Journal of the House - 115th Day - Monday, May 13, 2024 - Top of Page 16417

STATE OF MINNESOTA

 

Journal of the House

 

NINETY-THIRD SESSION - 2024

 

_____________________

 

ONE HUNDRED FIFTEENTH DAY

 

Saint Paul, Minnesota, Monday, May 13, 2024

 

 

      The House of Representatives convened at 11:00 a.m. and was called to order by Kaohly Vang Her, Speaker pro tempore.

 

      Prayer was offered by Pastor Mark Katzenberger, Transform Church, Andover, Minnesota.

 

      The members of the House gave the pledge of allegiance to the flag of the United States of America.

 

      The roll was called and the following members were present:

 


Acomb

Agbaje

Altendorf

Anderson, P. E.

Anderson, P. H.

Backer

Bahner

Bakeberg

Baker

Becker-Finn

Bennett

Berg

Bierman

Bliss

Brand

Burkel

Carroll

Cha

Clardy

Coulter

Curran

Daniels

Davids

Davis

Demuth

Dotseth

Edelson

Elkins

Engen

Feist

Finke

Fischer

Fogelman

Franson

Frazier

Frederick

Freiberg

Garofalo

Gillman

Gomez

Greenman

Grossell

Hansen, R.

Hanson, J.

Harder

Hassan

Heintzeman

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hornstein

Howard

Hudson

Huot

Hussein

Igo

Jacob

Johnson

Jordan

Joy

Keeler

Kiel

Klevorn

Knudsen

Koegel

Kotyza-Witthuhn

Kozlowski

Koznick

Kraft

Kresha

Lawrence

Lee, F.

Lee, K.

Liebling

Lillie

Lislegard

Long

McDonald

Mekeland

Moller

Mueller

Murphy

Myers

Nadeau

Nash

Nelson, M.

Nelson, N.

Neu Brindley

Newton

Niska

Noor

Norris

Novotny

Olson, B.

Olson, L.

Pelowski

Pérez-Vega

Perryman

Petersburg

Pfarr

Pinto

Pryor

Pursell

Quam

Rarick

Rehm

Reyer

Robbins

Schomacker

Schultz

Scott

Sencer-Mura

Skraba

Smith

Stephenson

Swedzinski

Tabke

Torkelson

Urdahl

Vang

Virnig

West

Wiener

Wiens

Witte

Wolgamott

Xiong

Youakim

Zeleznikar

Spk. Hortman


 

      A quorum was present.

 

      Hudella was excused.

 

      O'Driscoll was excused until 1:35 p.m.

 

      The Chief Clerk proceeded to read the Journal of the preceding day.  There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.


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REPORTS OF CHIEF CLERK

 

      S. F. No. 716 and H. F. No. 912, which had been referred to the Chief Clerk for comparison, were examined and found to be not identical.

 

      Agbaje moved that S. F. No. 716 be substituted for H. F. No. 912 and that the House File be indefinitely postponed.  The motion prevailed.

 

 

REPORTS OF STANDING COMMITTEES AND DIVISIONS

 

 

Olson, L., from the Committee on Ways and Means to which was referred:

 

H. F. No. 4746, A bill for an act relating to labor; regulating transportation network companies; providing a civil cause of action; appropriating money; amending Minnesota Statutes 2022, section 65B.472; proposing coding for new law as Minnesota Statutes, chapter 181C.

 

Reported the same back with the recommendation that the bill be placed on the General Register.

 

      The report was adopted.

 

 

Olson, L., from the Committee on Ways and Means to which was referred:

 

H. F. No. 5274, A bill for an act relating to horse racing; providing for the conduct of advance deposit wagering, card playing, and pari-mutuel betting; prohibiting the authorization of historical horse racing and other games; providing definitions; making clarifying and conforming changes; amending Minnesota Statutes 2022, sections 240.01, subdivisions 1c, 8, 14, by adding a subdivision; 240.30, subdivision 8; proposing coding for new law in Minnesota Statutes, chapter 240.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"ARTICLE 1

LAWFUL SPORTS BETTING

 

Section 1.  [299L.10] DEFINITIONS.

 

Subdivision 1.  Terms.  For the purposes of this chapter, the following terms have the meanings given them.

 

Subd. 2.  Athletic event.  "Athletic event" means a sports game, match, or activity, or series of games, matches, activities, or tournaments involving the athletic skill of one or more players or participants.  Athletic event does not include any of the following:

 

(1) horse racing as defined in section 240.01, subdivision 8;

 

(2) an esports or athletic competition, demonstration, activity, or tournament organized by an elementary, middle, or high school, or by any youth activity sports program, league, or clinic; or


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(3) a fantasy sports contest in which participants assemble teams of athletes or individuals and the winning outcome reflects the relative knowledge and skill of the participants and is determined predominantly by the accumulated statistical results of the performance of athletes or individuals in an actual event.

 

Subd. 3.  Authorized participant.  "Authorized participant" means an individual who has a valid mobile sports betting account with a mobile betting operator and is at least 21 years of age.

 

Subd. 4.  Casino.  "Casino" means an establishment in which gaming is lawfully conducted by an Indian Tribe in the state of Minnesota pursuant to the Indian Gaming Regulatory Act and in accordance with a Tribal gaming ordinance and applicable Tribal-state compacts.

 

Subd. 5.  Class III gaming.  "Class III gaming" has the meaning given in United States Code, title 25, section 2703.

 

Subd. 6.  College sports.  "College sports" means a sporting event in which at least one participant is a team or individual from a public or private institution of higher education.

 

Subd. 7.  Compact.  "Compact" means a Tribal-state compact governing the conduct of class III gaming on Indian lands that is negotiated under section 3.9221, any other state law, or pursuant to the Indian Gaming Regulatory Act, Public Law 100-497, and future amendments to it.

 

Subd. 8.  Esports event.  "Esports event" means a competition between individuals or teams using video games in a game, match, contest, or series of games, matches, or contests, or a tournament, or by a person or team against a specified measure of performance which is hosted at a physical location or online that meets the following conditions:

 

(1) the video game does not simulate the play of a game classified as Class I, II, or III under the Indian Gaming Regulatory Act, Public Law 100-497, and future amendments to it;

 

(2) spectators are allowed to watch the competition in real time in person or online; and

 

(3) the video game is approved by the commissioner to be an event eligible for wagering under this section to section 299L.80.

 

Subd. 9.  Indian Tribe.  "Indian Tribe" means the following federally recognized Tribes and any instrumentality, political subdivision, legal entity, or other organization through which one of them conducts business:

 

(1) the Fond du Lac Band;

 

(2) the Grand Portage Band;

 

(3) the Mille Lacs Band;

 

(4) the White Earth Band;

 

(5) the Bois Forte Band;

 

(6) the Leech Lake Band;

 

(7) the Red Lake Nation;


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(8) the Upper Sioux Community;

 

(9) the Lower Sioux Indian Community;

 

(10) the Shakopee Mdewakanton Sioux Community; and

 

(11) the Prairie Island Indian Community.

 

Subd. 10.  In-game betting.  "In-game betting" means placing a mobile sports betting wager after a sporting event has started but before the outcome of the wager is determined.

 

Subd. 11.  Mobile application.  "Mobile application" means an application on a mobile phone or other device through which an individual is able to place a mobile sports betting wager.

 

Subd. 12.  Mobile sports betting.  "Mobile sports betting" means operating, conducting, or offering for play sports betting through the Internet.

 

Subd. 13.  Mobile sports betting account.  "Mobile sports betting account" means an electronic ledger in which all of the following types of transactions relative to an authorized participant are recorded:

 

(1) deposits and credits;

 

(2) withdrawals;

 

(3) mobile sports betting wagers;

 

(4) monetary value of winnings;

 

(5) service or other transaction related charges authorized by the authorized participant, if any;

 

(6) adjustments to the account;

 

(7) promotional activity; and

 

(8) responsible gaming parameters.

 

Subd. 14.  Mobile sports betting operator.  "Mobile sports betting operator" means an Indian Tribe that receives a license from the commissioner to operate, conduct, or offer for play mobile sports betting under this section to section 299L.80.

 

Subd. 15.  Mobile sports betting platform.  "Mobile sports betting platform" means an integrated system of hardware, software, or applications, including mobile applications and servers, through which a mobile sports betting operator operates, conducts, or offers sports betting through the Internet.

 

Subd. 16.  Mobile sports betting platform provider.  "Mobile sports betting platform provider" means a sports betting supplier that contracts with a mobile sports betting operator to provide a mobile sports betting platform.

 

Subd. 17.  Participant in a sporting event.  "Participant in a sporting event" means a person engaging in a sporting event as a player, coach, or official, or who is an owner or officer of a team engaging in a sporting event or the league or organization organizing the sporting event.


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Subd. 18.  Sporting event.  "Sporting event" means an athletic event, esports event, college sports event, or other event approved by the commissioner to be an event eligible for wagering under this section to section 299L.80.

 

Subd. 19.  Sports betting.  (a) "Sports betting" means wagering on the outcome of a sporting event or portions thereof or individual performance statistics therein that is:

 

(1) organized by a professional sports organization, internationally recognized sports organization, amateur sports organization, or a postsecondary educational institution or group of postsecondary educational institutions; and

 

(2) approved by the commissioner to be an event eligible for wagering under this act.

 

(b) Sports betting includes but is not limited to single-game bets; futures bets; teaser bets; parlay bets; over-under bets; money line bets; in-game betting; proposition bets; straight bets; exchange wagering; futures bets placed on end of the season standings, awards, or statistics; and any other bets approved by the commissioner.

 

(c) A contract for insurance on the life or health of a participant in a sporting event is not sports betting regulated under this section to section 299L.80.

 

(d) A private social bet as described in section 609.75, subdivision 3, clause (5), is not sports betting regulated under this section to section 299L.80.

 

(e) A sports-themed tipboard as described in section 349.12, subdivision 34, is not sports betting regulated under this section to section 299L.80.

 

Subd. 20.  Sports betting supplier.  "Sports betting supplier" means a person that, either directly or indirectly, provides mobile sports betting operators with services, goods, software, or any other product or information necessary to conduct sports betting or determine the outcome of wagers, including a person who provides data feeds and odds services, risk management providers, and integrity monitoring providers.  Sports betting supplier does not include a sports governing body that provides raw statistical match data.

 

Subd. 21.  Sports governing body.  "Sports governing body" means an organization that prescribes and enforces final rules and codes of conduct for a sporting event and participants engaged in the sport.  For a sporting event sanctioned by a higher education institution, "sports governing body" means the athletic conference to which the institution belongs.  For an esports event, "sports governing body" means the video game publisher of the title used in the esports competition.

 

Subd. 22.  Wager.  "Wager" means a transaction between an individual and a licensed mobile sports betting operator in which an individual pays, deposits, or risks cash or a cash equivalent during sports betting on an uncertain outcome of a sporting event.

 

Sec. 2.  [299L.11] SCOPE.

 

Subdivision 1.  Lawful mobile sports betting.  A person 21 years of age or older may participate in mobile sports betting within the state provided the person places all wagers with an entity licensed under sections 299L.10 to 299L.80 and is not disqualified, prohibited, or excluded from placing a wager on a sporting event.

 

Subd. 2.  Unlawful sports betting.  It is unlawful to wager on a sporting event, or engage in sports betting except in compliance with the terms, conditions, limitations, and restrictions of sections 299L.10 to 299L.80 or the rules adopted under those sections, other than class III sports betting conducted by an Indian Tribe pursuant to a Tribal-state compact.


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Subd. 3.  Inapplicability to sports betting on Indian lands.  Sections 299L.10 to 299L.80, except for any provisions authorizing the negotiations of Tribal-state compacts, do not apply to sports betting conducted exclusively on Indian lands by an Indian Tribe conducted pursuant to a Tribal gaming ordinance approved by the National Indian Gaming Commission and a Tribal-state compact.

 

Sec. 3.  [299L.15] POWERS AND DUTIES OF COMMISSIONER.

 

Subdivision 1.  Regulate sports betting.  The commissioner has the power and duty to regulate mobile sports betting authorized under sections 299L.10 to 299L.80.  In making rules, establishing policy, and regulating mobile sports betting, the commissioner shall:

 

(1) ensure that mobile sports betting is conducted in a fair and lawful manner;

 

(2) promote public safety and welfare; and

 

(3) ensure that mobile sports betting is conducted in a manner that is transparent to authorized participants.

