Bill Text: MN HF2422 | 2011-2012 | 87th Legislature | Introduced

---

Bill Title: Arden Hills stadium construction, electronic pull-tabs and bingo authorized; public infrastructure improvement funding provided, bonds issued, and money appropriated.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2012-02-22 - Introduction and first reading, referred to Commerce and Regulatory Reform [HF2422 Detail]

Download: Minnesota-2011-HF2422-Introduced.html

---

A bill for an act

relating to stadiums; constructing a stadium in Arden Hills; authorizing electronic
pull-tabs and bingo; authorizing the sale and issuance of state appropriation
bonds; funding public infrastructure improvements; appropriating money;
amending Minnesota Statutes 2010, sections 3.971, subdivision 6; 3.9741, by
adding a subdivision; 13.55, subdivision 1; 297A.71, by adding a subdivision;
297A.992, by adding a subdivision; 349.12, subdivisions 3b, 3c, 5, 6a, 12a, 18,
25b, 25c, 25d, 29, 31, 32, by adding subdivisions; 349.13; 349.151, subdivisions
4b, 4c, by adding a subdivision; 349.161, subdivisions 1, 5; 349.162, subdivision
5; 349.163, subdivisions 1, 5, 6; 349.1635, subdivisions 2, 3, by adding a
subdivision; 349.17, subdivisions 6, 7, 8, by adding a subdivision; 349.1721;
349.18, subdivision 1; 349.19, subdivisions 2, 3, 5, 10; 349.211, subdivision
1a; 349.2127, subdivision 2; 352.01, subdivision 2a; 473.121, subdivision 5a;
473.164; 473.565, subdivision 1; Minnesota Statutes 2011 Supplement, sections
10A.01, subdivision 35; 340A.404, subdivision 1; proposing coding for new law
in Minnesota Statutes, chapter 383A; proposing coding for new law as Minnesota
Statutes, chapter 473J; repealing Minnesota Statutes 2010, sections 137.50,
subdivision 5; 473.551; 473.552; 473.553, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9,
10, 11, 12, 13; 473.556, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16,
17; 473.561; 473.564, subdivisions 2, 3; 473.572; 473.581; 473.592, subdivision
1; 473.595; 473.5955; 473.596; 473.598; 473.599; 473.5995; 473.76.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

MINNESOTA STADIUM AUTHORITY

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

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

    Sec. 3. Minnesota Statutes 2011 Supplement, section 10A.01, subdivision 35, is
amended to read:
    Subd. 35. Public official. "Public official" means any:
    (1) member of the legislature;
    (2) individual employed by the legislature as secretary of the senate, legislative
auditor, chief clerk of the house of representatives, revisor of statutes, or researcher,
legislative analyst, or attorney in the Office of Senate Counsel and Research or House
Research;
    (3) constitutional officer in the executive branch and the officer's chief administrative
deputy;
    (4) solicitor general or deputy, assistant, or special assistant attorney general;
    (5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;
    (6) member, chief administrative officer, or deputy chief administrative officer of a
state board or commission that has either the power to adopt, amend, or repeal rules under
chapter 14, or the power to adjudicate contested cases or appeals under chapter 14;
    (7) individual employed in the executive branch who is authorized to adopt, amend,
or repeal rules under chapter 14 or adjudicate contested cases under chapter 14;
    (8) executive director of the State Board of Investment;
    (9) deputy of any official listed in clauses (7) and (8);
    (10) judge of the Workers' Compensation Court of Appeals;
    (11) administrative law judge or compensation judge in the State Office of
Administrative Hearings or unemployment law judge in the Department of Employment
and Economic Development;
    (12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;
    (13) member or chief administrator of a metropolitan agency;
    (14) director of the Division of Alcohol and Gambling Enforcement in the
Department of Public Safety;
    (15) member or executive director of the Higher Education Facilities Authority;
    (16) member of the board of directors or president of Enterprise Minnesota, Inc.;
    (17) member of the board of directors or executive director of the Minnesota State
High School League;
    (18) member of the Minnesota Ballpark Authority established in section 473.755;
    (19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;
    (20) manager of a watershed district, or member of a watershed management
organization as defined under section 103B.205, subdivision 13;
    (21) supervisor of a soil and water conservation district;
(22) director of Explore Minnesota Tourism;
    (23) citizen member of the Lessard-Sams Outdoor Heritage Council established in
section 97A.056; or
(24) a citizen member of the Clean Water Council established in section 114D.30.; or
(25) member or chief executive of the Minnesota Stadium Authority established
in section 473J.05.

    Sec. 4. Minnesota Statutes 2010, section 297A.71, is amended by adding a subdivision
to read:
    Subd. 43. Building materials, football stadium. Materials and supplies used
or consumed in, and equipment incorporated into, the construction or improvement of
the football stadium, and infrastructure as defined under section 473J.03, subdivision
13, constructed pursuant to this act are exempt. This subdivision expires one year
after the date that the first National Football League game is played in the stadium for
materials, supplies, and equipment used in the stadium, and five years after the issuance
of the first bonds under section 473J.19 for materials, supplies, and equipment used in
the infrastructure.
EFFECTIVE DATE.This section is effective for sales and purchases made after
June 30, 2012.

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

    Sec. 6. [473J.01] PURPOSE.
The purpose of this chapter is to provide for the planning, construction, financing,
and long-term use of a stadium as a venue for professional football and a broad range
of community, civic, and sporting events. The legislature finds and declares that the
expenditure of public money by the county and the state for this purpose is necessary
and serves a public and important statewide purpose, and that property acquired by the
county and/or the authority for the construction of the stadium and related infrastructure is
acquired for a public use or public purpose under chapter 117. The legislature further finds
and declares that any provision in a lease or use agreement with a professional football
team that requires the team to play all of its home games in a publicly funded stadium,
with exceptions as provided in section 473J.11, subdivision 5, for the duration of the
lease or use agreement serves a unique public purpose for which the remedies of specific
performance and injunctive relief are essential to its enforcement. The legislature further
finds and declares that government assistance to facilitate the presence of professional
football provides to the state of Minnesota and its citizens highly valued intangible
benefits that are virtually impossible to quantify and, therefore, not recoverable even if
the government receives monetary damages in the event of a team's breach of contract.
Minnesota courts are, therefore, charged with protecting those benefits through the use
of specific performance and injunctive relief as provided in this chapter and in the lease
and use agreements.

    Sec. 7. [473J.03] DEFINITIONS.
    Subdivision 1. Application. For the purposes of this chapter, the terms defined in
this section have the meanings given them, except as otherwise expressly provided or
indicated by the context.
    Subd. 2. Authority. "Authority" means the Minnesota Stadium Authority
established under section 473J.05.
    Subd. 3. City. "City" means the city of Arden Hills.
    Subd. 4. County. "County" means Ramsey County.
    Subd. 5. County agreement. "County agreement" means the definitive agreement
or agreements to be entered into between the county and the team which shall be consistent
with the principles of agreement.
    Subd. 6. Development area. "Development area" means the Twin Cities Army
Ammunitions Plant site in Arden Hills as further described in the county agreement.
    Subd. 7. Infrastructure costs. "Infrastructure costs" means the costs of all property,
facilities, and improvements determined by the authority as necessary or desirable to
facilitate the development and use of the stadium, including but not limited to property and
improvements for drainage, environmental remediation, parking, on-site roadways and
public rights-of-way, walkways, skyways, pedestrian bridges, bicycle paths, and transit
improvements to facilitate public access to the stadium, lighting, landscaping, utilities,
streets, and streetscapes. Infrastructure costs do not include off-site public infrastructure
improvements.
    Subd. 8. Land acquisition costs. "Land acquisition costs" means the costs of
acquiring the land for the project.
    Subd. 9. NFL. The NFL is the National Football League.
    Subd. 10. Principles of agreement. "Principles of agreement" means the Ramsey
County/Minnesota Vikings Principles of Agreement for the development of a new
multipurpose stadium, dated May 10, 2011.
    Subd. 11. Stadium. "Stadium" means the stadium suitable for professional football
to be designed, constructed, and financed under this chapter. The stadium must have a
fixed roof that covers the stadium.
    Subd. 12. Stadium costs. "Stadium costs" means the costs of designing,
constructing, and equipping a stadium suitable for professional football and for other
civic and community uses.
    Subd. 13. Stadium project. "Stadium project" means the stadium and
accompanying on-site infrastructure costs. It does not include ancillary private real estate
development.
    Subd. 14. Streetscape. "Streetscape" means improvements to streets and sidewalks
or other public rights-of-way for the purpose of enhancing the movement, safety,
convenience, or enjoyment of stadium patrons and other pedestrians, including decorative
lighting and surfaces, plantings, display and exhibit space, adornments, seating, and
transit and bus shelters.
    Subd. 15. Team. "Team" means the owner of the professional football team known,
as of the effective date of this chapter, as the Minnesota Vikings or any owner who
purchases or otherwise takes ownership or control of or reconstitutes the professional
football team known as the Minnesota Vikings.
    Subd. 16. Watershed district. "Watershed district" means the Rice Creek
Watershed District.
    Subd. 17. Off-site public infrastructure. "Off-site public infrastructure" means
road, sewer, water, or other public improvements of a capital nature that are necessary
to provide public access to the stadium and that are not included in infrastructure as
defined in subdivision 7.

    Sec. 8. [473J.05] MINNESOTA STADIUM AUTHORITY.
    Subdivision 1. Establishment and purpose. The authority is established as a
public body, corporate and politic, and political subdivision of the state. In addition to
those powers and duties ascribed the authority herein, the authority shall ensure athletic,
educational, cultural, commercial and other entertainment, instruction, and activity for
the citizens of Minnesota and visitors. The authority is not a joint powers entity or an
agency or instrumentality of the county.
    Subd. 2. Membership; terms. (a) The authority shall consist of five members.
(b) The chair and two members shall be appointed by the governor. One member
appointed by the governor shall serve until December 31 of the third year following
appointment and the other shall serve until December 31 of the sixth year following
appointment. Thereafter, members appointed by the governor shall serve six-year terms,
beginning January 1. The chair serves at the pleasure of the governor. All members
appointed by the governor must reside outside the county.
(c) The governing board of the county shall appoint two members to the authority.
One member appointed by the county shall serve until December 31 of the third year
following appointment and one member shall serve until December 31 of the sixth year
following appointment. Thereafter, members appointed by the county shall serve six-year
terms, beginning January 1. Members appointed under this paragraph may reside within
or outside the county. One member appointed by the county may be from Arden Hills.
(d) Each member appointed under this subdivision serves until a successor is
appointed and takes office. A member must not be an appointed or elected official of any
political subdivision. If a vacancy occurs as provided in section 351.02, it shall be filled by
the appointing authority in the same manner in which the original appointment was made.
    Subd. 3. Compensation. The authority may compensate its members, other than the
chair, as provided in section 15.0575. The chair shall receive, unless otherwise provided
by other law, a salary in an amount fixed by the authority and shall be reimbursed for
reasonable expenses to the same extent as a member.
    Subd. 4. Chair; other officers. The chair presides at all meetings of the authority, if
present, and performs all other assigned duties and functions. The authority may appoint
from among its members a vice-chair to act for the chair during the temporary absence
or disability of the chair and any other officers the authority determines are necessary
or convenient.
    Subd. 5. Bylaws. The authority shall adopt bylaws to establish rules of procedure,
the powers and duties of its officers, and other matters relating to the governance of the
authority and the exercise of its powers.
    Subd. 6. Audit. The legislative auditor shall audit the books and accounts of the
authority once each year or as often as the legislative auditor's funds and personnel permit.
The authority shall pay the total cost of the audit pursuant to section 3.9741.
    Subd. 7. Executive director; employees. The authority may appoint an executive
director to serve as the chief executive officer of the authority. The executive director
serves at the pleasure of the authority and receives compensation as determined by it.
The executive director is responsible for the operation, management, and promotion of
activities of the authority, as prescribed by the authority. The executive director has the
powers necessarily incident to the performance of duties required and powers granted by
the authority, but does not have authority to incur liability or make expenditures on behalf
of the authority without general or specific directions by the authority, as shown by the
bylaws or minutes of a meeting of the authority. The executive director is responsible for
hiring, supervision, and dismissal of all other employees of the authority.
    Subd. 8. Web site. The authority shall establish a Web site for purposes of
providing information to the public concerning all actions taken by the authority. At a
minimum, the Web site must contain a current version of the authority's bylaws, notices
of upcoming meetings, minutes of the authority's meetings, and contact telephone and
facsimile numbers for public comments.
    Subd. 9. Accounts of the authority. The authority shall establish accounts to
receive and expend money for planning, construction, operations, maintenance, and
capital expenditures.

