1.1 	A bill for an act
1.2 	relating to sales and use tax; making a temporary exemption for Minnesota State 
1.3 	High School League events permanent; modifying uses of associated revenues;
1.4 	amending Laws 2006, chapter 257, sections 2; 19.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Laws 2006, chapter 257, section 2, the effective date, is amended to read:

1.7 	EFFECTIVE DATE. This section is effective for sales after June 30, 2006~~, and~~ 
1.8 	~~before July 1, 2011~~.

1.9 	EFFECTIVE DATE. This section is effective the day following final enactment.

1.10 	Sec. 2. Laws 2006, chapter 257, section 19, is amended to read:
1.11 	Sec. 19. HIGH SCHOOL LEAGUE; FUNDS TRANSFER.
 1.12 	Beginning July 1, 2007, the Minnesota State High School League shall annually 
1.13 	determine the sales tax savings attributable to Minnesota Statutes, section 297A.70, 
1.14 	subdivision 11, and annually transfer that amount to a nonprofit charitable foundation 
1.15 	created for the purpose of promoting high school extracurricular activities. The funds 
1.16 	must be used by the foundation to make grants to fund, assist, recognize, or promote high 
1.17 	school students' participation in extracurricular activities. ~~The first priority for funding~~ 
1.18 	~~will be grants for scholarships to individuals to offset athletic fees.~~ The foundation must 
1.19 	equitably award grants based on considerations of gender balance, school size, and 
1.20 	geographic location, to the extent feasible.

1.21 	EFFECTIVE DATE. This section is effective beginning July 1, 2011.