 

Subd. 2.  Rulemaking.  (a) The commissioner must adopt and enforce rules that are consistent with sections 299L.10 to 299L.80 and address the following subjects:

 

(1) the manner in which wagers are accepted and payouts are remitted;

 

(2) the manner in which betting lines are communicated to the public;

 

(3) the calculation of gross sports betting revenue and standards for daily counting and recording of cash and cash equivalents received in the conduct of sports betting;

 

(4) the method of accounting to be used by mobile sports betting operators;

 

(5) the types of records that shall be kept by mobile sports betting operators, mobile sports betting platform providers, and sports betting suppliers;

 

(6) the testing and auditing requirements for licensees, including requirements related to mobile sports betting accounts;

 

(7) the creation, funding, and use of mobile sports betting accounts, debit cards, and checks by authorized participants provided that the rules permit an authorized participant to fund a mobile sports betting account through a bonus or promotion, electronic bank transfer, an online or mobile payment system that supports online money transfers, a reloadable or prepaid card, and any other appropriate means approved by the commissioner other than the use of credit cards;

 

(8) the appropriate standards and practices to prevent and address compulsive and problem gambling;

 

(9) the appropriate standards and practices to prevent and address sports betting by individuals who are not authorized participants or who are otherwise disqualified, prohibited, or excluded from placing a wager on a sporting event;

 

(10) the sporting events on which wagers are authorized to be placed;


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(11) the requirements for obtaining and retaining mobile sports betting operator licenses, mobile sports betting platform provider licenses, and sports wagering supplier licenses, including requirements for criminal and financial background checks, financial disclosure and auditing requirements, data practices and security requirements, bonding or other surety requirements, and the conduct of inspections;

 

(12) the requirements for mobile sports betting platform provider licensees to provide equipment and supplies used in sports betting;

 

(13) the requirements for sports wagering supplier licensees to provide services, goods, software, or any other product or information necessary to conduct sports betting or determine the outcome of wagers;

 

(14) the requirements for employees of mobile sports betting operators whose exclusive or primary responsibilities involve mobile sports betting, including minimum age requirements, criminal background checks, and retention of documents related to the employees;

 

(15) the appropriate limits, requirements, standards, and regulations related to marketing and advertising, developed in consultation with the state affiliate recognized by the National Council on Problem Gambling, including rules to address the time, place, and manner of marketing and advertising, the types of wagers that may be marketed or advertised, and the types of mobile sports betting accounts that may be marketed or advertised;

 

(16) the limits and requirements related to advertising, including:

 

(i) rules that prohibit depicting an individual under age 21 engaging in sports betting;

 

(ii) rules that prohibit advertisement in any print publication or on radio, television, or any other medium if the targeted audience of that medium is reasonably expected to be individuals who are under age 21;

 

(iii) rules that establish what warnings and other information an advertisement must contain; and

 

(iv) rules that limit the frequency of advertisements;

 

(17) the appropriate standards for limiting the total number of wagers an individual can place within a specified period of time and any required waiting period between placing wagers, in order to reduce the addictive impact of mobile wagering applications;

 

(18) the requirements for monitoring patterns of wagering to identify behaviors consistent with problem gambling and the appropriate actions to take when problem gambling is suspected, including pausing or suspending activities from an identified mobile sports betting account; and

 

(19) the appropriate limits, standards, and requirements necessary to prevent excessive wagering by an individual whose ability to control impulsive wagering is impaired in any way.

 

(b) Rules for which notice is published in the State Register before January 1, 2025, may be adopted using the expedited rulemaking process in section 14.389.

 

(c) The commissioner shall regularly review and update rules designed to prevent and address compulsive and problem gambling to incorporate advances in the understanding of compulsive and problem gambling and updated best practices in the area.

 

Subd. 3.  Delegation.  The commissioner may delegate any of its authority under this chapter to the director if, in the judgment of the commissioner, doing so would promote the efficient administration of this chapter.


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Subd. 4.  Requests for restrictions on wager types.  (a) A sports governing body may request that the commissioner prohibit or restrict wagers on a particular sporting event, or prohibit or restrict particular types of wagers if the sports governing body believes that such type, form, or category of sports betting may undermine the integrity or perceived integrity of the sports governing body or sporting event.

 

(b) Requests from a sports governing body shall be made in the form and manner established by the commissioner.

 

(c) Upon receipt of a request made under this subdivision, the commissioner shall send written notice to every mobile sports betting operator, provide mobile sports betting operators with an opportunity to respond to the request, and consider any timely response submitted by a mobile sports betting operator.  The commissioner may not take action without providing mobile sports betting operators with an opportunity to respond, but may establish reasonable deadlines for the response based on the nature of the request and any exigent circumstances that exist.

 

(d) If the commissioner determines that the sports governing body has shown good cause to support the requested prohibition or restriction, the commissioner shall adopt the prohibition or restriction and send notice of the prohibition or restriction to every mobile sports betting operator.  If the commissioner determines that the sports governing body has not shown good cause to support the requested prohibition or restriction, the commissioner shall provide the sports governing body with notice and an opportunity for a hearing to offer further evidence in support of its request.  The commissioner shall provide the mobile sports betting operators with notice of the hearing and an opportunity to participate.

 

(e) The commissioner shall respond to a request concerning a particular event before the start of the event, or if it is not feasible to respond before the start of the event, no later than seven days after the request is made.

 

(f) If the commissioner determines that the requestor is more likely than not to prevail in successfully demonstrating good cause for its request, the commissioner may provisionally grant the request of the sports governing body until the commissioner makes a final determination as to whether the requestor has demonstrated good cause.  Absent such a provisional grant, mobile sports betting operators may continue to offer sports betting on covered sporting events that are the subject of the request during the pendency of the commissioner's consideration of the applicable request.

 

Sec. 4.  [299L.20] LICENSE TYPES; TRANSFERS PROHIBITED.

 

(a) The commissioner shall issue the following licenses for mobile sports betting:

 

(1) up to 11 mobile sports betting operator licenses;

 

(2) up to 11 mobile sports betting platform provider licenses; and

 

(3) sports betting supplier licenses.

 

(b) Licenses issued under sections 299L.10 to 299L.80 may not be transferred.

 

Sec. 5.  [299L.25] GENERAL LICENSING REQUIREMENTS; DISQUALIFICATIONS; BACKGROUND INVESTIGATIONS.

 

Subdivision 1.  General requirements.  (a) A licensee or applicant must meet each of the following requirements, if applicable, to hold or receive a license issued under sections 299L.10 to 299L.80:

 

(1) have completed an application for licensure or application for renewal;


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(2) have paid the applicable application and licensing fees;

 

(3) not be employed by any state agency with regulatory authority over mobile sports betting;

 

(4) not owe $500 or more in delinquent taxes, penalties, or interest, with delinquent taxes subject to the limitations under section 270C.72, subdivision 2;

 

(5) not have had a sales and use tax permit revoked by the commissioner of revenue within the past two years; and

 

(6) not have, after demand, failed to file tax returns required by the commissioner of revenue.

 

(b) The requirements under paragraph (a) apply to the applicant or licensee, or a director, officer, partner, member of the governing body for the applicant or licensee, person in a supervisory or management position of the applicant or licensee, or any direct or indirect holder of more than ten percent financial interest in the applicant or licensee.

 

(c) The requirements under paragraph (a) do not apply to an elected or appointed representative of any applicant or licensee that is an Indian Tribe unless the representative is also a full-time employee of the applicant's or licensee's mobile sports betting operations.

 

Subd. 2.  Criminal offenses; disqualifications.  (a) No person may hold or receive a license issued under sections 299L.10 to 299L.80 if the person has been convicted of, or received a stay of adjudication for, a violation of a state or federal law that:

 

(1) is a felony, other than any act that would be a violation of section 152.025 under Minnesota law;

 

(2) is a crime involving gambling; or

 

(3) is a crime involving theft or fraud that would be a gross misdemeanor or felony under Minnesota law.

 

(b) The requirements under paragraph (a) apply to the applicant or licensee, or a director, officer, partner, member of the governing body for the applicant or licensee, person in a supervisory or management position of the applicant or licensee, or any direct or indirect holder of more than ten percent financial interest in the applicant or licensee.

 

(c) The requirements under paragraph (a) do not apply to an elected or appointed representative of any applicant or licensee that is an Indian Tribe unless the representative is also a full-time employee of the applicant's or licensee's mobile sports betting operations.

 

Subd. 3.  Background investigation.  The commissioner must perform a background investigation on applicants for a license or license renewal and on each director, officer, partner, member of the governing body for the applicant or licensee, person in a supervisory or management position of the applicant or licensee, or any direct or indirect holder of more than ten percent financial interest in the applicant or licensee.  The commissioner may request the director and the commissioner of revenue to assist in investigating the background of an applicant or a licensee under this section.  The commissioner may charge an applicant an investigation fee to cover the cost of the investigation and shall from this fee reimburse the Division of Alcohol and Gambling Enforcement and the Department of Revenue for their respective shares of the cost of the investigation.  The commissioner is authorized to have access to all data compiled by the Division of Alcohol and Gambling Enforcement on licensees and applicants.


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Subd. 4.  Criminal history record check.  The commissioner must perform a criminal history record check on each officer, director, or stakeholder with more than ten percent interest in the licensee or applicant.  The records check must include a criminal history check of the state and federal criminal records.  The applicant or licensee must provide signed consent for the national criminal history records check and fingerprints for each person subject to a check under this subdivision.  The director shall assist in performing the criminal history records check.  The director may charge an applicant a fee to cover the cost of the criminal history record check, and shall from this fee reimburse the Division of Alcohol and Gambling Enforcement for its share of the cost of the investigation.  The commissioner or the director must submit the signed informed consent, fingerprints, and Bureau of Criminal Apprehension and Federal Bureau of Investigation fees to the superintendent of the Bureau of Criminal Apprehension who is authorized to exchange the fingerprints with the Federal Bureau of Investigation to obtain the applicant's national criminal history data.  The superintendent of the Bureau of Criminal Apprehension shall retrieve Minnesota criminal history data and shall provide the results of the state and federal criminal history record check to the director.  The commissioner is authorized to have access to all criminal history data compiled on licensees and applicants by the Division of Alcohol and Gambling Enforcement, including criminal history data on each officer, director, or stakeholder with more than ten percent interest in the licensee or applicant.

 

Subd. 5.  Prohibition on use of information.  The provisions of this section only apply to mobile sports betting operations and do not apply to other activities relating to Tribal gaming operations, Tribal government records, or class III sports betting operations conducted exclusively on Indian lands.

 

Sec. 6.  [299L.26] LICENSE APPLICATION AND RENEWAL; GENERAL REQUIREMENTS; PROCEDURE.

 

Subdivision 1.  Application; contents.  An application for a license under sections 299L.10 to 299L.80 must be submitted on a form prescribed by the commissioner.  At a minimum, the application must include:

 

(1) the name and address of the applicant and, if it is a corporation, the names of all officers, directors, and shareholders with more than ten percent interest in the corporation and any of its holding companies;

 

(2) the type of license being sought;

 

(3) if required by the commissioner, the names of any person holding directly, indirectly, or beneficially an interest of any kind in the applicant or any of its holding corporations, whether the interest is financial, administrative, policy making, or supervisory.  This provision does not extend to individual Tribal members whose only relation to the applicant is their membership in their respective Tribal Nations, or to an elected or appointed representative of any applicant or licensee that is an Indian Tribe unless the representative is also a full-time employee of the applicant's or licensee's mobile sports betting operations;

 

(4) an affidavit executed by the applicant setting forth that, to the best of the applicant's knowledge, no officer, director, or other person with a present direct or indirect financial or management interest in the applicant:

 

(i) is in default in the payment of an obligation or debt to the state;

 

(ii) has ever been convicted of a crime listed in section 299L.25, subdivision 2, paragraph (a), or has a state or federal charge for one of those crimes pending;

 

(iii) is or has been convicted of engaging in an illegal business;

 

(iv) has ever been found guilty of fraud or misrepresentation in connection with wagering; or

 

(v) has ever knowingly violated a rule or order of the commissioner or a law of Minnesota relating to wagering;


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(5) an irrevocable consent statement, signed by the applicant, which states that suits and actions limited to the enforcement of this chapter may be commenced against the applicant by the commissioner in any court of competent jurisdiction in this state by the service on the secretary of state of any summons, process, or pleadings authorized by the laws of this state.  If any summons, process, or pleadings is served upon the secretary of state, it must be by duplicate copies.  One copy must be retained in the Office of the Secretary of State and the other copy must be forwarded immediately by certified mail to the address of the applicant, as shown by the records of the commissioner;

 

(6) a declaration that the laws of the state of Minnesota will be followed, including any applicable provisions of the Minnesota Human Rights Act, chapter 363A; and

 

(7) any additional information required for the specific license the applicant is seeking.