    Sec. 9. [473J.07] POWERS, DUTIES OF THE AUTHORITY.
    Subdivision 1. Actions. The authority may sue and be sued. The stadium and
infrastructure are public improvements within the meaning of chapter 562. The authority
is a municipality within the meaning of chapter 466.
    Subd. 2. Acquisition of property. The authority may acquire from any public or
private entity by lease, purchase, gift, or devise all necessary right, title, and interest in
and to real property, air rights, and personal property deemed necessary to the purposes
contemplated by this chapter.
    Subd. 3. Disposition of property. The authority may sell, lease, transfer, or
otherwise dispose of any real or personal property acquired by the authority that is no
longer required for accomplishment of the authority's purposes. The property may be sold
in accordance with the procedures provided by section 469.065, except subdivisions 5, 6,
and 7, to the extent the authority deems it to be practical and consistent with this chapter.
Title to the stadium must not be transferred or sold prior to the effective date of enactment
of any legislation approving such transfer or sale.
    Subd. 4. Data practices; open meetings. Except as otherwise provided in this
chapter, the authority is subject to chapters 13 and 13D.
    Subd. 5. Employees; contracts for services. The authority may employ persons
and contract for services necessary to carry out its functions, including the utilization of
employees and consultants retained by other governmental entities.
    Subd. 6. Gifts, grants. The authority may accept monetary contributions, property,
services, and grants or loans of money or other property from the United States, the state,
any subdivision of the state, any agency of those entities, or any person for any of its
purposes, and may enter into any agreement required in connection with the gifts, grants,
or loans. The authority shall hold, use, and dispose of the money, property, or services
according to the terms of the monetary contributions, grant, loan, or agreement.
    Subd. 7. Research. The authority may conduct research studies and programs;
collect and analyze data; prepare reports, maps, charts, and tables; and conduct all
necessary hearings and investigations in connection with its functions.
    Subd. 8. Insurance. The authority may require any employee to obtain and file
with the authority an individual bond or fidelity insurance policy. The authority may
procure insurance in the amounts the authority considers necessary against liability of the
authority and its officers and employees for personal injury or death and property damage
or destruction, consistent with chapter 466, and against risks of damage to or destruction
of any of its facilities, equipment, or other property.
    Subd. 9. Metropolitan Council review. The acquisition and betterment of a
stadium and the construction of the accompanying infrastructure, as provided herein, must
be conducted pursuant to this chapter and are subject to sections 473.165 and 473.173.
    Subd. 10. Business Subsidy Act exemption. Section 116J.994 does not apply to
any transactions of the authority or other governmental entity related to the stadium or
infrastructure or to any tenant or other users of the stadium or infrastructure.
    Subd. 11. Incidental powers. In addition to the powers expressly granted in this
chapter, the authority has all powers necessary or incidental thereto.
    Subd. 12. Authority review. All agreements between the county and the team must
be public and are subject to review, amendment, and approval by the authority.

    Sec. 10. [473J.09] STADIUM OPERATIONS.
    Subdivision 1. Stadium operation. The authority may own, develop, construct,
equip, improve, operate, manage, maintain, and control the stadium, parking facilities, and
related facilities constructed or acquired under this chapter. The stadium shall be operated
in a first-class manner, similar to and consistent with that of other comparable NFL
stadiums. The authority and team will jointly select an experienced management company
or individual to manage the stadium on behalf of the authority and the team. Terms of a
management contract may be negotiated between the team and authority, but must include:
(1) a provision granting the team operational control of matters related to NFL
games;
(2) a provision granting operational control of matters related to non-NFL events to
the authority;
(3) a provision requiring mutual agreement on selection of vendors; and
(4) a provision requiring mutual agreement on all other provisions.
    Subd. 2. Use agreements. The authority may lease, license, or enter into use
agreements and may fix, alter, charge, and collect rentals, fees, and charges for the use,
occupation, and availability of part or all of any premises, property, or facilities under its
ownership, operation, or control with the team and for purposes that will provide athletic,
educational, cultural, commercial, or other entertainment, instruction, or activity for the
citizens of Minnesota and visitors. The lease or use agreement may provide that the other
contracting party has exclusive use of the premises at the times agreed upon, as well as
the right to retain some or all revenues from ticket sales, suite licenses, concessions,
advertising, naming rights, and other revenues derived from the stadium. The lease or
use agreement with a team must provide for the payment by the team of an agreed-upon
portion of operating and maintenance costs and expenses and provide other terms in
which the authority and team agree. In no case may a lease or use agreement permit
smoking in the stadium.
    Subd. 3. Operating expenses. The authority must provide in the lease or use
agreements with the team that the team pay for operating costs of the stadium except for
costs associated with non-NFL events, which shall be paid by the authority. A lease or use
agreement may include provisions for the payment of operating expenses and for a capital
reserve. The authority shall agree to provide in the lease or use agreement for the team
to receive all game-day revenues and suite revenues. The agreement shall provide that
naming rights to the stadium are retained by the team, subject to the approval of the name
or names by the authority. The agreement shall provide for the authority to receive all
general ticket revenues from nonprofessional football games or events. The county shall
pay the authority $1,500,000 annually for operating expenses, beginning January 1, 2013,
and this amount shall grow by an agreed-upon annual inflation rate thereafter.
    Subd. 4. Public access. The authority will work to maximize access for public and
amateur sports, community, and civic events and other public events in type and on terms
consistent with those currently held at the Hubert H. Humphrey Metrodome, as defined
in section 473.551, subdivision 9. The authority may provide that these events have
exclusive use of the premises at agreed-upon times.
    Subd. 5. Municipal services. The team shall be responsible for any and all costs
incurred for municipal services, including but not limited to police and security, traffic
control, fire prevention, emergency medical, street cleaning and trash removal, and other
similar services provided for events held by the team. The city and county shall consult
with the team and authority to determine appropriate public and private staffing levels for
police and security, traffic control, fire prevention, emergency medical, street cleaning
and trash removal, and other similar services based upon anticipated attendance for NFL
games and any other events held at the stadium. If the city or county determines that a
public safety issue exists with respect to a particular NFL game or event, the city and
county shall have the right to determine and impose the staffing level for such event.
Sponsors of civic, noncommercial events and uses shall be responsible for any and all
incremental costs incurred for municipal services provided for its event.

    Sec. 11. [473J.11] LEASE OR USE AGREEMENT; CONDITIONS AND
CRITERIA.
    Subdivision 1. Scope. The lease or use agreement or other transaction documents
between the authority and the team shall include the criteria and conditions contained
in this section.
    Subd. 2. Term. The team will enter into a stadium lease or use agreement with the
county or authority for a term of 30 years, with team options to extend the term.
    Subd. 3. Capital improvements. (a) The authority shall be responsible for making,
or for causing others to make, all capital repairs, replacements, and improvements for the
stadium and parking facilities. The authority shall maintain or cause others to maintain
the stadium and parking facilities in a safe, clean, attractive, and first class manner so
as to cause them to remain in a condition comparable to that of other NFL facilities of
similar design and age, ordinary wear and tear excepted. The authority shall maintain, or
cause others to maintain, the stadium and parking facilities in a manner that is consistent
with all applicable requirements imposed by the NFL, and with the original design and
construction program of the stadium and parking facilities. The authority shall make, or
cause others to make, all necessary or appropriate repairs, renewals, and replacements,
whether structural or nonstructural, interior or exterior, ordinary or extraordinary, foreseen
or unforeseen, in a prompt and timely manner.
(b) The county must contribute $1,000,000 and the team must contribute $2,000,000
annually for the term of lease to the reserve fund. The team and county contributions are
subject to an annual growth of three percent, or to an inflationary index, as determined
by the authority; however, the amount of any increase in the county's contribution shall
not exceed the annual amount of the increase in sales tax net proceeds collected in the
county in each year. The county shall have no responsibility for any capital repairs,
replacements, or improvements to the stadium and parking facilities beyond the annual
contribution described herein.
(c) The team shall pay for any required capital repairs, replacements, and
improvements in excess of the amounts available in the reserve fund. The reserve fund
shall be used to fund all activities described in this paragraph but shall not be used to
remedy design or specification deficiencies.
(d) The team and authority shall develop both a short-term and long-term capital
funding plan, and shall use that plan to guide all future capital needs of the stadium project.
    Subd. 4. In-lieu rent; game day payments. The team is responsible for operating
expenses of the stadium and parking facilities in-lieu of rent. Non-NFL event expenses
must be paid by the authority. The team shall pay all game-day expenses and shall pay for
all required municipal services.
    Subd. 5. No escape. The team shall play all regularly scheduled home games,
including preseason and regular season, at the stadium for 30 years. The team shall
not enter into a contractual arrangement with a public or private entity, other than the
authority, to play any home games at a stadium location other than the stadium. However,
the team shall have the ability to play occasional league mandated home games at a
facility other than the stadium, or not more than one permitted specialty home game per
year at a facility other than the stadium. The lease or use agreement must include terms
for default, termination, and breach of the agreement. Recognizing that the presence of
professional football provides to the state of Minnesota and its citizens highly valued,
intangible benefits that are virtually impossible to quantify and, therefore, not recoverable
in the event of a team owner's breach of contract, the lease and use agreements must
provide for specific performance and injunctive relief to enforce provisions relating to use
of the stadium for professional football and must not include escape clauses or buyout
provisions. The team must not enter into or accept any agreement or requirement with or
from the NFL or any other entity that is not consistent with the team's binding commitment
to the 30-year term of the lease or use agreement or that would in any manner dilute,
interfere with, or negate the provisions of the lease or use agreement. The legislature
conclusively determines, as a matter of public policy, that the lease or use agreement under
this chapter that includes a specific performance clause:
(1) explicitly authorize specific performance as a remedy for breach;
(2) are made for adequate consideration and upon terms which are otherwise fair
and reasonable;
(3) have not been included through sharp practice, misrepresentation, or mistake;
(4) if specifically enforced, do not cause unreasonable or disproportionate hardship
or loss to the team or to third parties; and
(5) involve performance in a manner and the rendering of services of a nature and
under circumstances that the beneficiary cannot be adequately compensated in damages.
    Subd. 6. Public share if team is sold. The lease or use agreement must provide that,
if the team is sold or an interest in the team is sold after the effective date of this chapter,
a portion of the sale price must be paid to the authority and deposited in a reserve fund
for improvements to the stadium or expended as the authority may otherwise direct. The
portion required to be so paid to the authority is at least 18 percent of the gross sale price,
declining to zero 15 years after commencement of stadium construction in increments
of 1.2 percent each year. The agreement must provide exceptions for sales to members
of the owner's family and entities and trusts beneficially owned by family members,
sales to employees of equity interests aggregating up to ten percent, and sales related to
capital infusions not distributed to the owners.
    Subd. 7. Authority's access to team financial information. The lease or use
agreement or other transaction documents shall provide the authority access to annual
audited financial statements of the team and other financial books and records that the
authority deems necessary to determine compliance by the team with this act, and to
enforce the terms of any lease, license, or other transaction documents entered into under
this act. Any financial information obtained by the authority under this subdivision is
nonpublic data under section 13.02, subdivision 9. This provision requires disclosure prior
to initial agreement and annually thereafter.
    Subd. 8. Affordable NFL game tickets. The lease, license, or other transaction
documents shall provide for an agreed-upon number of affordable tickets.
    Subd. 9. LEED certification. The authority shall make best efforts to ensure
that the stadium receives Leadership in Energy and Environmental Design ("LEED")
certification for environmental design.
    Subd. 10. Cooperation with financing. The county and authority will cooperate
with the team to facilitate the financing of the team's contribution. Such agreement
to cooperate shall not require the county or authority to incur any additional costs or
provide conduit financing. The lease, license, or other transaction documents shall include
provisions customarily required by lenders in stadium financings.

