1.1.................... moves to amend H.F. No. 2810 as follows:
1.2Delete everything after the enacting clause and insert:


1.5    Section 1. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read:
1.6    Subd. 6. Financial audits. The legislative auditor shall audit the financial
1.7statements of the state of Minnesota required by section 16A.50 and, as resources permit,
1.8shall audit Minnesota State Colleges and Universities, the University of Minnesota, state
1.9agencies, departments, boards, commissions, courts, and other state organizations subject
1.10to audit by the legislative auditor, including the State Agricultural Society, Agricultural
1.11Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical
1.12Society, Labor Interpretive Center, Minnesota Partnership for Action Against Tobacco,
1.13Metropolitan Sports Facilities Commission, Minnesota Stadium Authority, Metropolitan
1.14Airports Commission, and Metropolitan Mosquito Control District. Financial audits
1.15must be conducted according to generally accepted government auditing standards. The
1.16legislative auditor shall see that all provisions of law respecting the appropriate and
1.17economic use of public funds are complied with and may, as part of a financial audit or
1.18separately, investigate allegations of noncompliance.

1.19    Sec. 2. Minnesota Statutes 2010, section 3.9741, is amended by adding a subdivision
1.20to read:
1.21    Subd. 4. Minnesota Stadium Authority. Upon the audit of the financial accounts
1.22and affairs of the Minnesota Stadium Authority, the authority is liable to the state for the
1.23total cost and expenses of the audit, including the salaries paid to the examiners while
1.24actually engaged in making the examination. The legislative auditor may bill the authority
2.1either monthly or at the completion of the audit. All collections received for the audits
2.2must be deposited in the general fund.

2.3    Sec. 3. Minnesota Statutes 2011 Supplement, section 10A.01, subdivision 35, is
2.4amended to read:
2.5    Subd. 35. Public official. "Public official" means any:
2.6    (1) member of the legislature;
2.7    (2) individual employed by the legislature as secretary of the senate, legislative
2.8auditor, chief clerk of the house of representatives, revisor of statutes, or researcher,
2.9legislative analyst, or attorney in the Office of Senate Counsel and Research or House
2.10Research;
2.11    (3) constitutional officer in the executive branch and the officer's chief administrative
2.12deputy;
2.13    (4) solicitor general or deputy, assistant, or special assistant attorney general;
2.14    (5) commissioner, deputy commissioner, or assistant commissioner of any state
2.15department or agency as listed in section 15.01 or 15.06, or the state chief information
2.16officer;
2.17    (6) member, chief administrative officer, or deputy chief administrative officer of a
2.18state board or commission that has either the power to adopt, amend, or repeal rules under
2.19chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
2.20    (7) individual employed in the executive branch who is authorized to adopt, amend,
2.21or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
2.22    (8) executive director of the State Board of Investment;
2.23    (9) deputy of any official listed in clauses (7) and (8);
2.24    (10) judge of the Workers' Compensation Court of Appeals;
2.25    (11) administrative law judge or compensation judge in the State Office of
2.26Administrative Hearings or unemployment law judge in the Department of Employment
2.27and Economic Development;
2.28    (12) member, regional administrator, division director, general counsel, or operations
2.29manager of the Metropolitan Council;
2.30    (13) member or chief administrator of a metropolitan agency;
2.31    (14) director of the Division of Alcohol and Gambling Enforcement in the
2.32Department of Public Safety;
2.33    (15) member or executive director of the Higher Education Facilities Authority;
2.34    (16) member of the board of directors or president of Enterprise Minnesota, Inc.;
3.1    (17) member of the board of directors or executive director of the Minnesota State
3.2High School League;
3.3    (18) member of the Minnesota Ballpark Authority established in section 473.755;
3.4    (19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
3.5    (20) manager of a watershed district, or member of a watershed management
3.6organization as defined under section 103B.205, subdivision 13;
3.7    (21) supervisor of a soil and water conservation district;
3.8(22) director of Explore Minnesota Tourism;
3.9    (23) citizen member of the Lessard-Sams Outdoor Heritage Council established in
3.10section 97A.056; or
3.11(24) a citizen member of the Clean Water Council established in section 114D.30.; or
3.12(25) member or chief executive of the Minnesota Stadium Authority established
3.13in section 473J.07.

3.14    Sec. 4. Minnesota Statutes 2010, section 297A.71, is amended by adding a subdivision
3.15to read:
3.16    Subd. 43. Building materials; football stadium. Materials and supplies used or
3.17consumed in, and equipment incorporated into, the construction or improvement of the
3.18football stadium and stadium infrastructure as defined in section 473J.03, subdivisions 7
3.19and 9, are exempt. This subdivision expires one year after the date that the first National
3.20Football League game is played in the stadium for materials, supplies, and equipment used
3.21in the construction and equipping of the stadium, and five years after the issuance of the
3.22first bonds under article 2 for materials, supplies, and equipment used in the stadium
3.23infrastructure.
3.24EFFECTIVE DATE.This section is effective the day following final enactment.

3.25    Sec. 5. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 1, is
3.26amended to read:
3.27    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to
3.28the following establishments located within its jurisdiction:
3.29(1) hotels;
3.30(2) restaurants;
3.31(3) bowling centers;
3.32(4) clubs or congressionally chartered veterans organizations with the approval of
3.33the commissioner, provided that the organization has been in existence for at least three
3.34years and liquor sales will only be to members and bona fide guests, except that a club
4.1may permit the general public to participate in a wine tasting conducted at the club under
4.2section 340A.419;
4.3(5) sports facilities, restaurants, clubs, or bars located on land owned or leased by
4.4the Minnesota Stadium Authority;
4.5(5) (6) sports facilities located on land owned by the Metropolitan Sports
4.6Commission; and
4.7(6) (7) exclusive liquor stores.
4.8(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license,
4.9or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local
4.10ordinance, or charter provision. A license issued under this paragraph authorizes sales on
4.11all days of the week to persons attending events at the theater.
4.12(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license,
4.13or an on-sale malt liquor license to a convention center within the city, notwithstanding
4.14any law, local ordinance, or charter provision. A license issued under this paragraph
4.15authorizes sales on all days of the week to persons attending events at the convention
4.16center. This paragraph does not apply to convention centers located in the seven-county
4.17metropolitan area.
4.18(d) A city may issue an on-sale wine license and an on-sale malt liquor license to
4.19a person who is the owner of a summer collegiate league baseball team, or to a person
4.20holding a concessions or management contract with the owner, for beverage sales at a
4.21ballpark or stadium located within the city for the purposes of summer collegiate league
4.22baseball games at the ballpark or stadium, notwithstanding any law, local ordinance, or
4.23charter provision. A license issued under this paragraph authorizes sales on all days of the
4.24week to persons attending baseball games at the ballpark or stadium.

4.25    Sec. 6. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read:
4.26    Subd. 2a. Included employees. (a) "State employee" includes:
4.27    (1) employees of the Minnesota Historical Society;
4.28    (2) employees of the State Horticultural Society;
4.29    (3) employees of the Minnesota Crop Improvement Association;
4.30    (4) employees of the adjutant general whose salaries are paid from federal funds and
4.31who are not covered by any federal civilian employees retirement system;
4.32    (5) employees of the Minnesota State Colleges and Universities who are employed
4.33under the university or college activities program;
5.1    (6) currently contributing employees covered by the system who are temporarily
5.2employed by the legislature during a legislative session or any currently contributing
5.3employee employed for any special service as defined in subdivision 2b, clause (8);
5.4    (7) employees of the legislature who are appointed without a limit on the duration
5.5of their employment and persons employed or designated by the legislature or by a
5.6legislative committee or commission or other competent authority to conduct a special
5.7inquiry, investigation, examination, or installation;
5.8    (8) trainees who are employed on a full-time established training program
5.9performing the duties of the classified position for which they will be eligible to receive
5.10immediate appointment at the completion of the training period;
5.11    (9) employees of the Minnesota Safety Council;
5.12    (10) any employees who are on authorized leave of absence from the Transit
5.13Operating Division of the former Metropolitan Transit Commission and who are employed
5.14by the labor organization which is the exclusive bargaining agent representing employees
5.15of the Transit Operating Division;
5.16    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
5.17Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
5.18Control Commission unless excluded under subdivision 2b or are covered by another
5.19public pension fund or plan under section 473.415, subdivision 3;
5.20    (12) judges of the Tax Court;
5.21    (13) personnel who were employed on June 30, 1992, by the University of
5.22Minnesota in the management, operation, or maintenance of its heating plant facilities,
5.23whose employment transfers to an employer assuming operation of the heating plant
5.24facilities, so long as the person is employed at the University of Minnesota heating plant
5.25by that employer or by its successor organization;
5.26    (14) personnel who are employed as seasonal employees in the classified or
5.27unclassified service;
5.28    (15) persons who are employed by the Department of Commerce as a peace officer
5.29in the Insurance Fraud Prevention Division under section 45.0135 who have attained the
5.30mandatory retirement age specified in section 43A.34, subdivision 4;
5.31    (16) employees of the University of Minnesota unless excluded under subdivision
5.322b, clause (3);
5.33    (17) employees of the Middle Management Association whose employment began
5.34after July 1, 2007, and to whom section 352.029 does not apply; and
5.35    (18) employees of the Minnesota Government Engineers Council to whom section
5.36352.029 does not apply.; and
6.1(19) employees of the Minnesota Stadium Authority.
6.2    (b) Employees specified in paragraph (a), clause (13), are included employees under
6.3paragraph (a) if employer and employee contributions are made in a timely manner in the
6.4amounts required by section 352.04. Employee contributions must be deducted from
6.5salary. Employer contributions are the sole obligation of the employer assuming operation
6.6of the University of Minnesota heating plant facilities or any successor organizations to
6.7that employer.

6.8    Sec. 7. [473J.01] PURPOSE.
6.9The purpose of this chapter is to provide for the construction, financing, and
6.10long-term use of a stadium and related stadium infrastructure as a venue for professional
6.11football and a broad range of other civic, community, athletic, educational, cultural,
6.12and commercial activities. The legislature finds and declares that the expenditure of
6.13public money for this purpose is necessary and serves a public purpose, and that property
6.14acquired by the Minnesota Stadium Authority for the construction of the stadium and
6.15related stadium infrastructure is acquired for a public use or public purpose under chapter
6.16117. The legislature further finds and declares that any provision in a lease or use
6.17agreement with a professional football team that requires the team to play all of its home
6.18games in a publicly funded stadium for the duration of the lease or use agreement, with the
6.19occasional exception of a game played elsewhere as set forth in such agreement, serves
6.20a unique public purpose for which the remedies of specific performance and injunctive
6.21relief are essential to its enforcement. The legislature further finds and declares that
6.22government assistance to facilitate the presence of professional football provides to the
6.23state of Minnesota and its citizens highly valued intangible benefits that are virtually
6.24impossible to quantify and, therefore, not recoverable even if the government receives
6.25monetary damages in the event of a team's breach of contract. Minnesota courts are,
6.26therefore, charged with protecting those benefits through the use of specific performance
6.27and injunctive relief as provided in this chapter and in the lease and use agreements.

6.28    Sec. 8. [473J.03] DEFINITIONS.
6.29    Subdivision 1. Application. For the purposes of this chapter, the terms defined in
6.30this section have the meanings given them, except as otherwise expressly provided or
6.31indicated by the context.
6.32    Subd. 2. Annual adjustment factor. "Annual adjustment factor" means the annual
6.33adjustment factor under section 297A.994, subdivision 4, paragraph (b).
7.1    Subd. 3. Authority. "Authority" means the Minnesota Stadium Authority
7.2established under section 473J.07.
7.3    Subd. 4. City. "City" means the city of Minneapolis.
7.4    Subd. 5. NFL. The "NFL" means the National Football League.
7.5    Subd. 6. NFL team. "NFL team" means the owner and operator of the NFL
7.6professional football team known, as of the effective date of this chapter, as the Minnesota
7.7Vikings or any team owned and operated by someone who purchases or otherwise takes
7.8ownership or control of or reconstitutes the NFL team known as the Minnesota Vikings.
7.9    Subd. 7. Stadium. "Stadium" means the stadium suitable for professional football
7.10to be designed, constructed, and financed under this chapter. A stadium must have a roof
7.11that covers the stadium, as set forth in section 473J.11, subdivision 3.
7.12    Subd. 8. Stadium costs. "Stadium costs" means the costs of acquiring land, the
7.13costs of stadium infrastructure, and of designing, constructing, equipping, and financing a
7.14stadium suitable for professional football.
7.15    Subd. 9. Stadium infrastructure. "Stadium infrastructure" means plazas, parking
7.16structures, rights of way, connectors, skyways and tunnels, and other such property,
7.17facilities, and improvements, owned by the authority or determined by the authority to
7.18facilitate the use and development of the stadium.
7.19    Subd. 10. Stadium site. "Stadium site" means all or portions of the current site of
7.20the existing football stadium and adjacent areas, bounded generally by Park and Eleventh
7.21Avenues and Third and Sixth Streets in the city of Minneapolis, the definitive boundaries
7.22of which shall be determined by the authority and agreed to by the NFL team.

7.23    Sec. 9. [473J.07] MINNESOTA STADIUM AUTHORITY.
7.24    Subdivision 1. Established. The Minnesota Stadium Authority is established as a
7.25public body, corporate and politic, and political subdivision of the state. The authority is
7.26not a joint powers entity or an agency or instrumentality of the city.
7.27    Subd. 2. Membership. (a) The authority shall consist of five members.
7.28(b) The chair and two members shall be appointed by the governor. One member
7.29appointed by the governor shall serve until December 31 of the third year following
7.30appointment and one member shall serve until December 31 of the fourth year following
7.31appointment. Thereafter, members appointed by the governor shall serve four-year terms,
7.32beginning January 1. Each member serves until a successor is appointed and takes office.
7.33The chair serves at the pleasure of the governor.
7.34(c) The mayor of the city shall appoint two members to the authority. One member
7.35appointed by the mayor of the city shall serve until December 31 of the third year
8.1following appointment and one member shall serve until December 31 of the fourth year
8.2following appointment. Thereafter, members appointed under this paragraph shall serve
8.3four-year terms beginning January 1. Each member serves until a successor is appointed
8.4and takes office. Members appointed under this paragraph may reside within the city and
8.5may be appointed officials of a political subdivision.
8.6(d) The initial members of the authority must be appointed not later than 30 days
8.7after the date of enactment of this chapter.
8.8    Subd. 3. Compensation. The authority may compensate its members, other than the
8.9chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided
8.10by other law, a salary in an amount fixed by the authority, and shall be reimbursed for
8.11reasonable expenses to the same extent as a member.
8.12    Subd. 4. Chair. The chair presides at all meetings of the authority, if present, and
8.13performs all other assigned duties and functions. The authority may appoint from among
8.14its members a vice-chair to act for the chair during the temporary absence or disability of
8.15the chair, and any other officers the authority determines are necessary or convenient.
8.16    Subd. 5. Removal. A member, other than the chair, may be removed by the
8.17appointing authority only for misfeasance, malfeasance, or nonfeasance in office, upon
8.18written charges, and after an opportunity to be heard in defense of the charges.
8.19    Subd. 6. Bylaws. The authority shall adopt bylaws to establish rules of procedure,
8.20the powers and duties of its officers, and other matters relating to the governance of the
8.21authority and the exercise of its powers. Except as provided in this section, the bylaws
8.22adopted under this subdivision must be similar in form and substance to bylaws adopted
8.23by the Minnesota Ballpark Authority pursuant to section 473.755.
8.24    Subd. 7. Audit. The legislative auditor shall audit the books and accounts of the
8.25authority once each year or as often as the legislative auditor's funds and personnel permit.
8.26The authority shall pay the total cost of the audit pursuant to section 3.9741.
8.27    Subd. 8. Executive director; employees. The authority may appoint an executive
8.28director to serve as the chief executive officer of the authority. The executive director
8.29serves at the pleasure of the authority and receives compensation as determined by the
8.30authority. The executive director may be responsible for the operation, management, and
8.31promotion of activities of the authority, as prescribed by the authority. The executive
8.32director has the powers necessarily incident to the performance of duties required and
8.33powers granted by the authority, but does not have authority to incur liability or make
8.34expenditures on behalf of the authority without general or specific directions by the
8.35authority, as shown by the bylaws or minutes of a meeting of the authority. The executive
9.1director is responsible for hiring, supervision, and dismissal of all other employees of
9.2the authority.
9.3    Subd. 9. Web site. The authority shall establish a Web site for purposes of providing
9.4information to the public concerning all actions taken by the authority. At a minimum, the
9.5Web site must contain a current version of the authority's bylaws, notices of upcoming
9.6meetings, minutes of the authority's meetings, and contact telephone, electronic mail, and
9.7facsimile numbers for public comments.
9.8    Subd. 10. Quorum; approvals. Any three members shall constitute a quorum for
9.9the conduct of business and action may be taken upon the vote of a majority of members
9.10present at a meeting duly called and held. During the design and construction stages of the
9.11stadium, a four-fifths vote of the authority is required for authority decisions related to
9.12zoning, land use, exterior design of the stadium, related parking, the plaza area, and the
9.13selection of the authority's lead representative during design and construction.

9.14    Sec. 10. [473J.08] LOCATION.
9.15The stadium to be constructed under this chapter shall be located at the stadium
9.16site in the city of Minneapolis.

9.17    Sec. 11. [473J.09] POWERS, DUTIES OF THE AUTHORITY.
9.18    Subdivision 1. Actions. The authority may sue and be sued. The authority is a public
9.19body and the stadium and stadium infrastructure are public improvements within the
9.20meaning of chapter 562. The authority is a municipality within the meaning of chapter 466.
9.21    Subd. 2. Acquisition of property. The authority may acquire from any public or
9.22private entity by lease, purchase, gift, or devise all necessary right, title, and interest in
9.23and to real property, air rights, and personal property deemed necessary to the purposes
9.24contemplated by this chapter. The authority may acquire, by the exercise of condemnation
9.25powers under chapter 117, land, other real property, air rights, personal property, and other
9.26right, title, and interest in property, within the stadium site and stadium infrastructure.
9.27    Subd. 3. Disposition of property. The authority may sell, lease, or otherwise
9.28dispose of any real or personal property acquired by the authority that is no longer required
9.29for accomplishment of the authority's purposes. The property may be sold in accordance
9.30with the procedures provided by section 469.065, except subdivisions 6 and 7, to the
9.31extent the authority deems it to be practical and consistent with this chapter. Title to the
9.32stadium must not be transferred or sold by the authority prior to the effective date of
9.33enactment of any legislation approving such transfer or sale.
10.1    Subd. 4. Data practices; open meetings. Except as otherwise provided in this
10.2chapter, the authority is subject to chapters 13 and 13D.
10.3    Subd. 5. Facility operation. The authority may develop, construct, equip, improve,
10.4own, operate, manage, maintain, finance, and control the stadium, stadium infrastructure,
10.5and related facilities constructed or acquired under this chapter, or may delegate such
10.6duties through an agreement, subject to the rights and obligations transferred to and
10.7assumed by the authority, the NFL team, other user, third-party manager, or program
10.8manager, under the terms of a lease, use agreement, or development agreement.
10.9    Subd. 6. Employees; contracts for services. The authority may employ persons
10.10and contract for services necessary to carry out its functions, including the utilization of
10.11employees and consultants retained by other governmental entities. The authority shall
10.12enter into an agreement with the city regarding traffic control for the stadium.
10.13    Subd. 7. Gifts, grants, loans. The authority may accept monetary contributions,
10.14property, services, and grants or loans of money or other property from the United States,
10.15the state, any subdivision of the state, any agency of those entities, or any person for any
10.16of its purposes, and may enter into any agreement required in connection with the gifts,
10.17grants, or loans. The authority shall hold, use, and dispose of the money, property, or
10.18services according to the terms of the monetary contributions, grant, loan, or agreement.
10.19    Subd. 8. Use agreements. The authority may lease, license, or enter into use
10.20agreements and may fix, alter, charge, and collect rents, fees, and charges for the use,
10.21occupation, and availability of part or all of any premises, property, or facilities under
10.22its ownership, operation, or control for purposes that will provide athletic, educational,
10.23cultural, commercial, or other entertainment, instruction, or activity for the citizens of
10.24Minnesota and visitors. The use agreements may provide that the other contracting party
10.25has exclusive use of the premises at the times agreed upon, as well as the right to retain
10.26some or all revenues from ticket sales, suite licenses, concessions, advertising, naming
10.27rights, NFL team designated broadcast/media, club seats, signage, and other revenues
10.28derived from the stadium. The lease or use agreement with an NFL team must provide for
10.29the payment by the NFL team of an agreed-upon portion of operating and maintenance
10.30costs and expenses and provide other terms in which the authority and NFL team agree. In
10.31no case may a lease or use agreement permit smoking in the stadium.
10.32    Subd. 9. Research. The authority may conduct research studies and programs;
10.33collect and analyze data; prepare reports, maps, charts, and tables; and conduct all
10.34necessary hearings and investigations in connection with its functions.
10.35    Subd. 10. Insurance. The authority may require any employee to obtain and file
10.36with the authority an individual bond or fidelity insurance policy. The authority may
11.1procure insurance in the amounts the authority considers necessary against liability of the
11.2authority or its officers and employees for personal injury or death and property damage or
11.3destruction, consistent with chapter 466, and against risks of damage to or destruction of
11.4any of its facilities, equipment, or other property.
11.5    Subd. 11. Exemption from Metropolitan Council review; Business Subsidy Act.
11.6The acquisition and betterment of a stadium and stadium infrastructure by the authority
11.7must be conducted pursuant to this chapter and are not subject to sections 473.165 and
11.8473.173. Section 116J.994 does not apply to any transactions of the authority or other
11.9governmental entity related to the stadium or stadium infrastructure or to any tenant or
11.10other users of the stadium or stadium infrastructure. The Metropolitan Council shall waive
11.11any sewer access charges or similar fees and charges customarily imposed attributable to
11.12the design and construction of the stadium and stadium infrastructure.
11.13    Subd. 12. Incidental powers. In addition to the powers expressly granted in this
11.14chapter, the authority has all powers necessary or incidental thereto.
11.15    Subd. 13. Transfers to the authority. In addition to any other payments required
11.16under this act, for operating years 2016 to 2020, the NFL team shall annually transfer to
11.17the authority amounts equal to the city of Minneapolis share of operating costs and capital
11.18reserves. These amounts shall be repaid to the NFL team by the state on behalf of the city
11.19of Minneapolis through a repayment schedule to be specified in law, and agreed to in all
11.20subsequent agreements between the city and the NFL team.