 

Subd. 2.  Application; process.  (a) Applicants must submit all required information to the commissioner on the forms and in the manner prescribed by the commissioner.

 

(b) If the commissioner receives an application that fails to provide the required information, the commissioner shall issue a deficiency notice to the applicant.  The applicant shall have ten business days from the date of the deficiency notice to submit the required information.

 

(c) Failure by an applicant to submit all required information will result in the application being rejected.

 

(d) Within 90 days of receiving a completed application, the commissioner shall issue the appropriate license or send the applicant a notice of rejection setting forth specific reasons why the commissioner did not approve the application.

 

(e) An applicant whose application is not approved may reapply at any time, but must submit a new application and pay an additional application fee.

 

Sec. 7.  [299L.27] DUTY TO UPDATE.

 

(a) During the pendency of an application and at any time after a license has been issued, an applicant or licensee shall notify the commissioner of any changes to the information provided under section 299L.25 or 299L.26.

 

(b) If a change in the officers, directors, shareholders, or other persons with a present or future direct or indirect financial or management interest in a licensee, or a change of ownership of more than ten percent of the shares of the licensee is made after the application for a license is filed or a license is issued, the applicant or licensee must notify the commissioner of the changes within ten days of their occurrence and submit a new affidavit as required by section 299L.26, subdivision 1, clause 4.

 

Sec. 8.  [299L.28] MOBILE SPORTS BETTING OPERATOR LICENSE.

 

Subdivision 1.  Issuance.  (a) The commissioner may issue up to 11 mobile sports betting operator licenses that are valid for 20 years.  A mobile sports betting operator license may be renewed under conditions required by rule adopted pursuant to section 299L.15.

 

(b) The commissioner shall only issue a mobile sports betting operator license to an Indian Tribe that lawfully conducts class III gaming in a casino located in this state under a facility license issued in accordance with a Tribal gaming ordinance approved by the chair of the National Indian Gaming Commission.

 

(c) Each Indian Tribe described in paragraph (b) is not eligible for more than one mobile sports betting operator license.


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Subd. 2.  Authorized actions.  A mobile sports betting operator license entitles the licensee to:

 

(1) operate, coordinate, conduct, or offer for play mobile sports betting in Minnesota;

 

(2) contract with one licensed mobile sports betting platform provider to facilitate the acceptance of wagers on behalf of the mobile sports betting operator;

 

(3) contract with licensed sports betting suppliers; and

 

(4) perform any other actions approved by the commissioner to ensure that mobile sports betting is conducted in a fair, lawful, and transparent manner.

 

Subd. 3.  Licensing requirements.  A mobile sports betting operator must:

 

(1) be an entity wholly owned and controlled by an Indian Tribe;

 

(2) submit a completed application and all required documents or other materials pursuant to sections 299L.25 and 299L.26 and any relevant rules;

 

(3) submit a detailed plan and specifications for the implementation of mobile sports betting;

 

(4) include mechanisms on its mobile sports betting platform that are designed to detect and prevent the unauthorized use of Internet sports betting accounts and to detect and prevent fraud, money laundering, and collusion, or require a contracted mobile sports betting platform provider to include those mechanisms;

 

(5) submit a statement of the assets and liabilities of the license holder to the commissioner;

 

(6) not be disqualified under section 299L.25 or any relevant rules;

 

(7) pay an annual licensing fee in the amount of $2,125; and

 

(8) meet any other conditions required by rule adopted pursuant to section 299L.15.

 

Subd. 4.  Reporting.  A mobile sports betting operator must report to the commissioner monthly on wagers placed and redeemed during the reporting month and outstanding at the time of the report.

 

Subd. 5.  Prohibition on use of information.  The provisions of this section only apply to mobile sports betting operations in this state and do not apply to other activities relating to Tribal gaming operations, Tribal government records, or class III sports betting operations conducted exclusively on Indian lands.

 

Sec. 9.  [299L.29] MOBILE SPORTS BETTING PLATFORM PROVIDER LICENSE.

 

Subdivision 1.  Issuance.  The commissioner may issue up to 11 mobile sports betting platform provider licenses that are valid for one year.  A mobile sports betting platform provider may be renewed under conditions required by rule adopted pursuant to section 299L.15.

 

Subd. 2.  Authorized actions.  A mobile sports betting platform provider license entitles the licensee to provide a sports betting platform, sports betting technology, sports betting applications, or associated mobile sports betting hardware, software, or equipment to a mobile sports betting operator.


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Subd. 3.  Licensing requirements.  For initial licensure and subsequent license renewal, a mobile sports betting platform provider must:

 

(1) submit a completed application and all required documents or other materials pursuant to sections 299L.25 and 299L.26 and any relevant rules;

 

(2) not be disqualified under section 299L.25 or any relevant rules;

 

(3) pay an application fee of $16,500 with submission of an application;

 

(4) pay a licensing fee after the application is approved in the amount of $250,000 or a license renewal fee of $83,000; and

 

(5) meet any other conditions required by rule adopted pursuant to section 299L.15.

 

Sec. 10.  [299L.30] SPORTS BETTING SUPPLIER LICENSE.

 

Subdivision 1.  Issuance.  The commissioner may issue sports betting supplier licenses that are valid for one year.  A sports betting supplier license may be renewed under conditions required by rule adopted pursuant to section 299L.15.

 

Subd. 2.  Authorized actions.  A sports betting supplier license entitles the licensee to either directly or indirectly provide mobile sports betting operators with information and support necessary to offer mobile sports betting.  Information and support may be provided in the form of services, goods, or software, and may include data feeds and odds services, risk management, and integrity monitoring.

 

Subd. 3.  Licensing requirements.  (a) For initial licensure and subsequent license renewal, a sports betting supplier must:

 

(1) submit a completed application and all required documents for the applicant's principal owners who directly own ten percent or more of the applicant and the applicant's officers;

 

(2) pay an application fee of $16,500 with submission of an application;

 

(3) pay a licensing fee after the application is approved in the amount of $100,000 or a license renewal fee of $33,000; and

 

(4) meet any other conditions required by rule adopted pursuant to section 299L.15.

 

(b) Provided an application has been completed to the satisfaction of the commissioner, disclosure of the following public information may be waived:

 

(1) statutorily authorized pension investment boards that are direct or indirect shareholders of an applicant; and

 

(2) investment funds or entities registered with the Securities and Exchange Commission, including any investment advisors or entities under the management of an entity registered with the Securities and Exchange Commission, that are direct or indirect shareholders of the applicant.


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Sec. 11.  [299L.35] PARTNERSHIP ALLOWED.

 

Subdivision 1.  Ability to contract with platform providers.  (a) A mobile sports betting operator may, but is not required to, contract with a mobile sports betting platform provider to provide, create, or operate sports betting platforms, sports betting technology, sports betting applications, or associated mobile sports betting hardware, software, or equipment.

 

(b) If a mobile sports betting operator chooses to contract with a mobile sports betting platform provider for these services, it shall contract with no more than one mobile sports betting platform provider.

 

(c) If a mobile sports betting operator chooses not to contract with a mobile sports betting platform provider for these services, then the mobile sports betting operator must comply with the reporting and regulatory requirements held by mobile sports betting platform provider license holders.

 

Subd. 2.  Logo display required.  A mobile sports betting platform provider that has contracted with a mobile sports betting operator must clearly display a brand of the mobile sports betting operator within its mobile application.

 

Sec. 12.  [299L.36] DEPOSIT OF FEES.

 

Application, license, and renewal fees shall be deposited in the general fund.

 

Sec. 13.  [299L.37] ADVERTISING.

 

Subdivision 1.  Prohibition on targeting individuals under age 21.  No licensee or other person shall publish or cause to be published an advertisement for mobile sports betting that:

 

(1) depicts a person under age 21 engaging in sports betting or mobile sports betting;

 

(2) includes an image that is designed to be appealing to individuals under age 21 or encourage sports betting by individuals under age 21; or

 

(3) is in any print publication or on radio, television, or any other medium if 30 percent or more of the audience of that medium is reasonably expected to be individuals who are under age 21, as determined by reliable, current audience composition data.

 

Subd. 2.  Prohibition on targeting individuals prohibited from placing wagers.  No licensee or other person shall publish or cause to be published an advertisement for mobile sports betting that targets individuals who are disqualified, prohibited, or excluded from placing a wager on a sporting event for any reason, including being identified on the exclusion list identified in section 299L.45, subdivision 1.

 

Subd. 3.  Prohibition on advertising in certain locations.  No licensee or other person shall place or cause to be placed an advertisement for mobile sports betting:

 

(1) in a personal vehicle as defined in section 65B.472, subdivision 1, paragraph (c);

 

(2) in a taxicab, limousine, or for-hire vehicle;

 

(3) at a bus stop or train stop location, transit shelter, or transit passenger seating facility;

 

(4) at a taxi stand or other transportation waiting area;


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(5) at any airport; or

 

(6) at any other similar location.

 

Subd. 4.  Prohibition on false or misleading claims.  No licensee or other person shall publish or cause to be published an advertisement for mobile sports betting that contains false or misleading claims or which contains statements, words, or pictures of an obscene, indecent, or immoral character, or such as would offend public morals or decency.

 

Sec. 14.  [299L.40] WAGERING.

 

Subdivision 1.  Placing wagers.  An individual who is 21 years of age or older may place wagers pursuant to sections 299L.10 to 299L.80 provided the individual is not otherwise disqualified, prohibited, or excluded from doing so.

 

Subd. 2.  Wager type.  A mobile sports betting operator, or a mobile sports betting platform provider on behalf of a mobile sports betting operator, may only accept wagers of a type previously approved by the commissioner.  Wager types that the commissioner may approve include but are not limited to the following:

 

(1) a wager that a participant or participating team will win a sporting event or will win by a specified number of points;

 

(2) a wager as to whether the total points scored in a sporting event will be higher or lower than a number specified;

 

(3) a wager on an outcome contingency or proposition incidental to a sporting event, series, tournament, or season for which the outcome is published in newspapers of general circulation or in records made publicly available by the league or governing body for the event;

 

(4) a wager on the outcome of a series of two or more sporting events or a series of two or more contingencies incidental to a sporting event;

 

(5) in-game betting;

 

(6) future bets placed on end of the season standings, awards, or statistics; and

 

(7) a wager that a participant or participating team will win an esports event or will win by a specified number of points.

 

Subd. 3.  Wager types prohibited.  Mobile sports betting operators shall not offer or accept wagers on the occurrence or outcomes of the following situations that may occur during or after a sporting event:

 

(1) player injuries;

 

(2) penalties;

 

(3) the outcome of player disciplinary rulings; or

 

(4) replay reviews.


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Subd. 4.  Mobile sports betting account; establishment.  (a) An individual may establish a mobile sports betting account by electronic means from any location, and may fund an account by any means approved by the commissioner.

 

(b) Money deposited in a mobile sports betting account may not be used to place a wager until at least three hours have passed from the time of the deposit.

 

(c) Information provided by an individual who establishes a mobile sports betting account may be accessed, stored, and used by a mobile sports betting operator.

 

Subd. 5.  Consideration; mobile sports betting account.  (a) A mobile sports betting operator or mobile sports betting platform provider must not accept a wager unless the authorized participant provides consideration in the form of funds or other thing of value such as use of free bets or promotional credits from their mobile sports betting account at the time of making the wager.

 

(b) Consideration must be in the form of withdrawal from a mobile sports betting account maintained by the mobile sports betting operator or mobile sports betting platform provider for the benefit of and in the name of the wagerer.