    Sec. 12. [473J.13] ADDITIONAL CONSIDERATIONS, CONDITIONS, AND
CRITERIA.
    Subdivision 1. Corporate headquarters. If the team elects to construct a new
corporate headquarters or training complex, such development shall occur in the county.
The team shall not make a significant investment that effectively constitutes a new
corporate headquarters or training facility at the existing Winter Park facility, excluding
maintenance, ordinary or necessary repairs, and substantial repair or replacement.
    Subd. 2. Special taxes and fees. The county, city, or watershed will not impose any
special taxes, fees, or other surcharges specific to the stadium, team, or team personnel,
such as sales, admissions, parking, or other taxes. The county and state bonds will not
be secured by the stadium or its revenues.
    Subd. 3. Contracts. (a) A stadium design and construction group (SDCG) shall
be established and shall be responsible for design and construction of the stadium. The
authority, team, and county shall each appoint one member to the SDCG.
(b) The SDCG shall enter into an agreement with the authority, team, county,
or any other entity relating to the construction, financing, and use of the stadium and
related facilities and infrastructure. The SDCG may contract for materials, supplies, and
equipment in accordance with sections 473.345, 473.754, and 473J.07, except that the
SDCG may employ or contract with persons, firms, or corporations to perform one or
more or all of the functions of architect, engineer, or construction manager with respect
to all or any part of the stadium and infrastructure. The construction manager appointed
by the SDCG may enter into contracts with contractors for labor, materials, supplies,
and equipment for the construction of the stadium and related infrastructure through the
process of public bidding, except that the construction manager may, with the consent
of the SDCG:
(1) narrow the listing of eligible bidders to those which the construction manager
determines to possess sufficient expertise to perform the intended functions;
(2) award contracts to the contractors that the construction manager determines
provide the best value, which are not required to be the lowest responsible bidder; and
(3) for work the construction manager determines to be critical to the completion
schedule, award contracts on the basis of competitive proposals or perform work with
its own forces without soliciting competitive bids if the construction manager provides
evidence of competitive pricing.
    (c) The SDCG shall require that the construction manager certify, before the contract
is signed, a fixed and stipulated construction price and completion date to the authority
and post a performance bond in an amount at least equal to 100 percent of the certified
price, to cover any costs which may be incurred in excess of the certified price, including
but not limited to costs incurred by the authority or loss of revenues resulting from
incomplete construction on the completion date. The SDCG may secure surety bonds as
provided in section 574.26, securing payment of just claims in connection with all public
work undertaken by it. Persons entitled to the protection of the bonds may enforce them as
provided in sections 574.28 to 574.32, and shall not be entitled to a lien on any property of
the authority under the provisions of sections 514.01 to 514.16. Contracts for construction
and operation of the stadium must include programs to provide for participation by small
local businesses and businesses owned by people of color, and the inclusion of women and
people of color in the workforces of contractors and stadium operators. The construction
of the stadium is a "project" as that term is defined in section 177.42, subdivision 2, and is
subject to the prevailing wage law under sections 177.41 to 177.43.
    Subd. 4. Hiring and recruitment. The SDCG shall make every effort to employ
women and members of minority communities when hiring. The SDCG shall make good
faith efforts to engage qualified women, minority-owned, and small business enterprise
contractors.
    Subd. 5. Other required agreements. The team shall give food, beverage, retail,
and concession workers presently employed by the team or its vendors at the Hubert
H. Humphrey Metrodome the opportunity to continue their employment in comparable
positions at the new stadium. Workers who are presently represented under a collective
bargaining agreement may seek to continue such representation in the facility and
designate such, or another collective bargaining unit, as their representative.
    Subd. 6. Team-related entities. Subject to the prior approval of the SDCG, any
of the obligations set forth herein that are related to stadium design, development,
construction, operation, or management by the team may be performed by the team or a
related entity, and the team or any entity related to the team may receive any revenues to
which the team is entitled hereunder; provided, however, the team shall remain liable if
any obligations are assigned to a related entity.
    Subd. 7. Changes. Except as provided for in contracts approved by the SDCG, if
any party requests a change in minimum design standards, and this change is responsible
for requiring the project to exceed the stated budget, the requesting party is liable for
any cost overruns or associated liabilities.

    Sec. 13. [473J.15] CRITERIA AND CONDITIONS.
    Subdivision 1. Binding and enforceable. In developing the stadium and entering
into related contracts, the authority, and all bids submitted, must follow and enforce the
criteria and conditions in this section, provided that a determination by the authority that
those criteria or conditions have been met under any county agreement or otherwise
shall be conclusive.
    Subd. 2. Stadium location. The stadium will be located at the development area.
The stadium is expected to be open and operational no later than June 2016.
    Subd. 3. Stadium owner. The stadium will be owned by the stadium authority and
the team will enter into a long-term lease or license agreement with the authority. The
terms of the lease, license, or other transaction documents are discussed in this chapter.
    Subd. 4. Stadium design. The roofed stadium shall be designed and constructed
incorporating the following general program and design elements:
(a) The stadium shall comprise approximately 1,600,000 square feet with
approximately 65,000 seats, expandable to 72,000. The stadium shall meet or exceed NFL
program requirements, and include approximately 150 suites and approximately 7,500
club seats.
(b) Space for team-related exhibitions and sales, which shall include the following:
team museum and Hall of Fame, retail merchandise and gift shop retail venue, and themed
concessions and restaurants.
(c) Space for administrative offices of the authority.
(d) Parking for approximately 21,000 cars and trucks including tailgate parking and
premium parking area with a separate entrance/exit.
(e) Elements sufficient to provide community and civic uses as determined by the
authority.
    Subd. 5. Stadium development. The design, development, and construction of the
stadium shall be a collaborative process between the authority, county, and team. The
authority, county, and team shall establish a process to reach consensus on key elements of
the stadium program and design, development, and construction.
    Subd. 6. Necessary approvals. The authority and the team must jointly seek
and shall secure any necessary approvals to the terms of the lease and the design and
construction plans for the stadium, including prior approval of the NFL.

    Sec. 14. [473J.17] SITE ACQUISITION AND REMEDIATION.
    Subdivision 1. Site acquisition. The county will acquire the development area from
the United States Army by the county on terms acceptable to the county, authority, and
team. The county shall transfer to the authority the land necessary for the stadium project
for no consideration. The team, or a related entity, will immediately thereafter acquire
from the county the portion of land not required for the footprint of the stadium and
stadium-related access, open green space, and parking spaces, such portion, "private
land," and shall become the owner of the private land. The county is authorized to buy
property from the Army and sell a portion directly to the team at the county's acquisition
price per acre, notwithstanding any law, ordinance, or charter provision to the contrary.
The team shall retain development rights for at least eight years following the opening of
the stadium. If the team has not commenced development of the private land or provided
the county with a reasonably acceptable plan to develop the private land within eight years
after the opening of the stadium, the county shall have the option, but shall not be required,
to purchase the private land from the team at the original price plus one dollar.
    Subd. 2. Site remediation. As a condition of the purchase agreement for the
development area, the United States Army must remediate the environmental conditions
of the entire development area to a commercial industrial standard to the satisfaction of
the county, the authority, and the state of Minnesota. If the proposed development of
the private land requires a higher standard of remediation, the team shall pay the costs
associated with such remediation. The purchase and other agreements regarding the
development shall provide for the indemnification, protection, defense, and an undertaking
to hold harmless the county, the authority, and the state and their officers, employees, and
agents from liabilities, damages, losses, settlements, arbitration awards, expenses, costs,
penalties, remediation or cleanup obligations, and reasonable attorney fees and costs at
both the trial and appellate levels, that arise from or relate to the environmental condition
or remediation of the development area, including but not limited to any remediation
obligations or environmental conditions not disclosed or known at the time the site was
purchased by the county.
    Subd. 3. Cost allocation. The costs to acquire the development area and costs of
the environmental remediation will be allocated between the county and the team based
on the number of acres owned by each after the private land is sold to the team or its
affiliates. The county shall acquire from the United States Army approximately 430
acres for the overall project. The team shall acquire approximately 170 acres from the
county immediately after the county has closed on its purchase transaction with the United
States Army. A mechanism will be provided in the county agreement that will allow
for public access between the stadium site and private land. A mechanism will also be
included in the county agreement to provide the team with flexibility in determining
the final composition of the private land for purposes of locating the stadium land and
development in the future, to be mutually agreed upon by the county and team and other
key stakeholders, as appropriate. The authority shall determine the site of the stadium
after consultation with the team and the county.

    Sec. 15. [473J.19] COUNTY ACTIVITIES.
    Subdivision 1. Stadium grants and payments. The county may authorize, by
resolution, and make one or more grants or payments to the authority for stadium
development and construction, infrastructure, reserves for capital improvements, operating
cost payments, and other purposes related to the stadium on the terms and conditions
agreed to by the county and the authority.
    Subd. 2. Property acquisition and disposition. The county may acquire land, air
rights, and other property interests within the development area for the stadium site and
infrastructure by purchase or gift and convey it to the authority without consideration,
prepare a site for development as a stadium, and acquire and construct any related
infrastructure. To the extent property parcels or interests acquired are more extensive than
the infrastructure requirements, the county may sell or otherwise dispose of the excess.
The proceeds from sales of excess property must be used to reduce county and state
contributions as specified in this act, on a pro rata basis.
    Subd. 3. Grant agreement. The governing body of the county may delegate
responsibility for implementing the terms of an approved grant agreement to a designated
officer. The county may enforce the provisions of any grant agreement by specific
performance. Except to require compliance with the conditions of the grant or as may be
mutually agreed to by the county and the authority, the county and state have no interest in
or claim to any assets or revenues of the authority.
    Subd. 4. Environmental review; planning and zoning. (a) The county is the
responsible governmental unit for an environmental impact statement for the stadium
and accompanying infrastructure prepared under section 116D.04, if an environmental
impact statement is necessary. Notwithstanding section 116D.04, subdivision 2b, and
implementing rules: (1) the environmental impact statement shall not be required to
consider alternative stadium sites; and (2) the environmental impact statement must be
determined to be adequate before commencing work on the foundation of the stadium,
but the stadium and infrastructure may otherwise be started and all preliminary and final
government decisions and actions may be made and taken, including but not limited to
acquiring land; obtaining financing; granting permits or other land use approvals; entering
into grant, lease, or use agreements; and preparing the site, including environmental
remediation, and related infrastructure prior to a determination of the adequacy of the
environmental impact statement.
(b) In order to accomplish the objectives of this chapter within the required time
frame, it is necessary to establish an alternative process for municipal land use and
development review. It is hereby found and declared that the construction of a stadium
within the development area is (1) consistent with the city's adopted comprehensive plan
and the watershed district's water management plan, (2) is the preferred stadium location,
and (3) is a permitted land use. This paragraph establishes a procedure for all land and
water use and development reviews and approvals by the city and watershed district for
the stadium and related infrastructure and supersedes all land use and development rules
and restrictions and procedures imposed by other law, charter, or ordinance, including,
without limitation, section 15.99 and chapters 103A to 103G. No later than 90 days after
enactment, the city and county shall establish a stadium implementation committee with
representation from the county, city, and watershed district to make recommendations on
the design plans submitted for the stadium, infrastructure, and related improvements,
including but not limited to street vacation, parking, roadways, walkways, skyways,
pedestrian bridges, bicycle paths, transit improvements to facilitate public street access
to the stadium and integration into the transportation plan for the municipality and the
region, lighting, landscaping, utilities, streets, water management, drainage, environmental
remediation, and land acquired and prepared for private redevelopment in a manner
related to the use of the stadium. The implementation committee must take action to issue
its recommendations within the time frames established in the planning and construction
timetable issued by the city and watershed district which shall provide for no less than 60
days for the committee's review. The recommendations of the implementation committee
shall be forwarded to the city's planning commission for an advisory recommendation
and then to the city council for final action in a single resolution, which final action must
be taken within 45 days of the submission after the recommendations to the planning
commission. The watershed district must act within 60 days of the implementation
committee's recommendation. The city council and watershed district shall not impose any
unnecessary or unreasonable conditions on the recommendations of the implementation
committee, nor take any action or impose any conditions that will result in delay from the
time frames established in the planning and construction timetable or in additional overall
costs. Failure of the city council and watershed district to act within the 60-day period is
deemed to be approval by that entity of the implementation committee's recommendations.
The district court or any appellate court shall expedite review of any case brought relating
to the stadium to the maximum extent possible and timely issue relief, orders, or opinions
as necessary to give effect to the provisions and objectives in this chapter.
    Subd. 5. County expenditure. The county may make expenditures or grants for
other costs incidental and necessary to further the purposes of this chapter and may, by
agreement, reimburse in whole or in part any entity that has granted, loaned, or advanced
funds to the county to further the purposes of this chapter. Notwithstanding any law,
ordinance, or charter provision to the contrary, exercise by the county of its powers under
this section does not affect the amounts that the county may otherwise spend, borrow,
tax, or receive.
    Subd. 6. County authority. The legislature intends that, except as expressly limited
herein, the county may acquire and develop a site for the stadium and infrastructure,
to enter into contracts with the authority and other governmental or nongovernmental
entities, to appropriate funds, and to make employees, consultants, and other revenues
available for those purposes.

