1.1 A bill for an act
1.2 relating to local government;
permitting townships to regulate lawful gambling;
1.3 amending Minnesota Statutes
2024, sections 349.16, subdivision 8; 349.213.
1.4 BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes
2024, section 349.16, subdivision 8, is amended to read:
1.6 Subd. 8.Local
investigation fee. A statutory or home rule charter city, township,
or
1.7 county may assess an annual
investigation fee on organizations applying for an initial
1.8 premises permit or conducting
lawful gambling at a site within its jurisdiction under section
1.9 349.213, subdivision 2. An
investigation fee may not exceed the following limits:
1.10 (1) for cities of the first
class, $500;
1.11 (2) for cities of the second
class, $250;
1.12 (3) for all other cities and
for townships, $100; and
1.13 (4) for counties, $375.
1.14 Sec. 2. Minnesota Statutes
2024, section 349.213, is amended to read:
1.15 349.213 LOCAL AUTHORITY.
1.16 Subdivision
1.Local regulation. (a) A statutory or home rule city, township,
or county
1.17 has the authority to adopt more
stringent regulation of lawful gambling within its jurisdiction,
1.18 including the prohibition of
lawful gambling.
2.1 (b) A statutory or home rule
city, township, or county may require a permit for the
2.2 conduct of gambling exempt
from licensing under section 349.166. The fee for a permit
2.3 issued under section 349.166
may not exceed $100.
2.4 (c) The authority granted by
this subdivision does not include the authority to require a
2.5 license or fee for a license
or permit to conduct gambling by organizations, gambling
2.6 managers, gambling employees,
or sales by distributors or linked bingo game providers
2.7 licensed by or registered
with the board.
2.8 (d) The authority granted by
this subdivision does not include the authority to require
2.9 an organization to make
specific expenditures of more than ten percent per year from its
2.10 net profits derived from lawful
gambling.
2.11 (e) For the purposes of this
subdivision, net profits are gross profits less amounts
2.12 expended for allowable expenses
and paid in taxes assessed on lawful gambling.
2.13 (f) A statutory or home rule
charter city, township, or a county may not require an
2.14 organization conducting lawful
gambling within its jurisdiction to make an expenditure to
2.15 the city, township, or
county as a condition to operate within that city, township, or county,
2.16 except:
2.17 (1) as authorized under section
349.16, subdivision 8, or 297E.02; or
2.18 (2) by an ordinance requirement
that such organizations must contribute ten percent per
2.19 year of their net profits derived
from lawful gambling conducted at premises within the
2.20 city's, township's, or
county's jurisdiction to a fund administered and regulated by the
2.21 responsible local unit of
government without cost to such fund. The funds must be disbursed
2.22 by the local unit of government
for (i) charitable contributions as defined in section 349.12,
2.23 subdivision 7a, or (ii) police,
fire, and other emergency or public safety-related services,
2.24 equipment, and training,
excluding pension obligations. A contribution made by an
2.25 organization is not considered
an expenditure to the city, township, or county nor a tax
2.26 under section 297E.02, and is
valid and lawful. A city, township, or county receiving and
2.27 making expenditures authorized
under this clause must by March 15 of each year file a
2.28 report with the board, on a
form the board prescribes, that lists all such revenues collected,
2.29 interest received on fund
balances, and expenditures for the previous calendar year. A home
2.30 rule or statutory city,
township, or county making charitable contributions authorized under
2.31 this clause must acknowledge
financial contributions of organizations conducting lawful
2.32 gambling to the community and
to the recipients of the funds. This may occur in
2.33 communications about the funds
as well as in the distribution of funds.
3.1 (g) A statutory or home rule
city, township, or county may by ordinance require that a
3.2 licensed organization
conducting lawful gambling within its jurisdiction expend all or a
3.3 portion of its expenditures
for lawful purposes on lawful purposes conducted or located
3.4 within the city's,
township's, or county's trade area. Such an ordinance must be limited to
3.5 lawful purpose expenditures
of gross profits derived from lawful gambling conducted at
3.6 premises within the city's,
township's, or county's jurisdiction, must define the city's,
3.7 township's, or
county's trade area, and must specify the percentage of lawful purpose
3.8 expenditures which must be
expended within the trade area. A trade area defined by a city
3.9 or township under
this subdivision must include each city and township contiguous to the
3.10 defining city or township.
3.11 (h) A more stringent regulation
or prohibition of lawful gambling adopted by a political
3.12 subdivision under this
subdivision must apply equally to all forms of lawful gambling within
3.13 the jurisdiction of the
political subdivision, except a political subdivision may prohibit the
3.14 use of paddlewheels.
3.15 Subd. 2.Local
approval. The board may not issue an initial premises permit unless
3.16 approval is received from:
3.17 (1) the city council of the
statutory or home rule city in which the organization's premises
3.18 is located; or
3.19 (2) the township board
of the township where the premises is located; or
3.20 (2) (3) the
county board of the county where the premises is located.
3.21 The organization must submit a
resolution from the city council, township board, or county
3.22 board approving the premises
permit. The resolution must have been adopted within 90
3.23 days of the date of application
for the new permit.
3.24 Subd. 3.Local
gambling tax. A statutory or home rule charter city that has one or more
3.25 licensed organizations
operating lawful gambling, a township that has one or more licensed
3.26 organizations operating
lawful gambling, and a county that has one or more licensed
3.27 organizations outside
incorporated areas operating lawful gambling, may impose a local
3.28 gambling tax on each licensed
organization within the city's, township's, or county's
3.29 jurisdiction. The tax may be
imposed only if the amount to be received by the city, township,
3.30 or county is necessary to cover
the costs incurred by the city, township, or county to regulate
3.31 lawful gambling. The tax
imposed by this subdivision may not exceed three percent per
3.32 year of the gross receipts of a
licensed organization from all lawful gambling less prizes
3.33 actually paid out by the
organization. A city, township, or county may not use money
3.34 collected under this
subdivision for any purpose other than to regulate lawful gambling. All
4.1 documents pertaining to site
inspections, fines, penalties, or other corrective action involving
4.2 local lawful gambling
regulation must be shared with the board within 30 days of filing at
4.3 the city, township, or
county of jurisdiction. A tax imposed under this subdivision is in lieu
4.4 of all other local taxes and
local investigation fees on lawful gambling. A city, township,
4.5 or county that imposes a tax
under this subdivision shall annually, by March 15, file a report
4.6 with the board in a form
prescribed by the board showing (1) the amount of revenue produced
4.7 by the tax during the
preceding calendar year, and (2) the use of the proceeds of the tax.