 

(c) A mobile sports betting operator, or a mobile sports betting platform provider on behalf of a mobile sports betting operator, shall verify an individual's age and identity before allowing that individual to place a wager.  Mobile sports betting operators and mobile sports betting platform providers may utilize an approved identity verification service provider to confirm an individual's age and identity.

 

(d) A person shall have the right to withdraw the balance of funds in the mobile sports betting account in the person's name at any time with proof of identity, as determined by rules adopted pursuant to section 299L.15.

 

Subd. 6.  Wager location.  Mobile sports betting wagers regulated under sections 299L.10 to 299L.80 may only be accepted from a person placing a wager online, through a website or mobile application, while the person placing the wager is physically within the state.  The website or application may be hosted by a mobile sports betting operator operating in conjunction with a mobile sports betting platform provider.  The incidental routing of a mobile sports wager shall not determine the location or locations in which the wager is initiated, received, or otherwise made.

 

Subd. 7.  Information provided at the time of wager.  A mobile sports betting operator or mobile sports betting platform provider must disclose the betting line and terms of a wager prior to accepting a wager.  Terms of the wager include the ratio of the amount to be paid for winning to the wagered amount.

 

Subd. 8.  Outcome determined.  A mobile sports betting operator or mobile sports betting platform provider must not accept a wager on the outcome of an event or proposition that has already been determined.

 

Subd. 9.  Receipt.  A mobile sports betting operator must provide a person who places a wager with an electronic receipt at the time of sale that contains the following information:

 

(1) the sporting event or proposition that is the subject of the wager;

 

(2) the outcome that will constitute a win on the wager;

 

(3) the amount wagered; and

 

(4) the payout in the event of a winning wager.


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Subd. 10.  Wager data; safeguards necessary.  (a) Information regarding wagers made by an authorized participant who engages in mobile sports betting, including but not limited to wager type and consideration paid, may be accessed, stored, or used for ordinary business purposes by the mobile sports betting operator.

 

(b) Mobile sports betting operators must use commercially reasonable methods to maintain the security of wager data, authorized participant data, and other confidential information from unauthorized access and dissemination, however, that nothing in this act shall preclude the use of Internet or cloud-based hosting of such data and information or disclosure as required by court order, other law, or this act.

 

Sec. 15.  [299L.41] PROHIBITION ON PUSH NOTIFICATIONS.

 

Mobile sports betting operators and mobile sports betting platform providers are prohibited from sending a message from a mobile sports betting application or website that appears on a user's device while the application or website is inactive unless the message is sent to notify the user of potentially fraudulent activity associated with the user's mobile sports betting account.

 

Sec. 16.  [299L.45] EXCLUSION LIST AND PROHIBITION ON WAGERING.

 

Subdivision 1.  Exclusion list.  (a) The commissioner shall maintain a list of persons who are not eligible to wager on sporting events through a mobile sports betting operator.  The list shall include the names of:

 

(1) persons who have themselves requested to be on the exclusion list;

 

(2) persons whose names have been submitted, for their protection, by their legal guardians;

 

(3) persons whose names have been submitted by mobile sports betting operators, mobile sports betting platform providers, or mobile sports betting suppliers for good cause; and

 

(4) persons whose names have been submitted by sports governing bodies.

 

(b) A person who has requested to be on the exclusion list may specify a time limit of one, three, or five years for the person's name to be on the list.  The commissioner will remove the person's name from the list at the conclusion of the specified time.  A person may be removed from the list before the specified time by providing proof of completion of a class approved by the commissioner to address compulsive gambling.

 

(c) The information contained on the list is private data on individuals, as defined in section 13.02, subdivision 12, except the commissioner is permitted to share the list with mobile sports betting operators as needed to prevent persons on the exclusion list from placing sports betting wagers.

 

Subd. 2.  Prohibited wagers by certain persons.  The following individuals who are otherwise authorized to place wagers are prohibited from placing the wagers described:

 

(1) an individual who is prohibited from placing wagers by a mobile sports betting operator or mobile sports betting platform provider for good cause, including, but not limited to, any individual placing a wager as an agent or proxy on behalf of another may not place a wager of any kind;

 

(2) an individual who is an athlete, coach, referee, player, health care provider, or team employee is prohibited from wagering on a sporting event overseen by that person's sports governing body;

 

(3) an individual who holds a position of authority sufficient to exert influence over the participants in a sporting event, including, but not limited to, a coach, manager, or owner is prohibited from wagering on that sporting event; and


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(4) an individual who has access to certain types of exclusive or nonpublic information regarding a sporting event is prohibited from wagering on that sporting event and any other sporting event overseen by the sports governing body of that sporting event.

 

Subd. 3.  Prohibition on accepting wagers.  (a) A mobile sports betting operator or mobile sports betting platform provider shall not knowingly accept a wager from a person on the exclusion list or allow a person on the exclusion list to establish a mobile sports betting account.

 

(b) A mobile sports betting operator or a mobile sports betting platform provider shall not knowingly accept a wager prohibited under subdivision 2 from any individual who can reasonably be identified by publicly available information or by any lists provided to the commissioner.

 

(c) Knowingly accepting a wager from a person on the exclusion list is a license violation, subject to a penalty established by the commissioner.

 

Sec. 17.  [299L.50] FINANCIAL RESPONSIBILITY.

 

Subdivision 1.  Responsibility for satisfying winning wagers.  A wager on a sporting event placed with a mobile sports betting operator is an enforceable contract.  A mobile sports betting operator or mobile sports betting platform provider who accepts a wager bears all risk of loss to satisfy winnings on the wager.  A wager that is not redeemed within one year of the outcome that is the subject of the wager may be canceled by the mobile sports betting operator and its sports betting platform provider.

 

Subd. 2.  Cash reserves.  (a) A mobile sports betting operator shall, in conjunction with the mobile sports betting platform provider, maintain cash reserves in an amount that is not less than the greater of $25,000 or the sum of the following three amounts:

 

(1) amounts held by the mobile sports betting operator for the mobile sports betting accounts of authorized participants;

 

(2) amounts accepted by the mobile sports betting operator as wagers on contingencies whose outcome have not been determined; and

 

(3) amounts owed but unpaid by the mobile sports betting operator on winning wagers through the period established by the operator, subject to time limits set by the commissioner, for honoring winning wagers.

 

(b) Such reserves shall be held in the form of cash or cash equivalents segregated from operational funds, payment processor reserves and receivables, any bond, an irrevocable letter of credit, or any combination thereof.

 

Subd. 3.  Bond.  A mobile sports betting operator or mobile sports betting platform provider shall be required to post a bond, securities, or an irrevocable letter of credit in an amount the commissioner deems necessary after taking into consideration the amount of the mobile sports betting operator's cash reserves, to protect the financial interests of people wagering on sporting events.  If securities are deposited or an irrevocable letter of credit filed, the securities or letter of credit must be of a type or in the form provided under section 349A.07, subdivision 5, paragraphs (b) and (c).

 

Sec. 18.  [299L.51] INTEGRITY MONITORING.

 

(a) Each mobile sports betting operator or mobile sports betting platform provider must contract with a licensed independent integrity monitoring provider in order to identify any unusual betting activity or patterns that may indicate a need for further investigation.  The commissioner shall establish minimum standards requiring each mobile sports betting operator or mobile sports betting platform provider to participate in the monitoring system as part of that licensee's minimum internal control standards.


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(b) If any unusual betting activity is deemed by independent integrity monitoring provider to have risen to the level of suspicious betting activity, then the independent integrity monitoring provider shall immediately report the suspicious activity to the commissioner, all mobile sports betting operator or mobile sports betting platform provider licensees that contract with that integrity provider, and the sports governing body that governs the sporting event on which the suspicious activity was deemed to have taken place.

 

(c) The commissioner, mobile sports betting operators, and any sports governing body that receives the information described in paragraph (b) from an independent integrity monitoring provider must maintain the confidentiality of the information, and use the information solely for purposes of investigating or preventing the conduct described in this section unless disclosure is required by this act, the commissioner, other law, or court order, or unless the sports governing body consents to disclosure.  The information may not be used for any commercial or other purpose.

 

(d) Notwithstanding paragraph (c), a sports governing body may make disclosures necessary to conduct and resolve integrity-related investigations and may publicly disclose such information if required by the sports governing body's integrity policies or if deemed by the sports governing body in its reasonable judgment to be necessary to maintain the actual or perceived integrity of its sporting events.  Prior to any such public disclosure that would identify the mobile sports betting operator by name, the sports governing body will provide the mobile sports betting operator with notice of such disclosure and an opportunity to object to such disclosure.

 

Sec. 19.  [299L.53] RECORD KEEPING; INFORMATION SHARING.

 

Subdivision 1.  Record retention.  (a) Mobile sports betting operators shall maintain records of all bets and wagers placed, including personally identifiable information of an authorized participant, amount and type of wager, time the wager was placed, location of the wager, including IP address if applicable, the outcome of the wager, and records of abnormal betting activity for 3-1/2 years after the sporting event occurs.

 

(b) Mobile sports betting operators shall maintain video camera recordings in the case of in-person wagers for at least one year after the sporting event occurs.

 

(c) Mobile sports betting operators shall make the data described in paragraphs (a) and (b) available for inspection upon request of the commissioner or as required by court order.

 

Subd. 2.  Anonymization required.  Mobile sports betting operators shall use commercially reasonable efforts to maintain in real time and at the account level anonymized information regarding an authorized participant, amount and type of wager, the time the wager was placed, the location of the wager, including the IP address if applicable, the outcome of the wager, and records of abnormal betting activity.  Nothing in this section shall require a mobile sports betting operator to provide any information that is prohibited by federal, state, or local laws or regulations, including laws and regulations relating to privacy and personally identifiable information.

 

Subd. 3.  Information sharing.  (a) If a sports governing body has notified the commissioner that access to the information described in subdivision 2 for wagers placed on sporting events of the sports governing body is necessary to monitor the integrity of such body's sporting events, then mobile sports betting operators shall share, in a commercially reasonable frequency, form, and manner, with the sports governing body or its designees the information under subdivision 2 with respect to sports wagers on sporting events of such sports governing body.

 

(b) Sports governing bodies and their designees may only use information received under this section for integrity-monitoring purposes and may not use information received under this section for any commercial or other purpose.


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(c) Mobile sports betting operators must share, in a time and manner prescribed by the commissioner, the information described in subdivision 2 with the University of Minnesota for the purpose of conducting research to ensure the integrity of sports betting or assist the commissioner of human services in improving state-funded services related to responsible gambling and problem gambling.  Information that the University of Minnesota receives from mobile sports betting operators under this paragraph constitutes data on the mobile sports betting operator and is classified as nonpublic data, as defined by section 13.02.  The University of Minnesota must not disclose the information to any person, except for the purpose of conducting the research described in this paragraph, as part of a peer-reviewed research report, or pursuant to an agreement between the University of Minnesota and the mobile sports betting operators or sports governing body.

 

(d) Nothing in this section shall require a mobile sports betting operator to provide any information that is prohibited by federal, state, or local laws or regulations, including without limitation laws and regulations relating to privacy and personally identifiable information.

 

Sec. 20.  [299L.55] INSPECTION AND AUDITING OF LICENSEES.

 

Subdivision 1.  Inspection.  The commissioner and the director are authorized to inspect the accounting records of licensees at any time provided the licensee is given notice at least 24 hours before the inspection.  This provision only applies to mobile sports betting operations and does not authorize the inspection of records related to Tribal gaming operations, Tribal governmental records, or class III sports betting operations conducted exclusively on Indian Lands.

 

Subd. 2.  Annual audit.  To ensure compliance with this chapter and rules adopted under this chapter, a mobile sports betting operator must contract with an independent third party to perform a financial audit, consistent with the standards established by the Public Company Accounting Oversight Board or using the Statements on Accounting standards issued by the Audit Standards Board of the American Institute of Certified Public Accountants.  The mobile sports betting operator must submit the audit to the commissioner for examination and inspection within 120 days of the end of its fiscal year.

 

Sec. 21.  [299L.60] LICENSE VIOLATIONS; ENFORCEMENT.

 

Subdivision 1.  Schedule of penalties.  The commissioner must adopt rules that provide a graduated schedule of penalties for violations of license requirements under statute or rule.  The schedule must specify penalties that may range from warnings and probation periods to civil fines, temporary suspension of licenses, or revocation of licenses.