    Sec. 16. [473J.21] SOURCES AND USES OF FUNDS.
    Subdivision 1. Funding sources. This subdivision summarizes the key components
of the funding sources for the project. The parties shall work together and cooperate in
good faith to identify additional funding sources.
(a) The team contribution shall be at least $425,000,000, net of financing costs. This
amount shall be paid within one year of the effective date of this act and held in escrow.
The team shall provide a plan to finance its share of the cost allocations set out in the
county/team agreement to the authority on a timely basis. The team shall provide a written,
binding, bona fide commitment or commitments for the financing to the authority prior to
the county issuing any bonds for the project. The team shall be permitted to assign any of
its rights and obligations hereunder to its affiliates and as collateral to lenders for purposes
of obtaining financing, subject to the approval of the authority; provided, however, that the
team shall remain liable for its obligations hereunder. The team contribution will consist
of amounts contributed by the team, the NFL, personal seat license proceeds, and other
private revenues generated by the project.
(b) The county will contribute $10,000,000 annually, as funds are available, to
the stadium project.
(c) The state shall contribute $549,000,000, net of financing costs, to stadium
construction. The state shall contribute $101,000,000, net of financing costs, for
public infrastructure necessary for stadium development. In no event shall the state's
contribution, net of financing costs, exceed these amounts.
    Subd. 2. Cost overruns and project savings. Except as provided in the county
agreement, the team shall be responsible for cost overruns, if any, associated with the
development of the stadium, and with off-site transportation, excluding parking. The
county shall be responsible for cost overruns, if any, associated with certain infrastructure
improvements, including surface parking and related interior circulation, as delineated
and described in the county agreement. The infrastructure improvements shall be
further delineated in the county agreement but shall not include off-site transportation
infrastructure improvements. Notwithstanding any other cost-allocation provisions in this
chapter, the team shall be responsible for 39.5 percent and the county shall be responsible
for 60.5 percent of any cost overruns associated with site acquisition, remediation, and
infrastructure costs. Project savings, if any, shall be allocated between the state, county,
and team on a pro rata basis.

    Sec. 17. [473J.23] PROPERTY TAX EXEMPTION; SPECIAL ASSESSMENTS.
Any real or personal property acquired, owned, leased, controlled, used, or occupied
by the authority for any of the purposes of this chapter is acquired, owned, leased,
controlled, used, and occupied for public, governmental, and municipal purposes, and is
exempt from ad valorem taxation by the state or any political subdivision of the state;
provided that the properties are subject to special assessments levied by a political
subdivision for a local improvement in amounts proportionate to and not exceeding the
special benefit received by the properties from the improvement. No possible use of
any of the properties in any manner different from their use under this chapter may be
considered in determining the special benefit received by the properties. Notwithstanding
section 272.01, subdivision 2, or 273.19, real or personal property subject to a lease or use
agreement between the authority and another person for uses related to the purposes of this
chapter, including the operation of the stadium and related parking facilities, is exempt
from taxation regardless of the length of the lease or use agreement or the characteristics
of the entity leasing or using the property. This section, insofar as it provides an exemption
or special treatment, does not apply to any real property other than the stadium.

    Sec. 18. [473J.25] CITY REQUIREMENTS.
At the request of the authority, the city shall issue intoxicating liquor licenses that
are reasonably requested for the premises of the stadium. These licenses are in addition to
the number authorized by law. All provisions of chapter 340A not inconsistent with this
section apply to the licenses authorized under this subdivision.

    Sec. 19. [473J.27] LOCAL SALES TAXES.
No local sales or use tax may be imposed on sales at the stadium, except a general
sales tax permitted under section 297A.99.

    Sec. 20. [473J.29] METROPOLITAN SPORTS FACILITIES COMMISSION
ASSETS.
    Subdivision 1. Sale. Once the team stops playing home games at the Metrodome,
the Metropolitan Sports Facilities Commission shall sell the Metrodome property at public
sale for fair market value. Upon sale of the Metrodome property and after payment of all
outstanding obligations, not to include any payment to Hennepin County or the city of
Minneapolis, the Metropolitan Sports Facilities Commission shall pay the remainder of
the sale proceeds and any other remaining assets to the authority for its purposes.
    Subd. 2. Metropolitan Sports Facilities Commission abolished. Upon transfer to
the authority of all assets of the Metropolitan Sports Facilities Commission in subdivision
1, the Metropolitan Sports Facilities Commission is abolished.

    Sec. 21. [473J.30] STADIUM APPROPRIATION BONDS.
    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
section.
(b) "Appropriation bond" means a bond, note, or other similar instrument of the state
payable during a biennium from one or more of the following sources:
(1) money appropriated by law in any biennium for debt service due with respect
to obligations described in subdivision 2, paragraph (b);
(2) proceeds of the sale of obligations described in subdivision 2, paragraph (b);
(3) payments received for that purpose under agreements and ancillary arrangements
described in subdivision 2, paragraph (d); and
(4) investment earnings on amounts in clauses (1) to (3).
(c) "Debt service" means the amount payable in any biennium of principal, premium,
if any, and interest on appropriation bonds.
    Subd. 2. Authority. (a) Subject to the limitations of this subdivision, the
commissioner of management and budget may sell and issue appropriation bonds of the
state under this section to acquire and better, including design, construction, furnishing,
and equipping, the stadium project under this chapter. Proceeds of the bonds must be
credited to a special appropriation bond proceeds account in the state treasury. Net income
from investment of the proceeds, as estimated by the commissioner, must be credited to
the special appropriation bond proceeds account.
(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of
the commissioner, are necessary to provide sufficient funds for achieving the purposes
authorized as provided under paragraph (a), and pay debt service, pay costs of issuance,
make deposits to reserve funds, pay the costs of credit enhancement, or make payments
under other agreements entered into under paragraph (d); provided, however, that bonds
issued under this section shall not exceed $650,000,000 in principal amount, excluding
refunding bonds sold and issued under subdivision 4.
(c) Appropriation bonds may be issued in one or more series on the terms and
conditions the commissioner determines to be in the best interests of the state, but the term
on any series of bonds may not exceed 30 years.
(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any
time thereafter, so long as the appropriation bonds are outstanding, the commissioner
may enter into agreements and ancillary arrangements relating to the appropriation
bonds, including but not limited to trust indentures, liquidity facilities, remarketing or
dealer agreements, letter of credit agreements, insurance policies, guaranty agreements,
reimbursement agreements, indexing agreements, or interest exchange agreements. Any
payments made or received according to the agreement or ancillary arrangement shall be
made from or deposited as provided in the agreement or ancillary arrangement. The
determination of the commissioner included in an interest exchange agreement that the
agreement relates to an appropriation bond shall be conclusive.
    Subd. 3. Form; procedure. (a) Appropriation bonds may be issued in the form
of bonds, notes, or other similar instruments, and in the manner provided in section
16A.672. In the event that any provision of section 16A.672 conflicts with this section,
this section shall control.
(b) Every appropriation bond shall include a conspicuous statement of the limitation
established in subdivision 6.
(c) Appropriation bonds may be sold at either public or private sale upon such terms
as the commissioner shall determine are not inconsistent with this section and may be sold
at any price or percentage of par value. Any bid received may be rejected.
(d) Appropriation bonds may bear interest at a fixed or variable rate.
    Subd. 4. Refunding bonds. The commissioner from time to time may issue
appropriation bonds for the purpose of refunding any appropriation bonds then
outstanding, including the payment of any redemption premiums on the bonds, any
interest accrued or to accrue to the redemption date, and costs related to the issuance
and sale of the refunding bonds. The proceeds of any refunding bonds may, in the
discretion of the commissioner, be applied to the purchase or payment at maturity of the
appropriation bonds to be refunded, to the redemption of the outstanding bonds on any
redemption date, or to pay interest on the refunding bonds and may, pending application,
be placed in escrow to be applied to the purchase, payment, retirement, or redemption.
Any escrowed proceeds, pending such use, may be invested and reinvested in obligations
that are authorized investments under section 11A.24. The income earned or realized on
the investment may also be applied to the payment of the bonds to be refunded or interest
or premiums on the refunded bonds, or to pay interest on the refunding bonds. After
the terms of the escrow have been fully satisfied, any balance of the proceeds and any
investment income may be returned to the general fund or, if applicable, the appropriation
bond proceeds account for use in any lawful manner. All refunding bonds issued under
this subdivision must be prepared, executed, delivered, and secured by appropriations in
the same manner as the bonds to be refunded.
    Subd. 5. Appropriation bonds as legal investments. Any of the following entities
may legally invest any sinking funds, money, or other funds belonging to them or under
their control in any appropriation bonds issued under this section:
(1) the state, the investment board, public officers, municipal corporations, political
subdivisions, and public bodies;
(2) banks and bankers, savings and loan associations, credit unions, trust companies,
savings banks and institutions, investment companies, insurance companies, insurance
associations, and other persons carrying on a banking or insurance business; and
(3) personal representatives, guardians, trustees, and other fiduciaries.
    Subd. 6. No full faith and credit; state not required to make appropriations.
The appropriation bonds are not public debt of the state, and the full faith, credit, and
taxing powers of the state are not pledged to the payment of the appropriation bonds or to
any payment that the state agrees to make under this section. Appropriation bonds shall
not be obligations paid directly, in whole or in part, from a tax of statewide application
on any class of property, income, transaction, or privilege. Appropriation bonds shall be
payable in each fiscal year only from amounts that the legislature may appropriate for debt
service for any fiscal year, provided that nothing in this section shall be construed to
require the state to appropriate funds sufficient to make debt service payments with respect
to the bonds in any fiscal year.
    Subd. 7. Appropriation of proceeds. The proceeds of appropriation bonds and
interest credited to the special appropriation bond proceeds account are appropriated to
the commissioner for payment of contract obligations under this chapter, as permitted by
state and federal law, and nonsalary expenses incurred in conjunction with the sale of
the appropriation bonds.
    Subd. 8. Appropriation for debt service. The amount needed to pay principal and
interest on appropriation bonds issued under this section is appropriated each year to the
commissioner from the general fund subject to the repeal, unallotment under section
16A.152, or cancellation otherwise pursuant to subdivision 6.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 22. APPROPRIATION.
The Minnesota Stadium Authority shall be the recipient of all funds deposited in the
stadium account created under Minnesota Statutes 2010, section 473.5995, and shall use
those funds for the purposes of this act, including:
(1) debt service for appropriations bonds to be sold in an amount not to exceed
$650,000,000, of which not more than $549,000,000 may be used for stadium
development, and not more than $101,000,000 may be used for public infrastructure
improvements; and
(2) The commissioner of management and budget may, in consultation with the
authority, reduce the amount of appropriation bonds sold, and substitute direct payment
of public infrastructure costs as allowed under article 5.
EFFECTIVE DATE.This section is effective the day following final enactment.