11.21    Sec. 12. [473J.11] STADIUM DESIGN AND CONSTRUCTION.
11.22    Subdivision 1. Contracts. (a) The design, development, and construction of the
11.23stadium shall be a collaborative process between the authority and the NFL team. The
11.24authority and the NFL team shall establish a process to reach consensus on key elements
11.25of the stadium program and design, development, and construction.
11.26(b) Unless the authority and the NFL team agree otherwise:
11.27(1) the authority shall create a stadium design and construction group, including
11.28representatives of the authority and the NFL team, to manage the design of the stadium
11.29and oversee construction;
11.30(2) this group shall engage an owner's representative to act on behalf of the group.
11.31The cost of the owner's representative shall be a stadium cost; and
11.32(3) the authority and the NFL team shall enter into a development administration
11.33agreement providing for rights and responsibilities of the authority and the NFL team, the
11.34design and construction group, and the owner's representative for design and construction
11.35of the stadium, including but not limited to establishment of minimum design standards.
12.1This development administration agreement shall provide for binding arbitration in
12.2the event that the authority and the NFL team are unable to agree on minimum design
12.3standards or other material aspects of the design.
12.4(c) The authority may enter into an agreement with the NFL team and any other
12.5entity relating to the design, construction, financing, operation, maintenance, and use of
12.6the stadium and related facilities and stadium infrastructure. The authority may contract
12.7for materials, supplies, and equipment in accordance with section 471.345, except that
12.8the authority may employ or contract with persons, firms, or corporations to perform one
12.9or more or all of the functions of architect, engineer, construction manager, or program
12.10manager with respect to all or any part of the design, construction, financing, operation,
12.11maintenance, and use of the stadium and stadium infrastructure under the traditional
12.12separate design and build, integrated design-build, construction manager at risk, or
12.13public/private partnership (P3) structures, or a combination thereof.
12.14(d) The authority and the NFL team shall prepare a request for proposals for one or
12.15more of the functions described in paragraph (c). The request must be published in the
12.16State Register and shall include, at a minimum, such requirements that are agreed to by
12.17the authority and the NFL team. The authority and the NFL team may prequalify offerors
12.18by issuing a request for qualifications, in advance of the request for proposals, and select a
12.19short list of responsible offerors prior to discussions and evaluations.
12.20(e) As provided in the request for proposals, the authority, and the NFL team, may
12.21conduct discussions and negotiations with responsible offerors in order to determine
12.22which proposal is most advantageous to the authority and the NFL team and to negotiate
12.23the terms of an agreement. In conducting discussions, there shall be no disclosure of any
12.24information derived from proposals submitted by competing offerors and the content of all
12.25proposals is nonpublic data under chapter 13 until such time as a notice to award a contract
12.26is given by the authority. The agreement shall be subject to the approval of the NFL team.
12.27(f) Prior to the time the authority enters into a construction contract with a
12.28construction manager or program manager certifying a maximum price and a completion
12.29date as provided in paragraph (h), at the request of the NFL team, the authority may
12.30authorize, such authorization not to be unreasonably withheld or delayed, the NFL team
12.31to provide for management of the construction of the stadium and related stadium
12.32infrastructure, in which event the NFL team must assume the role and responsibilities
12.33of the authority for completion of construction in a manner consistent with the agreed
12.34minimum design standards and design documents, subject to the terms of this act,
12.35including responsibility for cost overruns.
13.1(g) The construction manager or program manager may enter into contracts with
13.2contractors for labor, materials, supplies, and equipment for the construction of the
13.3stadium and related stadium infrastructure through the process of public bidding, except
13.4that the construction manager or program manager may, with the consent of the authority
13.5or the NFL team if the NFL team has assumed responsibility for construction:
13.6(1) narrow the listing of eligible bidders to those which the construction manager
13.7or program manager determines to possess sufficient expertise to perform the intended
13.8functions;
13.9(2) award contracts to the contractors that the construction manager or program
13.10manager determines provide the best value under a request for proposals as described in
13.11section 16C.28, subdivision 1, paragraphs (a), clause (2), and (c), which are not required
13.12to be the lowest responsible bidder; and
13.13(3) for work the construction manager or program manager determines to be critical
13.14to the completion schedule, award contracts on the basis of competitive proposals, or
13.15perform work with its own forces without soliciting competitive bids if the construction
13.16manager or program manager provides evidence of competitive pricing.
13.17(h) The authority and the NFL team shall require that the construction manager or
13.18program manager certify, before the contract is signed, a fixed and stipulated construction
13.19price and completion date to the authority and post a performance bond in an amount
13.20at least equal to 100 percent of the certified price or such other security satisfactory to
13.21the authority, to cover any costs which may be incurred in excess of the certified price
13.22including, but not limited to, costs incurred by the authority or loss of revenues resulting
13.23from incomplete construction on the completion date. The authority may secure surety
13.24bonds as provided in section 574.26, securing payment of just claims in connection with
13.25all public work undertaken by the authority. Persons entitled to the protection of the
13.26bonds may enforce them as provided in sections 574.28 to 574.32 and are not entitled to a
13.27lien on any property of the authority under the provisions of sections 514.01 to 514.16.
13.28The construction of the stadium is a project as that term is defined in section 177.42,
13.29subdivision 2, and is subject to the prevailing wage law under sections 177.41 to 177.43.
13.30    Subd. 2. Changes. Unless otherwise agreed to by the authority and the NFL team,
13.31if either party requests an agreed upon change in minimum design standards, and this
13.32change is responsible for requiring the project to exceed the stated budget, the requesting
13.33party is liable for any cost overruns or associated liabilities.
13.34    Subd. 3. Stadium design. The stadium and stadium infrastructure shall be designed
13.35and constructed incorporating the following general program and design elements:
14.1(1) Unless otherwise agreed to by the authority and the NFL team, the stadium
14.2shall comprise approximately 1,500,000 square feet with approximately 65,000 seats,
14.3expandable to 72,000, shall meet or exceed NFL program requirements, and include
14.4approximately 150 suites and approximately 7,500 club seats or other such components as
14.5agreed to by the authority and the NFL team;
14.6(2) space for NFL team-related exhibitions and sales, which shall include the
14.7following: NFL team museum and Hall of Fame, retail merchandise and gift shop retail
14.8venues, and themed concessions and restaurants;
14.9(3) year-round space for the NFL team administrative operations, sales, and
14.10marketing, including a ticket office, team meeting space, locker, and training rooms;
14.11(4) space for administrative offices of the authority;
14.12(5) 2,000 parking spaces within one block of the stadium, connected by skyway or
14.13tunnel to the stadium, and 500 parking spaces within two blocks of the stadium, with a
14.14dedicated walkway on game days;
14.15(6) elements sufficient to provide community and civic uses as determined by the
14.16authority; and
14.17(7) a roof that is fixed or retractable, provided that if the roof is retractable, it is
14.18accomplished without any increase to the funding provided by the state or the city.
14.19    Subd. 4. Cost overruns, savings. The authority may accept financial obligations
14.20relating to cost overruns associated with acquisition of the stadium site, stadium
14.21infrastructure, and stadium design, development, and construction, provided that the
14.22authority shall not accept responsibility for cost overruns and shall not be responsible for
14.23cost overruns if the authority has authorized the NFL team to provide for management
14.24of construction of the stadium under section 473J.11, subdivision 1. Cost savings or
14.25additional funds obtained by the authority or the NFL team for the stadium or stadium
14.26infrastructure may be used first to fund additional stadium or stadium infrastructure, as
14.27agreed to by the authority and the NFL team, if any, and then to fund capital reserves.

14.28    Sec. 13. [473J.112] COMMEMORATIVE BRICKS.
14.29The authority shall sell commemorative bricks to be displayed at a prominent
14.30location in the new stadium, for an amount to be determined by the authority. The
14.31authority shall work with the commissioner to ensure that purchase of a brick is a tax
14.32deductible donation on the part of the donating person or organization. Funds raised
14.33through this section shall be appropriated to the commissioner of management and budget
14.34for a grant to the Minnesota Stadium Authority.
14.35EFFECTIVE DATE.This section is effective the day following final enactment.

15.1    Sec. 14. [473J.12] EMPLOYMENT.
15.2    Subdivision 1. Hiring and recruitment. In the design, development, construction,
15.3management, operation, maintenance and capital repair, replacement and improvement of
15.4the stadium and stadium infrastructure, the authority shall make every effort to employ,
15.5and cause the NFL team, the construction manager and other subcontractors, vendors, and
15.6concessionaires to employ women and members of minority communities when hiring.
15.7Further, goals for construction contracts to be awarded to women and minority-owned
15.8businesses will be in a percentage at least equal to the minimum used for city of
15.9Minneapolis development projects, and the other construction workforce will establish
15.10workforce utilization goals at least equal to current city goals and include workers from
15.11city zip codes that have high rates of poverty and unemployment.
15.12    Subd. 2. Other required agreements. The NFL team or the authority shall give
15.13food, beverage, retail, and concession workers presently employed by the NFL team or
15.14the Metropolitan Sports Facilities Commission or its vendors at the existing football
15.15stadium the opportunity to continue their employment in comparable positions at the new
15.16stadium. Workers who are presently represented under a collective bargaining agreement
15.17may seek to continue such representation in the facility and designate such, or another
15.18collective bargaining unit, as their representative.

15.19    Sec. 15. [473J.13] STADIUM OPERATIONS; CAPITAL IMPROVEMENTS.
15.20    Subdivision 1. Stadium operation. The stadium shall be operated in a first class
15.21manner, similar to and consistent with other comparable NFL stadiums, such as the
15.22stadium currently known as Lucas Oil Field. The authority and the team will mutually
15.23agree on a third-party management company or individual to manage the stadium and on
15.24certain major vendors to the stadium. The authority, with the approval of the NFL team,
15.25may enter into an agreement with a program manager for management of the stadium, for
15.26a maximum of 30 years.
15.27    Subd. 2. Operating expenses. (a) The authority must pay or cause to be paid
15.28all operating expenses of the stadium. The authority must require in the lease or use
15.29agreement with the NFL team that the NFL team pay the authority, beginning January 1,
15.302016, or other date as mutually agreed upon by the parties, toward operating costs of the
15.31stadium, $8,500,000 each year, increased by a three percent annual inflation rate.
15.32(b) Beginning January 1, 2016, or other date as mutually agreed upon by the parties,
15.33and continuing through 2020, the NFL team shall pay the authority operating expenses,
15.34$6,000,000 each year, increased by an annual adjustment factor. The payment of $6
15.35million per year beginning in 2016 is a payment by the team, which shall be repaid to the
16.1team by the state, using funds as provided under section 297A.994, subdivision 4, clause
16.2(4). After 2020, the state shall assume this payment, using funds generated in accordance
16.3with the city of Minneapolis as specified under section 287A.994.
16.4(c) The authority may establish an operating reserve to cover operating expense
16.5shortfalls and may accept funds from any source for deposit in the operating reserve. The
16.6establishment or funding of an authority operating reserve must not decrease the amounts
16.7required to be paid to the authority toward operating costs under this subdivision unless
16.8agreed to by the authority.
16.9(d) The authority will be responsible for operating cost overruns.
16.10(e) After the joint selection of the third-party manager or program manager, the
16.11authority may agree with a program manager or other third-party manager of the stadium
16.12on a fixed cost operating, management, or employment agreement with operating
16.13cost protections under which the program manager or third-party manager assumes
16.14responsibility for stadium operating costs and shortfalls. The agreement with the manager
16.15must require the manager to prepare an initial and ongoing operating plan and operating
16.16budgets for approval by the authority in consultation with the NFL team. The manager
16.17must agree to operate the stadium in accordance with the approved operating plan and
16.18operating budget.
16.19    Subd. 3. Public access. The authority will work to maximize access for public and
16.20amateur sports, community, and civic events, and other public events in type and on terms
16.21consistent with those currently held at the existing football stadium, as defined in section
16.22473.551, subdivision 9. The authority may provide that these events have exclusive use
16.23of the premises at agreed-upon times subject to the scheduling rights of the NFL team
16.24under the lease or use agreement.
16.25    Subd. 4. Capital improvements. (a) The authority shall establish a capital
16.26reserve fund. The authority shall be responsible for making, or for causing others to
16.27make, all capital repairs, replacements, and improvements for the stadium and stadium
16.28infrastructure. The authority shall maintain, or cause others to maintain, the stadium and
16.29stadium infrastructure in a safe, clean, attractive, and first class manner so as to cause
16.30them to remain in a condition comparable to that of other comparable NFL facilities of
16.31similar design and age. The authority shall make, or cause others to make, all necessary
16.32or appropriate repairs, renewals, and replacements, whether structural or nonstructural,
16.33interior or exterior, ordinary or extraordinary, foreseen or unforeseen, in a prompt and
16.34timely manner. In addition, the authority, with approval of the NFL team, may enter into
16.35an agreement with a program manager to perform some or all of the responsibilities of the
17.1authority in this subdivision and to assume and accept financial liability for the cost of
17.2performing the responsibilities.
17.3(b) The NFL team must contribute $1,500,000 each year, beginning in 2016 or as
17.4otherwise determined for the term of the lease or use agreement to the operating reserve
17.5fund, increased by a three percent annual inflation rate.
17.6(c) The state shall contribute $1,500,000 each year, beginning in 2016 or as otherwise
17.7determined for the term of the lease to the operating reserve fund. The contributions of the
17.8state are subject to increase by an annual adjustment factor. The contribution under this
17.9paragraph shall be assumed by the team from 2016 through 2020, and repaid to the team
17.10by the state using funds in accordance with section 297A.994, subdivision 4, clause (4).
17.11(d) The authority with input from the NFL team shall develop short-term and
17.12long-term capital funding plans and shall use those plans to guide the future capital needs
17.13of the stadium and stadium infrastructure. The authority shall make the final determination
17.14with respect to funding capital needs. Any capital improvement proposed by the NFL
17.15team intended primarily to provide revenue enhancements to the NFL team shall be paid
17.16for by the NFL team, unless otherwise agreed to with the authority.
17.17    Subd. 5. Game day payments. In addition to operating expense contributions
17.18of the NFL team under subdivision 2, the NFL team shall pay all NFL game day, NFL
17.19team-owned major league soccer, as provided in section 473J.15, subdivision 15, and
17.20other NFL team sponsored event expenses within the stadium and stadium plaza areas.
17.21    Subd. 6. Cooperation with financing. The authority will cooperate with the
17.22NFL team to facilitate the financing of the NFL team's contribution. Such agreement to
17.23cooperate shall not require the authority to incur any additional costs or provide conduit
17.24financing. The lease, license, and other transaction documents shall include provisions
17.25customarily required by lenders in stadium financings.

17.26    Sec. 16. [473J.15] CRITERIA AND CONDITIONS.
17.27    Subdivision 1. Binding and enforceable. In developing the stadium and entering
17.28into related contracts, the authority must follow and enforce the criteria and conditions in
17.29this section, provided that a determination by the authority that those criteria or conditions
17.30have been met under any agreement or otherwise shall be conclusive.
17.31    Subd. 2. NFL team/private contribution; timing of expenditures. (a) The NFL
17.32team/private contribution, including stadium builder license proceeds, for stadium costs
17.33must be made in cash in the amount of at least $427,000,000.
17.34(b) Prior to the initial deposit of funds under this section, the team must provide
17.35security or other credit worthiness in the amount of $50,000,000, subject to the satisfaction
18.1of the authority. Prior to the first issuance of bonds under section 16A.965, the first portion
18.2of the NFL team/private contribution in the amount of $50,000,000 must be deposited as
18.3costs are incurred to the construction fund to pay for the initial stadium costs.
18.4(c) After the first $50,000,000 of stadium costs have been paid from the initial
18.5NFL team/private contribution, state funds shall be deposited as costs are incurred to
18.6the construction fund to pay for the next $50,000,000 of costs of the project. Prior to
18.7any state funds being deposited in the construction fund, the NFL team must provide
18.8security or a financing commitment reasonably satisfactory to the authority for the
18.9balance of the required NFL team/private contribution and for payment of cost overruns
18.10if the NFL team assumes responsibility for stadium construction under section 473J.11.
18.11Thereafter budgeted project costs shall be borne by the authority and the NFL team/private
18.12contributions in amounts proportionate to their remaining funding commitments.
18.13(d) In the event the project terminates before the initial $100,000,000 in contributions
18.14are expended by the parties under this subdivision, the parties shall be reimbursed in the
18.15amounts they have deposited to the construction fund proportionate to project funding
18.16percentages, in the amounts of 56 percent by the authority and 44 percent by the NFL
18.17team/private contributions.
18.18    Subd. 3. Lease or use agreements; 30-year term. The authority must enter into
18.19a long-term lease or use agreement with the NFL team for the NFL team's use of the
18.20stadium. The NFL team must agree to play all preseason, regular season, and postseason
18.21home games at the stadium. Training facilities must remain in Minnesota during the term
18.22of the lease or use agreement. The lease or use agreement must be for a term of at least
18.2330 years from the date of substantial completion of the stadium for professional football
18.24games. The lease or use agreement may provide options for the NFL team to extend the
18.25term for up to four additional periods of five years. The lease or use agreement must
18.26include terms for default, termination, and breach of the agreement. Recognizing that
18.27the presence of professional football provides to the state of Minnesota and its citizens
18.28highly valued, intangible benefits that are virtually impossible to quantify and, therefore,
18.29not recoverable in the event of the NFL team owner's breach of contract, the lease and
18.30use agreements must provide for specific performance and injunctive relief to enforce
18.31provisions relating to use of the stadium for professional football and must not include
18.32escape clauses or buyout provisions. The NFL team must not enter into or accept any
18.33agreement or requirement with or from any entity that is inconsistent with the NFL team's
18.34binding commitment to the 30-year term of the lease or use agreement or that would in
18.35any manner dilute, interfere with, or negate the provisions of the lease or use agreement,
18.36providing for specific performance or injunctive relief. The legislature conclusively
19.1determines, as a matter of public policy, that the lease or use agreement, and any grant
19.2agreement under this chapter that includes a specific performance clause:
19.3(1) explicitly authorizes specific performance as a remedy for breach;
19.4(2) is made for adequate consideration and upon terms which are otherwise fair
19.5and reasonable;
19.6(3) has not been included through sharp practice, misrepresentation, or mistake;
19.7(4) if specifically enforced, does not cause unreasonable or disproportionate hardship
19.8or loss to the NFL team or to third parties; and
19.9(5) involves performance in a manner and the rendering of services of a nature and
19.10under circumstances that the beneficiary cannot be adequately compensated in damages.
19.11    Subd. 4. Lease or use agreements; revenues, payments. A lease or use agreement
19.12shall include rent and other fees and expenses to be paid by the NFL team. The authority
19.13shall agree to provide in the lease or use agreement for the NFL team to receive all NFL
19.14and team event related revenues, including but not limited to, suite revenues, advertising,
19.15concessions, signage, broadcast and media, and club seat revenue. The agreement shall
19.16also provide that all naming rights to the stadium are retained by the NFL team, subject to
19.17the approval of the name or names by the authority consistent with those criteria set out
19.18in the lease or use agreement. The agreement shall provide for the authority to receive
19.19all general ticket revenues and other event revenues other than from NFL team games,
19.20NFL team owned major league soccer games, and other NFL team events agreed to by
19.21the authority.
19.22    Subd. 5. Notice of breach or default. Until 30 years from the date of stadium
19.23completion, the NFL team must provide written notice to the authority not less than 180
19.24days prior to any action, including any action imposed upon the NFL team by the NFL,
19.25which would result in a breach or default of provisions of the lease or use agreements
19.26required to be included under subdivision 3. If this notice provision is violated and the
19.27NFL team has already breached or been in default under the required provisions, the
19.28authority or the state of Minnesota may specifically enforce the lease or use agreement
19.29and Minnesota courts shall fashion equitable remedies so that the NFL team fulfills the
19.30conditions of the lease and use agreements.
19.31    Subd. 6. Enforceable financial commitments. The authority must determine before
19.32stadium construction begins that all public and private funding sources for construction,
19.33operating expenses, and capital improvements and repairs of the stadium are included in
19.34written agreements. The committed funds must be adequate to design, construct, furnish,
19.35and equip the stadium, and pay projected operating expenses and the costs of capital
19.36improvements and repairs during the term of the lease or use agreement with the NFL
20.1team. The NFL team must provide the authority access to NFL team financial or other
20.2information, which the authority deems necessary for such determination. Any financial
20.3information obtained by the authority under this subdivision is nonpublic data under
20.4section 13.02, subdivision 9.
20.5    Subd. 7. Environmental requirements. The authority must comply with all
20.6environmental requirements imposed by regulatory agencies for the stadium, site, and
20.7structure, except as provided by section 473J.09, subdivision 11, or by section 473J.17.
20.8    Subd. 8. Public share on sale of NFL team. The lease or use agreement must
20.9provide that, if the NFL team is sold or an interest in the NFL team is sold after the
20.10effective date of this chapter, a portion of the sale price must be paid to the authority and
20.11deposited in a reserve fund for improvements to the stadium or expended as the authority
20.12may otherwise direct. The portion required to be so paid to the authority is 18 percent
20.13of the amount in excess of the purchase price of the NFL team by the selling owner or
20.14owners, declining to zero 15 years after commencement of stadium construction in
20.15increments of 1.2 percent each year. The agreement must provide exceptions for sales
20.16to members of the owners' family and entities and trusts beneficially owned by family
20.17members, sales to employees of equity interests aggregating up to ten percent, sales related
20.18to capital infusions not distributed to the owners, and sales amongst existing owners not
20.19exceeding 20 percent equity interest in the NFL team.
20.20    Subd. 9. Authority's access to NFL team financial information. A notice
20.21provision for a material breach shall be agreed to between the authority and the NFL team.
20.22In the event there is a material breach by the NFL team under the lease or use agreement,
20.23the lease or use agreement must provide the authority access to audited financial statements
20.24of the NFL team and other financial information that the authority deems necessary to
20.25enforce the terms of any lease or use agreements. Any financial information obtained by
20.26the authority under this subdivision is nonpublic data under section 13.02, subdivision 9.
20.27    Subd. 10. NFL team name retained. The lease or use agreement must provide
20.28that the NFL team and NFL will transfer to the state of Minnesota the Minnesota Vikings'
20.29heritage and records, including the name, logo, colors, history, playing records, trophies,
20.30and memorabilia in the event of relocation of the NFL team is in violation of the lease
20.31or use agreement.
20.32    Subd. 11. Stadium design. (a) The authority and the NFL team will strive to build a
20.33stadium that is environmentally and energy efficient and will make an effort to build a
20.34stadium that is eligible to receive the Leadership in Energy and Environmental Design
20.35(LEED) certification for environmental design, and to the extent practicable, will strive to
20.36make the stadium design architecturally significant.
21.1(b) The stadium design must, to the extent feasible, follow sustainable building
21.2guidelines established under section 16B.325.
21.3(c) The authority and the team must ensure that the stadium be, to the greatest extent
21.4practicable, constructed of American-made steel.
21.5    Subd. 12. Necessary approvals. The authority and the NFL team must secure
21.6any necessary approvals to the terms of the lease and use agreement and the design and
21.7construction plans for the stadium, including prior approval of the NFL.
21.8    Subd. 13. Affordable access. The lease or use agreement must provide for an
21.9agreed-upon number of affordable tickets to the professional sporting events held in the
21.10stadium.
21.11    Subd. 14. Stadium builder's licenses. The authority shall own and retain the
21.12exclusive right to sell stadium builder's licenses in the stadium. The authority will retain
21.13the NFL team to act as the authority's agent in marketing and selling such licenses.
21.14    Subd. 15. Major league soccer. The authority shall, for five years after the first
21.15NFL team home game is played in the stadium, grant the NFL team the exclusive right to
21.16establish major league soccer at the stadium. The authority and the NFL team may enter
21.17into an agreement providing the terms and conditions of such an arrangement, provided:
21.18(1) if any of the NFL team owners whose family owns at least three percent of
21.19the NFL team purchases full or partial ownership in a major league soccer franchise,
21.20such franchise may play in the stadium under a use agreement with similar terms as are
21.21applicable to the NFL team at no additional rent, but including a provision of payment
21.22of game day costs and reasonable marginal costs incurred by the authority as a result of
21.23the major league soccer team; and
21.24(2) capital improvements required by a major league soccer franchise must be
21.25financed by the owners of the major league soccer team, unless otherwise agreed to by
21.26the authority.
21.27    Subd. 16. NFL team-related entities. Subject to the prior approval of the authority,
21.28which shall not be unreasonably withheld, any of the obligations by the NFL team may
21.29be performed by the NFL team, a related entity, or a third party, and the NFL team, any
21.30entity related to the NFL team or third party may receive any revenues to which the NFL
21.31team is entitled hereunder; provided, however, the NFL team shall remain liable if any
21.32obligations are assigned to a related entity or third party.