 

Subd. 2.  Authority to act.  (a) The commissioner may issue administrative orders, impose civil penalties, and suspend, revoke, or not renew a license issued pursuant to sections 299L.10 to 299L.80 if the commissioner determines that a licensee has committed or is about to commit a violation of those sections or rules adopted pursuant to those sections, or if the commissioner determines that the licensee is disqualified or ineligible to hold a license pursuant to section 299L.25 or 299L.26.  A conviction for a violation of section 299L.80 is not required for the commissioner to take action on a violation.

 

(b) Enforcement actions, license suspensions, license revocations, or license nonrenewals related to a specific mobile sports betting operator shall not impact or limit the ability of another mobile sports betting operator to conduct, offer, or offer for play mobile sports betting.


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Subd. 3.  Temporary suspension.  (a) The commissioner may temporarily, without hearing, suspend the license and operating privilege of any licensee for a period of up to 90 days if there is clear and convincing evidence that:

 

(1) conduct of a licensee, or anticipated failure of a licensee to fulfill an obligation, requires immediate action to protect the public from harm;

 

(2) the licensee has not timely filed a tax return or paid the tax required under chapter 297J; or

 

(3) the licensee has not timely paid all license fees or penalties due under sections 299L.10 to 299L.80.

 

(b) The commissioner shall notify the licensee of the violation that caused the temporary suspension and may lift the temporary suspension if the licensee corrects the violation.

 

(c) The commissioner may extend the period of suspension if the violation is not corrected, the commissioner notifies the business that it intends to revoke or not renew a license, and a contested case hearing has not taken place.

 

Subd. 4.  Notice of violation; administrative orders; request for reconsideration; demand for hearing.  (a) The commissioner may issue an administrative order to any licensee who has committed a violation.  The order may require the licensee to correct the violation or to cease and desist from committing the violation and may impose civil penalties.  The order must state the deficiencies that constitute a violation, the time by which the violation must be corrected, and the amount of any civil penalty.

 

(b) If the licensee believes the information in the administrative order is in error, the licensee may ask the commissioner to reconsider any parts of the order that are alleged to be in error.  The request must be in writing, delivered to the commissioner by certified mail within seven days after receipt of the order, and provide documentation to support the allegation of error.  The commissioner must respond to a request for reconsideration within 15 days after receiving the request.  A request for reconsideration does not stay the order unless the commissioner issues a supplemental order granting additional time.  The commissioner's disposition of a request for reconsideration is final.

 

(c) An administrative order that imposes a civil penalty of more than $2,000 shall be treated as a contested case under chapter 14.

 

(d) A licensee may request a hearing on the administrative order within 30 days of the service of the order.  The request must be in writing and delivered to the commissioner by certified mail.  If the licensee does not request a hearing within 30 days, the order becomes final.

 

(e) If the licensee requests a hearing, the hearing must be held not later than 30 days after the commissioner receives the request unless the licensee and the commissioner agree on a later date.  After the hearing, the commissioner may enter an order making such disposition as the facts require.  If the licensee fails to appear at the hearing after having been notified of it, the licensee is considered in default and the proceeding may be determined against the licensee on consideration of the administrative order, the allegations of which may be considered to be true.  An action of the commissioner under this paragraph is subject to judicial review pursuant to chapter 14.

 

(f) Civil penalties collected by the commissioner shall be deposited in the general fund.  Civil penalties may be recovered in a civil action in the name of the state brought in the district court.

 

Subd. 5.  Revocation, nonrenewal, civil penalties; contested case.  If the commissioner intends to revoke or not renew a license, or impose a civil penalty in excess of $2,000, the commissioner shall provide the licensee with a statement of the complaints made against the licensee and shall initiate a contested case proceeding.  The contested case shall be held pursuant to chapter 14.

 

Subd. 6.  Penalties.  In addition to penalties listed in this section, a person or licensee who violates the provisions of sections 299L.10 to 299L.80 is subject to any applicable criminal penalty.


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Sec. 22.  [299L.65] REPORTING.

 

Subdivision 1.  Financial report.  By June 1 of each year, the commissioner must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over public safety, the legislative committees with jurisdiction over taxes, the committee in the house of representatives with jurisdiction over commerce, the committee in the senate with jurisdiction over state government finance and policy, the committee in the house of representatives with jurisdiction over ways and means, and the committee in the senate with jurisdiction over finance.  The report must describe the activities of the commissioner with respect to wagering on sporting events and include summary financial information on sports betting and the regulated sports betting industry as a whole.  The report must not include information or data on individuals or entities that is classified as private data under section 299L.70 or separately list the earnings, wagers, or tax revenue generated by or use identifying information for specific mobile sports betting operators.

 

Subd. 2.  License activity report.  By February 1 of each year beginning in 2025, the commissioner shall submit a report to the chairs and ranking minority members of the committees in the house of representatives and the senate with jurisdiction over public safety, the committee in the house of representatives with jurisdiction over commerce, and the committee in the senate with jurisdiction over state government finance and policy on the following:

 

(1) the status of applications for licenses issued by the commissioner, including the number of applications for each type of license, the number of licenses of each type issued, and the average time between receipt of a complete application and issuance of each type of license;

 

(2) an overview of the sports betting market, including but not limited to the actual and anticipated demand;

 

(3) the amount of revenue generated to the state by sports betting and the expenses incurred by the commissioner in enforcing restrictions on lawful sports betting; and

 

(4) the commissioner's enforcement actions taken against persons licensed under sections 299L.10 to 299L.80 for licensing violations, including violations of the rules adopted under section 299L.15.

 

Sec. 23.  [299L.70] DATA PROTECTIONS.

 

Subdivision 1.  Classification.  Data in which an individual who has wagered on sporting events is identified by name, account number, Social Security number, or any other uniquely identifying indicia, is private data on individuals, as defined in section 13.02, subdivision 12.  Data on individual earnings of mobile sports betting operators, mobile sports betting operator application and licensing information, and all Tribal revenue records unassociated with mobile sports betting operators is nonpublic data, as defined in section 13.02, subdivision 9.

 

Subd. 2.  Sale of private data on individuals.  The commissioner shall revoke any license issued under sections 299L.10 to 299L.80 of a person who sells data on individuals that would be classified as private under subdivision 1 collected through the practice of sports betting.

 

Sec. 24.  [299L.75] LOCAL RESTRICTIONS; PROHIBITION ON LOCAL TAXES OR FEES.

 

No political subdivision may require a local license to offer sports betting or impose a tax or fee on the sports betting conducted pursuant to this chapter.


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Sec. 25.  INDIAN TRIBES; COMPACTS TO BE NEGOTIATED.

 

The governor or the governor's designated representatives shall negotiate in good faith new Tribal-state compacts regulating the conduct of class III sports betting on the Indian lands of an Indian Tribe requesting negotiations, under Minnesota Statutes, section 3.9221.  Compacts in effect on January 1, 2024, shall not be modified to accommodate sports betting.

 

Sec. 26.  EFFECTIVE DATE.

 

Except as otherwise provided, this article is effective July 1, 2024.

 

ARTICLE 2

TAXATION OF SPORTS BETTING

 

Section 1.  Minnesota Statutes 2022, section 270B.07, is amended by adding a subdivision to read:

 

Subd. 6.  Disclosure to Department of Public Safety.  The commissioner may disclose return information to the commissioner of public safety for the purpose of verifying licensure requirements under sections 299L.25 and 349C.03.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 2.  [297J.01] DEFINITIONS.

 

Unless otherwise defined in this chapter, or unless the context clearly indicates otherwise, the following terms have the meanings given:

 

(1) "cash equivalent" means the cash value of any free bets, promotional credits, and any other noncash form of consideration, payment, or compensation;

 

(2) "casino" has the meaning given in section 299L.10, subdivision 4;

 

(3) "commissioner" means the commissioner of revenue;

 

(4) "mobile sports betting operator" has the meaning given in section 299L.10, subdivision 14;

 

(5) "sporting event" has the meaning given in section 299L.10, subdivision 18;

 

(6) "sports betting" has the meaning given in section 299L.10, subdivision 19;

 

(7) "sports betting net revenue" means the total of all cash and cash equivalents received in a month by a mobile sports betting operator from wagers on sporting events, less the following:

 

(i) cash paid out as winnings in the month; and

 

(ii) the fair market value of noncash prizes paid out as winnings in the month; and

 

(8) "wager" has the meaning given in section 299L.10, subdivision 22.

 

EFFECTIVE DATE.  This section is effective for sports betting net revenue received after June 30, 2024.


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Sec. 3.  [297J.02] TAX ON SPORTS BETTING NET REVENUE.

 

Subdivision 1.  Tax imposed.  (a) Except as provided in paragraph (b), a tax is imposed on sports betting net revenue received equal to 20 percent on wagers placed online through a website or mobile application, as allowed under section 299L.40.

 

(b) Any wager placed on Indian lands is not subject to state taxation.  For purposes of this chapter, a wager is placed at the physical location of the individual placing the wager.

 

Subd. 2.  Sports betting net revenue tax in lieu of other taxes.  Income derived by a mobile sports betting operator from the conduct of wagering on a sporting event is not subject to the tax imposed in chapter 290.  Wagers accepted by a mobile sports betting operator are not subject to the tax imposed in section 297A.62 or 297E.03.

 

Subd. 3.  Returns; due dates.  A mobile sports betting operator must file a return by the 20th day of each month reporting the tax due under this section for the preceding month.  The return must include the amount of all wagers received, payouts made, all sports betting taxes owed, and other information required by the commissioner.  The tax under this chapter is due to be paid to the commissioner on the day the return is due.

 

Subd. 4.  Distribution of revenues; account established.  (a) The commissioner must deposit the revenues, including penalties and interest, derived from the tax imposed by this section as follows:

 

(1) 80 percent to the general fund; and

 

(2) 20 percent to the sports betting revenue account in the special revenue fund.

 

(b) The sports betting revenue account is established in the special revenue fund.

 

Subd. 5.  Distribution of money.  (a) All amounts collected in the previous fiscal year by the commissioner in the sports betting revenue account must be distributed annually by October 1 as provided in this subdivision.  Any money remaining in the account at the end of each fiscal year does not cancel.  Interest and income earned on money in the account, after deducting any applicable charges, shall be credited to the account.  After deducting any amounts necessary to pay the refunds, the money shall be distributed as provided in paragraphs (b) and (d).

 

(b) 50 percent is appropriated to the commissioner of human services, of which:

 

(1) one-third is for the compulsive gambling treatment program established under section 245.98 which must also be available for up to 60 hours of intervention services for a family member or concerned significant other who is a Minnesota resident and is negatively impacted by problem or compulsive gambling;

 

(2) one-third is for emergency services grants under section 256E.36; and

 

(3) one-third is for a grant to the state affiliate recognized by the National Council on Problem Gambling to increase public awareness of problem gambling, provide education and training for individuals and organizations providing effective treatment services to problem gamblers and their families, and conduct research relating to problem gambling.

 

(c) Money appropriated by this subdivision must supplement and must not replace existing state funding for these programs.  Money appropriated from the sports betting revenue account under this subdivision is available until expended.


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(d) 50 percent shall be transferred to the amateur sports integrity and participation account established pursuant to section 240A.15, subdivision 1.

 

EFFECTIVE DATE.  This section is effective for sports betting net revenue received after June 30, 2024.

 

Sec. 4.  [297J.03] MOBILE SPORTS BETTING OPERATOR REPORTS AND RECORDS.

 

Subdivision 1.  Business records.  A mobile sports betting operator must maintain records supporting the sports betting activity and taxes owed.  Records required to be kept in this section must be preserved by the mobile sports betting operator for at least 3-1/2 years after the return is due or filed, whichever is later, and may be inspected by the commissioner at any reasonable time without notice or a search warrant.

 

Subd. 2.  Audits.  The commissioner may require a financial audit of a mobile sports betting operator's sports betting activities if the mobile sports betting operator has failed to comply with this chapter, including failure to timely file returns or pay tax, or take corrective actions required by the commissioner.  Audits must be performed by an independent accountant licensed according to chapter 326A.  The commissioner must prescribe standards for an audit required under this subdivision.  A complete, true, and correct copy of an audit must be filed as prescribed by the commissioner.  Nothing in this subdivision limits the commissioner's ability to conduct its own audit pursuant to its authority under chapter 270C.