    Sec. 23. REPEALER.
Minnesota Statutes 2010, sections 137.50, subdivision 5; 473.551; 473.552;
473.553, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13; 473.556, subdivisions
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, and 17; 473.561; 473.564, subdivisions 2
and 3; 473.572; 473.581; 473.592, subdivision 1; 473.595; 473.5955; 473.596; 473.598;
473.599; 473.5995; and 473.76, are repealed.
EFFECTIVE DATE.This section is effective upon the completion of the transfer
of the assets of the Metropolitan Sports Facilities Commission to the Minnesota Stadium
Authority under section 20.

    Sec. 24. EFFECTIVE DATE.
Except as otherwise provided, this article is effective the day following final
enactment.

ARTICLE 2

CONFORMING CHANGES

    Section 1. Minnesota Statutes 2010, section 3.971, subdivision 6, is amended to read:
    Subd. 6. Financial audits. The legislative auditor shall audit the financial
statements of the state of Minnesota required by section 16A.50 and, as resources permit,
shall audit Minnesota State Colleges and Universities, the University of Minnesota, state
agencies, departments, boards, commissions, courts, and other state organizations subject
to audit by the legislative auditor, including the State Agricultural Society, Agricultural
Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical
Society, Labor Interpretive Center, Minnesota Partnership for Action Against Tobacco,
Metropolitan Sports Facilities Commission, Metropolitan Airports Commission, and
Metropolitan Mosquito Control District. Financial audits must be conducted according to
generally accepted government auditing standards. The legislative auditor shall see that
all provisions of law respecting the appropriate and economic use of public funds are
complied with and may, as part of a financial audit or separately, investigate allegations
of noncompliance.
EFFECTIVE DATE.This section is effective January 1, 2015.

    Sec. 2. Minnesota Statutes 2010, section 13.55, subdivision 1, is amended to read:
    Subdivision 1. Not public classification. The following data received, created, or
maintained by or for publicly owned and operated convention facilities, civic center
authorities, or the Metropolitan Sports Facilities Commission are classified as nonpublic
data pursuant to section 13.02, subdivision 9; or private data on individuals pursuant
to section 13.02, subdivision 12:
(a) a letter or other documentation from any person who makes inquiry to or who is
contacted by the facility regarding the availability of the facility for staging events;
(b) identity of firms and corporations which contact the facility;
(c) type of event which they wish to stage in the facility;
(d) suggested terms of rentals; and
(e) responses of authority staff to these inquiries.
EFFECTIVE DATE.This section is effective January 1, 2015.

    Sec. 3. Minnesota Statutes 2011 Supplement, section 340A.404, subdivision 1, is
amended to read:
    Subdivision 1. Cities. (a) A city may issue an on-sale intoxicating liquor license to
the following establishments located within its jurisdiction:
(1) hotels;
(2) restaurants;
(3) bowling centers;
(4) clubs or congressionally chartered veterans organizations with the approval of
the commissioner, provided that the organization has been in existence for at least three
years and liquor sales will only be to members and bona fide guests, except that a club
may permit the general public to participate in a wine tasting conducted at the club under
section 340A.419; and
(5) sports facilities located on land owned by the Metropolitan Sports Commission;
and
(6) exclusive liquor stores.
(b) A city may issue an on-sale intoxicating liquor license, an on-sale wine license,
or an on-sale malt liquor license to a theater within the city, notwithstanding any law, local
ordinance, or charter provision. A license issued under this paragraph authorizes sales on
all days of the week to persons attending events at the theater.
(c) A city may issue an on-sale intoxicating liquor license, an on-sale wine license,
or an on-sale malt liquor license to a convention center within the city, notwithstanding
any law, local ordinance, or charter provision. A license issued under this paragraph
authorizes sales on all days of the week to persons attending events at the convention
center. This paragraph does not apply to convention centers located in the seven-county
metropolitan area.
(d) A city may issue an on-sale wine license and an on-sale malt liquor license to
a person who is the owner of a summer collegiate league baseball team, or to a person
holding a concessions or management contract with the owner, for beverage sales at a
ballpark or stadium located within the city for the purposes of summer collegiate league
baseball games at the ballpark or stadium, notwithstanding any law, local ordinance, or
charter provision. A license issued under this paragraph authorizes sales on all days of the
week to persons attending baseball games at the ballpark or stadium.
EFFECTIVE DATE.This section is effective January 1, 2015.

    Sec. 4. Minnesota Statutes 2010, section 352.01, subdivision 2a, is amended to read:
    Subd. 2a. Included employees. (a) "State employee" includes:
    (1) employees of the Minnesota Historical Society;
    (2) employees of the State Horticultural Society;
    (3) employees of the Minnesota Crop Improvement Association;
    (4) employees of the adjutant general whose salaries are paid from federal funds and
who are not covered by any federal civilian employees retirement system;
    (5) employees of the Minnesota State Colleges and Universities who are employed
under the university or college activities program;
    (6) currently contributing employees covered by the system who are temporarily
employed by the legislature during a legislative session or any currently contributing
employee employed for any special service as defined in subdivision 2b, clause (8);
    (7) employees of the legislature who are appointed without a limit on the duration
of their employment and persons employed or designated by the legislature or by a
legislative committee or commission or other competent authority to conduct a special
inquiry, investigation, examination, or installation;
    (8) trainees who are employed on a full-time established training program
performing the duties of the classified position for which they will be eligible to receive
immediate appointment at the completion of the training period;
    (9) employees of the Minnesota Safety Council;
    (10) any employees who are on authorized leave of absence from the Transit
Operating Division of the former Metropolitan Transit Commission and who are employed
by the labor organization which is the exclusive bargaining agent representing employees
of the Transit Operating Division;
    (11) employees of the Metropolitan Council, Metropolitan Parks and Open Space
Commission, Metropolitan Sports Facilities Commission, or Metropolitan Mosquito
Control Commission unless excluded under subdivision 2b or are covered by another
public pension fund or plan under section 473.415, subdivision 3;
    (12) judges of the Tax Court;
    (13) personnel who were employed on June 30, 1992, by the University of
Minnesota in the management, operation, or maintenance of its heating plant facilities,
whose employment transfers to an employer assuming operation of the heating plant
facilities, so long as the person is employed at the University of Minnesota heating plant
by that employer or by its successor organization;
    (14) personnel who are employed as seasonal employees in the classified or
unclassified service;
    (15) persons who are employed by the Department of Commerce as a peace officer
in the Insurance Fraud Prevention Division under section 45.0135 who have attained the
mandatory retirement age specified in section 43A.34, subdivision 4;
    (16) employees of the University of Minnesota unless excluded under subdivision
2b, clause (3);
    (17) employees of the Middle Management Association whose employment began
after July 1, 2007, and to whom section 352.029 does not apply; and
    (18) employees of the Minnesota Government Engineers Council to whom section
352.029 does not apply.
    (b) Employees specified in paragraph (a), clause (13), are included employees under
paragraph (a) if employer and employee contributions are made in a timely manner in the
amounts required by section 352.04. Employee contributions must be deducted from
salary. Employer contributions are the sole obligation of the employer assuming operation
of the University of Minnesota heating plant facilities or any successor organizations to
that employer.
EFFECTIVE DATE.This section is effective January 1, 2015.

    Sec. 5. Minnesota Statutes 2010, section 473.121, subdivision 5a, is amended to read:
    Subd. 5a. Metropolitan agency. "Metropolitan agency" means the Metropolitan
Parks and Open Space Commission, and the Metropolitan Airports Commission, and
Metropolitan Sports Facilities Commission.
EFFECTIVE DATE.This section is effective upon completion of the transfer.

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

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

ARTICLE 3

DEVELOPMENT

    Section 1. [383A.94] TWIN CITIES ARMY AMMUNITIONS PLANT (TCAAP)
DEVELOPMENT CORPORATION TAX INCREMENT FINANCING POWERS.
    Subdivision 1. Exclusive authority. This section provides the exclusive authority
to establish and use tax increment financing within the area of the development site and
except as authorized in this section, no authority or city may establish a tax increment
financing district within the area of the development site.
    Subd. 2. Definitions. (a) For purposes of this section, the following terms have the
meanings given them, unless the context clearly indicates otherwise.
(b) "Act" or "tax increment act" means the tax increment financing statute, sections
469.174 to 469.178.
(c) "Development site" means the area located in the city of Arden Hills, described
in the TCAAP Boundary Survey dated December 12, 2007, by W. Brown Land Surveying,
Inc.
(d) The terms defined in section 469.174 have the meanings given in that section.
    Subd. 3. Authority to use TIF powers. (a) The corporation established in section
383A.93 may establish one or more tax increment financing districts within the area of the
development site to assist in: (1) financing the professional football stadium and related
public infrastructure, (2) remediation of hazardous substances, and (3) development and
financing of commercial, industrial, or housing improvements, or any combination of the
improvements on the development site to allow its appropriate use and to aid in carrying
out the purposes under clauses (1) and (2). Except as otherwise provided in subdivision
4, the provisions of the tax increment act apply and the corporation is deemed to be the
authority and the county is the municipality for purposes of any tax increment financing
districts established and exercising powers and carrying out duties under this act.
(b) For purposes of this section, the corporation may exercise any of the powers of a
housing and redevelopment authority under sections 469.001 to 469.047, an economic
development authority under sections 469.090 to 469.1082, a city under sections 469.124
to 469.134, and a municipality under sections 469.152 to 469.1655. This grant of authority
does not include the power to levy or to request the levy of property taxes under section
469.033 or 469.107 or to issue general obligation bonds under section 469.034 or 469.102.
    Subd. 4. Special rules. The following special rules apply to any tax increment
financing district established under this section, notwithstanding the requirements of
this act:
(1) each district, unless designated as a housing district, is deemed to be a
redevelopment district without regard to the definition under section 469.174, subdivision
10;
(2) the restrictions under section 469.1763 do not apply; and
(3) increments may only be spent for improvements within, remediation of
hazardous substance on or in, or to provide access to, the development site for the purpose
of assisting in financing and construction of the professional football stadium and related
public infrastructure and for administrative expenses as permitted by the tax increment act.
This includes authority to spend increments for the purposes of facilitating or encouraging
development, if the corporation finds that will assist in providing financing for or other aid
for the professional football stadium and related infrastructure.
    Subd. 5. Expiration. The authority to form a tax increment financing district under
this section expires on December 31, .......
    Subd. 6. Transfer. An amount not to exceed $10,000,000 in any given year shall
be annually transferred from Ramsey County, if available from the tax increment district
created under this act, to the stadium fund created under section 473.5995.
EFFECTIVE DATE.This section is effective the day following final enactment.

ARTICLE 4

ELECTRONIC PULL-TABS AND BINGO

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

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

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

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

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

    Sec. 6. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
to read:
    Subd. 12b. Electronic pull-tab device. "Electronic pull-tab device" means a
handheld and portable electronic device that:
(a) is used to play one or more electronic pull-tab games;
(b) requires coded entry to activate play but does not allow the use of coin, currency,
or tokens to be inserted to activate play;
(c) allows a player the option to activate the opening of:
(1) all tabs of a ticket at the same time; or
(2) each tab of a ticket separately;
(d) records and maintains information pertaining to accumulated win credits that
may be applied to games in play or redeemed upon termination of play;
(e) has no spinning symbols or other representations that mimic a video slot machine;
(f) has no additional function as a gambling device;
(g) may incorporate an amusement game feature as part of the pull-tab game but
may not require additional consideration for that feature or contain or award any points,
prizes, or other benefit for that feature;
(h) may have auditory or visual enhancements to promote or provide information
about the game being played, provided the component does not affect the outcome of
a game or display the results of a game;
(i) maintains, on nonresettable meters, a printable, permanent record of all
transactions involving each device and electronic pull-tab games played on the device; and
(j) is not a pull-tab dispensing device as defined under subdivision 32a.

