) An organization may remove from play a device that a player has not maintained
in an activated mode for a specified period of time determined by the organization. The
organization must provide the notice in its house rules.

Sec. 33.

Minnesota Statutes 2010, section 349.1721, is amended to read:

349.1721 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
pull-tab games.

Subd. 3.

Pull-tab dispensing device location restrictions and requirements.

The following pertain to pull-tab dispensing devices as defined under section 349.12,
subdivision 32a.

(a) The use of any pull-tab dispensing device must be at a permitted premises
which is:

(1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt
beverages;

(2) a premises where bingo is conducted as the primary business; or

(3) an establishment licensed for the off-sale of intoxicating liquor, other than drug
stores and general food stores licensed under section 340A.405, subdivision 1.

(b) The number of pull-tab dispensing devices located at any permitted premises
is limited to three.

Subd. 4.

Electronic pull-tab device requirements and restrictions.

The following
pertain to the use of electronic pull-tab devices as defined under section 349.12,
subdivision 12b.

(a) The use of any electronic pull-tab device must be at a permitted premises that is:

(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
malt beverages, except for a general food store or drug store permitted to sell alcoholic
beverages under section 340A.405, subdivision 1; or

(2) a premises where bingo is conducted as the primary business and has a seating
capacity of at least 100; and

(3) where the sale of paper pull-tabs is conducted by the licensed organization.

(b) The number of electronic pull-tab devices is limited to:

(1) no more than six devices in play at any permitted premises with 200 seats or less;

(2) no more than 12 devices in play at any permitted premises with 201 seats
or more; and

(3) no more than 50 devices in play at any permitted premises where the primary
business is bingo.

Seating capacity is determined as specified under the local fire code.

(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.

(d) All electronic pull-tab games must be sold and played on the permitted premises
and may not be linked to other permitted premises.

(e) Electronic pull-tab games may not be transferred electronically or otherwise to
any other location by the licensed organization.

(f) Electronic pull-tab games may be commingled if the games are from the same
family of games and manufacturer and contain the same game name, form number, type
of game, ticket count, prize amounts, and prize denominations. Each commingled game
must have a unique serial number.

(g) An organization may remove from play a device that a player has not maintained
in an activated mode for a specified period of time determined by the organization. The
organization must provide the notice in its house rules.

(h) Before participating in the play of an electronic pull-tab game, a player must
present and register a valid picture identification card that includes the player's address
and date of birth.

(i) Each player is limited to the use of one device at a time.

Sec. 34.

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 pull-tabs,
tipboards, and paddle wheels lawful gambling is subject to the following limits and
restrictions:

(1) For booth operations, including booth operations where a pull-tab dispensing
device is located, booth operations where a bar operation is also conducted, and booth
operations where both a pull-tab dispensing device is located and a bar operation is also
conducted, the maximum rent is: monthly rent may not exceed ten percent of gross profits
for that month.

(i) in any month where the organization's gross profit at those premises does not
exceed $4,000, up to $400; and

(ii) in any month where the organization's gross profit at those premises exceeds
$4,000, up to $400 plus not more than ten percent of the gross profit for that month in
excess of $4,000;

(2) For bar operations, including bar operations where a pull-tab dispensing device
is located but not including bar operations subject to clause (1), and for locations where
only a pull-tab dispensing device is located: monthly rent may not exceed 15 percent of
the gross profits for that month.

(i) in any month where the organization's gross profit at those premises does not
exceed $1,000, up to $200; and

(ii) in any month where the organization's gross profit at those premises exceeds
$1,000, up to $200 plus not more than 20 percent of the gross profit for that month
in excess of $1,000;

(3) a lease not governed by clauses (1) and (2) must be approved by the board before
becoming effective; For electronic linked bingo games and electronic pull-tab games that
are operated for separate time periods within a business day by an organization and the
lessor, monthly rent may not be more than:

(i) 15 percent of the gross profits for that month for the time periods operated by
the lessor. The lessor is responsible for cash shortages that occur during the time periods
the games are operated by the lessor; and

(ii) ten percent of gross profits for that month for the time periods operated by the
organization. The organization is responsible for cash shortages that occur during the time
periods the games are operated by the organization.

(4) total rent paid to a lessor from all organizations from leases governed by clause
(1) may not exceed $1,750 per month.

(c) Rent paid by an organization for leased premises for the conduct of bingo is
subject to either of the following limits at the option of the parties to the lease:

(1) (4) For bingo conducted at a leased premises where the primary business is
bingo, 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; and.

(2) (5) No rent may be paid for bar bingo as defined in section 349.12, subdivision 3c.

(6) A lease not governed by clauses (1) to (5) must be approved by the director
before becoming effective.

(d) (c) 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
services, 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
service required to conduct electronic pull-tab games or electronic bingo games. Any
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.

(e) (d) 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. 35.

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
electronic 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.

(1) 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.

(2) 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.

(e) Gambling receipts from all electronic pull-tab games and all linked electronic
bingo games must be recorded on a daily basis and deposited into the gambling bank
account within two business days.