 

EFFECTIVE DATE.  This section is effective for sports betting net revenue received after June 30, 2024.

 

Sec. 5.  [297J.04] OTHER PROVISIONS APPLY.

 

Except for those provisions specific to distributors, gambling products, or gambling equipment, sections 297E.02, subdivisions 9 and 10, and 297E.10 to 297E.14 apply to this chapter.

 

ARTICLE 3

FANTASY CONTESTS

 

Section 1.  [349C.01] DEFINITIONS.

 

Subdivision 1.  Terms.  For the purposes of this chapter, the following terms have the meanings given.

 

Subd. 2.  Adjusted gross fantasy contest receipts.  "Adjusted gross fantasy contest receipts" means the amount equal to the total of all entry fees that a fantasy contest operator collects from all participants minus the total of all prizes paid out to all participants multiplied by the location percentage for this state.

 

Subd. 3.  Athletic event.  "Athletic event" means a sports game, match, or activity, or series of games, matches, activities, or tournaments involving the athletic skill of one or more players or participants.

 

Subd. 4.  Authorized participant.  "Authorized participant" means an individual who has a valid fantasy contest account with a fantasy contest operator and is at least 21 years of age.

 

Subd. 5.  College sports.  "College sports" means a sporting event in which at least one participant is a team or individual from a public or private institution of higher education.

 

Subd. 6.  Commissioner.  "Commissioner" means the commissioner of public safety.

 

Subd. 7.  Entry fee.  "Entry fee" means cash or cash equivalent that is required to be paid by an authorized participant and set in advance by a fantasy contest operator to participate in a fantasy contest.


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Subd. 8.  Esports event.  "Esports event" means a competition between individuals or teams using video games in a game, match, or contest, or series of games, matches, or contests, or a tournament, or by a person or team against a specified measure of performance which is hosted at a physical location or online that is approved by the commissioner to be an event eligible for fantasy contests under this chapter.

 

Subd. 9.  Fantasy contest.  "Fantasy contest" means any simulated game or contest, with an entry fee, in which:

 

(1) the value of all prizes offered to a winning authorized participant are established and made known to the authorized participant in advance of the contest;

 

(2) all winning outcomes reflect the relative knowledge and skill of the authorized participant; and

 

(3) the authorized participant assembles, owns, or manages a fictional entry or roster of actual professional or amateur athletes, who participate in real-world sports events, or esports events that are regulated by a governing body and that are held between professional players who play individually or as teams.

 

Subd. 10.  Fantasy contest account.  "Fantasy contest account" means an electronic ledger in which the following types of transactions relative to an authorized participant are recorded:

 

(1) deposits and credits;

 

(2) withdrawals;

 

(3) fantasy contest wagers;

 

(4) monetary value of winnings;

 

(5) service or other transaction related charges authorized by the authorized participant, if any;

 

(6) adjustments to the account;

 

(7) promotional activity; and

 

(8) responsible gaming parameters.

 

Subd. 11.  Fantasy contest operator.  "Fantasy contest operator" means an entity that is licensed by the commissioner to operate, conduct, or offer for play fantasy contests under this chapter.  A fantasy contest operator shall not be an authorized participant in a fantasy contest.

 

Subd. 12.  Governing body.  "Governing body" means an organization headquartered in the United States that prescribes and enforces final rules and codes of conduct for a sporting event and participants engaged in the sport.  Notwithstanding the foregoing, the commissioner shall adopt rules to determine the governing body for electronic sports for the purposes of this chapter.

 

Subd. 13.  Location percentage.  "Location percentage" means the percentage rounded to the nearest tenth of one percent of the total entry fees collected from authorized participants located in this state divided by the total entry fees collected from all players in the fantasy contest activity.


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Subd. 14.  Sports event.  "Sports event" means an athletic event, esports event, college sports event, or other event approved by the commissioner to be an event eligible for participation in a fantasy contest under this chapter.  Sports event does not include:

 

(1) horse racing as defined in section 240.01, subdivision 8; or

 

(2) an esports or athletic event, demonstration, activity, or tournament organized by an elementary, middle, or high school, or by any youth activity sports program, league, or clinic.

 

Subd. 15.  Wager.  "Wager" means a transaction between an authorized participant and a licensed fantasy contest operator in which an authorized participant pays, deposits, or risks cash or a cash equivalent as an entry fee into a fantasy contest.

 

Sec. 2.  [349C.02] POWERS AND DUTIES OF THE COMMISSIONER.

 

Subdivision 1.  Regulate fantasy contests.  The commissioner has the power and duty to regulate fantasy contests authorized under this chapter.  In making rules, establishing policy, and regulating fantasy contests, the commissioner shall:

 

(1) ensure that fantasy contests are conducted in a fair and lawful manner;

 

(2) promote public safety and welfare; and

 

(3) ensure that fantasy contests are conducted in a manner that is transparent to authorized participants.

 

Subd. 2.  Rulemaking.  (a) The commissioner must adopt and enforce rules consistent with this chapter that address:

 

(1) the manner in which wagers are accepted and payouts are remitted;

 

(2) the types of records that shall be kept by fantasy contest operators;

 

(3) the testing and auditing requirements for licensees, including requirements related to fantasy contest accounts;

 

(4) the method of accounting used by fantasy contest operators;

 

(5) the creation, funding, and use of fantasy contest accounts, debit cards, and checks by authorized participants, provided that the rules permit an authorized participant to fund a fantasy contest account through a bonus or promotion, electronic bank transfer, an online or mobile payment system that supports online money transfers, a reloadable or prepaid card, and any other appropriate means approved by the commissioner, not including the use of credit cards;

 

(6) the appropriate standards and practices to prevent and address compulsive and problem gambling;

 

(7) the appropriate standards and practices to prevent and address fantasy contest entry by individuals who are not authorized participants or who are otherwise disqualified, prohibited, or excluded from contest entry;

 

(8) the sporting events eligible for fantasy contests;


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(9) the requirements for obtaining and retaining fantasy contest operator licenses, including requirements for criminal and financial background checks, financial disclosure and auditing requirements, data practices and security requirements, bonding or other surety requirements, and the conduct of inspections;

 

(10) investigation into any licensed or unlicensed person or entity when a person or entity is engaged in conducting a fantasy contest or engaged in conduct advertised as a fantasy contest that does meet the requirements of this chapter;

 

(11) the requirements for monitoring patterns of participation to identify behaviors consistent with problem gambling and the appropriate actions to take when problem gambling is suspected, including pausing or suspending activities from an identified fantasy contest account; and

 

(12) the appropriate limits, standards, and requirements necessary to prevent excessive wagering by an individual whose ability to control impulsive wagering is impaired in any way.

 

(b) Rules for which notice is published in the State Register before January 1, 2025, may be adopted using the expedited rulemaking process in section 14.389.

 

Subd. 3.  Licensing; fee collection.  (a) The commissioner shall issue all fantasy contest operator licenses.  Licenses issued under this chapter may not be transferred.

 

(b) The commissioner shall collect all license fees, including renewals, surcharges, and civil penalties imposed by this chapter.

 

Subd. 4.  Delegation.  The commissioner may delegate any of its authority under this chapter to the director of alcohol and gambling enforcement if, in the judgment of the commissioner, doing so would promote the efficient administration of this chapter.

 

Subd. 5.  Additional powers.  The commissioner may exercise any other powers necessary to enforce the provisions of this chapter.

 

Sec. 3.  [349C.03] LICENSING; APPLICATION REQUIREMENTS.

 

Subdivision 1.  General requirements.  (a) A licensee or applicant must meet each of the following requirements, if applicable, to hold or receive a license issued under this chapter:

 

(1) complete an application for licensure or application for renewal;

 

(2) pay the applicable application and licensing fees;

 

(3) not owe $500 or more in delinquent taxes, penalties, or interest, with delinquent taxes subject to the limitations under section 270C.72, subdivision 2;

 

(4) not have, after demand, failed to file tax returns required by the commissioner of revenue; and

 

(5) no officer, director, or other person with a present direct or indirect financial or management interest in the applicant:

 

(i) is in default in the payment of an obligation or debt to the state;


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(ii) has been convicted of a crime listed in section 299L.25, subdivision 2, paragraph (a), or has a state or federal charge for one of those crimes pending;

 

(iii) is or has been convicted of engaging in an illegal business;

 

(iv) has ever been found guilty of fraud or misrepresentation in connection with wagering;

 

(v) has ever knowingly violated a rule or order of the commissioner or a law of Minnesota relating to wagering; or

 

(vi) may be employed by any state agency with regulatory authority over fantasy contests.

 

(b) Any fantasy contest operator applying for licensure or renewal of a license may operate during the application period unless the commissioner has reasonable cause to believe that such operator is or may be in violation of the provisions of this chapter.

 

(c) A fantasy contest operator applying for licensure or renewal of a license must pay an application fee of $3,300.

 

Subd. 2.  Application; contents.  (a) An application for a license under this chapter must be submitted on a form prescribed by the commissioner.  At a minimum, the application must include:

 

(1) the business name, address, and contact information of the applicant;

 

(2) the applicant's website address;

 

(3) the applicant's tax identification number;

 

(4) proof of the applicant's financial security in an amount sufficient to comply with the provisions of section 349C.08;

 

(5) the name and address of all officers, directors, and shareholders with more than ten percent interest in the corporation and any of its holding companies;

 

(6) an affidavit executed by the applicant setting forth that, to the best of the applicant's knowledge, the applicant meets the requirements of subdivision 1, paragraph (a), clauses (3) to (5);

 

(7) an irrevocable consent statement, signed by the applicant, which states that suits and actions limited to the enforcement of this chapter may be commenced against the applicant by the commissioner in any court of competent jurisdiction in this state by the service on the secretary of state of any summons, process, or pleadings authorized by the laws of this state.  If any summons, process, or pleadings is served upon the secretary of state, it must be by duplicate copies.  One copy must be retained in the Office of the Secretary of State and the other copy must be forwarded immediately by certified mail to the address of the applicant, as shown by the records of the commissioner;

 

(8) a declaration that the laws of the state of Minnesota will be followed, including any applicable provisions of the Minnesota Human Rights Act, chapter 363A; and

 

(9) any additional information required by the commissioner.

 

(b) If the commissioner receives an application that fails to provide the required information, the commissioner shall issue a deficiency notice to the applicant.  The applicant shall have ten business days from the date of the deficiency notice to submit the required information.


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(c) Failure by an applicant to submit all required information will result in the application being rejected.

 

(d) Within 90 days of receiving a completed application, the commissioner shall issue the appropriate license or send the applicant a notice of rejection setting forth specific reasons why the commissioner did not approve the application.

 

(e) An applicant whose application is not approved may reapply at any time, but must submit a new application and pay an additional application fee.

 

Subd. 3.  Duty to update.  (a) During the pendency of an application and at any time after a license has been issued, an applicant or licensee shall notify the commissioner of any changes to the information provided under this section.

 

(b) If a change in the officers, directors, shareholders, or other persons with a present or future direct or indirect financial or management interest in a licensee, or a change of ownership of more than ten percent of the shares of the licensee is made after the application for a license is filed or a license is issued, the applicant or licensee must notify the commissioner of the changes within ten days of their occurrence and submit a new affidavit as required by this section.

 

Subd. 4.  Deposit of fees.  Application, registration, license, and renewal fees shall be deposited in the general fund.

 

Sec. 4.  [349C.04] FANTASY CONTEST OPERATOR LICENSE.

 

Subdivision 1.  Issuance; renewal.  The commissioner may issue an unlimited number of licenses.  Each license is valid for one year and may be renewed under conditions required by rule adopted pursuant to section 349C.02.

 

Subd. 2.  Licensing requirements.  A fantasy contest operator must:

 

(1) submit a completed application and all required documents or other materials pursuant to this chapter and any relevant rules;

 

(2) submit a detailed plan and specifications for the implementation of fantasy contests;

 

(3) include mechanisms on its platform that are designed to detect and prevent the unauthorized use of fantasy contest accounts and to detect and prevent fraud, money laundering, and collusion;

 

(4) include identity and geolocation verification procedures, which may require the use of a reputable independent third party that is in the business of verifying an individual's personally identifiable information and can detect potential prohibited participants;

 

(5) submit a statement of the assets and liabilities of the license holder to the commissioner;

 

(6) pay a licensing fee pursuant to subdivision 3 upon initial application and at each subsequent license renewal; and

 

(7) meet any other conditions required by rule adopted pursuant to section 349C.02.