21.33    Sec. 17. [473J.17] MUNICIPAL ACTIVITIES.
21.34    Subdivision 1. Property acquisition and disposition. The city may, to the extent
21.35legally permissible, acquire land, air rights, and other property interests within the
22.1development area for the stadium site and stadium infrastructure and convey it to the
22.2authority with or without consideration, prepare a site for development as a stadium, and
22.3acquire and construct any related stadium infrastructure. To the extent property parcels or
22.4interests acquired are more extensive than the stadium infrastructure requirements, the city
22.5may sell or otherwise dispose of the excess.
22.6    Subd. 2. Claims. Except as may be mutually agreed to by the city and the authority,
22.7the city has no interest in or claim to any assets or revenues of the authority.
22.8    Subd. 3. Environmental; planning and zoning. The authority is the responsible
22.9governmental unit for an environmental impact statement for the stadium prepared under
22.10section 116D.04, if an environmental impact statement is necessary. Notwithstanding
22.11section 116D.04, subdivision 2b, and implementing rules: (1) the environmental
22.12impact statement shall not be required to consider alternative stadium sites; and (2) the
22.13environmental impact statement must be determined to be adequate before commencing
22.14work on the foundation of the stadium, but the stadium and stadium infrastructure may
22.15otherwise be started and all preliminary and final government decisions and actions may
22.16be made and taken including, but not limited to, acquiring land; obtaining financing;
22.17granting permits or other land use approvals; entering into grant, lease, or use agreements;
22.18or preparing the site or related stadium infrastructure prior to a determination of the
22.19adequacy of the environmental impact statement.
22.20    Subd. 4. Local government expenditure. The city may make expenditures or
22.21grants for other costs incidental and necessary to further the purposes of this chapter and
22.22may, by agreement, reimburse in whole or in part, any entity that has granted, loaned, or
22.23advanced funds to the city to further the purposes of this chapter. The city may reimburse
22.24the authority or a local governmental entity or make a grant to the authority or such a
22.25governmental unit or be reimbursed by the authority or local government entity for site
22.26acquisition, preparation of the site for stadium development, and stadium infrastructure.
22.27    Subd. 5. Municipal authority. The legislature intends that, except as expressly
22.28limited herein, the city may acquire and develop stadium infrastructure, enter into contracts
22.29with the authority and other governmental or nongovernmental entities, appropriate funds,
22.30and make employees, consultants, and other revenues available for those purposes.
22.31    Subd. 6. Stadium Implementation Committee; city review. In order to accomplish
22.32the objectives of this act within the required time frame, it is necessary to establish an
22.33alternative process for municipal land use and development review. It is hereby found
22.34and declared that the construction of a stadium within the development area is consistent
22.35with the adopted area plan, is the preferred stadium location, and is a permitted land use.
22.36This subdivision establishes a procedure for all land use and development reviews and
23.1approvals by the city of Minneapolis for the stadium and related stadium infrastructure and
23.2supersedes all land use and development rules and restrictions and procedures imposed
23.3by other law, charter, or ordinance, including without limitation section 15.99. No later
23.4than 30 days after timely compliance of the city as provided in article 4, section 5, of this
23.5chapter, the city of Minneapolis shall establish a stadium implementation committee
23.6to make recommendations on the design plans submitted for the stadium, and stadium
23.7infrastructure, and related improvements. The implementation committee must take
23.8action to issue its recommendations within the time frames established in the planning
23.9and construction timetable issued by the authority which shall provide for no less than 60
23.10days for the committee's review. The recommendations of the implementation committee
23.11shall be forwarded to the city of Minneapolis Planning Commission for an advisory
23.12recommendation and then to the city council for final action in a single resolution, which
23.13final action must be taken within 45 days of the submission of the recommendations to the
23.14planning commission. The city council shall not impose any unreasonable conditions on
23.15the recommendations of the implementation committee, nor take any action or impose
23.16any conditions that will result in delay from the time frames established in the planning
23.17and construction timetable or in additional overall costs. Failure of the city council to act
23.18within the 45-day period shall be deemed to be approval. The authority may seek de novo
23.19review in the district court of any city council action. The district court or any appellate
23.20court shall expedite review to the maximum extent possible and timely issue relief, orders,
23.21or opinions as necessary to give effect to the provisions and objectives in this act.

23.22    Sec. 18. [473J.19] PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENTS.
23.23Any real or personal property acquired, owned, leased, controlled, used, or occupied
23.24by the authority for any of the purposes of this chapter, is acquired, owned, leased,
23.25controlled, used, and occupied for public, governmental, and municipal purposes. The
23.26stadium and stadium infrastructure are exempt from ad valorem taxation by the state
23.27or any political subdivision of the state provided that the properties are subject to
23.28special assessments levied by a political subdivision for a local improvement in amounts
23.29proportionate to and not exceeding the special benefit received by the properties from the
23.30improvement. No possible use of any of the properties in any manner different from their
23.31use under this chapter may be considered in determining the special benefit received by
23.32the properties. Notwithstanding section 272.01, subdivision 2, or 273.19, real or personal
23.33property which is subject to a lease or use agreement between the authority and another
23.34person for uses related to the purposes of this chapter, including the operation of the
23.35stadium and related parking facilities, is exempt from taxation regardless of the length of
24.1the lease or use agreement or the characteristics of the entity leasing or using the property.
24.2This section, insofar as it provides an exemption or special treatment, does not apply to
24.3any real property that is leased for residential, business, or commercial development or to
24.4a restaurant that is open for general business more than 200 days a year, or other purposes
24.5different from those contemplated in this chapter.

24.6    Sec. 19. [473J.21] LIQUOR LICENSES.
24.7At the request of the authority, the city may issue intoxicating liquor licenses that are
24.8reasonably requested for the premises of the stadium site. These licenses are in addition to
24.9the number authorized by law. All provisions of chapter 340A not inconsistent with this
24.10section apply to the licenses authorized under this section.

24.11    Sec. 20. [473J.23] LOCAL TAXES.
24.12No new or additional local sales or use tax shall be imposed on sales at the stadium
24.13site unless the tax is applicable throughout the taxing jurisdiction. Except for a tax
24.14imposed under article 7, no new or additional local tax shall be imposed on sales of tickets
24.15and admissions to NFL team, NFL team owned major league soccer, or other team related
24.16events at the stadium, notwithstanding any law or ordinance, unless the tax is applicable
24.17throughout the taxing jurisdiction. The admissions and amusements tax currently imposed
24.18by the city of Minneapolis pursuant to Laws 1969, chapter 1092, may apply to admissions
24.19for football and NFL team related events, including NFL team owned major league soccer,
24.20as provided in section 473J.15, subdivision 15, at the stadium.

24.21    Sec. 21. [473J.25] METROPOLITAN SPORTS FACILITIES COMMISSION
24.22ASSETS; LIABILITIES TO AUTHORITY.
24.23    Subdivision 1. Authority expenses. The Metropolitan Sports Facilities Commission
24.24shall pay the operating expenses of the authority including salaries, compensation, and
24.25other personnel, office, equipment, consultant and any other costs, until the commission is
24.26abolished pursuant to subdivision 3.
24.27    Subd. 2. Transfer. Within 90 days of the enactment of this chapter, the Metropolitan
24.28Sports Facilities Commission shall pay its outstanding obligations, settle its accounts, and
24.29transfer its remaining assets, liabilities, and obligations to the authority, for its purposes.
24.30    Subd. 3. Metropolitan Sports Facilities Commission abolished; interim powers
24.31conferred on authority. Upon transfer to the authority of all remaining assets, liabilities,
24.32and obligations of the Metropolitan Sports Facilities Commission, in subdivision 2, the
24.33Metropolitan Sports Facilities Commission is abolished. When the remaining assets,
25.1liabilities, and obligations of the Metropolitan Sports Facilities Commission have been
25.2transferred to the authority and the commission has been abolished, the powers and duties
25.3of the commission under sections 473.551 to 473.599, and any other law shall devolve
25.4upon the authority, in addition to the powers and duties of the authority under chapter
25.5473J, until the first NFL home game is played at the stadium.
25.6    Subd. 4. Employees. Upon transfer of ownership all persons employed by the
25.7Metropolitan Sports Facilities Commission shall be transferred to the Minnesota Stadium
25.8Authority without loss of right or privilege. Nothing in this section shall be construed to
25.9give any such person the right or privilege to continue in the same level or classification
25.10of employment previously held. The Minnesota Stadium Authority may assign any such
25.11person to an employment level and classification which it deems appropriate and desirable
25.12in accordance with its personnel code.

25.13    Sec. 22. EFFECTIVE DATE.
25.14Except as otherwise provided, this article is effective the day following final
25.15enactment.


25.18    Section 1. [16A.965] STADIUM APPROPRIATION BONDS.
25.19    Subdivision 1. Definitions. (a) The definitions in this subdivision and in chapter
25.20473J apply to this section.
25.21(b) "Appropriation bond" means a bond, note, or other similar instrument of the state
25.22payable during a biennium from one or more of the following sources:
25.23(1) money appropriated by law from the general fund, including, without limitation,
25.24revenues deposited in the general fund as provided in articles 4 and 5, in any biennium for
25.25debt service due with respect to obligations described in subdivision 2, paragraph (b);
25.26(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);
25.27(3) payments received for that purpose under agreements and ancillary arrangements
25.28described in subdivision 2, paragraph (d); and
25.29(4) investment earnings on amounts in clauses (1) to (3).
25.30(c) "Debt service" means the amount payable in any biennium of principal, premium,
25.31if any, and interest on appropriation bonds.
25.32    Subd. 2. Authorization to issue appropriation bonds. (a) Subject to the limitations
25.33of this subdivision, the commissioner may sell and issue appropriation bonds of the state
25.34under this section for public purposes as provided by law, including, in particular, the
26.1financing of all or a portion of the acquisition, construction, improving, and equipping
26.2of the stadium project of the Minnesota Stadium Authority as provided by chapter 473J.
26.3Proceeds of the appropriation bonds must be credited to a special appropriation stadium
26.4bond proceeds fund in the state treasury. Net income from investment of the proceeds,
26.5as estimated by the commissioner, must be credited to the special appropriation stadium
26.6bond proceeds fund.
26.7(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of
26.8the commissioner, are necessary to provide sufficient funds, not to exceed $548,000,000
26.9net of costs of issuance, deposits for debt service reserve funds, and costs of credit
26.10enhancement for achieving the purposes authorized as provided under paragraph (a), and
26.11pay debt service, pay costs of issuance, make deposits to reserve funds, pay the costs
26.12of credit enhancement, or make payments under other agreements entered into under
26.13paragraph (d); provided, however, that appropriation bonds issued and unpaid shall not
26.14exceed $650,000,000 in principal amount, excluding refunding bonds sold and issued
26.15under subdivision 4.
26.16(c) Appropriation bonds may be issued from time to time in one or more series on
26.17the terms and conditions the commissioner determines to be in the best interests of the
26.18state, but the term on any series of appropriation bonds may not exceed 30 years. The
26.19appropriation bonds of each issue and series thereof shall be dated and bear interest,
26.20and may be includable in or excludable from the gross income of the owners for federal
26.21income tax purposes.
26.22(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
26.23time thereafter, so long as the appropriation bonds are outstanding, the commissioner may
26.24enter into agreements and ancillary arrangements relating to the appropriation bonds,
26.25including but not limited to trust indentures, grant agreements, lease or use agreements,
26.26operating agreements, management agreements, liquidity facilities, remarketing or
26.27dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
26.28reimbursement agreements, indexing agreements, or interest exchange agreements. Any
26.29payments made or received according to the agreement or ancillary arrangement shall be
26.30made from or deposited as provided in the agreement or ancillary arrangement. The
26.31determination of the commissioner included in an interest exchange agreement that the
26.32agreement relates to an appropriation bond shall be conclusive.
26.33(e) The commissioner may enter into written agreements or contracts relating to the
26.34continuing disclosure of information necessary to comply with, or facilitate the issuance
26.35of appropriation bonds in accordance with federal securities laws, rules, and regulations,
26.36including Securities and Exchange Commission rules and regulations in Code of Federal
27.1Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants
27.2with purchasers and holders of appropriation bonds set forth in the order or resolution
27.3authorizing the issuance of the appropriation bonds, or a separate document authorized
27.4by the order or resolution.
27.5(f) The appropriation bonds are not subject to chapter 16C.
27.6    Subd. 3. Form; procedure. (a) Appropriation bonds may be issued in the form
27.7of bonds, notes, or other similar instruments, and in the manner provided in section
27.816A.672. In the event that any provision of section 16A.672 conflicts with this section,
27.9this section shall control.
27.10(b) Every appropriation bond shall include a conspicuous statement of the limitation
27.11established in subdivision 6.
27.12(c) Appropriation bonds may be sold at either public or private sale upon such terms
27.13as the commissioner shall determine are not inconsistent with this section and may be sold
27.14at any price or percentage of par value. Any bid received may be rejected.
27.15(d) Appropriation bonds must bear interest at a fixed or variable rate.
27.16(e) Notwithstanding any other law, appropriation bonds issued under this section
27.17shall be fully negotiable.
27.18    Subd. 4. Refunding bonds. The commissioner from time to time may issue
27.19appropriation bonds for the purpose of refunding any appropriation bonds then
27.20outstanding, including the payment of any redemption premiums on the bonds, any
27.21interest accrued or to accrue to the redemption date, and costs related to the issuance and
27.22sale of the refunding bonds. The proceeds of any refunding bonds may, in the discretion of
27.23the commissioner, be applied to the purchase or payment at maturity of the appropriation
27.24bonds to be refunded, to the redemption of the outstanding appropriation bonds on any
27.25redemption date, or to pay interest on the refunding bonds and may, pending application,
27.26be placed in escrow to be applied to the purchase, payment, retirement, or redemption. Any
27.27escrowed proceeds, pending such use, may be invested and reinvested in obligations that
27.28are authorized investments under section 11A.24. The income earned or realized on the
27.29investment may also be applied to the payment of the appropriation bonds to be refunded
27.30or interest or premiums on the refunded appropriation bonds, or to pay interest on the
27.31refunding bonds. After the terms of the escrow have been fully satisfied, any balance of the
27.32proceeds and any investment income may be returned to the general fund or, if applicable,
27.33the special appropriation stadium bond proceeds fund for use in any lawful manner. All
27.34refunding bonds issued under this subdivision must be prepared, executed, delivered, and
27.35secured by appropriations in the same manner as the appropriation bonds to be refunded.
28.1    Subd. 5. Appropriation bonds as legal investments. Any of the following entities
28.2may legally invest any sinking funds, money, or other funds belonging to them or under
28.3their control in any appropriation bonds issued under this section:
28.4(1) the state, the investment board, public officers, municipal corporations, political
28.5subdivisions, and public bodies;
28.6(2) banks and bankers, savings and loan associations, credit unions, trust companies,
28.7savings banks and institutions, investment companies, insurance companies, insurance
28.8associations, and other persons carrying on a banking or insurance business; and
28.9(3) personal representatives, guardians, trustees, and other fiduciaries.
28.10    Subd. 6. No full faith and credit; state not required to make appropriations.
28.11The appropriation bonds are not public debt of the state, and the full faith, credit, and
28.12taxing powers of the state are not pledged to the payment of the appropriation bonds or to
28.13any payment that the state agrees to make under this section. Appropriation bonds shall
28.14not be obligations paid directly, in whole or in part, from a tax of statewide application
28.15on any class of property, income, transaction, or privilege. Appropriation bonds shall be
28.16payable in each fiscal year only from amounts that the legislature may appropriate for debt
28.17service for any fiscal year, provided that nothing in this section shall be construed to
28.18require the state to appropriate funds sufficient to make debt service payments with respect
28.19to the appropriation bonds in any fiscal year. Appropriation bonds shall be canceled and
28.20shall no longer be outstanding on the earlier of (1) the first day of a fiscal year for which
28.21the legislature shall not have appropriated amounts sufficient for debt service, or (2) the
28.22date of final payment of the principal of and interest on the appropriation bonds.
28.23    Subd. 7. Appropriation of proceeds. The proceeds of appropriation bonds and
28.24interest credited to the special appropriation stadium bond proceeds fund are appropriated
28.25to the commissioner for payment of capital expenses, debt service on outstanding
28.26indebtedness of the state, operating and capital reserves of the authority, and the funding
28.27of debt service reserves for the appropriation bonds, each as permitted by state and federal
28.28law, and nonsalary expenses incurred in conjunction with the sale of the appropriation
28.29bonds, and such proceeds may be granted, loaned, or otherwise provided to the authority
28.30for the public purpose provided by subdivision 2, paragraph (a).
28.31    Subd. 8. Commissioner; determination of available revenues. (a) By March 15
28.32of each fiscal year, the commissioner, in consultation with the commissioner of revenue,
28.33shall determine the estimated increase in revenues received from taxes imposed under
28.34chapter 297E over the estimated revenues under the February 2012 revenue forecast for
28.35that fiscal year. For fiscal years after fiscal year 2015, the commissioner shall use the
29.1February 2012 revenue forecast for fiscal year 2015 as the baseline. All calculations under
29.2this paragraph must be made net of estimated refunds of the taxes required to be paid.
29.3(b) Available revenues for purposes of subdivision 9, equal the amount determined
29.4under paragraph (a), less the following amounts for the fiscal year:
29.5(1) the appropriation to principal and interest on appropriation bonds under
29.6subdivision 9, paragraph (a);
29.7(2) the appropriations under article 5, section 44, paragraph (a), for administration
29.8and any successor appropriation;
29.9(3) the reduction in revenues resulting from the sales tax exemptions under section
29.10297A.71, subdivisions 43 and 44;
29.11(4) reimbursements authorized by section 473J.15, subdivision 2; and
29.12(5) payment of compulsive gambling appropriations under article 5, section 44,
29.13paragraph (b), and any successor appropriation.
29.14(c) If the estimated increase in revenues under paragraph (a) for the fiscal year are
29.15less than or equal to $52,000,000, then available revenues, as determined under paragraph
29.16(b), are allocated:
29.17(1) 50 percent to be used for appropriations under subdivision 9, paragraph (a); and
29.18(2) 50 percent to be used for appropriations under subdivision 9, paragraph (b)
29.19(d) If the estimated increase in revenues under paragraph (a) for the fiscal year are
29.20greater than $52,000,000, the first $16,000,000 of any available revenues, as determined
29.21under paragraph (b), is allocated as provided under paragraph (c), clauses (1) and (2), and
29.22the remainder is allocated for payment of gambling tax rebates under section 297E.02,
29.23subdivision 12.
29.24(e) The provisions of this subdivision apply only after the issuance of appropriation
29.25bonds under subdivision 2.
29.26    Subd. 9. Appropriation for debt service and other purposes. (a) The amount
29.27needed to pay principal and interest on appropriation bonds issued under this section is
29.28appropriated each year from the general fund to the commissioner, subject to repeal,
29.29unallotment under section 16A.152, or cancellation otherwise pursuant to subdivision 6,
29.30for deposit into the bond payment accounts established for such purpose in the special
29.31appropriation stadium bond proceeds fund.
29.32(b) To the extent the commissioner determines revenues are available under the
29.33provisions of subdivision 8, paragraph (b), for the fiscal year, the following amounts
29.34are appropriated from the general fund:
30.1(1) to replenish the amount on deposit in any debt service reserve account established
30.2with respect to the appropriation bonds to the debt service reserve requirement amount as
30.3determined by order of the commissioner; and
30.4(2) to the extent not required under clause (1), for deposit to any general reserve
30.5account established by order of the commissioner for application against any shortfall in
30.6the amounts deposited to the general fund pursuant to section 297A.994.
30.7    Subd. 10. Waiver of immunity. The waiver of immunity by the state provided for
30.8by section 3.751, subdivision 1, shall be applicable to the appropriation bonds and any
30.9ancillary contracts to which the commissioner is a party.
30.10    Subd. 11. Validation. (a) Appropriation bonds issued under this section may be
30.11validated in the manner provided by this subdivision. If comparable appropriation bonds
30.12are judicially determined to be valid, nothing in this subdivision shall be construed
30.13to prevent the sale or delivery of any appropriation bonds or notes without entry of a
30.14judgment of validation by the Minnesota Supreme Court pursuant to this subdivision with
30.15respect to the appropriation bonds authorized under this section.
30.16(b) Any appropriation bonds issued under this section that are validated shall be
30.17validated in the manner provided by this subdivision.
30.18(c) The Minnesota Supreme Court shall have original jurisdiction to determine the
30.19validation of appropriation bonds and all matters connected therewith.
30.20(d) The commissioner may determine the commissioner's authority to issue
30.21appropriation bonds and the legality of all proceedings in connection with issuing bonds.
30.22For this purpose, a complaint shall be filed by the commissioner in the Minnesota Supreme
30.23Court against the state and the taxpayers and citizens.
30.24(e) As a condition precedent to filing of a complaint for the validation of
30.25appropriation bonds, the commissioner shall take action providing for the issuance of
30.26appropriation bonds in accordance with law.
30.27(f) The complaint shall set out the state's authority to issue appropriation bonds, the
30.28action or proceeding authorizing the issue and its adoption, all other essential proceedings
30.29had or taken in connection with issuing bonds, the amount of the appropriation bonds to
30.30be issued and the maximum interest they are to bear, and all other pertinent matters.
30.31(g) The Minnesota Supreme Court shall issue an order directed against the state and
30.32taxpayers, citizens, and others having or claiming any right, title, or interest affected by
30.33the issuance of appropriation bonds, or to be affected by the bonds, allowing all persons,
30.34in general terms and without naming them, and the state through its attorney general, to
30.35appear before the Minnesota Supreme Court at a designated time and place and show
30.36why the complaint should not be granted and the proceedings and appropriation bonds
31.1validated. A copy of the complaint and order shall be served on the attorney general at
31.2least 20 days before the time fixed for hearing. The attorney general shall examine the
31.3complaint, and, if it appears or there is reason to believe that it is defective, insufficient, or
31.4untrue, or if in the opinion of the attorney general the issuance of the appropriation bonds
31.5in question has not been duly authorized, defense shall be made by the attorney general as
31.6the attorney general deems appropriate.
31.7(h) Before the date set for hearing, as directed by the Minnesota Supreme Court,
31.8either the clerk of the Minnesota appellate courts or the commissioner shall publish a copy
31.9of the order in a legal newspaper of general circulation in Ramsey County and the state, at
31.10least once each week for two consecutive weeks, commencing with the first publication,
31.11which shall not be less than 20 days before the date set for hearing. By this publication,
31.12all taxpayers, citizens, and others having or claiming any right, title, or interest in the
31.13state, are made parties defendant to the action and the Minnesota Supreme Court has
31.14jurisdiction of them to the same extent as if named as defendants in the complaint and
31.15personally served with process.
31.16(i) Any taxpayer, citizen, or person interested may become a party to the action by
31.17moving against or pleading to the complaint at or before the time set for hearing. The
31.18Minnesota Supreme Court shall determine all questions of law and fact and make orders
31.19that will enable it to properly try and determine the action and render a final judgment
31.20within 30 days of the hearing with the least possible delay.
31.21(j) If the judgment validates appropriation bonds, the judgment is forever conclusive
31.22as to all matters adjudicated and as against all parties affected and all others having or
31.23claiming any right, title, or interest affected by the issuance of appropriation bonds, or to
31.24be affected in any way by issuing the bonds, and the validity of appropriation bonds or of
31.25any revenues pledged for the payment of the bonds, or of the proceedings authorizing the
31.26issuance of the bonds, including any remedies provided for their collection, shall never
31.27be called in question in any court by any person or party.
31.28(k)(1) Appropriation bonds, when validated under this section, shall have stamped
31.29or written on the bonds, by the proper officers of the state issuing them, a statement
31.30in substantially the following form: "This appropriation bond is one of a series of
31.31appropriation bonds which were validated by judgment of the Supreme Court of the State
31.32of Minnesota, rendered on ……. , ....... (year)"
31.33(2) A certified copy of the judgment or decree shall be received as evidence in any
31.34court in this state.
32.1(l) The costs shall be paid by the state, except when a taxpayer, citizen, or other
32.2person contests the action or intervenes, the court may tax the whole or any part of the
32.3costs against the person that is equitable.
32.4(m) A justice of the Minnesota Supreme Court is not disqualified in any validation
32.5action because the justice is a landowner or taxpayer of the state.