(e) (f) Deposit records must be sufficient to allow determination of deposits made
from each bingo occasion, deal, or game at each permitted premises.

(f) (g) 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. 36.

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
electronic format 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; and

(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.

Sec. 37.

Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read:

Subd. 5.

Reports.

(a) A licensed organization must report monthly to the
Department of Revenue board in an electronic format prescribed by the board and to its
membership monthly, or quarterly in the case of a licensed organization which does not
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
for each permitted premises. The organization must account for and report on each form
of lawful gambling conducted. The report organization must include a reconciliation of
the organization's profit carryover with its cash balance on hand. If the organization
conducts both bingo and other forms of lawful gambling, the figures for both must be
reported separately.

(b) The organization must report annually to its membership and annually file with
the board a financial summary report in a format prescribed by the board that identifies the
organization's receipts and use of lawful gambling proceeds, including: monthly to the
commissioner of revenue as required under section 297E.06.

(1) gross receipts;

(2) prizes paid;

(3) allowable expenses;

(4) lawful purpose expenditures, including annual totals for types of charitable
contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph
(a), clauses (8) and (18);

(5) the percentage of annual gross profits used for charitable contributions; and

(6) the percentage of annual gross profits used for all taxes and fees as per section
349.12, subdivision 25, paragraph (a), clauses (8) and (18).

Sec. 38.

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. 39.

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
as follows:

(1) no organization may contribute more than $300 per linked bingo game to a
linked bingo prize pool for linked bingo games played without electronic bingo devices,
an organization may not contribute to a linked bingo game prize pool more than $300
per linked bingo game per site;

(2) for linked bingo games played exclusively with electronic bingo devices, an
organization may not contribute more than 85 percent of the gross receipts per permitted
premises to a linked bingo game prize pool;

(2) (3) 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; and

(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 predetermined amount of bingo
numbers called and posted win determination, a portion of the prize is gross receipts
may be carried over to another occasion game until the accumulated progressive prize
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
game prizes contained in subdivision 2 must be reduced by the amount an organization
contributes to progressive linked bingo games during the same calendar year.; and

(5) for linked bingo games played exclusively with electronic bingo devices, linked
bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the
player within three business days. Winners of linked bingo prizes in excess of $599 will
be given a receipt or claim voucher as proof of a win.

Sec. 40. APPROPRIATION.

(a) $450,000 in fiscal year 2012 and $779,000 in fiscal year 2013 are appropriated
from the lawful gambling regulation account in the special revenue fund to the Gambling
Control Board for operating expenses related to the regulatory oversight of lawful
gambling for electronic pull-tabs and electronic linked bingo.

(b) One-half of one percent of the revenue deposited in the general fund under
Minnesota Statutes, section 16A.965, subdivision 8, paragraph (a), is appropriated to
the commissioner of human services for the compulsive gambling treatment program
established under Minnesota Statutes, section 245.98. One-half of one percent of the
revenue deposited in the general fund under Minnesota Statutes, section 16A.695,
subdivision 8, paragraph (a), is appropriated to the Gambling Control Board for a
grant to the state affiliate recognized by the National Council on Problem Gambling to
increase public awareness of problem gambling, education and training for individuals
and organizations providing effective treatment services to problem gamblers and
their families, and research relating to problem gambling. Money appropriated by this
paragraph must supplement and must not replace existing state funding for these programs.

Sec. 41. EFFECTIVE DATE.

This article is effective the day following final enactment.

ARTICLE 6

MISCELLANEOUS

Section 1.

Minnesota Statutes 2010, section 297A.71, is amended by adding a
subdivision to read:

Subd. 44.

Building materials, capital projects.

Materials and supplies used or
consumed in and equipment incorporated into the construction or improvement of a capital
project funded partially or wholly under section 297A.9905 are exempt, provided that the
project has a total construction cost of at least $40,000,000 within a ...-month period.
The tax on purchases exempt under this provision must be imposed and collected as if
the rate under section 297A.62, subdivision 1, applied and then refunded in the manner
provided in section 297A.75.

EFFECTIVE DATE.

This section is effective for sales and purchases made after
June 30, 2013.

Sec. 2. USE OF THE STADIUM.

Subdivision 1.

Amateur sports use.

The lessee of the stadium must make the
facilities of the stadium available to the Minnesota Amateur Sports Commission up to
ten days each year on terms satisfactory to the commission for amateur sports activities
consistent with Minnesota Statutes, chapter 240A, each year during the time the bonds
issued pursuant to this act are outstanding. The commission must negotiate in good faith
and may be required to pay no more than actual out-of-pocket expenses for the time
it uses the stadium.

Subd. 2.

High school league.

The lessee of the stadium must make the facilities of
the stadium available for use by the Minnesota State High School League for at least seven
days each year for high school soccer and football tournaments. The lessee of the stadium
must provide, and may not charge the league a fee for, this use, including security, ticket
takers, custodial or cleaning services, or other similar services in connection with this use.