1.1                          A bill for an act 
  1.2             relating to gambling; lawful purpose expenditures; 
  1.3             modifying definition of trade area; amending Minnesota 
  1.4             Statutes 2001 Supplement, section 349.213, subdivision 
  1.5             1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.8   349.213, subdivision 1, is amended to read: 
  1.9      Subdivision 1.  [LOCAL REGULATION.] (a) A statutory or home 
  1.10  rule city or county has the authority to adopt more stringent 
  1.11  regulation of lawful gambling within its jurisdiction, including 
  1.12  the prohibition of lawful gambling, and may require a permit for 
  1.13  the conduct of gambling exempt from licensing under section 
  1.14  349.166.  The fee for a permit issued under this subdivision may 
  1.15  not exceed $100.  The authority granted by this subdivision does 
  1.16  not include the authority to require a license or permit to 
  1.17  conduct gambling by organizations or sales by distributors 
  1.18  licensed by the board.  The authority granted by this 
  1.19  subdivision does not include the authority to require an 
  1.20  organization to make specific expenditures of more than ten 
  1.21  percent per year from its net profits derived from lawful 
  1.22  gambling.  For the purposes of this subdivision, net profits are 
  1.23  gross profits less amounts expended for allowable expenses and 
  1.24  paid in taxes assessed on lawful gambling.  A statutory or home 
  1.25  rule charter city or a county may not require an organization 
  2.1   conducting lawful gambling within its jurisdiction to make an 
  2.2   expenditure to the city or county as a condition to operate 
  2.3   within that city or county, except as authorized under section 
  2.4   349.16, subdivision 8, or 297E.02; provided, however, that an 
  2.5   ordinance requirement that such organizations must contribute 
  2.6   ten percent per year of their net profits derived from lawful 
  2.7   gambling conducted at premises within the city's or county's 
  2.8   jurisdiction to a fund administered and regulated by the 
  2.9   responsible local unit of government without cost to such fund, 
  2.10  for disbursement by the responsible local unit of government of 
  2.11  the receipts for (i) lawful purposes, or (ii) police, fire, and 
  2.12  other emergency or public safety-related services, equipment, 
  2.13  and training, excluding pension obligations, is not considered 
  2.14  an expenditure to the city or county nor a tax under section 
  2.15  297E.02, and is valid and lawful.  A city or county making 
  2.16  expenditures authorized under this paragraph must by March 15 of 
  2.17  each year file a report with the board, on a form the board 
  2.18  prescribes, that lists all such revenues collected and 
  2.19  expenditures for the previous calendar year. 
  2.20     (b) A statutory or home rule city or county may by 
  2.21  ordinance require that a licensed organization conducting lawful 
  2.22  gambling within its jurisdiction expend all or a portion of its 
  2.23  expenditures for lawful purposes on lawful purposes conducted or 
  2.24  located within the city's or county's trade area.  Such an 
  2.25  ordinance must be limited to lawful purpose expenditures of 
  2.26  gross profits derived from lawful gambling conducted at premises 
  2.27  within the city's or county's jurisdiction, must define the 
  2.28  city's or county's trade area, and must specify the percentage 
  2.29  of lawful purpose expenditures which must be expended within the 
  2.30  trade area.  A trade area defined by a city under this 
  2.31  subdivision must include each city and, township, and school 
  2.32  district contiguous to the defining city. 
  2.33     (c) A more stringent regulation or prohibition of lawful 
  2.34  gambling adopted by a political subdivision under this 
  2.35  subdivision must apply equally to all forms of lawful gambling 
  2.36  within the jurisdiction of the political subdivision, except a 
  3.1   political subdivision may prohibit the use of paddlewheels.