32.6    Sec. 2. APPROPRIATION.
32.7If state appropriation bonds have not been issued under Minnesota Statutes, section
32.816A.965, amounts not to exceed the increased revenues estimated by the commissioner
32.9of management and budget under Minnesota Statutes, section 16A.965, subdivision 8,
32.10paragraph (a), are appropriated to the commissioner of management and budget to make
32.11grants to the Minnesota Stadium Authority for stadium costs as defined under Minnesota
32.12Statutes, section 473J.03, subdivision 8.


32.15    Section 1. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read:
32.16    Subd. 6. Financial audits. The legislative auditor shall audit the financial
32.17statements of the state of Minnesota required by section 16A.50 and, as resources permit,
32.18shall audit Minnesota State Colleges and Universities, the University of Minnesota, state
32.19agencies, departments, boards, commissions, courts, and other state organizations subject
32.20to audit by the legislative auditor, including the State Agricultural Society, Agricultural
32.21Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical
32.22Society, Labor Interpretive Center, Minnesota Partnership for Action Against Tobacco,
32.23Metropolitan Sports Facilities Commission, Metropolitan Airports Commission, and
32.24Metropolitan Mosquito Control District. Financial audits must be conducted according to
32.25generally accepted government auditing standards. The legislative auditor shall see that
32.26all provisions of law respecting the appropriate and economic use of public funds are
32.27complied with and may, as part of a financial audit or separately, investigate allegations
32.28of noncompliance.

32.29    Sec. 2. Minnesota Statutes 2010, section 13.55, subdivision 1, is amended to read:
32.30    Subdivision 1. Not public classification. The following data received, created, or
32.31maintained by or for publicly owned and operated convention facilities, or civic center
32.32authorities, or the Metropolitan Sports Facilities Commission are classified as nonpublic
33.1data pursuant to section 13.02, subdivision 9; or private data on individuals pursuant
33.2to section 13.02, subdivision 12:
33.3(a) a letter or other documentation from any person who makes inquiry to or who is
33.4contacted by the facility regarding the availability of the facility for staging events;
33.5(b) identity of firms and corporations which contact the facility;
33.6(c) type of event which they wish to stage in the facility;
33.7(d) suggested terms of rentals; and
33.8(e) responses of authority staff to these inquiries.

33.9    Sec. 3. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 1, is
33.10amended to read:
33.11    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to
33.12the following establishments located within its jurisdiction:
33.13(1) hotels;
33.14(2) restaurants;
33.15(3) bowling centers;
33.16(4) clubs or congressionally chartered veterans organizations with the approval of
33.17the commissioner, provided that the organization has been in existence for at least three
33.18years and liquor sales will only be to members and bona fide guests, except that a club
33.19may permit the general public to participate in a wine tasting conducted at the club under
33.20section 340A.419; and
33.21(5) sports facilities located on land owned by the Metropolitan Sports Commission;
33.22and
33.23(6) exclusive liquor stores.
33.24(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license,
33.25or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local
33.26ordinance, or charter provision. A license issued under this paragraph authorizes sales on
33.27all days of the week to persons attending events at the theater.
33.28(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license,
33.29or an on-sale malt liquor license to a convention center within the city, notwithstanding
33.30any law, local ordinance, or charter provision. A license issued under this paragraph
33.31authorizes sales on all days of the week to persons attending events at the convention
33.32center. This paragraph does not apply to convention centers located in the seven-county
33.33metropolitan area.
33.34(d) A city may issue an on-sale wine license and an on-sale malt liquor license to
33.35a person who is the owner of a summer collegiate league baseball team, or to a person
34.1holding a concessions or management contract with the owner, for beverage sales at a
34.2ballpark or stadium located within the city for the purposes of summer collegiate league
34.3baseball games at the ballpark or stadium, notwithstanding any law, local ordinance, or
34.4charter provision. A license issued under this paragraph authorizes sales on all days of the
34.5week to persons attending baseball games at the ballpark or stadium.

34.6    Sec. 4. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read:
34.7    Subd. 2a. Included employees. (a) "State employee" includes:
34.8    (1) employees of the Minnesota Historical Society;
34.9    (2) employees of the State Horticultural Society;
34.10    (3) employees of the Minnesota Crop Improvement Association;
34.11    (4) employees of the adjutant general whose salaries are paid from federal funds and
34.12who are not covered by any federal civilian employees retirement system;
34.13    (5) employees of the Minnesota State Colleges and Universities who are employed
34.14under the university or college activities program;
34.15    (6) currently contributing employees covered by the system who are temporarily
34.16employed by the legislature during a legislative session or any currently contributing
34.17employee employed for any special service as defined in subdivision 2b, clause (8);
34.18    (7) employees of the legislature who are appointed without a limit on the duration
34.19of their employment and persons employed or designated by the legislature or by a
34.20legislative committee or commission or other competent authority to conduct a special
34.21inquiry, investigation, examination, or installation;
34.22    (8) trainees who are employed on a full-time established training program
34.23performing the duties of the classified position for which they will be eligible to receive
34.24immediate appointment at the completion of the training period;
34.25    (9) employees of the Minnesota Safety Council;
34.26    (10) any employees who are on authorized leave of absence from the Transit
34.27Operating Division of the former Metropolitan Transit Commission and who are employed
34.28by the labor organization which is the exclusive bargaining agent representing employees
34.29of the Transit Operating Division;
34.30    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
34.31Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
34.32Control Commission unless excluded under subdivision 2b or are covered by another
34.33public pension fund or plan under section 473.415, subdivision 3;
34.34    (12) judges of the Tax Court;
35.1    (13) personnel who were employed on June 30, 1992, by the University of
35.2Minnesota in the management, operation, or maintenance of its heating plant facilities,
35.3whose employment transfers to an employer assuming operation of the heating plant
35.4facilities, so long as the person is employed at the University of Minnesota heating plant
35.5by that employer or by its successor organization;
35.6    (14) personnel who are employed as seasonal employees in the classified or
35.7unclassified service;
35.8    (15) persons who are employed by the Department of Commerce as a peace officer
35.9in the Insurance Fraud Prevention Division under section 45.0135 who have attained the
35.10mandatory retirement age specified in section 43A.34, subdivision 4;
35.11    (16) employees of the University of Minnesota unless excluded under subdivision
35.122b, clause (3);
35.13    (17) employees of the Middle Management Association whose employment began
35.14after July 1, 2007, and to whom section 352.029 does not apply; and
35.15    (18) employees of the Minnesota Government Engineers Council to whom section
35.16352.029 does not apply.
35.17    (b) Employees specified in paragraph (a), clause (13), are included employees under
35.18paragraph (a) if employer and employee contributions are made in a timely manner in the
35.19amounts required by section 352.04. Employee contributions must be deducted from
35.20salary. Employer contributions are the sole obligation of the employer assuming operation
35.21of the University of Minnesota heating plant facilities or any successor organizations to
35.22that employer.

35.23    Sec. 5. Minnesota Statutes 2010, section 473.121, subdivision 5a, is amended to read:
35.24    Subd. 5a. Metropolitan agency. "Metropolitan agency" means the Metropolitan
35.25Parks and Open Space Commission, and the Metropolitan Airports Commission, and
35.26Metropolitan Sports Facilities Commission.

35.27    Sec. 6. Minnesota Statutes 2010, section 473.164, is amended to read:
35.28473.164 SPORTS, AIRPORT COMMISSIONS TO PAY COUNCIL COSTS.
35.29    Subdivision 1. Annually reimburse. The Metropolitan Sports Facilities
35.30Commission and the Metropolitan Airports Commission shall annually reimburse the
35.31council for costs incurred by the council in the discharge of its responsibilities relating to
35.32the commission. The costs may be charged against any revenue sources of the commission
35.33as determined by the commission.
36.1    Subd. 2. Estimates, budget, transfer. On or before May 1 of each year, the council
36.2shall transmit to each the commission an estimate of the costs which the council will
36.3incur in the discharge of its responsibilities related to the commission in the next budget
36.4year including, without limitation, costs in connection with the preparation, review,
36.5implementation and defense of plans, programs and budgets of the commission. Each The
36.6commission shall include the estimates in its budget for the next budget year and may
36.7transmit its comments concerning the estimated amount to the council during the budget
36.8review process. Prior to December 15 of each year, the amount budgeted by each the
36.9commission for the next budget year may be changed following approval by the council.
36.10During each budget year, the commission shall transfer budgeted funds to the council in
36.11advance when requested by the council.
36.12    Subd. 3. Final statement. At the conclusion of each budget year, the council, in
36.13cooperation with each the commission, shall adopt a final statement of costs incurred by the
36.14council for each the commission. Where costs incurred in the budget year have exceeded
36.15the amount budgeted, each the commission shall transfer to the council the additional
36.16moneys needed to pay the amount of the costs in excess of the amount budgeted, and shall
36.17include a sum in its next budget. Any excess of budgeted costs over actual costs may be
36.18retained by the council and applied to the payment of budgeted costs in the next year.

36.19    Sec. 7. Minnesota Statutes 2010, section 473.565, subdivision 1, is amended to read:
36.20    Subdivision 1. In MSRS; exceptions. All employees of the former commission
36.21shall be members of the Minnesota State Retirement System with respect to service
36.22rendered on or after May 17, 1977, except as provided in this section.

36.23    Sec. 8. REPEALER.
36.24Minnesota Statutes 2010, sections 473.551; 473.552; 473.553, subdivisions 1, 2, 3,
36.254, 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,
36.2613, 14, 16, and 17; 473.561; 473.564, subdivisions 2 and 3; 473.572; 473.581; 473.592,
36.27subdivision 1; 473.595; 473.598; 473.599; and 473.76, are repealed.

36.28    Sec. 9. EFFECTIVE DATE.
36.29This article is effective June 30, 2016.


37.3    Section 1. [297A.994] CITY OF MINNEAPOLIS SALES TAX; ALLOCATION
37.4OF REVENUES.
37.5    Subdivision 1. Scope. Notwithstanding the provisions of section 297A.99,
37.6subdivision 11, the provisions of this section govern the remittance of the proceeds of
37.7taxes imposed by the city of Minneapolis under the special law.
37.8    Subd. 2. Definitions. (a) For purposes of this section, the following definitions
37.9apply.
37.10(b) "City" means the city of Minneapolis.
37.11(c) "Special law" means Laws 1986, chapter 396, sections 4 and 5, as amended.
37.12(d) "Tax" means the sales taxes imposed by the city under the special law.
37.13(e) The terms defined under section 473J.03 apply for purposes of this section.
37.14    Subd. 3. General allocation of revenues. The commissioner shall apply the
37.15revenues from the taxes as follows:
37.16(1) the commissioner must deduct the costs of collecting and administering the taxes,
37.17according to the applicable law and agreements between the commissioner and the city.
37.18For revenues from the general sales tax, the commissioner must deduct a proportionate
37.19share of the cost of collection, as described in section 297A.99, subdivision 11;
37.20(2) after deducting the costs in clause (1), the commissioner must deduct refunds of
37.21any of these taxes due to taxpayers, if any;
37.22(3) after making the deductions provided in clause (2), notwithstanding the
37.23provisions of any agreement between the commissioner and the city providing for
37.24collection and remittance of these taxes, the commissioner must deposit to the general
37.25fund the amounts specified in subdivision 4; and
37.26(4) after depositing to the general fund under clause (3) as specified in subdivision
37.274, the commissioner must remit the remainder to the city for the uses provided in the
37.28special law.
37.29    Subd. 4. General fund allocations. (a) The commissioner must deposit to the
37.30general fund the following amounts, as required by subdivision 3, clause (3):
37.31(1) for state bond debt service support beginning in calendar year 2021, and for each
37.32calendar year thereafter through calendar year 2046, proportionate amounts periodically
37.33so that not later than December 31, 2046, an aggregate annual amount equal to a present
37.34value of $150,000,000 has been deposited in the general fund. To determine aggregate
37.35present value, the commissioner must consult with the commissioner of management and
37.36budget regarding the present value dates, discount rate or rates, and schedules of annual
38.1amounts. The present value date or dates must be based on the date or dates bonds are
38.2sold under section 16A.965, or the date or dates other state funds, if any, are deposited
38.3into the construction fund. The discount rate or rates must be based on the true interest
38.4cost of the bonds issued under section 16A.965, or an equivalent 30-year bond index, as
38.5determined by the commissioner of management and budget. The schedule of annual
38.6amounts must be certified to the commissioner by the commissioner of management and
38.7budget and the finance officer of the city;
38.8(2) for the capital improvement reserve appropriation to stadium authority beginning
38.9in calendar year 2021, and for each calendar year thereafter through calendar year 2046,
38.10so that not later than January 1, 2022, and as of January 1 of each following year, an
38.11aggregate annual amount equal to the amount paid by the state for calendar year 2021,
38.12under section 473J.13, subdivision 4, increased each year by an annual adjustment factor;
38.13(3) for the operating expense appropriation to stadium authority beginning in
38.14calendar year 2021, and for each calendar year thereafter through calendar year 2046,
38.15so that not later than January 1, 2022, and as of January 1 of each following year, an
38.16aggregate annual amount equal to the amount paid by the state for calendar year 2021
38.17under section 473J.13, subdivision 2, increased each year by an annual adjustment factor;
38.18(4) for recapture of NFL team advances for capital improvements and operating
38.19expenses for calendar years 2016 through 2020 beginning in calendar year 2021, and
38.20for each calendar year thereafter until all amounts under this clause have been paid,
38.21proportionate amounts periodically until an aggregate amount equal to the present value of
38.22all amounts paid by the NFL team have been deposited in the general fund. To determine
38.23the present value of the amounts paid by the NFL team to the authority and the present
38.24value of amounts deposited to the general fund under this clause, the commissioner shall
38.25consult with the commissioner of management and budget and the NFL team regarding the
38.26present value dates, discount rate or rates, and schedule of annual amounts. The present
38.27value dates must be based on the dates NFL team funds are paid to the authority, or the
38.28dates the commissioner of revenue deposits taxes for purposes of this clause to the general
38.29fund. The discount rates must be based on the reasonably equivalent cost of NFL team
38.30funds as determined by the commissioner of management and budget after consulting with
38.31the NFL team. The schedule of annual amounts must be revised to reflect amounts paid
38.32under article 1, section 11, subdivision 13, and taxes deposited to the general fund from
38.33time to time under this clause, and the schedule and revised schedules must be certified to
38.34the commissioner by the commissioner of management and budget and the finance officer
38.35of the city, and are transferred as accrued from the general fund to the NFL team, for
38.36repayment of advances made by the NFL team to the city of Minneapolis; and
39.1(5) to capture increases in taxes imposed under the special law, for the benefit
39.2of the stadium authority, beginning in calendar year 2013 and for each calendar year
39.3thereafter through 2046, there shall be deposited to the general fund by February 15 of
39.4each following year, amounts calculated by the commissioner under this clause. For
39.5each year, the commissioner shall determine the excess, if any, of the taxes received
39.6by the commissioner over the benchmark scheduled amounts of the taxes, as described
39.7in this section. The benchmark scheduled amounts for each year must be based on the
39.8actual amount of the taxes for calendar year 2011 inflated for each subsequent year at an
39.9annual rate of two percent, according to a schedule certified to the commissioner by the
39.10commissioner of management and budget and the finance officer of the city. The amounts
39.11to be deposited to the general fund by the commissioner for each year equal:
39.12(i) zero for the amount of the taxes for the year up to a scheduled benchmark of
39.13$1,000,000, inflated at two percent per year, in excess of the taxes for calendar year 2011;
39.14(ii) 50 percent times the difference, if any, by which the amount of the taxes for
39.15the year exceeds the scheduled benchmark in item (i), as inflated, but not greater than a
39.16scheduled benchmark of $3,000,000, inflated at two percent per year, in excess of the
39.17taxes for calendar year 2011; and
39.18(iii) 25 percent times the difference, if any, by which the amount of the taxes for the
39.19year exceeds the scheduled benchmark of $3,000,000, inflated at two percent per year, in
39.20excess of the taxes for calendar year 2011.
39.21(b) The annual adjustment factor for purposes of this section and the special law
39.22for any year equals the increase, if any, in the amount of these taxes received by the
39.23commissioner in the preceding year over the amount received in the year prior to the
39.24preceding year, expressed as a percentage of the amount received in the year prior to the
39.25preceding year; provided, that the adjustment factor for any year must not be less than
39.26zero percent nor more than five percent.