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

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

    Sec. 9. Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read:
    Subd. 18. Gambling equipment. "Gambling equipment" means: gambling
equipment that is either disposable or permanent gambling equipment.
(a) Disposable gambling equipment includes the following:
(1) bingo hard cards or paper sheets, including linked bingo paper sheets, devices for
selecting bingo numbers, electronic bingo devices,;
(2) paper and electronic pull-tabs,;
(3) jar tickets, paddle wheels, paddle wheel tables,;
(4) paddle tickets, and paddle ticket cards,;
(5) tipboards, and tipboard tickets,; and
(6) promotional tickets that mimic a pull-tab or tipboard, pull-tab dispensing devices,
and programmable electronic devices that have no effect on the outcome of a game and
are used to provide a visual or auditory enhancement of a game.
(b) Permanent gambling equipment includes the following:
(1) devices for selecting bingo numbers;
(2) electronic bingo devices;
(3) electronic pull-tab devices;
(4) pull-tab dispensing devices;
(5) programmable electronic devices that have no effect on the outcome of a game
and are used to provide a visual or auditory enhancement of a game;
(6) paddle wheels; and
(7) paddle wheel tables.

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

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

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

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

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

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

    Sec. 16. Minnesota Statutes 2010, section 349.13, is amended to read:
349.13 LAWFUL GAMBLING.
Lawful gambling is not a lottery or gambling within the meaning of sections 609.75
to 609.76 if it is conducted under this chapter. A pull-tab dispensing device, electronic
bingo device, and electronic pull-tab device permitted under this chapter and by board
rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter
299L. An electronic game device allowed under this chapter may not be a slot machine.
Electronic game devices, including but not limited to electronic bingo devices, electronic
paddle wheels, and electronic pull-tab devices authorized under this chapter, may only
be used in the conduct of lawful gambling permitted under this chapter and board rule
and may not display or simulate any other form of gambling or entertainment, except
as otherwise allowed under this chapter.

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

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

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

    Sec. 20. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read:
    Subdivision 1. Prohibited acts; licenses required. (a) No person may:
    (1) sell, offer for sale, or furnish gambling equipment for use within the state other
than for lawful gambling exempt or excluded from licensing, except to an organization
licensed for lawful gambling;
    (2) sell, offer for sale, or furnish gambling equipment for use within the state without
having obtained a distributor license or a distributor salesperson license under this section
except that an organization authorized to conduct bingo by the board may loan bingo
hard cards and devices for selecting bingo numbers to another organization authorized to
conduct bingo and a linked bingo game provider may provide electronic bingo devices for
linked electronic bingo games;
    (3) sell, offer for sale, or furnish gambling equipment for use within the state that is
not purchased or obtained from a manufacturer or distributor licensed under this chapter; or
    (4) sell, offer for sale, or furnish gambling equipment for use within the state that
has the same serial number as another item of gambling equipment of the same type sold
or offered for sale or furnished for use in the state by that distributor.
    (b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling
equipment for use within the state without being employed by a licensed distributor or
owning a distributor license.
(c) No distributor or distributor salesperson may also be licensed as a linked bingo
game provider under section 349.1635.

    Sec. 21. Minnesota Statutes 2010, section 349.161, subdivision 5, is amended to read:
    Subd. 5. Prohibition. (a) No distributor, distributor salesperson, or other employee
of a distributor, may also be a wholesale distributor of alcoholic beverages or an employee
of a wholesale distributor of alcoholic beverages.
    (b) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor, may: (1) be involved in the conduct of lawful gambling
by an organization; (2) keep or assist in the keeping of an organization's financial records,
accounts, and inventories; or (3) prepare or assist in the preparation of tax forms and other
reporting forms required to be submitted to the state by an organization.
    (c) No distributor, distributor salesperson, or any representative, agent, affiliate,
or other employee of a distributor may provide a lessor of gambling premises any
compensation, gift, gratuity, premium, or other thing of value.
    (d) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may provide an employee or agent of the organization
any compensation, gift, gratuity, premium, or other thing of value greater than $25 per
organization in a calendar year.
    (e) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may participate in any gambling activity at any gambling
site or premises where gambling equipment purchased or leased from that distributor or
distributor salesperson is being used in the conduct of lawful gambling.
    (f) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may alter or modify any gambling equipment, except to
add a "last ticket sold" prize sticker for a paper pull-tab game.
    (g) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may: (1) recruit a person to become a gambling manager
of an organization or identify to an organization a person as a candidate to become
gambling manager for the organization; or (2) identify for an organization a potential
gambling location.
    (h) No distributor or distributor salesperson may purchase or lease gambling
equipment for resale or lease to a person for use within the state from any person not
licensed as a manufacturer under section 349.163, except for gambling equipment
returned from an organization licensed under section 349.16, or exempt or excluded from
licensing under section 349.166.
    (i) No distributor or distributor salesperson may sell gambling equipment, except
gambling equipment identified as a promotional ticket, to any person for use in Minnesota
other than (i) a licensed organization or organization excluded or exempt from licensing,
or (ii) the governing body of an Indian tribe.
    (j) No distributor or distributor salesperson may sell or otherwise provide a paper
pull-tab or tipboard deal with the symbol required by section 349.163, subdivision 5,
paragraph (d), visible on the flare to any person other than in Minnesota to a licensed
organization or organization exempt from licensing.

    Sec. 22. Minnesota Statutes 2010, section 349.162, subdivision 5, is amended to read:
    Subd. 5. Sales from facilities. (a) All gambling equipment purchased or possessed
by a licensed distributor for resale or lease to any person for use in Minnesota must, prior
to the equipment's resale or lease, be unloaded into a storage facility located in Minnesota
which the distributor owns or leases; and which has been registered, in advance and in
writing, with the Division of Alcohol and Gambling Enforcement as a storage facility of
the distributor. All unregistered gambling equipment and all unaffixed registration stamps
owned by, or in the possession of, a licensed distributor in the state of Minnesota shall be
stored at a storage facility which has been registered with the Division of Alcohol and
Gambling Enforcement. No gambling equipment may be moved from the facility unless
the gambling equipment has been first registered with the board or the Department of
Revenue. A distributor must notify the board of the method that it will use to sell and
transfer electronic pull-tab games to licensed organizations, and must receive approval of
the board before implementing or making changes to the approved method.
(b) Notwithstanding section 349.163, subdivisions 5, 6, and 8, a licensed
manufacturer may ship into Minnesota approved or unapproved gambling equipment if the
licensed manufacturer ships the gambling equipment to a Minnesota storage facility that
is: (1) owned or leased by the licensed manufacturer; and (2) registered, in advance and
in writing, with the Division of Alcohol and Gambling Enforcement as a manufacturer's
storage facility. No gambling equipment may be shipped into Minnesota to the
manufacturer's registered storage facility unless the shipment of the gambling equipment
is reported to the Department of Revenue in a manner prescribed by the department.
No gambling equipment may be moved from the storage facility unless the gambling
equipment is sold to a licensed distributor and is otherwise in conformity with this chapter,
is shipped to an out-of-state site and the shipment is reported to the Department of
Revenue in a manner prescribed by the department, or is otherwise sold and shipped as
permitted by board rule. A manufacturer must notify the board of the method that it will
use to sell and transfer electronic pull-tab games to licensed distributors, and must receive
approval of the board before implementing or making changes to the approved method.
(c) All storage facilities owned, leased, used, or operated by a licensed distributor
or manufacturer may be entered upon and inspected by the employees of the Division of
Alcohol and Gambling Enforcement, the Division of Alcohol and Gambling Enforcement
director's authorized representatives, employees of the Gambling Control Board or its
authorized representatives, employees of the Department of Revenue, or authorized
representatives of the director of the Division of Special Taxes of the Department of
Revenue during reasonable and regular business hours. Obstruction of, or failure to
permit, entry and inspection is cause for revocation or suspension of a manufacturer's or
distributor's licenses and permits issued under this chapter.
(d) Unregistered gambling equipment found at any location in Minnesota other than
the manufacturing plant of a licensed manufacturer or a registered storage facility are
contraband under section 349.2125. This paragraph does not apply:
(1) to unregistered gambling equipment being transported in interstate commerce
between locations outside this state, if the interstate shipment is verified by a bill of lading
or other valid shipping document; and
(2) to gambling equipment registered with the Department of Revenue for
distribution to the tribal casinos.

    Sec. 23. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read:
    Subdivision 1. License required. No manufacturer of gambling equipment may
sell any gambling equipment to any person for use or resale within the state, unless the
manufacturer has a current and valid license issued by the board under this section and has
satisfied other criteria prescribed by the board by rule. A manufacturer licensed under this
section may also be licensed as a linked bingo game provider under section 349.1635.
A manufacturer licensed under this section may not also be directly or indirectly
licensed as a distributor under section 349.161.

    Sec. 24. Minnesota Statutes 2010, section 349.163, subdivision 5, is amended to read:
    Subd. 5. Paper pull-tab and tipboard flares. (a) A manufacturer may not ship or
cause to be shipped into this state or sell for use or resale in this state any deal of paper
pull-tabs or tipboards that does not have its own individual flare as required for that deal
by this subdivision and rule of the board. A person other than a manufacturer may not
manufacture, alter, modify, or otherwise change a flare for a deal of paper pull-tabs or
tipboards except as allowed by this chapter or board rules.
(b) The flare of each paper pull-tab and tipboard game must have affixed to
or imprinted at the bottom a bar code that provides all information required by the
commissioner of revenue under section 297E.04, subdivision 2.
The serial number included in the bar code must be the same as the serial number
of the tickets included in the deal. A manufacturer who manufactures a deal of paper
pull-tabs must affix to the outside of the box containing that game the same bar code that
is affixed to or imprinted at the bottom of a flare for that deal.
(c) No person may alter the bar code that appears on the outside of a box containing
a deal of paper pull-tabs and tipboards. Possession of a box containing a deal of paper
pull-tabs and tipboards that has a bar code different from the bar code of the deal inside
the box is prima facie evidence that the possessor has altered the bar code on the box.
(d) The flare of each deal of paper pull-tabs and tipboards sold by a manufacturer for
use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high
and one inch wide consisting of an outline of the geographic boundaries of Minnesota
with the letters "MN" inside the outline. The flare must be placed inside the wrapping of
the deal which the flare describes.
(e) Each paper pull-tab and tipboard flare must bear the following statement printed
in letters large enough to be clearly legible:
"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in
Minnesota unless:
-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and
-- the serial number imprinted on the bar code at the bottom of this sheet is the same
as the serial number on the pull-tab (or tipboard) ticket you have purchased."
(f) The flare of each paper pull-tab and tipboard game must have the serial number
of the game imprinted on the bar code at the bottom of the flare in numerals at least
one-half inch high.

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

    Sec. 26. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read:
    Subd. 2. License application. The board may issue a license to a linked bingo game
provider or to a manufacturer licensed under section 349.163 who meets the qualifications
of this chapter and the rules promulgated by the board. The application shall be on a form
prescribed by the board. The license is valid for two years and the fee for a linked bingo
game provider license is $5,000 per year.

    Sec. 27. Minnesota Statutes 2010, section 349.1635, subdivision 3, is amended to read:
    Subd. 3. Attachments to application. An applicant for a linked bingo game
provider license must attach to its application:
(1) evidence of a bond in the principal amount of $100,000 payable to the state of
Minnesota conditioned on the payment of all linked bingo prizes and any other money due
and payable under this chapter;
(2) detailed plans and specifications for the operation of the linked bingo game and
the linked bingo system, along with a proposed fee schedule for the cost of providing
services and equipment to licensed organizations which may not exceed ... percent of
gross profits. The fee schedule must incorporate costs paid to distributors for services
provided under subdivision 5; and
(3) any other information required by the board by rule.