 

Subd. 3.  Fees.  (a) The initial license fee for a fantasy contest operator that operated in Minnesota in the preceding 12 months shall be the greater of ten percent of its adjusted gross fantasy contest receipts from the preceding 12 months or $5,000.  The initial license fee for a fantasy contest operator that did not operate in the state for at least the preceding 12 months shall be $5,000.

 

(b) The license renewal fee shall be one percent of adjusted gross fantasy contest receipts for the preceding year.


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Subd. 4.  Continued operation; registration.  (a) Any fantasy operator already offering fantasy contests to persons located in Minnesota before July 1, 2024, may continue to offer contests to persons located in Minnesota until the fantasy operator's application for licensure has been approved or denied so long as the fantasy operator files an application for licensure with the commissioner within 90 days of the commissioner making applications available for submission.

 

(b) A fantasy contest operator must register with the commissioner in a form and manner prescribed by the commissioner to continue operations under paragraph (a).  The fantasy contest operator must submit its registration with a $10,000 registration fee.

 

Subd. 5.  Reporting.  A fantasy contest operator must report to the commissioner monthly on wagers placed and redeemed during the reporting month and outstanding at the time of the report.

 

Sec. 5.  [349C.05] FANTASY CONTESTS AUTHORIZED.

 

Subdivision 1.  Authorization.  A person 21 years of age or older may participate in a fantasy contest within the state provided the person places all wagers with an entity licensed under this chapter and is not disqualified, prohibited, or excluded from participation in a fantasy contest.

 

Subd. 2.  Fantasy contest.  (a) Entry into a fantasy contest by an authorized participant is lawful provided that:

 

(1) winning outcomes are determined solely by clearly established scoring criteria based on one or more statistical results of the performance of individual athletes, including but not limited to a fantasy score or a statistical measure of performance; and

 

(2) no winning outcome is entirely based on the score, point spread, or any performance of any single actual team or combination of teams or solely on any single performance of an individual athlete or player in any single actual event;

 

(b) Fantasy contests may include both contests wherein authorized participants compete against each other and contests wherein only a single authorized participant competes against a target score set by the fantasy contest operator.

 

(c) Any fantasy contest conducted under this chapter does not constitute sports betting for any purpose, as set forth in sections 299L.10 to 299L.80.

 

(d) A fantasy contest subject to the requirements of this chapter does not include:

 

(1) any fantasy contest in which the authorized participant is not required to pay an entry fee to a fantasy contest operator; or

 

(2) contests:

 

(i) with rosters whose membership is limited to athletes of a single sport;

 

(ii) that encompass at least one-half of a sport's regular season of the athletic activity in which the underlying competition is being conducted;

 

(iii) in which participants compete against each other; and

 

(iv) in which the fantasy contest operator, if it so chooses, retains an administrative fee not to exceed 50 percent of all entry fees paid to enter the single season-long contest.


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Subd. 3.  Fantasy contest operator.  A fantasy contest operator must:

 

(1) make available on its website means to allow individuals to self-report to the exclusion list provided under section 349C.07;

 

(2) provide authorized participants with access to their play history and account details, including all deposit amounts, withdrawal amounts, a summary of entry fees expended, and bonus or promotion information, including how much is left on any pending bonus or promotion and how much has been released to the authorized participant;

 

(3) segregate authorized participant funds, including amounts in live fantasy contests that have not been paid out yet, from operational funds;

 

(4) prominently publish the rules governing each fantasy contest with an entry fee;

 

(5) develop and prominently publish procedures by which any person may file a complaint with the operator and the commissioner; and

 

(6) disclose the terms of all promotional offers at the time the offers are advertised, and provide full disclosures of limitations on the offer before an authorized participant provides financial consideration in exchange for the offer.

 

Sec. 6.  [349C.06] WAGERING.

 

Subdivision 1.  Placing wagers; entry fees.  An individual who is 21 years of age or older may place wagers pursuant to this chapter by submitting an entry fee to a fantasy contest operator to participate in a fantasy contest provided the individual is not otherwise disqualified, prohibited, or excluded from doing so.  A fantasy contest operator may only accept wagers in a form and manner prescribed and approved by the commissioner.

 

Subd. 2.  Fantasy contest account.  (a) An individual may establish a fantasy contest account by electronic means from any location, and may fund an account by any means approved by the commissioner.

 

(b) A fantasy contest operator must not accept a wager unless the authorized participant provides consideration in the form of money or other thing of value such as use of promotional credits from the authorized participant's fantasy contest account at the time of making the wager.

 

(c) Consideration must be in the form of withdrawal from a fantasy contest account maintained by the fantasy contest operator for the benefit of and in the name of the wagerer.

 

(d) A fantasy contest operator shall verify an individual's age and identity before allowing that individual to place a wager and may utilize an approved identity verification service provider to confirm an individual's age and identity.

 

(e) A fantasy contest operator must deposit any prize won by an authorized participant into the authorized participant's account within 72 hours of winning the prize.

 

(f) An authorized participant shall have the right to withdraw the balance of funds in the fantasy contest account in the authorized participant's name at any time with proof of identity, as determined by rules adopted pursuant to section 349C.02, within ten business days of the request being made.  This period shall be extended if the fantasy contest operator believes in good faith that the authorized participant engaged in either fraudulent conduct or other conduct that would put the operator in violation of this chapter, in which case the fantasy contest operator may decline to honor the request for withdrawal for a reasonable investigatory period until the investigation is resolved if the fantasy contest operator provides notice of the nature of the investigation to the authorized participant.  If the


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investigation exceeds 60 days, the fantasy contest operator shall notify the commissioner.  For the purposes of this provision, a request for withdrawal will be considered honored if it is processed by the fantasy contest operator but delayed by a payment processor, credit card issuer, or by the custodian of a financial account.

 

Subd. 3.  Wager location.  Fantasy contest wagers may only be accepted from an authorized participant placing a wager online, through a website or mobile application, while the authorized participant is physically within the state.  The incidental routing of a fantasy contest wager shall not determine the location or locations in which the wager is initiated, received, or otherwise made.

 

Subd. 4.  Wagers prohibited.  A fantasy contest operator must not accept a wager on the outcome of an event or proposition that has already been determined.

 

Subd. 5.  Receipt.  A fantasy contest operator must provide a person who places a wager with an electronic receipt at the time of sale that contains the following information:

 

(1) the proposition that is the subject of the wager;

 

(2) the outcome that will constitute a win on the wager;

 

(3) the amount wagered; and

 

(4) the payout in the event of a winning wager.

 

Subd. 6.  Wager data; safeguards necessary.  (a) Information regarding wagers made by an authorized participant who engages in fantasy contests, including but not limited to wager type and consideration paid, may be accessed, stored, or used for ordinary business purposes by the fantasy contest operator.

 

(b) Fantasy contest operators must use commercially reasonable methods to maintain the security of wager data, authorized participant data, and other confidential information from unauthorized access and dissemination, however, that nothing in this chapter shall preclude the use of Internet or cloud-based hosting of such data and information or disclosure as required by court order, other law, or this chapter.

 

Sec. 7.  [349C.07] EXCLUSION LIST AND PROHIBITION ON PARTICIPATION.

 

Subdivision 1.  Exclusion list.  (a) The commissioner shall maintain a list of persons who are not eligible to wager on fantasy contests through a fantasy contest operator.  The list shall include the names of:

 

(1) persons who have themselves requested to be on the exclusion list;

 

(2) persons whose names have been submitted, for their protection, by their legal guardians;

 

(3) persons whose names have been submitted by fantasy contest operators for good cause; and

 

(4) persons whose names have been submitted by sports governing bodies.

 

(b) A person who has requested to be on the exclusion list may specify a time limit of one, three, or five years for the person's name to be on the list.  The commissioner will remove the person's name from the list at the conclusion of the specified time.  A person may be removed from the list before the specified time by providing proof of completion of a class approved by the commissioner to address compulsive gambling.


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(c) The information contained on the list is private data on individuals, as defined in section 13.02, subdivision 12, except the commissioner is permitted to share the list with fantasy contest operators as needed to prevent persons on the exclusion list from participating in fantasy contests.

 

Subd. 2.  Prohibited wagers by certain persons.  The following persons who are otherwise authorized to participate in fantasy contests are prohibited from placing the wagers described:

 

(1) a person who is prohibited from placing wagers by a fantasy contest operator for good cause, including but not limited to any person placing a wager as an agent or proxy on behalf of another, may not place a wager of any kind;

 

(2) a person who is an athlete, coach, referee, player, health care provider, or team employee is prohibited from wagering in a fantasy contest overseen by that person's sports governing body;

 

(3) a person who holds a position of authority sufficient to exert influence over the participants in a sporting event, including but not limited to a coach, manager, or owner is prohibited from wagering in a fantasy contest overseen by that person's sports governing body; and

 

(4) a person who has access to certain types of exclusive or nonpublic information regarding a sporting event is prohibited from wagering in a fantasy contest overseen by the sports governing body of that sporting event.

 

Subd. 3.  Prohibition on accepting wagers.  (a) A fantasy contest operator shall not knowingly accept a wager from a person on the exclusion list or allow a person on the exclusion list to establish a fantasy contest account.

 

(b) A fantasy contest operator shall not knowingly accept a wager prohibited under subdivision 2 from any person who can reasonably be identified by publicly available information or by any lists provided to the commissioner.

 

(c) Knowingly accepting a wager from a person on the exclusion list is a license violation, subject to a penalty established by the commissioner.

 

Sec. 8.  [349C.08] FINANCIAL RESPONSIBILITY.

 

Subdivision 1.  Responsibility for satisfying winning wagers.  A wager in a fantasy contest placed with a fantasy contest operator is an enforceable contract.  A fantasy contest operator who accepts a wager bears all risk of loss to satisfy winnings on the wager.  A wager that is not redeemed within one year of the outcome that is the subject of the wager may be canceled by the fantasy contest operator.

 

Subd. 2.  Cash reserves.  (a) A fantasy contest operator shall maintain cash reserves in an amount that is not less than the greater of $25,000 or the sum of the:

 

(1) amounts held by the fantasy contest operator for the fantasy contest accounts of authorized participants;

 

(2) amounts accepted by the fantasy contest operator as wagers on contingencies whose outcome have not been determined; and

 

(3) amounts owed but unpaid by the fantasy contest operator on winning wagers through the period established by the operator, subject to time limits set by the commissioner, for honoring winning wagers.

 

(b) Such reserves shall be held in the form of cash or cash equivalents segregated from operational funds, payment processor reserves and receivables, any bond, an irrevocable letter of credit, or any combination thereof.


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Subd. 3.  Bond.  A fantasy contest operator shall be required to post a bond, securities, or an irrevocable letter of credit in an amount the commissioner deems necessary after taking into consideration the amount of the fantasy contest operator's cash reserves, to protect the financial interests of authorized participants participating in fantasy contests.  If securities are deposited or an irrevocable letter of credit filed, the securities or letter of credit must be of a type or in the form provided under section 349A.07, subdivision 5, paragraphs (b) and (c).

 

Sec. 9.  [349C.09] RECORD RETENTION; INFORMATION SHARING.

 

Subdivision 1.  Record retention.  Fantasy contest operators shall maintain records of all wagers placed, including personally identifiable information of an authorized participant, amount and type of wager, time the wager was placed, location of the wager, including IP address if applicable, the outcome of the wager, and records of abnormal betting activity for 3-1/2 years after the fantasy contest occurs.  Fantasy contest operators shall make the data described in this subdivision available for inspection upon request of the commissioner or as required by court order.

 

Subd. 2.  Anonymization required.  Fantasy contest operators shall use commercially reasonable efforts to maintain in real time and at the account level anonymized information regarding an authorized participant, amount and type of wager, the time the wager was placed, the location of the wager, including the IP address if applicable, the outcome of the wager, and records of abnormal betting activity.  Nothing in this section shall require a fantasy contest operator to provide any information that is prohibited by federal, state, or local laws or regulations, including laws and regulations relating to privacy and personally identifiable information.