39.27    Sec. 2. Laws 1986, chapter 396, section 4, as amended by Laws 1987, chapter 55,
39.28sections 5 and 6, and Laws 2009, chapter 88, article 4, sections 11 and 12, is amended to
39.29read:
39.30    Sec. 4. SALES AND USE TAX.
39.31    Subdivision 1. Imposition. Notwithstanding Minnesota Statutes, section 477A.016,
39.32or any other contrary provision of law, ordinance, or city charter, upon approval by
39.33the city's board of estimate and taxation by a vote of at least five members, the city of
39.34Minneapolis may by ordinance impose an additional sales tax of up to one-half of one
39.35percent on sales taxable pursuant to Minnesota Statutes, chapter 297A that occur within
40.1the city, and may also by ordinance impose an additional compensating use tax of up to
40.2one-half of one percent on uses of property within the city, the sale of which would be
40.3subject to the additional sales tax but for the fact such property was sold outside the city.
40.4The tax may not be imposed on gross receipts from sales of intoxicating liquor that are
40.5exempt from taxation under sections 297A.25 to 297A.257 or other any provision of
40.6chapter 297A exempting sales of intoxicating liquor and use from taxation, including
40.7amendments adopted after enactment of this act.
40.8    For purposes of this subdivision, sales that occur within the city shall not include (a)
40.9the sale of tangible personal property (i) which, without intermediate use, is shipped or
40.10transported outside Minneapolis by the purchaser and thereafter used in a trade or business
40.11or is stored, processed, fabricated or manufactured into, attached to or incorporated into
40.12other tangible personal property transported or shipped outside Minneapolis and thereafter
40.13used in a trade or business outside Minneapolis, and which is not thereafter returned to a
40.14point within Minneapolis, except in the course of interstate or intrastate commerce (storage
40.15shall not constitute intermediate use); or (ii) which the seller delivers to a common carrier
40.16for delivery outside Minneapolis, places in the United States mail or parcel post directed
40.17to the purchaser outside Minneapolis, or delivers to the purchaser outside Minneapolis by
40.18means of the seller's own delivery vehicles, and which is not thereafter returned to a point
40.19within Minneapolis, except in the course of interstate or intrastate commerce; or (b) sales
40.20which would be described in clause (e) or (u) of Minnesota Statutes, section 297A.25,
40.21subdivision 1 297A.68, subdivision 11 or 16, if the word "Minneapolis" were substituted
40.22for the words "Minnesota" or "state of Minnesota" in such clauses subdivisions. A tax
40.23may be imposed under this section only if the taxes imposed under section 5 are imposed
40.24at the maximum rate allowed under that section. The tax authorized by this section shall
40.25be imposed, until December 31, 2046. The tax may be imposed and may be adjusted
40.26periodically by the city council in conformity with Minnesota Statutes, section 297A.99,
40.27subdivision 12, such that the rate imposed, rounded to the next highest one-tenth of one
40.28percent, does not exceed the rate estimated to be required to produce produces revenue
40.29sufficient to finance the costs purposes described in subdivision subdivisions 3 and 4, but
40.30in no case may the rate exceed one-half of one percent.
40.31    Subd. 2. Enforcement; collection. (a) Except as provided in paragraph (b),
40.32these taxes shall be subject to the same interest penalties and other rules imposed
40.33under Minnesota Statutes, chapter 297A. The commissioner of revenue may enter into
40.34appropriate agreements with the city to provide for collection of these taxes by the state
40.35on behalf of the city. The commissioner may charge the city a reasonable fee for its
41.1collection from the proceeds of any taxes, as provided in Minnesota Statutes, section
41.2297A.99, subdivision 9.
41.3    (b) A taxpayer located outside of the city of Minneapolis who collects use tax under
41.4this section in an amount that does not exceed $10 in a reporting period is not required to
41.5remit that tax until the amount of use tax collected is $10.
41.6    Subd. 3. Use of property. Revenues received from the tax may only be used:
41.7    (1) to pay costs of collection;
41.8    (2) (1) to pay or secure the payment of any principal of, premium or interest on
41.9bonds issued in accordance with this act;
41.10    (3) (2) to pay costs to acquire, design, equip, construct, improve, maintain, operate,
41.11administer, or promote the convention center or related facilities, and other capital projects
41.12or economic developments under subdivision 4, including financing costs related to them;
41.13    (4) (3) to pay reasonable and appropriate costs determined by the city to replace
41.14housing and the ice arena removed from the site;
41.15    (5) (4) to maintain reserves for the foregoing purposes deemed reasonable and
41.16appropriate by the city; and
41.17(6) (5) to fund projects and for other purposes under subdivision 4.
41.18    Money for replacement housing shall be made available by the city only for new
41.19construction, conversion of nonresidential buildings, and for rehabilitation of vacant
41.20residential structures, only if all of the units in the newly constructed building, converted
41.21nonresidential building, or rehabilitated residential structure are to be used for replacement
41.22housing.
41.23    Subd. 4. Minneapolis downtown and neighborhood projects. (a) For revenues
41.24collected in calendar years 2009 and 2010, to the extent that revenues from the tax
41.25authorized in subdivision 1 exceeds the amount needed to fund the purposes in subdivision
41.263, the city may use the excess revenue to fund any city services. The total amount used in
41.27both years for this purpose may not exceed the total amount of aid and credit reductions
41.28under Minnesota Statutes, sections 273.1384 and 477A.011 to 477A.014 in calendar years
41.292008, 2009, and 2010 due to a governor's unallotment or due to statutory reductions.
41.30(b) Beginning with revenues collected in calendar year 2011, to the extent that
41.31revenues from the tax taxes authorized in subdivision 1 exceeds or in section 5 exceed
41.32the amount needed to fund the purposes in subdivision 3, the city may use the excess
41.33revenue in any year to fund capital projects to further residential, cultural, commercial,
41.34and economic development in both downtown Minneapolis and the Minneapolis
41.35neighborhoods, to fund other city expenditures in support of the capital projects, or
41.36for other economic development, provided the city may direct excess revenue first to
42.1convention center debt, operations, capital improvements, and marketing. The city may
42.2issue bonds to fund any such projects or improvements using these taxes or any other
42.3available city resources to finance or secure the bonds.

42.4    Sec. 3. Laws 1986, chapter 396, section 5, as amended by Laws 2001, First Special
42.5Session chapter 5, article 12, section 87, is amended to read:
42.6    Sec. 5. LIQUOR, LODGING, AND RESTAURANT TAXES.
42.7    The city may, by resolution, levy in addition to taxes authorized by other law:
42.8    (1) a sales tax of not more than three percent on the gross receipts on retail on-sales
42.9of intoxicating liquor and fermented malt beverages described in section 473.592
42.10occurring in the when sold at licensed on-sale liquor establishments and municipal liquor
42.11stores located within the downtown taxing area, provided that this tax may not be imposed
42.12if sales of intoxicating liquor and fermented malt beverages are exempt from taxation
42.13under chapter 297A;
42.14    (2) a sales tax of not more than three percent on the gross receipts from the furnishing
42.15for consideration of lodging described in section 473.592 for a period of less than 30 days
42.16at a hotel, motel, rooming house, tourist court, or trailer camp located within the city by a
42.17hotel or motel which has more than 50 rooms available for lodging; the tax imposed under
42.18this clause shall be at a rate that, when added to the sum of the rate of the sales tax imposed
42.19under Minnesota Statutes, chapter 297A, the rate of the sales tax imposed under section 4,
42.20and the rate of any other taxes on lodging in the city of Minneapolis, equals 13 percent; and
42.21    (3) a sales tax of not more than three percent on the gross receipts on all sales of food
42.22primarily for consumption on or off the premises by restaurants and places of refreshment
42.23as defined by resolution of the city that occur within the downtown taxing area.
42.24The taxes authorized by this section shall be imposed until January 1, 2047. The taxes
42.25shall be imposed and may be adjusted periodically by the city council such that the rates
42.26imposed, produce revenue sufficient, together with the tax imposed under section 4, to
42.27finance the purposes described in section 4, subdivisions 3 and 4. These taxes shall be
42.28applied, first, as provided in Minnesota Statutes, section 297A.994, subdivision 3, clauses
42.29(1) to (3), and then, solely to pay costs of collection and to pay or, secure, maintain, and
42.30fund the payment of any principal of, premium on, and interest on any bonds or any
42.31costs referred to other purposes in section 4, subdivision 3 or 4. The commissioner of
42.32revenue may enter into appropriate agreements with the city to provide for the collection
42.33of these taxes by the state on behalf of the city. The commissioner may charge the city
42.34a reasonable fee for its collection from the proceeds of any taxes. These taxes shall be
43.1subject to the same interest penalties and enforcement provisions as the taxes imposed
43.2under section 473.592 chapter 297A.

43.3    Sec. 4. CHARTER LIMITATIONS NOT TO APPLY.
43.4Any amounts expended, indebtedness or obligation incurred including, but not
43.5limited to the issuance of bonds, or actions taken by the city under this article are not
43.6deemed an expenditure or other use of city resources within the meaning of any law or
43.7charter limitation. The city may exercise any of its powers under this article to spend,
43.8borrow, tax, or incur any form of indebtedness or other obligation, for the improvement,
43.9including but not limited to, acquisition, development, construction, or betterment, of any
43.10public building, stadium, or other capital improvement project, without regard to any
43.11charter limitation or provision. Any tax exemption established under this article shall
43.12not be deemed an expenditure or other use of city resources within the meaning of any
43.13charter limitation.

43.14    Sec. 5. EFFECTIVE DATE; LOCAL APPROVAL.
43.15This article is effective the day after the governing body of the city of Minneapolis
43.16and its chief clerical officer comply with Minnesota Statutes, section 645.021, subdivisions
43.172 and 3. Notwithstanding any law to the contrary, the city of Minneapolis and its chief
43.18clerical officer have 30 calendar days following final enactment of this act, to comply with
43.19Minnesota Statutes, section 645.021, subdivisions 2 and 3.

43.20    Sec. 6. SEVERABILITY; SAVINGS.
43.21If any part of this article is found to be invalid because it is in conflict with a
43.22provision of the Minnesota Constitution or for any other reason, all other provisions of
43.23this article shall remain valid and any rights, remedies, and privileges that have been
43.24otherwise accrued by this article, shall remain in effect and may be proceeded with and
43.25concluded under the provisions of this article.

43.26    Sec. 7. LOCAL SALES TAX REQUIREMENTS NOT TO APPLY.
43.27 The taxes authorized under Laws 1986, chapter 396, sections 4 and 5, as amended,
43.28are exempt from the requirements of Minnesota Statutes, section 297A.99, subdivisions
43.292 and 3.


44.3    Section 1. Minnesota Statutes 2010, section 349.12, subdivision 3b, is amended to read:
44.4    Subd. 3b. Bar operation. "Bar operation" means a method of selling and redeeming
44.5disposable gambling equipment by an employee of the lessor within a leased premises
44.6which is licensed for the on-sale of alcoholic beverages where such sales and redemptions
44.7are made by an employee of the lessor from a common area where food and beverages
44.8are also sold.

44.9    Sec. 2. Minnesota Statutes 2010, section 349.12, subdivision 3c, is amended to read:
44.10    Subd. 3c. Bar bingo. "Bar bingo" is a bingo occasion conducted at a permitted
44.11premises in an area where intoxicating liquor or 3.2 percent malt beverages are sold and
44.12where the licensed organization conducts another form of lawful gambling. Bar bingo
44.13does not include bingo games linked to other permitted premises.

44.14    Sec. 3. Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read:
44.15    Subd. 5. Bingo occasion. "Bingo occasion" means a single gathering or session at
44.16which a series of one or more successive bingo games is played. There is no limit on the
44.17number of games conducted during a bingo occasion but. A bingo occasion must not last
44.18longer than eight consecutive hours., except that linked bingo games played on electronic
44.19bingo devices may be played during regular business hours of the permitted premises and
44.20all play during this period is considered a bingo occasion for reporting purposes. For
44.21permitted premises where the primary business is bingo, regular business hours shall be
44.22defined as the hours between 8:00 a.m. and 2:00 a.m.

44.23    Sec. 4. Minnesota Statutes 2010, section 349.12, subdivision 6a, is amended to read:
44.24    Subd. 6a. Booth operation. "Booth operation" means a method of selling and
44.25redeeming disposable gambling equipment by an employee of a licensed organization in
44.26a premises the organization leases or owns where such sales and redemptions are made
44.27within a separate enclosure that is distinct from areas where food and beverages are sold.

44.28    Sec. 5. Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:
44.29    Subd. 12a. Electronic bingo device. "Electronic bingo device" means an a
44.30handheld and portable electronic device that:
44.31(a) is used by a bingo player to:
45.1(1) monitor bingo paper sheets or a facsimile of a bingo paper sheet when purchased
45.2and played at the time and place of an organization's bingo occasion and which (1)
45.3provides a means for bingo players to, or to play an electronic bingo game that is linked
45.4with other permitted premises;
45.5(2) activate numbers announced by a bingo caller; (2) compares or displayed, and
45.6to compare the numbers entered by the player to the bingo faces previously stored in
45.7the memory of the device; and
45.8(3) identifies identify a winning bingo pattern. or game requirement; and
45.9(4) play against other bingo players;
45.10(b) limits the play of bingo faces to 36 faces per game;
45.11(c) requires coded entry to activate play but does not allow the use of a coin,
45.12currency, or tokens to be inserted to activate play;
45.13(d) may only be used for play against other bingo players in a bingo game;
45.14(e) has no additional function as an amusement or gambling device;
45.15(f) has the capability to ensure adequate levels of security and internal controls; and
45.16(g) has the capability to permit the board to electronically monitor the operation of
45.17the device and the internal accounting systems.
45.18Electronic bingo device does not mean any device into which coin, currency, or tokens are
45.19inserted to activate play.

45.20    Sec. 6. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
45.21to read:
45.22    Subd. 12b. Electronic pull-tab device. "Electronic pull-tab device" means a
45.23handheld and portable electronic device that:
45.24(a) is used to play one or more electronic pull-tab games;
45.25(b) requires coded entry to activate play but does not allow the use of coin, currency,
45.26or tokens to be inserted to activate play;
45.27(c) requires that a player must activate or open each electronic pull-tab ticket and
45.28each individual line, row, or column of each electronic pull-tab ticket;
45.29(d) maintains information pertaining to accumulated win credits that may be applied
45.30to games in play or redeemed upon termination of play;
45.31(e) has no spinning symbols or other representations that mimic a video slot machine;
45.32(f) has no additional function as a gambling device;
45.33(g) may incorporate an amusement game feature as part of the pull-tab game but
45.34may not require additional consideration for that feature or awards any prizes, or other
45.35benefit for that feature;
46.1(h) may have auditory or visual enhancements to promote or provide information
46.2about the game being played, provided the component does not affect the outcome of
46.3a game or display the results of a game;
46.4(i) maintains, on nonresettable meters, a printable, permanent record of all
46.5transactions involving each device and electronic pull-tab games played on the device; and
46.6(j) is not a pull-tab dispensing device as defined under subdivision 32a.

46.7    Sec. 7. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
46.8to read:
46.9    Subd. 12c. Electronic pull-tab game. "Electronic pull-tab game" means a pull-tab
46.10game containing:
46.11(a) facsimiles of pull-tab tickets that are played on an electronic pull-tab device;
46.12(b) a predetermined finite number of winning and losing tickets, not to exceed
46.137,500 tickets;
46.14(c) the same price for each ticket in the game;
46.15(d) a price paid by the player of not less than 25 cents per ticket;
46.16(e) tickets that are in conformance with applicable board rules for pull-tabs;
46.17(f) winning tickets that comply with prize limits under section 349.211;
46.18(g) a unique serial number that may not be regenerated;
46.19(h) an electronic flare that displays the game name, form number, predetermined
46.20finite number of tickets in the game, and prize tier; and
46.21(i) no spinning symbols or other representations that mimic a video slot machine.

46.22    Sec. 8. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
46.23to read:
46.24    Subd. 12d. Electronic pull-tab game system. "Electronic pull-tab game system"
46.25means the equipment leased from a licensed distributor and used by a licensed organization
46.26to conduct, manage, and record electronic pull-tab games, and to report and transmit the
46.27game results as prescribed by the board and the Department of Revenue. The system must
46.28provide security and access levels sufficient so that internal control objectives are met as
46.29prescribed by the board. The system must contain a point of sale station.

46.30    Sec. 9. Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read:
46.31    Subd. 18. Gambling equipment. "Gambling equipment" means: gambling
46.32equipment that is either disposable or permanent gambling equipment.
46.33(a) Disposable gambling equipment includes the following:
47.1(1) bingo hard cards or paper sheets, including linked bingo paper sheets, devices for
47.2selecting bingo numbers, electronic bingo devices,;
47.3(2) paper and electronic pull-tabs,;
47.4(3) jar tickets, paddle wheels, paddle wheel tables,;
47.5(4) paddle tickets, and paddle ticket cards,;
47.6(5) tipboards, and tipboard tickets,; and
47.7(6) promotional tickets that mimic a pull-tab or tipboard, pull-tab dispensing devices,
47.8and programmable electronic devices that have no effect on the outcome of a game and
47.9are used to provide a visual or auditory enhancement of a game.
47.10(b) Permanent gambling equipment includes the following:
47.11(1) devices for selecting bingo numbers;
47.12(2) electronic bingo devices;
47.13(3) electronic pull-tab devices;
47.14(4) pull-tab dispensing devices;
47.15(5) programmable electronic devices that have no effect on the outcome of a game
47.16and are used to provide a visual or auditory enhancement of a game;
47.17(6) paddle wheels; and
47.18(7) paddle wheel tables.

47.19    Sec. 10. Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read:
47.20    Subd. 25b. Linked bingo game provider. "Linked bingo game provider" means
47.21any person who provides the means to link bingo prizes in a linked bingo game, who
47.22provides linked bingo paper sheets to the participating organizations games, who provides
47.23linked bingo prize management, and who provides the linked bingo game system.

47.24    Sec. 11. Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read:
47.25    Subd. 25c. Linked bingo game system. "Linked bingo game system" means the
47.26equipment used by the linked bingo provider to conduct, transmit, and track a linked
47.27bingo game. The system must be approved by the board before its use in this state and
47.28it must have dial-up or other the capability to permit the board to electronically monitor
47.29its operation remotely. For linked electronic bingo games, the system includes electronic
47.30bingo devices.

47.31    Sec. 12. Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read:
47.32    Subd. 25d. Linked bingo prize pool. "Linked bingo prize pool" means the total
47.33of all prize money that each participating organization has contributed to a linked bingo
48.1game prize and includes any portion of the prize pool that is carried over from one
48.2occasion game to another in a progressive linked bingo game.

48.3    Sec. 13. Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read:
48.4    Subd. 29. Paddle wheel. "Paddle wheel" means a vertical wheel marked off into
48.5sections containing one or more numbers, and which, after being turned or spun, uses a
48.6pointer or marker to indicate winning chances, and may only be used to determine a
48.7winning number or numbers matching a winning paddle ticket purchased by a player. A
48.8paddle wheel may be an electronic device that simulates a paddle wheel.

48.9    Sec. 14. Minnesota Statutes 2010, section 349.12, subdivision 31, is amended to read:
48.10    Subd. 31. Promotional ticket. A paper pull-tab ticket or paper tipboard ticket
48.11created and printed by a licensed manufacturer with the words "no purchase necessary" and
48.12"for promotional use only" and for which no consideration is given is a promotional ticket.

48.13    Sec. 15. Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read:
48.14    Subd. 32. Pull-tab. "Pull-tab" means a single folded or banded paper ticket or a,
48.15multi-ply card with perforated break-open tabs, or a facsimile of a paper pull-tab ticket
48.16used in conjunction with an electronic pull-tab device, the face of which is initially
48.17covered to conceal one or more numbers or symbols, and where one or more of each set of
48.18tickets or, cards, or facsimiles has been designated in advance as a winner.

48.19    Sec. 16. Minnesota Statutes 2010, section 349.13, is amended to read:
48.20349.13 LAWFUL GAMBLING.
48.21Lawful gambling is not a lottery or gambling within the meaning of sections 609.75
48.22to 609.76 if it is conducted under this chapter. A pull-tab dispensing device, electronic
48.23bingo device, and electronic pull-tab device permitted under this chapter and by board
48.24rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter
48.25299L. An electronic game device allowed under this chapter may not be a slot machine.
48.26Electronic game devices, including but not limited to electronic bingo devices, electronic
48.27paddle wheels, and electronic pull-tab devices authorized under this chapter, may only
48.28be used in the conduct of lawful gambling permitted under this chapter and board rule
48.29and may not display or simulate any other form of gambling or entertainment, except
48.30as otherwise allowed under this chapter.

48.31    Sec. 17. Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:
49.1    Subd. 4b. Pull-tab sales from dispensing devices. (a) The board may by rule
49.2authorize but not require the use of pull-tab dispensing devices.
49.3(b) Rules adopted under paragraph (a):
49.4(1) must limit the number of pull-tab dispensing devices on any permitted premises
49.5to three; and
49.6(2) must limit the use of pull-tab dispensing devices to a permitted premises which is
49.7(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages;
49.8or (ii) a premises where bingo is conducted and admission is restricted to persons 18
49.9years or older.
49.10(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices
49.11may be used in establishments licensed for the off-sale of intoxicating liquor, other than
49.12drugstores and general food stores licensed under section 340A.405, subdivision 1.

49.13    Sec. 18. Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read:
49.14    Subd. 4c. Electronic bingo devices. (a) The board may by rule authorize but not
49.15require the use of electronic bingo devices.
49.16(b) Rules adopted under paragraph (a):
49.17(1) must limit the number of bingo faces that can be played using an electronic
49.18bingo device to 36;
49.19(2) must require that an electronic bingo device be used with corresponding bingo
49.20paper sheets or a facsimile, printed at the point of sale, as approved by the board;
49.21(3) must require that the electronic bingo device site system have dial-up capability
49.22to permit the board to remotely monitor the operation of the device and the internal
49.23accounting systems; and
49.24(4) must prohibit the price of a face played on an electronic bingo device from being
49.25less than the price of a face on a bingo paper sheet sold at the same occasion.
49.26(b) The board, or the director if authorized by the board, may require the deactivation
49.27of an electronic bingo device for violation of a law or rule and to implement any other
49.28controls deemed necessary to ensure and maintain the integrity of electronic bingo devices
49.29and the electronic bingo games played on the devices.

49.30    Sec. 19. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision
49.31to read:
49.32    Subd. 4d. Electronic pull-tab devices and electronic pull-tab game system. (a)
49.33The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab
50.1devices, the electronic pull-tab games played on the devices, and the electronic pull-tab
50.2game system necessary to operate them.
50.3(b) The board may not require an organization to use electronic pull-tab devices.
50.4(c) Before authorizing the lease or sale of electronic pull-tab devices and the
50.5electronic pull-tab game system, the board shall examine electronic pull-tab devices
50.6allowed under section 349.12, subdivision 12b. The board may contract for the
50.7examination of the game system and electronic pull-tab devices and may require a working
50.8model to be transported to locations the board designates for testing, examination, and
50.9analysis. The manufacturer must pay all costs of any testing, examination, analysis, and
50.10transportation of the model. The system must be approved by the board before its use in
50.11the state and must have the capability to permit the board to electronically monitor its
50.12operation and internal accounting systems.
50.13(d) The board may require a manufacturer to submit a certificate from an independent
50.14testing laboratory approved by the board to perform testing services, stating that the
50.15equipment has been tested, analyzed, and meets the standards required in this chapter
50.16and any applicable board rules.
50.17(e) The board, or the director if authorized by the board, may require the deactivation
50.18of an electronic pull-tab device for violation of a law or rule and to implement any other
50.19controls deemed necessary to ensure and maintain the integrity of electronic pull-tab
50.20devices and the electronic pull-tab games played on the devices.

