Electronic pull-tab revenue dedicated for support of the Minnesota-bred Thoroughbred industry, and money appropriated.

A bill for an act

relating to gambling; dedicating certain electronic pull-tab revenue for support of

the Minnesota-bred Thoroughbred industry; appropriating money; amending

Minnesota Statutes 2024, section 297E.02, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 297E.02, subdivision 3, is amended to read:

Subd. 3.

Collection; disposition.

(a) Taxes imposed by this section are due and payable

to the commissioner when the gambling tax return is required to be filed. Distributors must

file their monthly sales figures with the commissioner on a form prescribed by the

commissioner. Returns covering the taxes imposed under this section must be filed with

the commissioner on or before the 20th day of the month following the close of the previous

calendar month. The commissioner shall prescribe the content, format, and manner of returns

or other documents pursuant to section
270C.30
. The proceeds, along with the revenue

received from all license fees and other fees under sections
349.11
to
349.191
,
349.211
,

and
349.213
, must be paid to the commissioner of management and budget for deposit in

the general fund.

(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by the

distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards by

the organization is exempt from taxes imposed by chapter 297A and is exempt from all

local taxes and license fees except a fee authorized under section
349.16, subdivision 8
.

(c) One-half of one percent of the revenue deposited in the general fund under paragraph

(a), is appropriated to the commissioner of human services for the compulsive gambling

treatment program established under section
245.98
. One-half of one percent of the revenue

deposited in the general fund under paragraph (a), is appropriated to the commissioner of

human services for a grant to the state affiliate recognized by the National Council on

Problem Gambling to increase public awareness of problem gambling, education and training

for individuals and organizations providing effective treatment services to problem gamblers

and their families, and research relating to problem gambling. Money appropriated by this

paragraph must supplement and must not replace existing state funding for these programs.

(d) The commissioner of human services must provide to the state affiliate recognized

by the National Council on Problem Gambling a monthly statement of the amounts deposited

under paragraph (c). Beginning January 1, 2022, the commissioner of human services must

provide to the chairs and ranking minority members of the legislative committees with

jurisdiction over treatment for problem gambling and to the state affiliate recognized by the

National Council on Problem Gambling an annual reconciliation of the amounts deposited

under paragraph (c). The annual reconciliation under this paragraph must include the amount

allocated to the commissioner of human services for the compulsive gambling treatment

program established under section
245.98
, and the amount allocated to the state affiliate

recognized by the National Council on Problem Gambling.

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(e) Beginning in fiscal year 2027, $2,000,000 of the revenue deposited in the general

fund under paragraph (a), attributable to electronic pull-tab deals or games, is annually

appropriated to the Minnesota Racing Commission to supplement purses for races held

exclusively for Minnesota-bred Thoroughbreds and provide grants, loans, and other financial

incentives to breeders and owners, in order to promote, encourage, and support the

Minnesota-bred Thoroughbred industry in the state and encourage breeding and racing of

Thoroughbreds.

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