    Sec. 28. Minnesota Statutes 2010, section 349.1635, is amended by adding a
subdivision to read:
    Subd. 5. Linked bingo game services requirements. (a) A linked bingo game
provider must contract with licensed distributors for linked bingo game services including,
but not limited to, the solicitation of agreements with licensed organizations, and
installation, repair, or maintenance of the linked bingo game system.
(b) A distributor may not charge a fee to licensed organizations for services
authorized and rendered under paragraph (a).
(c) A linked bingo game provider may not contract with any distributor on an
exclusive basis.
(d) A linked bingo game provider may refuse to contract with a licensed distributor
if the linked bingo game provider demonstrates that the licensed distributor is not capable
of performing the services under the contract.

    Sec. 29. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:
    Subd. 6. Conduct of bingo. The price of a face played on an electronic bingo
device may not be less than the price of a face on a bingo paper sheet sold for the same
game at the same occasion. A game of bingo begins with the first letter and number called
or displayed. Each player must cover, mark, or activate the numbers when bingo numbers
are randomly selected, and announced, and or displayed to the players, either manually
or with a flashboard and monitor. The game is won when a player, using bingo paper,
bingo hard card, or a facsimile of a bingo paper sheet, has completed, as described in the
bingo program, a previously designated pattern or previously determined requirements
of the game and declared bingo. The game is completed when a winning card, sheet, or
facsimile is verified and a prize awarded pursuant to subdivision 3.

    Sec. 30. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read:
    Subd. 7. Bar bingo. An organization may conduct bar bingo subject to the
following restrictions:
    (1) the bingo is conducted at a site the organization owns or leases and which has a
license for the sale of intoxicating beverages on the premises under chapter 340A; and
    (2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper
sheets purchased from a licensed distributor or licensed linked bingo game provider; and.
    (3) no rent may be paid for a bar bingo occasion.

    Sec. 31. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:
    Subd. 8. Linked bingo games. (a) A licensed organization may conduct or
participate in not more than two linked bingo games per occasion, one of which may be,
including a progressive game in which a portion of the prize is carried over from one
occasion game to another until won by a player achieving a bingo within a predetermined
amount of bingo numbers called.
    (b) Each participating licensed organization shall contribute to each prize awarded in
a linked bingo game in an amount not to exceed $300. Linked bingo games may only be
conducted by licensed organizations who have a valid agreement with the linked bingo
game provider.
    (c) An electronic bingo device as defined in section 349.12, subdivision 12a, may
be used for a linked bingo game.
    (d) The board may adopt rules to:
    (1) specify the manner in which a linked bingo game must be played and how the
linked bingo prizes must be awarded;
    (2) specify the records to be maintained by a linked bingo game provider;
    (3) require the submission of periodic reports by the linked bingo game provider and
specify the content of the reports;
    (4) establish the qualifications required to be licensed as a linked bingo game
provider; and
    (5) any other matter involving the operation of a linked bingo game.

    Sec. 32. Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision
to read:
    Subd. 9. Linked bingo games played exclusively on electronic bingo devices. In
addition to the requirements of subdivision 8, the following requirements and restrictions
apply when linked bingo games are played exclusively on electronic bingo devices:
(a) The permitted premises must be:
(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
malt beverages, except for a general food store or drug store permitted to sell alcoholic
beverages under section 340A.405, subdivision 1; or
(2) a premises where bingo is conducted as the primary business and has a seating
capacity of at least 100.
(b) The number of electronic bingo devices is limited to:
(1) no more than six devices in play for permitted premises with 200 seats or less;
(2) no more than 12 devices in play for permitted premises with 201 seats or more;
and
(3) no more than 50 devices in play for permitted premises where bingo is the
primary business.
Seating capacity is determined as specified under the local fire code.
(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the
participating organizations, must provide to the board a bingo program in a format
prescribed by the board.
(d) Before participating in the play of a linked bingo game, a player must present
and register a valid picture identification card that includes the player's address and
date of birth.
(e) An organization may remove from play a device that a player has not maintained
in an activated mode for a specified period of time determined by the organization. The
organization must provide the notice in its house rules.

    Sec. 33. Minnesota Statutes 2010, section 349.1721, is amended to read:
349.1721 CONDUCT OF PULL-TABS.
    Subdivision 1. Cumulative or carryover games. The board shall by rule permit
pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games with
cumulative or carryover prizes. The rules shall also apply to electronic pull-tab games.
    Subd. 2. Event games. The board shall by rule permit pull-tab games in which
certain winners are determined by the random selection of one or more bingo numbers
or by another method approved by the board. The rules shall also apply to electronic
pull-tab games.
    Subd. 3. Pull-tab dispensing device location restrictions and requirements.
The following pertain to pull-tab dispensing devices as defined under section 349.12,
subdivision 32a.
(a) The use of any pull-tab dispensing device must be at a permitted premises
which is:
(1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt
beverages;
(2) a premises where bingo is conducted as the primary business; or
(3) an establishment licensed for the off-sale of intoxicating liquor, other than drug
stores and general food stores licensed under section 340A.405, subdivision 1.
(b) The number of pull-tab dispensing devices located at any permitted premises
is limited to three.
    Subd. 4. Electronic pull-tab device requirements and restrictions. The following
pertain to the use of electronic pull-tab devices as defined under section 349.12,
subdivision 12b.
(a) The use of any electronic pull-tab device must be at a permitted premises that is:
(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
malt beverages, except for a general food store or drug store permitted to sell alcoholic
beverages under section 340A.405, subdivision 1; or
(2) a premises where bingo is conducted as the primary business and has a seating
capacity of at least 100; and
(3) where the sale of paper pull-tabs is conducted by the licensed organization.
(b) The number of electronic pull-tab devices is limited to:
(1) no more than six devices in play at any permitted premises with 200 seats or less;
(2) no more than 12 devices in play at any permitted premises with 201 seats
or more; and
(3) no more than 50 devices in play at any permitted premises where the primary
business is bingo.
Seating capacity is determined as specified under the local fire code.
(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.
(d) All electronic pull-tab games must be sold and played on the permitted premises
and may not be linked to other permitted premises.
(e) Electronic pull-tab games may not be transferred electronically or otherwise to
any other location by the licensed organization.
(f) Electronic pull-tab games may be commingled if the games are from the same
family of games and manufacturer and contain the same game name, form number, type
of game, ticket count, prize amounts, and prize denominations. Each commingled game
must have a unique serial number.
(g) An organization may remove from play a device that a player has not maintained
in an activated mode for a specified period of time determined by the organization. The
organization must provide the notice in its house rules.
(h) Before participating in the play of an electronic pull-tab game, a player must
present and register a valid picture identification card that includes the player's address
and date of birth.
(i) Each player is limited to the use of one device at a time.

    Sec. 34. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read:
    Subdivision 1. Lease or ownership required; rent limitations. (a) An organization
may conduct lawful gambling only on premises it owns or leases. Leases must be on a
form prescribed by the board. The term of the lease is concurrent with the premises permit.
Leases approved by the board must specify that the board may authorize an organization
to withhold rent from a lessor for a period of up to 90 days if the board determines that
illegal gambling occurred on the premises or that the lessor or its employees participated
in the illegal gambling or knew of the gambling and did not take prompt action to stop the
gambling. The lease must authorize the continued tenancy of the organization without
the payment of rent during the time period determined by the board under this paragraph.
Copies of all leases must be made available to employees of the board and the Division of
Alcohol and Gambling Enforcement on request.
    (b) Rent paid by an organization for leased premises for the conduct of pull-tabs,
tipboards, and paddle wheels lawful gambling is subject to the following limits and
restrictions:
    (1) For booth operations, including booth operations where a pull-tab dispensing
device is located, booth operations where a bar operation is also conducted, and booth
operations where both a pull-tab dispensing device is located and a bar operation is also
conducted, the maximum rent is: monthly rent may not exceed ten percent of gross profits
for that month.
    (i) in any month where the organization's gross profit at those premises does not
exceed $4,000, up to $400; and
    (ii) in any month where the organization's gross profit at those premises exceeds
$4,000, up to $400 plus not more than ten percent of the gross profit for that month in
excess of $4,000;
    (2) For bar operations, including bar operations where a pull-tab dispensing device
is located but not including bar operations subject to clause (1), and for locations where
only a pull-tab dispensing device is located: monthly rent may not exceed 15 percent of
the gross profits for that month.
    (i) in any month where the organization's gross profit at those premises does not
exceed $1,000, up to $200; and
    (ii) in any month where the organization's gross profit at those premises exceeds
$1,000, up to $200 plus not more than 20 percent of the gross profit for that month
in excess of $1,000;
    (3) a lease not governed by clauses (1) and (2) must be approved by the board before
becoming effective; For electronic linked bingo games and electronic pull-tab games that
are operated for separate time periods within a business day by an organization and the
lessor, monthly rent may not be more than:
(i) 15 percent of the gross profits for that month for the time periods operated by
the lessor. The lessor is responsible for cash shortages that occur during the time periods
the games are operated by the lessor; and
(ii) ten percent of gross profits for that month for the time periods operated by the
organization. The organization is responsible for cash shortages that occur during the time
periods the games are operated by the organization.
    (4) total rent paid to a lessor from all organizations from leases governed by clause
(1) may not exceed $1,750 per month.
    (c) Rent paid by an organization for leased premises for the conduct of bingo is
subject to either of the following limits at the option of the parties to the lease:
    (1) (4) For bingo conducted at a leased premises where the primary business is
bingo, rent is limited to either not more than ten percent of the monthly gross profit from
all lawful gambling activities held during bingo occasions, excluding bar bingo or at a
rate based on a cost per square foot not to exceed 110 percent of a comparable cost per
square foot for leased space as approved by the director; and.
    (2) (5) No rent may be paid for bar bingo as defined in section 349.12, subdivision 3c.
(6) A lease not governed by clauses (1) to (5) must be approved by the director
before becoming effective.
    (d) (c) Amounts paid as rent under leases are all-inclusive. No other services or
expenses provided or contracted by the lessor may be paid by the organization, including,
but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn
services, electricity, heat, security, security monitoring, storage, and other utilities or
services, and, in the case of bar operations, cash shortages, unless approved by the
director. The lessor shall be responsible for the cost of any communications network or
service required to conduct electronic pull-tab games or electronic bingo games. Any
other expenditure made by an organization that is related to a leased premises must be
approved by the director. For bar operations, the lessor is responsible for cash shortages.
An organization may not provide any compensation or thing of value to a lessor or the
lessor's employees from any fund source other than its gambling account. Rent payments
may not be made to an individual.
    (e) (d) Notwithstanding paragraph (b), an organization may pay a lessor for food
or beverages or meeting room rental if the charge made is comparable to similar charges
made to other individuals or groups.
    (f) No entity other than the (e) A licensed organization may not conduct any activity
within a booth operation on behalf of the lessor on a leased premises.

    Sec. 35. Minnesota Statutes 2010, section 349.19, subdivision 2, is amended to read:
    Subd. 2. Accounts. (a) Gross receipts from lawful gambling by each organization
must be segregated from all other revenues of the conducting organization and placed in a
separate gambling bank account.
(b) All expenditures for allowable expenses, taxes, and lawful purposes must be
made from the separate account except (1) in the case of expenditures previously approved
by the organization's membership for emergencies as defined by board rule, (2) as provided
in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment
of taxes for the organization as a whole, the organization may transfer the amount of taxes
related to the conduct of gambling to the general account at the time when due and payable.
(c) The name and address of the bank, the account number for the separate account,
and the names of organization members authorized as signatories on the separate account
must be provided to the board when the application is submitted. Changes in the
information must be submitted to the board at least ten days before the change is made.
(d) Except for gambling receipts from electronic pull-tab games and linked
electronic bingo games, gambling receipts must be deposited into the gambling bank
account within four business days of completion of the bingo occasion, deal, or game from
which they are received.
(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of
the deal is sold or the organization does not continue the play of the deal during the next
scheduled period of time in which the organization will conduct pull-tabs.
(2) A tipboard game is considered complete when the seal on the game flare is
uncovered or the organization does not continue the play of the deal during the next
scheduled period of time in which the organization will conduct tipboards.
(e) Gambling receipts from all electronic pull-tab games and all linked electronic
bingo games must be recorded on a daily basis and deposited into the gambling bank
account within two business days.
(e) (f) Deposit records must be sufficient to allow determination of deposits made
from each bingo occasion, deal, or game at each permitted premises.
(f) (g) The person who accounts for gambling gross receipts and profits may not be
the same person who accounts for other revenues of the organization.