50.21    Sec. 20. Minnesota Statutes 2010, section 349.155, subdivision 3, is amended to read:
50.22    Subd. 3. Mandatory disqualifications. (a) In the case of licenses for manufacturers,
50.23distributors, distributor salespersons, linked bingo game providers, and gambling
50.24managers, the board may not issue or renew a license under this chapter, and shall revoke
50.25a license under this chapter, if the applicant or licensee, or a director, officer, partner,
50.26governor, or person in a supervisory or management position of the applicant or licensee:
50.27    (1) has ever been convicted of a felony or a crime involving gambling;
50.28    (2) has ever been convicted of (i) assault, (ii) a criminal violation involving the use
50.29of a firearm, or (iii) making terroristic threats;
50.30    (3) is or has ever been connected with or engaged in an illegal business;
50.31    (4) owes $500 or more in delinquent taxes as defined in section 270C.72;
50.32    (5) had a sales and use tax permit revoked by the commissioner of revenue within
50.33the past two years; or
50.34    (6) after demand, has not filed tax returns required by the commissioner of revenue.
50.35The board may deny or refuse to renew a license under this chapter, and may revoke a
51.1license under this chapter, if any of the conditions in this paragraph are applicable to
51.2an affiliate or direct or indirect holder of more than a five percent financial interest in
51.3the applicant or licensee.
51.4    (b) In the case of licenses for organizations, the board may not issue a license under
51.5this chapter, and shall revoke a license under this chapter, if the organization, or an officer
51.6or member of the governing body of the organization:
51.7    (1) has been convicted of a felony or gross misdemeanor involving theft or fraud; or
51.8    (2) has ever been convicted of a crime involving gambling; or.
51.9    (3) has had a license issued by the board or director permanently revoked for
51.10violation of law or board rule.

51.11    Sec. 21. Minnesota Statutes 2010, section 349.155, subdivision 4, is amended to read:
51.12    Subd. 4. License revocation, suspension, denial; censure. (a) The board may by
51.13order (i) deny, suspend, revoke, or refuse to renew a license or premises permit, or (ii)
51.14censure a licensee or applicant, if it finds that the order is in the public interest and that the
51.15applicant or licensee, or a director, officer, partner, governor, person in a supervisory or
51.16management position of the applicant or licensee, an employee eligible to make sales on
51.17behalf of the applicant or licensee, or direct or indirect holder of more than a five percent
51.18financial interest in the applicant or licensee:
51.19    (1) has violated or failed to comply with any provision of this chapter or chapter
51.20297E or 299L, or any rule adopted or order issued thereunder;
51.21    (2) has filed an application for a license that is incomplete in any material respect, or
51.22contains a statement that, in light of the circumstances under which it was made, is false,
51.23misleading, fraudulent, or a misrepresentation;
51.24    (3) has made a false statement in a document or report required to be submitted to
51.25the board or the commissioner of revenue, or has made a false statement to the board, the
51.26compliance review group, or the director;
51.27    (4) has been convicted of a crime in another jurisdiction that would be a felony if
51.28committed in Minnesota;
51.29    (5) is permanently or temporarily enjoined by any gambling regulatory agency from
51.30engaging in or continuing any conduct or practice involving any aspect of gambling;
51.31    (6) has had a gambling-related license revoked or suspended, or has paid or been
51.32required to pay a monetary penalty of $2,500 or more, by a gambling regulator in another
51.33state or jurisdiction;
51.34    (7) has been the subject of any of the following actions by the director of alcohol
51.35and gambling enforcement or commissioner of public safety: (i) had a license under
52.1chapter 299L denied, suspended, or revoked, (ii) been censured, reprimanded, has paid or
52.2been required to pay a monetary penalty or fine, or (iii) has been the subject of any other
52.3discipline by the director or commissioner;
52.4    (8) has engaged in conduct that is contrary to the public health, welfare, or safety, or
52.5to the integrity of gambling; or
52.6    (9) based on past activities or criminal record poses a threat to the public interest or
52.7to the effective regulation and control of gambling, or creates or enhances the dangers of
52.8unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gambling
52.9or the carrying on of the business and financial arrangements incidental to the conduct of
52.10gambling.
52.11    (b) The revocation or suspension of an organization license may not exceed a period
52.12of ten years, including any revocation or suspension imposed by the board prior to the
52.13effective date of this paragraph, except that:
52.14    (1) any prohibition placed by the board on who may be involved in the conduct,
52.15oversight, or management of the revoked organization's lawful gambling activity is
52.16permanent; and
52.17    (2) a revocation or suspension will remain in effect until the payment of any taxes,
52.18fees, and fines that are delinquent have been paid by the organization to the satisfaction of
52.19the board.

52.20    Sec. 22. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read:
52.21    Subdivision 1. Prohibited acts; licenses required. (a) No person may:
52.22    (1) sell, offer for sale, or furnish gambling equipment for use within the state other
52.23than for lawful gambling exempt or excluded from licensing, except to an organization
52.24licensed for lawful gambling;
52.25    (2) sell, offer for sale, or furnish gambling equipment for use within the state without
52.26having obtained a distributor license or a distributor salesperson license under this section
52.27except that an organization authorized to conduct bingo by the board may loan bingo
52.28hard cards and devices for selecting bingo numbers to another organization authorized to
52.29conduct bingo and a linked bingo game provider may provide electronic bingo devices for
52.30linked electronic bingo games;
52.31    (3) sell, offer for sale, or furnish gambling equipment for use within the state that is
52.32not purchased or obtained from a manufacturer or distributor licensed under this chapter; or
52.33    (4) sell, offer for sale, or furnish gambling equipment for use within the state that
52.34has the same serial number as another item of gambling equipment of the same type sold
52.35or offered for sale or furnished for use in the state by that distributor.
53.1    (b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling
53.2equipment for use within the state without being employed by a licensed distributor or
53.3owning a distributor license.
53.4(c) No distributor or distributor salesperson may also be licensed as a linked bingo
53.5game provider under section 349.1635.

53.6    Sec. 23. Minnesota Statutes 2010, section 349.161, subdivision 5, is amended to read:
53.7    Subd. 5. Prohibition. (a) No distributor, distributor salesperson, or other employee
53.8of a distributor, may also be a wholesale distributor of alcoholic beverages or an employee
53.9of a wholesale distributor of alcoholic beverages.
53.10    (b) No distributor, distributor salesperson, or any representative, agent, affiliate, or
53.11other employee of a distributor, may: (1) be involved in the conduct of lawful gambling
53.12by an organization; (2) keep or assist in the keeping of an organization's financial records,
53.13accounts, and inventories; or (3) prepare or assist in the preparation of tax forms and other
53.14reporting forms required to be submitted to the state by an organization.
53.15    (c) No distributor, distributor salesperson, or any representative, agent, affiliate,
53.16or other employee of a distributor may provide a lessor of gambling premises any
53.17compensation, gift, gratuity, premium, or other thing of value.
53.18    (d) No distributor, distributor salesperson, or any representative, agent, affiliate, or
53.19other employee of a distributor may provide an employee or agent of the organization
53.20any compensation, gift, gratuity, premium, or other thing of value greater than $25 per
53.21organization in a calendar year.
53.22    (e) No distributor, distributor salesperson, or any representative, agent, affiliate, or
53.23other employee of a distributor may participate in any gambling activity at any gambling
53.24site or premises where gambling equipment purchased or leased from that distributor or
53.25distributor salesperson is being used in the conduct of lawful gambling.
53.26    (f) No distributor, distributor salesperson, or any representative, agent, affiliate, or
53.27other employee of a distributor may alter or modify any gambling equipment, except to
53.28add a "last ticket sold" prize sticker for a paper pull-tab game.
53.29    (g) No distributor, distributor salesperson, or any representative, agent, affiliate, or
53.30other employee of a distributor may: (1) recruit a person to become a gambling manager
53.31of an organization or identify to an organization a person as a candidate to become
53.32gambling manager for the organization; or (2) identify for an organization a potential
53.33gambling location.
53.34    (h) No distributor or distributor salesperson may purchase or lease gambling
53.35equipment for resale or lease to a person for use within the state from any person not
54.1licensed as a manufacturer under section 349.163, except for gambling equipment
54.2returned from an organization licensed under section 349.16, or exempt or excluded from
54.3licensing under section 349.166.
54.4    (i) No distributor or distributor salesperson may sell gambling equipment, except
54.5gambling equipment identified as a promotional ticket, to any person for use in Minnesota
54.6other than (i) a licensed organization or organization excluded or exempt from licensing,
54.7or (ii) the governing body of an Indian tribe.
54.8    (j) No distributor or distributor salesperson may sell or otherwise provide a paper
54.9pull-tab or tipboard deal with the symbol required by section 349.163, subdivision 5,
54.10paragraph (d), visible on the flare to any person other than in Minnesota to a licensed
54.11organization or organization exempt from licensing.

54.12    Sec. 24. Minnesota Statutes 2010, section 349.162, subdivision 5, is amended to read:
54.13    Subd. 5. Sales from facilities. (a) All gambling equipment purchased or possessed
54.14by a licensed distributor for resale or lease to any person for use in Minnesota must, prior
54.15to the equipment's resale or lease, be unloaded into a storage facility located in Minnesota
54.16which the distributor owns or leases; and which has been registered, in advance and in
54.17writing, with the Division of Alcohol and Gambling Enforcement as a storage facility of
54.18the distributor. All unregistered gambling equipment and all unaffixed registration stamps
54.19owned by, or in the possession of, a licensed distributor in the state of Minnesota shall be
54.20stored at a storage facility which has been registered with the Division of Alcohol and
54.21Gambling Enforcement. No gambling equipment may be moved from the facility unless
54.22the gambling equipment has been first registered with the board or the Department of
54.23Revenue. A distributor must notify the board of the method that it will use to sell and
54.24transfer electronic pull-tab games to licensed organizations, and must receive approval of
54.25the board before implementing or making changes to the approved method.
54.26(b) Notwithstanding section 349.163, subdivisions 5, 6, and 8, a licensed
54.27manufacturer may ship into Minnesota approved or unapproved gambling equipment if the
54.28licensed manufacturer ships the gambling equipment to a Minnesota storage facility that
54.29is: (1) owned or leased by the licensed manufacturer; and (2) registered, in advance and
54.30in writing, with the Division of Alcohol and Gambling Enforcement as a manufacturer's
54.31storage facility. No gambling equipment may be shipped into Minnesota to the
54.32manufacturer's registered storage facility unless the shipment of the gambling equipment
54.33is reported to the Department of Revenue in a manner prescribed by the department.
54.34No gambling equipment may be moved from the storage facility unless the gambling
54.35equipment is sold to a licensed distributor and is otherwise in conformity with this chapter,
55.1is shipped to an out-of-state site and the shipment is reported to the Department of
55.2Revenue in a manner prescribed by the department, or is otherwise sold and shipped as
55.3permitted by board rule. A manufacturer must notify the board of the method that it will
55.4use to sell and transfer electronic pull-tab games to licensed distributors, and must receive
55.5approval of the board before implementing or making changes to the approved method.
55.6(c) All storage facilities owned, leased, used, or operated by a licensed distributor
55.7or manufacturer may be entered upon and inspected by the employees of the Division of
55.8Alcohol and Gambling Enforcement, the Division of Alcohol and Gambling Enforcement
55.9director's authorized representatives, employees of the Gambling Control Board or its
55.10authorized representatives, employees of the Department of Revenue, or authorized
55.11representatives of the director of the Division of Special Taxes of the Department of
55.12Revenue during reasonable and regular business hours. Obstruction of, or failure to
55.13permit, entry and inspection is cause for revocation or suspension of a manufacturer's or
55.14distributor's licenses and permits issued under this chapter.
55.15(d) Unregistered gambling equipment found at any location in Minnesota other than
55.16the manufacturing plant of a licensed manufacturer or a registered storage facility are
55.17contraband under section 349.2125. This paragraph does not apply:
55.18(1) to unregistered gambling equipment being transported in interstate commerce
55.19between locations outside this state, if the interstate shipment is verified by a bill of lading
55.20or other valid shipping document; and
55.21(2) to gambling equipment registered with the Department of Revenue for
55.22distribution to the tribal casinos.

55.23    Sec. 25. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read:
55.24    Subdivision 1. License required. No manufacturer of gambling equipment may
55.25sell any gambling equipment to any person for use or resale within the state, unless the
55.26manufacturer has a current and valid license issued by the board under this section and has
55.27satisfied other criteria prescribed by the board by rule. A manufacturer licensed under this
55.28section may also be licensed as a linked bingo game provider under section 349.1635.
55.29A manufacturer licensed under this section may not also be directly or indirectly
55.30licensed as a distributor under section 349.161.

55.31    Sec. 26. Minnesota Statutes 2010, section 349.163, subdivision 5, is amended to read:
55.32    Subd. 5. Paper pull-tab and tipboard flares. (a) A manufacturer may not ship or
55.33cause to be shipped into this state or sell for use or resale in this state any deal of paper
55.34pull-tabs or tipboards that does not have its own individual flare as required for that deal
56.1by this subdivision and rule of the board. A person other than a manufacturer may not
56.2manufacture, alter, modify, or otherwise change a flare for a deal of paper pull-tabs or
56.3tipboards except as allowed by this chapter or board rules.
56.4(b) The flare of each paper pull-tab and tipboard game must have affixed to
56.5or imprinted at the bottom a bar code that provides all information required by the
56.6commissioner of revenue under section 297E.04, subdivision 2.
56.7The serial number included in the bar code must be the same as the serial number
56.8of the tickets included in the deal. A manufacturer who manufactures a deal of paper
56.9pull-tabs must affix to the outside of the box containing that game the same bar code that
56.10is affixed to or imprinted at the bottom of a flare for that deal.
56.11(c) No person may alter the bar code that appears on the outside of a box containing
56.12a deal of paper pull-tabs and tipboards. Possession of a box containing a deal of paper
56.13pull-tabs and tipboards that has a bar code different from the bar code of the deal inside
56.14the box is prima facie evidence that the possessor has altered the bar code on the box.
56.15(d) The flare of each deal of paper pull-tabs and tipboards sold by a manufacturer for
56.16use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high
56.17and one inch wide consisting of an outline of the geographic boundaries of Minnesota
56.18with the letters "MN" inside the outline. The flare must be placed inside the wrapping of
56.19the deal which the flare describes.
56.20(e) Each paper pull-tab and tipboard flare must bear the following statement printed
56.21in letters large enough to be clearly legible:
56.22"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in
56.23Minnesota unless:
56.24-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and
56.25-- the serial number imprinted on the bar code at the bottom of this sheet is the same
56.26as the serial number on the pull-tab (or tipboard) ticket you have purchased."
56.27(f) The flare of each paper pull-tab and tipboard game must have the serial number
56.28of the game imprinted on the bar code at the bottom of the flare in numerals at least
56.29one-half inch high.

56.30    Sec. 27. Minnesota Statutes 2010, section 349.163, subdivision 6, is amended to read:
56.31    Subd. 6. Samples of gambling equipment. (a) The board shall require each
56.32licensed manufacturer to submit to the board one or more samples of each item of gambling
56.33equipment the manufacturer manufactures manufactured for use or resale in this state.
56.34For purposes of this subdivision, a manufacturer is also required to submit the applicable
56.35version of any software necessary to operate electronic devices and related systems.
57.1(b) The board shall inspect and test all the equipment, including software and
57.2software upgrades, it deems necessary to determine the equipment's compliance with
57.3law and board rules. Samples required under this subdivision must be approved by the
57.4board before the equipment being sampled is shipped into or sold for use or resale in this
57.5state. The board shall impose a fee of $25 for each item of gambling equipment that the
57.6manufacturer submits for approval or for which the manufacturer requests approval. The
57.7board shall impose a fee of $100 for each sample of gambling equipment that it tests.
57.8(c) The board may require samples of gambling equipment to be tested by an
57.9independent testing laboratory prior to submission to the board for approval. All costs
57.10of testing by an independent testing laboratory must be borne by the manufacturer. An
57.11independent testing laboratory used by a manufacturer to test samples of gambling
57.12equipment must be approved by the board before the equipment is submitted to the
57.13laboratory for testing.
57.14(d) The board may request the assistance of the commissioner of public safety and
57.15the director of the State Lottery in performing the tests.

57.16    Sec. 28. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read:
57.17    Subd. 2. License application. The board may issue a license to a linked bingo game
57.18provider or to a manufacturer licensed under section 349.163 who meets the qualifications
57.19of this chapter and the rules promulgated by the board. The application shall be on a form
57.20prescribed by the board. The license is valid for two years and the fee for a linked bingo
57.21game provider license is $5,000 per year.

57.22    Sec. 29. Minnesota Statutes 2010, section 349.1635, subdivision 3, is amended to read:
57.23    Subd. 3. Attachments to application. An applicant for a linked bingo game
57.24provider license must attach to its application:
57.25(1) evidence of a bond in the principal amount of $100,000 payable to the state of
57.26Minnesota conditioned on the payment of all linked bingo prizes and any other money due
57.27and payable under this chapter;
57.28(2) detailed plans and specifications for the operation of the linked bingo game and
57.29the linked bingo system, along with a proposed fee schedule for the cost of providing
57.30services and equipment to licensed organizations which may not exceed 15 percent of
57.31gross profits, unless a higher percentage, not to exceed 20 percent, is authorized by board.
57.32The fee schedule must incorporate costs paid to distributors for services provided under
57.33subdivision 5; and
57.34(3) any other information required by the board by rule.

58.1    Sec. 30. Minnesota Statutes 2010, section 349.1635, is amended by adding a
58.2subdivision to read:
58.3    Subd. 5. Linked bingo game services requirements. (a) A linked bingo game
58.4provider must contract with licensed distributors for linked bingo game services including,
58.5but not limited to, the solicitation of agreements with licensed organizations, and
58.6installation, repair, or maintenance of the linked bingo game system.
58.7(b) A distributor may not charge a fee to licensed organizations for services
58.8authorized and rendered under paragraph (a).
58.9(c) A linked bingo game provider may not contract with any distributor on an
58.10exclusive basis.
58.11(d) A linked bingo game provider may refuse to contract with a licensed distributor
58.12if the linked bingo game provider demonstrates that the licensed distributor is not capable
58.13of performing the services under the contract.

58.14    Sec. 31. Minnesota Statutes 2010, section 349.165, subdivision 2, is amended to read:
58.15    Subd. 2. Contents of application. An application for a premises permit must
58.16contain:
58.17    (1) the name and address of the applying organization;
58.18    (2) a description of the site for which the permit is sought, including its address and,
58.19where applicable, its placement within another premises or establishment;
58.20    (3) if the site is leased, the name and address of the lessor and information about the
58.21lease the board requires, including all rents and other charges for the use of the site. The
58.22lease term is concurrent with the term of the premises permit. The lease must contain a
58.2330-day termination clause. No lease is required for the conduct of a raffle; and
58.24    (4) other information the board deems necessary to carry out its purposes.
58.25    An organization holding a premises permit must notify the board in writing within
58.26ten days whenever any material change is made in the above information.

58.27    Sec. 32. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:
58.28    Subd. 6. Conduct of bingo. The price of a face played on an electronic bingo
58.29device may not be less than the price of a face on a bingo paper sheet sold for the same
58.30game at the same occasion. A game of bingo begins with the first letter and number called
58.31or displayed. Each player must cover, mark, or activate the numbers when bingo numbers
58.32are randomly selected, and announced, and or displayed to the players, either manually
58.33or with a flashboard and monitor. The game is won when a player, using bingo paper,
58.34bingo hard card, or a facsimile of a bingo paper sheet, has completed, as described in the
59.1bingo program, a previously designated pattern or previously determined requirements
59.2of the game and declared bingo. The game is completed when a winning card, sheet, or
59.3facsimile is verified and a prize awarded pursuant to subdivision 3.

59.4    Sec. 33. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read:
59.5    Subd. 7. Bar bingo. An organization may conduct bar bingo subject to the
59.6following restrictions:
59.7    (1) the bingo is conducted at a site the organization owns or leases and which has a
59.8license for the sale of intoxicating beverages on the premises under chapter 340A; and
59.9    (2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper
59.10sheets purchased from a licensed distributor or licensed linked bingo game provider; and.
59.11    (3) no rent may be paid for a bar bingo occasion.

59.12    Sec. 34. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:
59.13    Subd. 8. Linked bingo games. (a) A licensed organization may conduct or
59.14participate in not more than two linked bingo games per occasion, one of which may be,
59.15including a progressive games game in which a portion of the prize is carried over from
59.16one occasion game to another until won by a player achieving a valid bingo within a
59.17predetermined amount of bingo numbers called based upon a predetermined and posted
59.18win determination.
59.19    (b) Each participating licensed organization shall contribute to each prize awarded in
59.20a linked bingo game in an amount not to exceed $300. Linked bingo games may only be
59.21conducted by licensed organizations who have a valid agreement with the linked bingo
59.22game provider.
59.23    (c) An electronic bingo device as defined in section 349.12, subdivision 12a, may
59.24be used for a linked bingo game.
59.25    (d) The board may adopt rules to:
59.26    (1) specify the manner in which a linked bingo game must be played and how the
59.27linked bingo prizes must be awarded;
59.28    (2) specify the records to be maintained by a linked bingo game provider;
59.29    (3) require the submission of periodic reports by the linked bingo game provider and
59.30specify the content of the reports;
59.31    (4) establish the qualifications required to be licensed as a linked bingo game
59.32provider; and
59.33    (5) any other matter involving the operation of a linked bingo game.

60.1    Sec. 35. Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision
60.2to read:
60.3    Subd. 9. Linked bingo games played exclusively on electronic bingo devices. In
60.4addition to the requirements of subdivision 8, the following requirements and restrictions
60.5apply when linked bingo games are played exclusively on electronic bingo devices:
60.6(a) The permitted premises must be:
60.7(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
60.8malt beverages, except for a general food store or drug store permitted to sell alcoholic
60.9beverages under section 340A.405, subdivision 1; or
60.10(2) a premises where bingo is conducted as the primary business and has a seating
60.11capacity of at least 100.
60.12(b) The number of electronic bingo devices is limited to:
60.13(1) no more than six devices in play for permitted premises with 200 seats or less;
60.14(2) no more than 12 devices in play for permitted premises with 201 seats or more;
60.15and
60.16(3) no more than 50 devices in play for permitted premises where bingo is the
60.17primary business.
60.18Seating capacity is determined as specified under the local fire code.
60.19(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the
60.20participating organizations, must provide to the board a bingo program in a format
60.21prescribed by the board.
60.22(d) Before participating in the play of a linked bingo game, a player must present
60.23and register a valid picture identification card that includes the player's address and
60.24date of birth.
60.25(e) An organization may remove from play a device that a player has not maintained
60.26in an activated mode for a specified period of time determined by the organization. The
60.27organization must provide the notice in its house rules.