    Sec. 36. Minnesota Statutes 2010, section 349.19, subdivision 3, is amended to read:
    Subd. 3. Expenditures. (a) All expenditures of gross profits from lawful gambling
must be itemized as to payee, purpose, amount, and date of payment.
(b) Each licensed organization must report monthly to the board on a form in an
electronic format prescribed by the board each expenditure or contribution of net profits
from lawful gambling. The reports must provide for each expenditure or contribution:
(1) the name of the recipient of the expenditure or contribution;
(2) the date the expenditure or contribution was approved by the organization;
(3) the date, amount, and check number or electronic transfer confirmation number
of the expenditure or contribution;
(4) a brief description of how the expenditure or contribution meets one or more of
the purposes in section 349.12, subdivision 25; and
(5) in the case of expenditures authorized under section 349.12, subdivision 25,
paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily
benefits male or female participants.
(c) Authorization of the expenditures must be recorded in the monthly meeting
minutes of the licensed organization.
(d) Checks or authorizations for electronic fund transfers for expenditures of gross
profits must be signed by at least two persons authorized by board rules to sign the
checks or authorizations.
(e) Expenditures of gross profits from lawful gambling for local, state, and federal
taxes as identified in section 349.12, subdivision 25, paragraph (a), clause (8), may be
transferred electronically from the organization's gambling account directly to bank
accounts identified by local, state, or federal agencies if the organization's gambling
account monthly bank statement specifically identifies the payee by name, the amount
transferred, and the date of the transaction.
(f) Expenditures of gross profits from lawful gambling for payments for lawful
purpose expenditures and allowable expenses may be transferred electronically from the
organization's gambling account directly to bank accounts identified by the vendor if the
organization's gambling account monthly bank statement specifically identifies the payee
by name, the amount transferred, the account number of the account into which the funds
were transferred, and the date of the transaction.
(g) Expenditures of gross profits from lawful gambling for payroll compensation
to an employee's account and for the payment of local, state, and federal withholding
taxes may be transferred electronically to and from the account of a payroll processing
firm provided that the firm:
(1) is currently registered with and meets the criteria of the Department of Revenue
as a third-party bulk filer under section 290.92, subdivision 30;
(2) is able to provide proof of a third-party audit and an annual report and statement
of financial condition;
(3) is able to provide evidence of a fidelity bond; and
(4) can provide proof of having been in business as a third-party bulk filer for the
most recent three years.
(h) Electronic payments of taxes, lawful purpose expenditures, and allowable
expenses are permitted only if they have been authorized by the membership, the
organization maintains supporting documentation, and the expenditures can be verified.

    Sec. 37. Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read:
    Subd. 5. Reports. (a) A licensed organization must report monthly to the
Department of Revenue board in an electronic format prescribed by the board and to its
membership monthly, or quarterly in the case of a licensed organization which does not
report more than $1,000 in gross receipts from lawful gambling in any calendar quarter,
on its gross receipts, expenses, profits, and expenditure of profits from lawful gambling
for each permitted premises. The organization must account for and report on each form
of lawful gambling conducted. The report organization must include a reconciliation of
the organization's profit carryover with its cash balance on hand. If the organization
conducts both bingo and other forms of lawful gambling, the figures for both must be
reported separately.
(b) The organization must report annually to its membership and annually file with
the board a financial summary report in a format prescribed by the board that identifies the
organization's receipts and use of lawful gambling proceeds, including: monthly to the
commissioner of revenue as required under section 297E.06.
(1) gross receipts;
(2) prizes paid;
(3) allowable expenses;
(4) lawful purpose expenditures, including annual totals for types of charitable
contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph
(a), clauses (8) and (18);
(5) the percentage of annual gross profits used for charitable contributions; and
(6) the percentage of annual gross profits used for all taxes and fees as per section
349.12, subdivision 25, paragraph (a), clauses (8) and (18).

    Sec. 38. Minnesota Statutes 2010, section 349.19, subdivision 10, is amended to read:
    Subd. 10. Pull-tab records. (a) The board shall by rule require a licensed
organization to require each winner of a paper pull-tab prize of $50 or more to present
identification in the form of a driver's license, Minnesota identification card, or other
identification the board deems sufficient to allow the identification and tracking of the
winner. The rule must require the organization to retain winning paper pull-tabs of $50 or
more, and the identification of the winner of the pull-tab, for 3-1/2 years.
    (b) An organization must maintain separate cash banks for each deal of paper
pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the
organization uses a cash register, of a type approved by the board, which records all
sales of paper pull-tabs by separate deals.
    (c) The board shall:
    (1) by rule adopt minimum technical standards for cash registers that may be used
by organizations, and shall approve for use by organizations any cash register that meets
the standards; and
    (2) before allowing an organization to use a cash register that commingles receipts
from several different paper pull-tab games in play, adopt rules that define how cash
registers may be used and that establish a procedure for organizations to reconcile all
pull-tab games in play at the end of each month.

    Sec. 39. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read:
    Subd. 1a. Linked bingo prizes. Prizes for a linked bingo game shall be limited
as follows:
(1) no organization may contribute more than $300 per linked bingo game to a
linked bingo prize pool for linked bingo games played without electronic bingo devices,
an organization may not contribute to a linked bingo game prize pool more than $300
per linked bingo game per site;
(2) for linked bingo games played exclusively with electronic bingo devices, an
organization may not contribute more than 85 percent of the gross receipts per permitted
premises to a linked bingo game prize pool;
(2) (3) no organization may award more than $200 for a linked bingo game
consolation prize. For purposes of this subdivision, a linked bingo game consolation
prize is a prize awarded by an organization after a prize from the linked bingo prize pool
has been won; and
    (3) (4) for a progressive linked bingo game, if no player declares a valid bingo
within the for a progressive prize or prizes based on a predetermined amount of bingo
numbers called and posted win determination, a portion of the prize is gross receipts
may be carried over to another occasion game until the accumulated progressive prize
is won. The portion of the prize that is not carried over must be awarded to the first
player or players who declares a valid bingo as additional numbers are called. If a valid
bingo is declared within the predetermined amount of bingo numbers called, the entire
prize pool for that game is awarded to the winner. The annual limit for progressive bingo
game prizes contained in subdivision 2 must be reduced by the amount an organization
contributes to progressive linked bingo games during the same calendar year.; and
(5) for linked bingo games played exclusively with electronic bingo devices, linked
bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the
player within three business days. Winners of linked bingo prizes in excess of $599 will
be given a receipt or claim voucher as proof of a win.

    Sec. 40. Minnesota Statutes 2010, section 349.2127, subdivision 2, is amended to read:
    Subd. 2. Prohibition against possession. (a) A person is guilty of a crime who sells,
offers for sale, or possesses a pull-tab or tipboard deal or paddle ticket cards not stamped
or bar coded in accordance with the provisions of this chapter or chapter 297E. A violation
of this paragraph is a gross misdemeanor if it involves ten or fewer pull-tab or tipboard
deals. A violation of this paragraph is a felony if it involves more than ten pull-tab or
tipboard deals, or a combination of more than ten deals of pull-tabs and tipboards.
(b) A person, other than a licensed manufacturer, a licensed distributor, or an
organization licensed or exempt or excluded from licensing under this chapter, is guilty of
a crime who sells, offers to sell, or possesses gambling equipment. A violation of this
paragraph is a gross misdemeanor if it involves ten or fewer pull-tab or tipboard deals.
A violation of this paragraph is a felony if it involves more than ten pull-tab or tipboard
deals, or a combination of more than ten deals of pull-tabs and tipboards.
(c) A person is guilty of a crime who alters, modifies, or counterfeits pull-tabs,
tipboards, or tipboard tickets, or possesses altered, modified, or counterfeit pull-tabs,
tipboards, or tipboard tickets. A violation of this paragraph is a gross misdemeanor if
the total face value for all such pull-tabs, tipboards, or tipboard tickets does not exceed
$200. A violation of this paragraph is a felony if the total face value exceeds $200. For
purposes of this paragraph, the face value of all pull-tabs, tipboards, and tipboard tickets
altered, modified, or counterfeited within a six-month period may be aggregated and the
defendant charged accordingly.
(d) A person, other than a licensed distributor or licensed manufacturer, is guilty of a
crime who possesses a pull-tab or tipboard deal for which the person, upon demand of
a licensed peace officer or authorized agent of the commissioner of revenue or director
of alcohol and gambling enforcement, does not immediately produce for inspection the
invoice or a true and correct copy of the invoice for the acquisition of the deal from a
licensed distributor. A violation of this paragraph is a gross misdemeanor if it involves
ten or fewer pull-tab or tipboard deals. A violation of this paragraph is a felony if it
involves more than ten pull-tab or tipboard deals, or a combination of more than ten deals
of pull-tabs and tipboards. This paragraph does not apply to pull-tab and tipboard deals
being transported in interstate commerce between locations outside this state.
(e) A person, other than a licensed distributor, licensed linked bingo game provider,
or licensed manufacturer, who removes or possesses an electronic bingo device or
electronic pull-tab device from a licensed organization is guilty of a felony.

    Sec. 41. APPROPRIATION.
(a) $72,000,000 from the general fund is annually appropriated to the stadium
account created under Minnesota Statutes 2010, section 473.5995, for the payment of
bonds authorized under this act. This appropriation shall be made for a term to be
determined by the commissioner of management and budget, not to exceed the time
necessary to complete payments on the bonds.
(b) The commissioner of management and budget shall determine the annual
funds available from all sources, including electronic bingo and pull-tabs, tax increment
contributions from Ramsey County, and transportation funds, and shall be authorized to
allow the authority to use all funds made available under paragraph (a) for any of the
stated purposes of this act.
(c) Any residual funds appropriated under paragraph (a) that are not, in the estimation
of the commissioner, needed for the purposes of paragraph (b), shall be transferred
annually to the commissioner of revenue. The commissioner of revenue shall establish a
rebate program, which shall return the funds available under this paragraph to licensed
lawful gambling organizations, according to the relative amount of taxes paid in the last
prior calendar year by each organization licensed under Minnesota Statutes, chapter 349.

ARTICLE 5

REGIONAL STADIUM FINANCE

    Section 1. Minnesota Statutes 2010, section 297A.992, is amended by adding a
subdivision to read:
    Subd. 5a. Temporary allocations. (a) Notwithstanding the provisions of this
section except subdivision 6a, clause (1), of the revenue collected under this section, the
joint powers board shall:
(1) allocate to the Metropolitan Council, in fiscal year 2012, an amount not less
than 75 percent of the net cost of operations for those transit ways that were receiving
metropolitan sales tax funds through an operating grant agreement on June 30, 2011; and
(2) allocate to the commissioner of management and budget all available funds,
annually until the total amount allocated equals $101,000,000, or until the commissioner
determines that sufficient funds have been transferred to cover the debt service obligations
of the state, in the event that appropriations bonds are sold by the state in the amount of
$101,000,000.
(b) The Metropolitan Council shall expend any funds allocated to it under paragraph
(a) for the operations of the specified transit ways solely within those counties that are in
the metropolitan transportation area.
(c) Nothing in paragraph (a) or (b) prevents grant awards to the Metropolitan
Council for capital and operating assistance for transit ways and park-and-ride facilities
subsequent to the required allocations under paragraph (a).
(d) The commissioner of management and budget shall deposit the funds allocated
under paragraph (a) into the stadium account created under Minnesota Statutes 2010,
section 473.5995.
EFFECTIVE DATE.This section is effective the day following final enactment.