60.28    Sec. 36. Minnesota Statutes 2010, section 349.1721, is amended to read:
60.29349.1721 CONDUCT OF PULL-TABS.
60.30    Subdivision 1. Cumulative or carryover games. The board shall by rule permit
60.31pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games with
60.32cumulative or carryover prizes. The rules shall also apply to electronic pull-tab games.
60.33    Subd. 2. Event games. The board shall by rule permit pull-tab games in which
60.34certain winners are determined by the random selection of one or more bingo numbers
61.1or by another method approved by the board. The rules shall also apply to electronic
61.2pull-tab games.
61.3    Subd. 3. Pull-tab dispensing device location restrictions and requirements.
61.4The following pertain to pull-tab dispensing devices as defined under section 349.12,
61.5subdivision 32a.
61.6(a) The use of any pull-tab dispensing device must be at a permitted premises
61.7which is:
61.8(1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt
61.9beverages;
61.10(2) a premises where bingo is conducted as the primary business; or
61.11(3) an establishment licensed for the off-sale of intoxicating liquor, other than drug
61.12stores and general food stores licensed under section 340A.405, subdivision 1.
61.13(b) The number of pull-tab dispensing devices located at any permitted premises
61.14is limited to three.
61.15    Subd. 4. Electronic pull-tab device requirements and restrictions. The following
61.16pertain to the use of electronic pull-tab devices as defined under section 349.12,
61.17subdivision 12b.
61.18(a) The use of any electronic pull-tab device may only be at a permitted premises
61.19that is:
61.20(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
61.21malt beverages, except for a general food store or drug store permitted to sell alcoholic
61.22beverages under section 340A.405, subdivision 1; or
61.23(2) a premises where bingo is conducted as the primary business and has a seating
61.24capacity of at least 100; and
61.25(3) where the licensed organization sells paper pull-tabs.
61.26(b) The number of electronic pull-tab devices is limited to:
61.27(1) no more than six devices in play at any permitted premises with 200 seats or less;
61.28(2) no more than 12 devices in play at any permitted premises with 201 seats
61.29or more; and
61.30(3) no more than 50 devices in play at any permitted premises where the primary
61.31business is bingo.
61.32Seating capacity is determined as specified under the local fire code.
61.33(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.
61.34(d) All electronic pull-tab games must be sold and played on the permitted premises
61.35and may not be linked to other permitted premises.
62.1(e) Electronic pull-tab games may not be transferred electronically or otherwise to
62.2any other location by the licensed organization.
62.3(f) Electronic pull-tab games may be commingled if the games are from the same
62.4family of games and manufacturer and contain the same game name, form number, type
62.5of game, ticket count, prize amounts, and prize denominations. Each commingled game
62.6must have a unique serial number.
62.7(g) An organization may remove from play a device that a player has not maintained
62.8in an activated mode for a specified period of time determined by the organization. The
62.9organization must provide the notice in its house rules.
62.10(h) Before participating in the play of an electronic pull-tab game, a player must
62.11present and register a valid picture identification card that includes the player's address
62.12and date of birth.
62.13(i) Each player is limited to the use of one device at a time.

62.14    Sec. 37. Minnesota Statutes 2010, section 349.1721, is amended by adding a
62.15subdivision to read:
62.16    Subd. 5. Multiple chance games. The board may permit pull-tab games in which
62.17the holders of certain predesignated winning tickets, with a prize value not to exceed $75
62.18each, have the option of turning in the winning tickets for the chance to win a prize of
62.19greater value.

62.20    Sec. 38. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read:
62.21    Subdivision 1. Lease or ownership required; rent limitations. (a) An organization
62.22may conduct lawful gambling only on premises it owns or leases. Leases must be on a
62.23form prescribed by the board. The term of the lease is concurrent with the premises permit.
62.24Leases approved by the board must specify that the board may authorize an organization
62.25to withhold rent from a lessor for a period of up to 90 days if the board determines that
62.26illegal gambling occurred on the premises or that the lessor or its employees participated
62.27in the illegal gambling or knew of the gambling and did not take prompt action to stop the
62.28gambling. The lease must authorize the continued tenancy of the organization without
62.29the payment of rent during the time period determined by the board under this paragraph.
62.30Copies of all leases must be made available to employees of the board and the Division of
62.31Alcohol and Gambling Enforcement on request.
62.32    (b) Rent paid by an organization for leased premises for the conduct of pull-tabs,
62.33tipboards, and paddle wheels lawful gambling is subject to the following limits and
62.34restrictions:
63.1    (1) For booth operations, including booth operations where a pull-tab dispensing
63.2device is located, booth operations where a bar operation is also conducted, and booth
63.3operations where both a pull-tab dispensing device is located and a bar operation is also
63.4conducted, the maximum rent is: monthly rent may not exceed ten percent of gross profits
63.5for that month. Total rent paid to a lessor from all organizations from leases governed by
63.6this clause may not exceed $1,750 per month.
63.7    (i) in any month where the organization's gross profit at those premises does not
63.8exceed $4,000, up to $400; and
63.9    (ii) in any month where the organization's gross profit at those premises exceeds
63.10$4,000, up to $400 plus not more than ten percent of the gross profit for that month in
63.11excess of $4,000;
63.12    (2) For bar operations, including bar operations where a pull-tab dispensing device
63.13is located but not including bar operations subject to clause (1), and for locations where
63.14only a pull-tab dispensing device is located: monthly rent may not exceed: (a) 15 percent
63.15of the gross profits for that month from pull-tabs sold from a pull-tab dispensing device,
63.16electronic pull-tab games, and electronic linked bingo games, and (b) not more than 20
63.17percent of gross profits from all other forms of lawful gambling.
63.18    (i) in any month where the organization's gross profit at those premises does not
63.19exceed $1,000, up to $200; and
63.20    (ii) in any month where the organization's gross profit at those premises exceeds
63.21$1,000, up to $200 plus not more than 20 percent of the gross profit for that month
63.22in excess of $1,000;
63.23    (3) a lease not governed by clauses (1) and (2) must be approved by the board before
63.24becoming effective; For electronic linked bingo games and electronic pull-tab games that
63.25are operated for separate time periods within a business day by an organization and the
63.26lessor, monthly rent may not be more than:
63.27(i) 15 percent of the gross profits for that month for the time periods operated by
63.28the lessor. The lessor is responsible for cash shortages that occur during the time periods
63.29the games are operated by the lessor; and
63.30(ii) ten percent of gross profits for that month for the time periods operated by the
63.31organization. The organization is responsible for cash shortages that occur during the time
63.32periods the games are operated by the organization.
63.33    (4) total rent paid to a lessor from all organizations from leases governed by clause
63.34(1) may not exceed $1,750 per month.
63.35    (c) Rent paid by an organization for leased premises for the conduct of bingo is
63.36subject to either of the following limits at the option of the parties to the lease:
64.1    (1) (4) For bingo conducted at a leased premises where the primary business is
64.2bingo, rent is limited to either not more than ten percent of the monthly gross profit from
64.3all lawful gambling activities held during bingo occasions, excluding bar bingo or at a
64.4rate based on a cost per square foot not to exceed 110 percent of a comparable cost per
64.5square foot for leased space as approved by the director; and.
64.6    (2) (5) No rent may be paid for bar bingo as defined in section 349.12, subdivision 3c.
64.7(6) A lease not governed by clauses (1) to (5) must be approved by the director
64.8before becoming effective.
64.9    (d) (c) Amounts paid as rent under leases are all-inclusive. No other services or
64.10expenses provided or contracted by the lessor may be paid by the organization, including,
64.11but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn
64.12services, electricity, heat, security, security monitoring, storage, and other utilities or
64.13services, and, in the case of bar operations, cash shortages, unless approved by the
64.14director. The lessor shall be responsible for the cost of any communications network or
64.15service required to conduct electronic pull-tab games or electronic bingo games. Any
64.16other expenditure made by an organization that is related to a leased premises must be
64.17approved by the director. For bar operations, the lessor is responsible for cash shortages.
64.18An organization may not provide any compensation or thing of value to a lessor or the
64.19lessor's employees from any fund source other than its gambling account. Rent payments
64.20may not be made to an individual.
64.21    (e) (d) Notwithstanding paragraph (b), an organization may pay a lessor for food
64.22or beverages or meeting room rental if the charge made is comparable to similar charges
64.23made to other individuals or groups.
64.24    (f) No entity other than the (e) A licensed organization may not conduct any activity
64.25within a booth operation on behalf of the lessor on a leased premises.

64.26    Sec. 39. Minnesota Statutes 2010, section 349.19, subdivision 2, is amended to read:
64.27    Subd. 2. Accounts. (a) Gross receipts from lawful gambling by each organization
64.28must be segregated from all other revenues of the conducting organization and placed in a
64.29separate gambling bank account.
64.30(b) All expenditures for allowable expenses, taxes, and lawful purposes must be
64.31made from the separate account except (1) in the case of expenditures previously approved
64.32by the organization's membership for emergencies as defined by board rule, (2) as provided
64.33in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment
64.34of taxes for the organization as a whole, the organization may transfer the amount of taxes
64.35related to the conduct of gambling to the general account at the time when due and payable.
65.1(c) The name and address of the bank, the account number for the separate account,
65.2and the names of organization members authorized as signatories on the separate account
65.3must be provided to the board when the application is submitted. Changes in the
65.4information must be submitted to the board at least ten days before the change is made.
65.5(d) Except for gambling receipts from electronic pull-tab games and linked
65.6electronic bingo games, gambling receipts must be deposited into the gambling bank
65.7account within four business days of completion of the bingo occasion, deal, or game from
65.8which they are received.
65.9(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of
65.10the deal is sold or the organization does not continue the play of the deal during the next
65.11scheduled period of time in which the organization will conduct pull-tabs.
65.12(2) A tipboard game is considered complete when the seal on the game flare is
65.13uncovered or the organization does not continue the play of the deal during the next
65.14scheduled period of time in which the organization will conduct tipboards.
65.15(e) Gambling receipts from all electronic pull-tab games and all linked electronic
65.16bingo games must be recorded on a daily basis and deposited into the gambling bank
65.17account within two business days.
65.18(e) (f) Deposit records must be sufficient to allow determination of deposits made
65.19from each bingo occasion, deal, or game at each permitted premises.
65.20(f) (g) The person who accounts for gambling gross receipts and profits may not be
65.21the same person who accounts for other revenues of the organization.

65.22    Sec. 40. Minnesota Statutes 2010, section 349.19, subdivision 3, is amended to read:
65.23    Subd. 3. Expenditures. (a) All expenditures of gross profits from lawful gambling
65.24must be itemized as to payee, purpose, amount, and date of payment.
65.25(b) Each licensed organization must report monthly to the board on a form in an
65.26electronic format prescribed by the board each expenditure or contribution of net profits
65.27from lawful gambling. The reports must provide for each expenditure or contribution:
65.28(1) the name of the recipient of the expenditure or contribution;
65.29(2) the date the expenditure or contribution was approved by the organization;
65.30(3) the date, amount, and check number or electronic transfer confirmation number
65.31of the expenditure or contribution;
65.32(4) a brief description of how the expenditure or contribution meets one or more of
65.33the purposes in section 349.12, subdivision 25; and
66.1(5) in the case of expenditures authorized under section 349.12, subdivision 25,
66.2paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily
66.3benefits male or female participants.
66.4(c) Authorization of the expenditures must be recorded in the monthly meeting
66.5minutes of the licensed organization.
66.6(d) Checks or authorizations for electronic fund transfers for expenditures of gross
66.7profits must be signed by at least two persons authorized by board rules to sign the
66.8checks or authorizations.
66.9(e) Expenditures of gross profits from lawful gambling for local, state, and federal
66.10taxes as identified in section 349.12, subdivision 25, paragraph (a), clause (8), may be
66.11transferred electronically from the organization's gambling account directly to bank
66.12accounts identified by local, state, or federal agencies if the organization's gambling
66.13account monthly bank statement specifically identifies the payee by name, the amount
66.14transferred, and the date of the transaction.
66.15(f) Expenditures of gross profits from lawful gambling for payments for lawful
66.16purpose expenditures and allowable expenses may be transferred electronically from the
66.17organization's gambling account directly to bank accounts identified by the vendor if the
66.18organization's gambling account monthly bank statement specifically identifies the payee
66.19by name, the amount transferred, the account number of the account into which the funds
66.20were transferred, and the date of the transaction.
66.21(g) Expenditures of gross profits from lawful gambling for payroll compensation
66.22to an employee's account and for the payment of local, state, and federal withholding
66.23taxes may be transferred electronically to and from the account of a payroll processing
66.24firm provided that the firm:
66.25(1) is currently registered with and meets the criteria of the Department of Revenue
66.26as a third-party bulk filer under section 290.92, subdivision 30;
66.27(2) is able to provide proof of a third-party audit and an annual report and statement
66.28of financial condition;
66.29(3) is able to provide evidence of a fidelity bond; and
66.30(4) can provide proof of having been in business as a third-party bulk filer for the
66.31most recent three years.
66.32(h) Electronic payments of taxes, lawful purpose expenditures, and allowable
66.33expenses are permitted only if they have been authorized by the membership, the
66.34organization maintains supporting documentation, and the expenditures can be verified.
66.35EFFECTIVE DATE.This section is effective July 1, 2012.

67.1    Sec. 41. Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read:
67.2    Subd. 5. Reports. (a) A licensed organization must report monthly to the
67.3Department of Revenue board in an electronic format prescribed by the board and to its
67.4membership monthly, or quarterly in the case of a licensed organization which does not
67.5report more than $1,000 in gross receipts from lawful gambling in any calendar quarter,
67.6on its gross receipts, expenses, profits, and expenditure of profits from lawful gambling
67.7for each permitted premises. The organization must account for and report on each form
67.8of lawful gambling conducted. The report organization must include a reconciliation of
67.9the organization's profit carryover with its cash balance on hand. If the organization
67.10conducts both bingo and other forms of lawful gambling, the figures for both must be
67.11reported separately.
67.12(b) The organization must report annually to its membership and annually file with
67.13the board a financial summary report in a format prescribed by the board that identifies the
67.14organization's receipts and use of lawful gambling proceeds, including: monthly to the
67.15commissioner of revenue as required under section 297E.06.
67.16(1) gross receipts;
67.17(2) prizes paid;
67.18(3) allowable expenses;
67.19(4) lawful purpose expenditures, including annual totals for types of charitable
67.20contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph
67.21(a), clauses (8) and (18);
67.22(5) the percentage of annual gross profits used for charitable contributions; and
67.23(6) the percentage of annual gross profits used for all taxes and fees as per section
67.24349.12, subdivision 25, paragraph (a), clauses (8) and (18).
67.25EFFECTIVE DATE.This section is effective July 1, 2012.

67.26    Sec. 42. Minnesota Statutes 2010, section 349.19, subdivision 10, is amended to read:
67.27    Subd. 10. Pull-tab records. (a) The board shall by rule require a licensed
67.28organization to require each winner of a paper pull-tab prize of $50 or more to present
67.29identification in the form of a driver's license, Minnesota identification card, or other
67.30identification the board deems sufficient to allow the identification and tracking of the
67.31winner. The rule must require the organization to retain winning paper pull-tabs of $50 or
67.32more, and the identification of the winner of the pull-tab, for 3-1/2 years.
67.33    (b) An organization must maintain separate cash banks for each deal of paper
67.34pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the
68.1organization uses a cash register, of a type approved by the board, which records all
68.2sales of paper pull-tabs by separate deals.
68.3    (c) The board shall:
68.4    (1) by rule adopt minimum technical standards for cash registers that may be used
68.5by organizations, and shall approve for use by organizations any cash register that meets
68.6the standards; and
68.7    (2) before allowing an organization to use a cash register that commingles receipts
68.8from several different paper pull-tab games in play, adopt rules that define how cash
68.9registers may be used and that establish a procedure for organizations to reconcile all
68.10pull-tab games in play at the end of each month.

68.11    Sec. 43. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read:
68.12    Subd. 1a. Linked bingo prizes. Prizes for a linked bingo game shall be limited
68.13as follows:
68.14(1) no organization may contribute more than $300 per linked bingo game to a
68.15linked bingo prize pool for linked bingo games played without electronic bingo devices,
68.16an organization may not contribute to a linked bingo game prize pool more than $300
68.17per linked bingo game per site;
68.18(2) for linked bingo games played exclusively with electronic bingo devices, an
68.19organization may not contribute more than 85 percent of the gross receipts per permitted
68.20premises to a linked bingo game prize pool;
68.21(2) (3) no organization may award more than $200 for a linked bingo game
68.22consolation prize. For purposes of this subdivision, a linked bingo game consolation
68.23prize is a prize awarded by an organization after a prize from the linked bingo prize pool
68.24has been won; and
68.25    (3) (4) for a progressive linked bingo game, if no player declares a valid bingo
68.26within the for a progressive prize or prizes based on a predetermined amount of bingo
68.27numbers called and posted win determination, a portion of the prize is gross receipts
68.28may be carried over to another occasion game until the accumulated progressive prize
68.29is won. The portion of the prize that is not carried over must be awarded to the first
68.30player or players who declares a valid bingo as additional numbers are called. If a valid
68.31bingo is declared within the predetermined amount of bingo numbers called, the entire
68.32prize pool for that game is awarded to the winner. The annual limit for progressive bingo
68.33game prizes contained in subdivision 2 must be reduced by the amount an organization
68.34contributes to progressive linked bingo games during the same calendar year.; and
69.1(5) for linked bingo games played exclusively with electronic bingo devices, linked
69.2bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the
69.3player within three business days. Winners of linked bingo prizes in excess of $599 will
69.4be given a receipt or claim voucher as proof of a win.

69.5    Sec. 44. APPROPRIATION.
69.6(a) $779,000 in fiscal year 2013 and $779,000 in fiscal year 2014 and $779,000 in
69.7fiscal year 2015 are appropriated from the lawful gambling regulation account in the
69.8special revenue fund to the Gambling Control Board for operating expenses related
69.9to the regulatory oversight of lawful gambling for electronic pull-tabs and electronic
69.10linked bingo.
69.11(b) One-half of one percent of the revenue deposited in the general fund under
69.12Minnesota Statutes, section 16A.965, subdivision 8, paragraph (a), is appropriated to
69.13the commissioner of human services for the compulsive gambling treatment program
69.14established under Minnesota Statutes, section 245.98. One-half of one percent of the
69.15revenue deposited in the general fund under Minnesota Statutes, section 16A.965,
69.16subdivision 8, paragraph (a), is appropriated to the Gambling Control Board for a
69.17grant to the state affiliate recognized by the National Council on Problem Gambling to
69.18increase public awareness of problem gambling, education and training for individuals
69.19and organizations providing effective treatment services to problem gamblers and
69.20their families, and research relating to problem gambling. Money appropriated by this
69.21paragraph must supplement and must not replace existing state funding for these programs.

69.22    Sec. 45. EFFECTIVE DATE.
69.23Except as otherwise explicitly provided, this article is effective the day following
69.24final enactment.


69.27    Section 1. Minnesota Statutes 2010, section 297A.71, is amended by adding a
69.28subdivision to read:
69.29    Subd. 44. Building materials, capital projects. Materials and supplies used or
69.30consumed in and equipment incorporated into the construction or improvement of a
69.31capital project funded partially or wholly under section 297A.9905 are exempt, provided
69.32that the project has a total construction cost of at least $40,000,000 within a 24-month
69.33period. The tax on purchases exempt under this provision must be imposed and collected
70.1as if the rate under section 297A.62, subdivision 1, applied and then refunded in the
70.2manner provided in section 297A.75.
70.3EFFECTIVE DATE.This section is effective for sales and purchases made after
70.4June 30, 2013.

70.5    Sec. 2. Minnesota Statutes 2010, section 297A.75, as amended by Laws 2011, First
70.6Special Session chapter 7, article 3, sections 13 to 15, is amended to read:
70.7297A.75 REFUND; APPROPRIATION.
70.8    Subdivision 1. Tax collected. The tax on the gross receipts from the sale of the
70.9following exempt items must be imposed and collected as if the sale were taxable and the
70.10rate under section 297A.62, subdivision 1, applied. The exempt items include:
70.11    (1) capital equipment exempt under section 297A.68, subdivision 5;
70.12    (2) building materials for an agricultural processing facility exempt under section
70.13297A.71, subdivision 13 ;
70.14    (3) building materials for mineral production facilities exempt under section
70.15297A.71, subdivision 14 ;
70.16    (4) building materials for correctional facilities under section 297A.71, subdivision
70.173 ;
70.18    (5) building materials used in a residence for disabled veterans exempt under section
70.19297A.71, subdivision 11 ;
70.20    (6) elevators and building materials exempt under section 297A.71, subdivision 12;
70.21    (7) building materials for the Long Lake Conservation Center exempt under section
70.22297A.71, subdivision 17 ;
70.23    (8) materials and supplies for qualified low-income housing under section 297A.71,
70.24subdivision 23 ;
70.25    (9) materials, supplies, and equipment for municipal electric utility facilities under
70.26section 297A.71, subdivision 35;
70.27    (10) equipment and materials used for the generation, transmission, and distribution
70.28of electrical energy and an aerial camera package exempt under section 297A.68,
70.29subdivision 37;
70.30    (11) tangible personal property and taxable services and construction materials,
70.31supplies, and equipment exempt under section 297A.68, subdivision 41;
70.32    (12) commuter rail vehicle and repair parts under section 297A.70, subdivision
70.333, clause (11);
71.1    (13) materials, supplies, and equipment for construction or improvement of projects
71.2and facilities under section 297A.71, subdivision 40;
71.3(14) materials, supplies, and equipment for construction or improvement of a meat
71.4processing facility exempt under section 297A.71, subdivision 41;
71.5(15) materials, supplies, and equipment for construction, improvement, or expansion
71.6of an aerospace defense manufacturing facility exempt under section 297A.71, subdivision
71.742; and
71.8(16) enterprise information technology equipment and computer software for use in
71.9a qualified data center exempt under section 297A.68, subdivision 42.; and
71.10(17) materials, supplies, and equipment for qualifying capital projects under section
71.11297A.71, subdivision 44.
71.12    Subd. 2. Refund; eligible persons. Upon application on forms prescribed by the
71.13commissioner, a refund equal to the tax paid on the gross receipts of the exempt items
71.14must be paid to the applicant. Only the following persons may apply for the refund:
71.15    (1) for subdivision 1, clauses (1) to (3), the applicant must be the purchaser;
71.16    (2) for subdivision 1, clauses (4) and (7), the applicant must be the governmental
71.17subdivision;
71.18    (3) for subdivision 1, clause (5), the applicant must be the recipient of the benefits
71.19provided in United States Code, title 38, chapter 21;
71.20    (4) for subdivision 1, clause (6), the applicant must be the owner of the homestead
71.21property;
71.22    (5) for subdivision 1, clause (8), the owner of the qualified low-income housing
71.23project;
71.24    (6) for subdivision 1, clause (9), the applicant must be a municipal electric utility or
71.25a joint venture of municipal electric utilities;
71.26    (7) for subdivision 1, clauses (10), (11), (14), (15), and (16), the owner of the
71.27qualifying business; and
71.28    (8) for subdivision 1, clauses (12) and, (13), and (17), the applicant must be the
71.29governmental entity that owns or contracts for the project or facility.
71.30    Subd. 3. Application. (a) The application must include sufficient information
71.31to permit the commissioner to verify the tax paid. If the tax was paid by a contractor,
71.32subcontractor, or builder, under subdivision 1, clause (4), (5), (6), (7), (8), (9), (10), (11),
71.33(12), (13), (14), (15), or (16), or (17), the contractor, subcontractor, or builder must
71.34furnish to the refund applicant a statement including the cost of the exempt items and the
71.35taxes paid on the items unless otherwise specifically provided by this subdivision. The
71.36provisions of sections 289A.40 and 289A.50 apply to refunds under this section.
72.1    (b) An applicant may not file more than two applications per calendar year for
72.2refunds for taxes paid on capital equipment exempt under section 297A.68, subdivision 5.
72.3    (c) Total refunds for purchases of items in section 297A.71, subdivision 40, must not
72.4exceed $5,000,000 in fiscal years 2010 and 2011. Applications for refunds for purchases
72.5of items in sections 297A.70, subdivision 3, paragraph (a), clause (11), and 297A.71,
72.6subdivision 40, must not be filed until after June 30, 2009.
72.7    Subd. 4. Interest. Interest must be paid on the refund at the rate in section 270C.405
72.8from 90 days after the refund claim is filed with the commissioner for taxes paid under
72.9subdivision 1.
72.10    Subd. 5. Appropriation. The amount required to make the refunds is annually
72.11appropriated to the commissioner.
72.12EFFECTIVE DATE.This section is effective for sales and purchases made after .....

72.13    Sec. 3. [297A.9905] USE OF LOCAL TAX REVENUES BY CITIES OF THE
72.14FIRST CLASS.
72.15(a) Notwithstanding section 297A.99, or other general or special law or charter
72.16provision, if the revenues from any local tax imposed on retail sales under special law
72.17by a city of the first class exceeds the amount needed to fund the uses authorized in the
72.18special law, the city may expend the excess revenue from the tax to fund other capital
72.19projects of regional significance.
72.20(b) For purposes of this section:
72.21(1) "city of the first class" has the meaning given in section 410.01; and
72.22(2) "capital project of regional significance" means construction, expansion, or
72.23renovation of a sports facility or convention or civic center, that has a construction cost
72.24of at least $40,000,000.
72.25EFFECTIVE DATE.This section is effective the day following final enactment.

72.26    Sec. 4. USE OF THE STADIUM.
72.27    Subdivision 1. Amateur sports use. The lessee of the stadium must make the
72.28facilities of the stadium available to the Minnesota Amateur Sports Commission up to
72.29ten days each year on terms satisfactory to the commission for amateur sports activities
72.30consistent with Minnesota Statutes, chapter 240A, each year during the time the bonds
72.31issued pursuant to this act are outstanding. The commission must negotiate in good faith
72.32and may be required to pay no more than actual out-of-pocket expenses for the time
72.33it uses the stadium.
73.1    Subd. 2. High school league. The lessee of the stadium must make the facilities of
73.2the stadium available for use by the Minnesota State High School League for at least seven
73.3days each year for high school soccer and football tournaments. The lessee of the stadium
73.4must provide, and may not charge the league a fee for, this use, including security, ticket
73.5takers, custodial or cleaning services, or other similar services in connection with this use.


73.8    Section 1. [16A.1524] BACKUP REVENUES; FOOTBALL STADIUM
73.9FUNDING.
73.10    (a) If the commissioner of management and budget determines that the amount of
73.11revenues under section 16A.965, subdivision 8, paragraph (a), for the next fiscal year will
73.12be less than the amounts specified in section 16A.965, subdivision 8, paragraph (b), for
73.13that fiscal year, the commissioner may implement the revenue options authorized in this
73.14article. If the commissioner determines to exercise the authority under this section for
73.15a fiscal year, the commissioner must implement the revenue options, as necessary, in
73.16the following order:
73.17(1) a tax on luxury boxes as provided under section 473J.14, paragraph (a), clause
73.18(1);
73.19    (2) a sports-themed lottery game under section 349A.20;
73.20    (3) excess revenue from Hennepin County tax as provided under section 473.757,
73.21subdivision 11, paragraph (d); and
73.22    (4) an admissions tax, as provided under section 473J.14, paragraph (a), clause (2).
73.23    (b) Revenue raised under the authority granted by this section must be deposited
73.24in the general fund.
73.25    (c) If the commissioner determines to implement one or more of the revenue options
73.26authorized by this section, each subsequent year the commissioner must determine if
73.27the revenue is needed and will be imposed and collected for the next fiscal year. If the
73.28commissioner determines that one or more revenue options implemented for a fiscal year
73.29are not needed for a subsequent fiscal year, the commissioner must terminate them in the
73.30reverse order they were required to be implemented by paragraph (a) with the last option
73.31implemented terminated first and so forth.
73.32    (d) Before implementing a revenue source authorized under this section, the
73.33commissioner must report the intent to do so to the legislative commission on planning
73.34and fiscal policy. The commissioner must inform the commission of determinations to
73.35continue or discontinue each revenue source for a subsequent fiscal year.

74.1    Sec. 2. [349A.20] STADIUM, SPORTS-THEMED GAME.
74.2    The State Lottery shall conduct a game based on stadium or professional sports
74.3themes to generate a minimum of $2,100,000 in additional revenue for the fiscal year
74.4for the general fund.
74.5EFFECTIVE DATE.This section is effective pursuant to the authority granted
74.6under section 1, on the day following final enactment.

74.7    Sec. 3. Minnesota Statutes 2011 Supplement, section 473.757, subdivision 11, is
74.8amended to read:
74.9    Subd. 11. Uses of tax. (a) Revenues received from the tax imposed under
74.10subdivision 10 may be used:
74.11    (1) to pay costs of collection;
74.12    (2) to pay or reimburse or secure the payment of any principal of, premium, or
74.13interest on bonds issued in accordance with Laws 2006, chapter 257, section 12;
74.14    (3) to pay costs and make expenditures and grants described in this section, including
74.15financing costs related to them;
74.16    (4) to maintain reserves for the foregoing purposes deemed reasonable and
74.17appropriate by the county;
74.18    (5) to pay for operating costs of the ballpark authority other than the cost of
74.19operating or maintaining the ballpark; and
74.20    (6) to make expenditures and grants for youth activities and amateur sports and
74.21extension of library hours as described in subdivision 2;
74.22and for no other purpose.
74.23    (b) Revenues from the tax designated for use under paragraph (a), clause (5), must
74.24be deposited in the operating fund of the ballpark authority.
74.25    (c) After completion of the ballpark and public infrastructure, the tax revenues not
74.26required for current payments of the expenditures described in paragraph (a), clauses (1) to
74.27(6), shall be used to (i) redeem or defease the bonds and (ii) prepay or establish a fund for
74.28payment of future obligations under grants or other commitments for future expenditures
74.29which are permitted by this section. Upon the redemption or defeasance of the bonds and
74.30the establishment of reserves adequate to meet such future obligations, the taxes shall
74.31terminate and shall not be reimposed. For purposes of this subdivision, "reserves adequate
74.32to meet such future obligations" means a reserve that does not exceed the net present value
74.33of the county's obligation to make grants under paragraph (a), clauses (5) and (6), and to
74.34fund the reserve for capital improvements required under section 473.759, subdivision 3,
74.35for the 30-year period beginning on the date of the original issuance of the bonds, less
75.1those obligations that the county has already paid. Each fiscal year revenues available
75.2for use under this paragraph must be accumulated and may not be expended under this
75.3paragraph until 15 days after the close of the county's fiscal year, provided that the county
75.4has not received a notice under paragraph (d).
75.5    (d) Notwithstanding the authority to use revenues under paragraph (c), upon
75.6notification by the commissioner of management and budget under section 16A.1524 for a
75.7state fiscal year, the county must pay any revenues that would be available under paragraph
75.8(c) to the commissioner for that state fiscal year as provided under section 16A.1524.
75.9EFFECTIVE DATE.This section is effective the day following final enactment
75.10without local approval by Hennepin County under the Minnesota Statutes, section
75.11645.023, subdivision 1, paragraph (c).

75.12    Sec. 4. [473J.14] ADMISSIONS TAX.
75.13    (a) Upon notification by the commissioner of management and budget under section
75.1416A.1524, the commission shall by resolution impose and maintain a ten percent tax
75.15on either or both of:
75.16(1) the gross receipts received for the rental of box seats, suites, sky boxes, and
75.17similar in the NFL stadium; or
75.18(2) the granting, issuance, sale, or distribution, by any private or public person,
75.19association, or corporation, of the privilege of admission to professional sporting events
75.20at the NFL stadium.
75.21(b) Each tax must be imposed in the years specified by the commissioner of
75.22management and budget. The suites rental tax under paragraph (a), clause (1), applies to
75.23the gross receipts, as defined under section 297A.61, received by the seller, as defined
75.24in section 297A.61, and is a debt owned by the seller to the commission. The admission
75.25tax under paragraph (a), clause (2), must be stated and charged separately from the sales
75.26price so far as practicable and the grantor, seller, or distributor must collect the tax from
75.27the person admitted and the tax is a debt from that person to the grantor, issuer, seller, or
75.28distributor, and the tax required to be collected is a debt owed by the grantor, issuer, seller,
75.29or distributor to the commission. Any tax imposed under this section is recoverable at
75.30law by the commission from the grantor, issuer, seller, or distributor in the same manner
75.31as other debts. Every person granting, issuing, selling, or distributing tickets for taxable
75.32admissions or renting boxes, suites or similar may be required, as provided in resolutions
75.33of the commission, to secure a permit, to file returns, to deposit security for the payment
75.34of the tax, and to pay the penalties for nonpayment and interest on late payments, as the
76.1commission deems necessary or expedient to assure the prompt and uniform collection of
76.2either or both of the taxes.
76.3    (c) The commission shall remit the proceeds of any taxes imposed under this section
76.4to the commissioner of management and budget for deposit in the state's general fund.
76.5    (d) Notwithstanding any other provisions of this section, the imposition of an
76.6admission tax upon a national superbowl football game conducted at the NFL stadium is
76.7discretionary with the commission.


76.10    Section 1. Minnesota Statutes 2010, section 297E.01, subdivision 7, is amended to read:
76.11    Subd. 7. Gambling product. "Gambling product" means bingo hard cards, bingo
76.12paper sheets, or linked bingo paper sheets, or electronic linked bingo games; pull-tabs;
76.13electronic pull-tab games; tipboards; paddle tickets and paddle ticket cards; raffle tickets;
76.14or any other ticket, card, board, placard, device, or token that represents a chance, for
76.15which consideration is paid, to win a prize.
76.16EFFECTIVE DATE.This section is effective for July 1, 2012.

76.17    Sec. 2. Minnesota Statutes 2010, section 297E.01, subdivision 8, is amended to read:
76.18    Subd. 8. Gross receipts. "Gross receipts" means all receipts derived from lawful
76.19gambling activity including, but not limited to, the following items:
76.20(1) gross sales of bingo hard cards and, paper sheets, linked bingo paper sheets, and
76.21electronic linked bingo games before reduction for prizes, expenses, shortages, free plays,
76.22or any other charges or offsets;
76.23(2) the ideal gross of pull-tab, electronic pull-tab games, and tipboard deals or games
76.24less the value of unsold and defective tickets and before reduction for prizes, expenses,
76.25shortages, free plays, or any other charges or offsets;
76.26(3) gross sales of raffle tickets and paddle tickets before reduction for prizes,
76.27expenses, shortages, free plays, or any other charges or offsets;
76.28(4) admission, commission, cover, or other charges imposed on participants in
76.29lawful gambling activity as a condition for or cost of participation; and
76.30(5) interest, dividends, annuities, profit from transactions, or other income derived
76.31from the accumulation or use of gambling proceeds.
76.32Gross receipts does not include proceeds from rental under section 349.18,
76.33subdivision 3 .
77.1EFFECTIVE DATE.This section is effective for July 1, 2012.

77.2    Sec. 3. Minnesota Statutes 2010, section 297E.01, subdivision 9, is amended to read:
77.3    Subd. 9. Ideal gross. "Ideal gross" means the total amount of receipts that would be
77.4received if every individual ticket in the pull-tab, electronic pull-tab games or tipboard
77.5deal, paddlewheel game, and raffle ticket was sold at its face value. In the calculation of
77.6ideal gross and prizes, a free play ticket pull-tab or electronic pull-tab shall be valued at
77.7face value. "Ideal gross" also means the total amount of receipts that would be received
77.8if every bingo paper sheet, linked bingo paper sheet, and electronic linked bingo games
77.9were sold at face value.
77.10EFFECTIVE DATE.This section is effective for July 1, 2012.

77.11    Sec. 4. Minnesota Statutes 2010, section 297E.02, subdivision 1, is amended to read:
77.12    Subdivision 1. Imposition. A tax is imposed on all lawful gambling other than (1)
77.13paper or electronic pull-tab deals or games; (2) tipboard deals or games; and (3) electronic
77.14linked bingo; and (4) items listed in section 297E.01, subdivision 8, clauses (4) and (5), at
77.15the rate of 8.5 percent on the gross receipts as defined in section 297E.01, subdivision 8,
77.16less prizes actually paid. The tax imposed by this subdivision is in lieu of the tax imposed
77.17by section 297A.62 and all local taxes and license fees except a fee authorized under
77.18section 349.16, subdivision 8, or a tax authorized under subdivision 5.
77.19The tax imposed under this subdivision is payable by the organization or party
77.20conducting, directly or indirectly, the gambling.
77.21EFFECTIVE DATE.This section is effective for games reported as played after
77.22June 30, 2012.

77.23    Sec. 5. Minnesota Statutes 2010, section 297E.02, subdivision 3, is amended to read:
77.24    Subd. 3. Collection; disposition. (a) Taxes imposed by this section other than in
77.25subdivision 4 are due and payable to the commissioner when the gambling tax return
77.26is required to be filed. Taxes imposed by subdivision 4 are due and payable to the
77.27commissioner on or before the last business day of the month following the month in
77.28which the taxable sale was made. Distributors must file their monthly sales figures with
77.29the commissioner on a form prescribed by the commissioner. Returns covering the taxes
77.30imposed under this section must be filed with the commissioner on or before the 20th day
77.31of the month following the close of the previous calendar month. The commissioner
77.32may require that the returns be filed via magnetic media or electronic data transfer. The
78.1proceeds, along with the revenue received from all license fees and other fees under
78.2sections 349.11 to 349.191, 349.211, and 349.213, must be paid to the commissioner of
78.3management and budget for deposit in the general fund.
78.4(b) The sales tax imposed by chapter 297A on the sale of the pull-tabs and tipboards
78.5by the distributor is imposed on the retail sales price. The retail sale of pull-tabs or
78.6tipboards by the organization is exempt from taxes imposed by chapter 297A and is
78.7exempt from all local taxes and license fees except a fee authorized under section 349.16,
78.8subdivision 8.
78.9EFFECTIVE DATE.This section is effective for July 1, 2012.

78.10    Sec. 6. Minnesota Statutes 2010, section 297E.02, subdivision 6, is amended to read:
78.11    Subd. 6. Combined net receipts tax. In addition to the taxes imposed under
78.12subdivisions 1 and 4, a tax is imposed on the combined receipts of the organization. As
78.13used in this section, "combined net receipts" is the sum of the organization's gross receipts
78.14from lawful gambling less gross receipts directly derived from the conduct of bingo,
78.15raffles, and paddle wheels, as defined in section 297E.01, subdivision 8, and less the
78.16net prizes actually paid, other than prizes actually paid for bingo, raffles, and paddle
78.17wheels, for the fiscal year. The combined net receipts of an organization are subject to a
78.18tax computed according to the following schedule:

78.19 78.20 78.21		If the combined net receipts for the fiscal year are:		The tax is:
78.22		Not over $500,000$87,500		zero6.89 percent
78.23		Over $500,000$87,500,
78.24 78.25 78.26		but not over $700,000 $122,500		1.7$6,029 plus 13.78 percent of the amount over $500,000$87,500, but not over $700,000$122,500
78.27		Over $700,000$122,500,
78.28 78.29 78.30 78.31		but not over $900,000 $157,500		$3,400$10,852 plus 3.420.67 percent of the amount over $700,000 $122,500, but not over $900,000 $157,500
78.32 78.33 78.34		Over $900,000$157,500		$10,200$18,086 plus 5.127.56 percent of the amount over $900,000 $157,500

78.35EFFECTIVE DATE.This section is effective July 1, 2012.

78.36    Sec. 7. Minnesota Statutes 2010, section 297E.02, is amended by adding a subdivision
78.37to read:
79.1    Subd. 6a. Unaccounted games. If a licensed distributor cannot account for a
79.2pull-tab game, an electronic pull-tab game, a tipboard deal, paddletickets, an electronic
79.3linked bingo game, bingo paper sheets, or linked bingo paper sheets, the distributor must
79.4report the sheets or games as lost to the commissioner and remit a tax of six percent
79.5on the ideal gross of the sheets or games.
79.6EFFECTIVE DATE.This section is effective for July 1, 2012.

79.7    Sec. 8. Minnesota Statutes 2010, section 297E.02, subdivision 7, is amended to read:
79.8    Subd. 7. Untaxed gambling product. (a) In addition to penalties or criminal
79.9sanctions imposed by this chapter, a person, organization, or business entity possessing or
79.10selling a pull-tab, electronic pull-tab game or tipboard upon which the tax imposed by
79.11subdivision 4 this chapter has not been paid is liable for a tax of six percent of the ideal
79.12gross of each pull-tab, electronic pull-tab game, or tipboard. The tax on a partial deal
79.13must be assessed as if it were a full deal.
79.14(b) In addition to penalties and criminal sanctions imposed by this chapter, a person
79.15not licensed by the board who conducts bingo, linked bingo, electronic linked bingo,
79.16raffles, or paddle wheel games is liable for a tax of six percent of the gross receipts
79.17from that activity.
79.18(c) The tax must be assessed by the commissioner. An assessment must be
79.19considered a jeopardy assessment or jeopardy collection as provided in section 270C.36.
79.20The commissioner shall assess the tax based on personal knowledge or information
79.21available to the commissioner. The commissioner shall mail to the taxpayer at the
79.22taxpayer's last known address, or serve in person, a written notice of the amount of tax,
79.23demand its immediate payment, and, if payment is not immediately made, collect the tax
79.24by any method described in chapter 270C, except that the commissioner need not await the
79.25expiration of the times specified in chapter 270C. The tax assessed by the commissioner
79.26is presumed to be valid and correctly determined and assessed. The burden is upon the
79.27taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision
79.28does not apply to gambling that is exempt from taxation under subdivision 2.
79.29EFFECTIVE DATE.This section is effective for July 1, 2012.

79.30    Sec. 9. Minnesota Statutes 2010, section 297E.02, subdivision 10, is amended to read:
79.31    Subd. 10. Refunds; appropriation. A person who has, under this chapter, paid
79.32to the commissioner an amount of tax for a period in excess of the amount legally due
79.33for that period, may file with the commissioner a claim for a refund of the excess. The
80.1amount necessary to pay the refunds under this subdivision and subdivision 4, paragraph
80.2(d), is appropriated from the general fund to the commissioner.
80.3EFFECTIVE DATE.This section is effective for July 1, 2012.

80.4    Sec. 10. Minnesota Statutes 2010, section 297E.02, subdivision 11, is amended to read:
80.5    Subd. 11. Unplayed or Defective pull-tabs or tipboards gambling products. If a
80.6deal of pull-tabs or tipboards registered with the board or bar coded in accordance with this
80.7chapter and chapter 349 and upon which the tax imposed by subdivision 4 has been paid is
80.8returned unplayed to the distributor, the commissioner shall allow a refund of the tax paid.
80.9If a defective deal registered with the board or bar coded in accordance with this
80.10chapter and chapter 349 and upon which the taxes have been paid is returned to the
80.11manufacturer, the distributor shall submit to the commissioner of revenue certification
80.12from the manufacturer that the deal was returned and in what respect it was defective.
80.13The certification must be on a form prescribed by the commissioner and must contain
80.14additional information the commissioner requires.
80.15The commissioner may require that no refund under this subdivision be made
80.16unless the that all defective and returned pull-tabs or, tipboards have been, paddle tickets,
80.17paper bingo sheets, and linked bingo paper sheets be set aside for inspection by the
80.18commissioner's employee.
80.19Reductions in previously paid taxes authorized by this subdivision must be made
80.20when and in the manner prescribed by the commissioner.
80.21EFFECTIVE DATE.This section is effective for July 1, 2012.

80.22    Sec. 11. Minnesota Statutes 2010, section 297E.02, is amended by adding a subdivision
80.23to read:
80.24    Subd. 12. Rebate. Each fiscal year in which an amount is available under section
80.2516A.695, subdivision 8, paragraph (d), for the payment of rebates, the commissioner shall
80.26make a rebate payment to each organization or distributor under this chapter in proportion
80.27to its liability for tax for the preceding year, except no rebate must be paid to an entity
80.28if its entitlement is less than $25. The commissioner shall pay the rebate by August 15
80.29following the close of the fiscal year.

80.30    Sec. 12. Minnesota Statutes 2010, section 297E.13, subdivision 5, is amended to read:
80.31    Subd. 5. Untaxed gambling equipment. It is a gross misdemeanor for a person to
80.32possess gambling equipment for resale in this state that has not been stamped or bar-coded
81.1in accordance with this chapter and chapter 349 and upon which the taxes imposed by
81.2chapter 297A or section 297E.02, subdivision 4, have not been paid. The director of
81.3alcohol and gambling enforcement or the commissioner or the designated inspectors
81.4and employees of the director or commissioner may seize in the name of the state of
81.5Minnesota any unregistered or untaxed gambling equipment.
81.6EFFECTIVE DATE.This section is effective for actions occurring after June
81.730, 2012.

81.8    Sec. 13. REPEALER.
81.9Minnesota Statutes 2010, section 297E.02, subdivision 4, is repealed.
81.10EFFECTIVE DATE.This section is effective for games sold after June 30, 2012."
81.11Amend the title accordingly