 

Subd. 3.  Information sharing.  (a) If a sports governing body has notified the commissioner that access to the information described in subdivision 2 for wagers placed on fantasy contests of the sports governing body is necessary to monitor the integrity of such body's sporting events, then fantasy contest operators shall share, in a commercially reasonable frequency, form, and manner, with the sports governing body or its designees the information under subdivision 2 with respect to wagers on fantasy contests of the sports governing body.

 

(b) Sports governing bodies and their designees may only use information received under this subdivision for integrity-monitoring purposes and may not use information received under this subdivision for any commercial or other purpose.

 

Sec. 10.  [349C.10] LICENSE VIOLATIONS; ENFORCEMENT.

 

Subdivision 1.  Schedule of penalties.  The commissioner must adopt rules that provide a graduated schedule of penalties for violations of license requirements under statute or rule.  The schedule must specify penalties that may range from warnings and probation periods to civil fines, temporary suspension of licenses, or revocation of licenses.

 

Subd. 2.  Authority to act.  The commissioner may issue administrative orders, impose civil penalties, and suspend, revoke, or not renew a license issued pursuant to this chapter if the commissioner determines that a licensee has committed or is about to commit a violation of this chapter or rules adopted pursuant to this chapter, or if the commissioner determines that the licensee is disqualified or ineligible to hold a license pursuant to sections 349C.04 and 349C.05.

 

Subd. 3.  Temporary suspension.  (a) The commissioner may temporarily, without a hearing, suspend the license and operating privilege of any licensee for a period of up to 90 days if there is clear and convincing evidence that:

 

(1) conduct of a licensee, or anticipated failure of a licensee to fulfill an obligation, requires immediate action to protect the public from harm;

 

(2) the licensee has not timely filed a tax return or paid the tax required under chapter 297K; or


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(3) the licensee has not timely paid all license fees or penalties due under this chapter.

 

(b) The commissioner shall notify the licensee of the violation that caused the temporary suspension and may lift the temporary suspension if the licensee corrects the violation.

 

(c) The commissioner may extend the period of suspension if the violation is not corrected, the commissioner notifies the licensee that the commissioner intends to revoke or not renew a license, and a contested case hearing has not taken place.

 

Subd. 4.  Notice of violation; administrative orders; request for reconsideration; demand for hearing.  (a) The commissioner may issue an administrative order to any licensee who has committed a violation.  The order may require the licensee to correct the violation or to cease and desist from committing the violation and may impose civil penalties.  The order must state the deficiencies that constitute a violation, the time by which the violation must be corrected, and the amount of any civil penalty.

 

(b) If the licensee believes the information in the administrative order is in error, the licensee may ask the commissioner to reconsider any parts of the order that are alleged to be in error.  The request must be in writing, be delivered to the commissioner by certified mail within seven days after receipt of the order, and provide documentation to support the allegation of error.  The commissioner must respond to a request for reconsideration within 15 days after receiving the request.  A request for reconsideration does not stay the order unless the commissioner issues a supplemental order granting additional time.  The commissioner's disposition of a request for reconsideration is final.

 

(c) An administrative order that imposes a civil penalty of more than $2,000 shall be treated as a contested case under chapter 14.

 

(d) A licensee may request a hearing on the administrative order within 30 days of service of the order.  The request must be in writing and delivered to the commissioner by certified mail.  If the licensee does not request a hearing within 30 days, the order becomes final.

 

(e) If a licensee requests a hearing, the hearing must be held not later than 30 days after the commissioner receives the request unless the licensee and the commissioner agree on a later date.  After the hearing, the commissioner may enter an order making such disposition as the facts require.  If the licensee fails to appear at the hearing after having been notified of it, the licensee is considered in default and the proceeding may be determined against the licensee on consideration of the administrative order, the allegations of which may be considered to be true.  An action of the commissioner under this paragraph is subject to judicial review pursuant to chapter 14.

 

(f) Civil penalties collected by the commissioner shall be deposited in the general fund.  Civil penalties may be recovered in a civil action in the name of the state brought in the district court.

 

Subd. 5.  Revocation, nonrenewal, civil penalties; contested case.  If the commissioner intends to revoke or not renew a license, or impose a civil penalty in excess of $2,000, the commissioner shall provide the licensee with a statement of the complaints made against the licensee and shall initiate a contested case proceeding.  The contested case shall be held pursuant to chapter 14.

 

Sec. 11.  [349C.11] DATA PROTECTIONS.

 

Data in which an individual who has wagered on a fantasy contest is identified by name, account number, Social Security number, or any other uniquely identifying indicia, are private data on individuals, as defined in section 13.02, subdivision 12.  Data on individual earnings of fantasy contest operator application and licensing information are nonpublic data, as defined in section 13.02, subdivision 9.

 

Sec. 12.  EFFECTIVE DATE.

 

Except as otherwise provided, this article is effective July 1, 2024.


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ARTICLE 4

TAXATION OF FANTASY CONTESTS

 

Section 1.  [297K.01] DEFINITIONS.

 

Subdivision 1.  Terms.  For the purposes of this chapter, the following terms have the meanings given.

 

Subd. 2.  Adjusted gross fantasy contest receipts.  "Adjusted gross fantasy contest receipts" means the amount equal to the total of all entry fees that a fantasy contest operator receives from all participants minus the total of cash prizes and the fair market value of noncash prizes paid as winnings to all participants multiplied by the location percentage for this state.

 

Subd. 3.  Cash equivalent.  "Cash equivalent" means the cash value of any free bets, promotional credits, and any other noncash form of consideration, payment, or compensation.

 

Subd. 4.  Commissioner.  "Commissioner" means the commissioner of revenue.

 

Subd. 5.  Entry fee.  "Entry fee" means cash or cash equivalent that is required to be paid by an authorized participant and set in advance by a fantasy contest operator to participate in a fantasy contest.

 

Subd. 6.  Fantasy contest.  "Fantasy contest" has the meaning given in section 349C.01, subdivision 9.

 

Subd. 7.  Fantasy contest operator.  "Fantasy contest operator" has the meaning given in section 349C.01, subdivision 11.

 

Subd. 8.  Location percentage.  "Location percentage" means the percentage rounded to the nearest tenth of one percent of the total entry fees received from authorized participants located in this state divided by the total entry fees received from all players in the fantasy contest activity.

 

Subd. 9.  Wager.  "Wager" means a transaction between an authorized participant and a licensed fantasy contest operator in which an authorized participant pays, deposits, or risks cash or a cash equivalent as an entry fee into a fantasy contest.

 

EFFECTIVE DATE.  This section is effective for adjusted gross fantasy receipts received after June 30, 2024.

 

Sec. 2.  [297K.02] TAX ON FANTASY CONTEST NET REVENUE.

 

Subdivision 1.  Tax imposed.  A tax is imposed on fantasy contest operators equal to ten percent of adjusted gross fantasy receipts.

 

Subd. 2.  Fantasy contest net revenue tax in lieu of other taxes.  Income derived by a fantasy contest operator from the conduct of wagering on a fantasy contest is not subject to the tax imposed under chapter 290.  Wagers accepted by a fantasy contest operator are not subject to the tax imposed in section 297A.62 or 297E.03.

 

Subd. 3.  Returns; due dates.  A fantasy contest operator must file a return by the 20th day of each month reporting the tax due under this section for the preceding month.  The return must include the amount of all wagers received, payouts made, all fantasy contest taxes owed, and other information required by the commissioner.  The tax under this chapter is due to be paid to the commissioner on the day the return is due.

 

Subd. 4.  Deposit of revenue.  The commissioner must deposit the revenues, including penalties and interest, derived from the tax imposed by this section into the general fund.

 

EFFECTIVE DATE.  This section is effective for adjusted gross fantasy receipts received after June 30, 2024.


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Sec. 3.  [297K.03] FANTASY CONTEST OPERATOR REPORTS AND RECORDS.

 

Subdivision 1.  Business records.  A fantasy contest operator must maintain records supporting the fantasy contest activity and taxes owed.  Records required to be kept in this section must be preserved by the fantasy contest operator for at least 3-1/2 years after the return is due or filed, whichever is later, and may be inspected by the commissioner at any reasonable time without notice or a search warrant.

 

Subd. 2.  Audits.  The commissioner may require a financial audit of a fantasy contest operator's fantasy contest activities if the operator has failed to comply with this chapter, including failure to timely file returns or pay tax, or take corrective actions required by the commissioner.  Audits must be performed by an independent accountant licensed according to chapter 326A.  The commissioner must prescribe standards for an audit required under this subdivision.  A complete, true, and correct copy of an audit must be filed as prescribed by the commissioner.  Nothing in this subdivision limits the commissioner's ability to conduct its own audit pursuant to its authority under chapter 270C.

 

EFFECTIVE DATE.  This section is effective for adjusted gross fantasy receipts received after June 30, 2024.

 

Sec. 4.  [297K.04] OTHER PROVISIONS APPLY.

 

Except for those provisions specific to distributors, gambling products, or gambling equipment, sections 297E.02, subdivisions 9 and 10, and 297E.10 to 297E.14 apply to this chapter.

 

EFFECTIVE DATE.  This section is effective for adjusted gross fantasy receipts received after June 30, 2024.

 

ARTICLE 5

CRIMES RELATED TO SPORTS BETTING

 

Section 1.  Minnesota Statutes 2022, section 260B.007, subdivision 16, is amended to read:

 

Subd. 16.  Juvenile petty offender; juvenile petty offense.  (a) "Juvenile petty offense" includes a juvenile alcohol offense, a juvenile controlled substance offense, a juvenile violation of section 299L.80, subdivision 3, paragraph (a), a violation of section 609.685, or a violation of a local ordinance, which by its terms prohibits conduct by a child under the age of 18 years which would be lawful conduct if committed by an adult.

 

(b) Except as otherwise provided in paragraph (c), "juvenile petty offense" also includes an offense that would be a misdemeanor if committed by an adult.

 

(c) "Juvenile petty offense" does not include any of the following:

 

(1) a misdemeanor-level violation of section 518B.01, 588.20, 609.224, 609.2242, 609.324, subdivision 2 or 3, 609.5632, 609.576, 609.66, 609.746, 609.748, 609.79, or 617.23;

 

(2) a major traffic offense or an adult court traffic offense, as described in section 260B.225;

 

(3) a misdemeanor-level offense committed by a child whom the juvenile court previously has found to have committed a misdemeanor, gross misdemeanor, or felony offense; or

 

(4) a misdemeanor-level offense committed by a child whom the juvenile court has found to have committed a misdemeanor-level juvenile petty offense on two or more prior occasions, unless the county attorney designates the child on the petition as a juvenile petty offender notwithstanding this prior record.  As used in this clause, "misdemeanor-level juvenile petty offense" includes a misdemeanor-level offense that would have been a juvenile petty offense if it had been committed on or after July 1, 1995.


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(d) A child who commits a juvenile petty offense is a "juvenile petty offender. " The term juvenile petty offender does not include a child alleged to have violated any law relating to being hired, offering to be hired, or agreeing to be hired by another individual to engage in sexual penetration or sexual conduct which, if committed by an adult, would be a misdemeanor.

 

Sec. 2.  [299L.80] CRIMES RELATING TO WAGERING ON SPORTING EVENTS.

 

Subdivision 1.  Definitions.  As used in this section:

 

(1) "accepts a wager" includes receiving, recording, or forwarding a wager or an offer to wager on a sporting event, and attempts to do so;

 

(2) "nonpublic information" means information regarding a participant's ability or likelihood to perform in a sporting event that:

 

(i) is not available to the general public;

 

(ii) is derived from a personal or professional relationship with the participant; and

 

(iii) if the information was disseminated, would likely affect the odds of the participant or the participant's team in achieving a particular outcome in the event; and

 

(3) "places a wager" includes an offer or attempt to place a wager on a sporting event.

 

Subd. 2.  Sale or transfer of private data.  (a) Whoever sells or transfers private data on individuals collected through the practice of wagering on sporting events is guilty of a misdemeanor.

 

(b) Paragraph (a) does not apply to transfers of data between a person licensed under sections 299L.10 to 299L.80 or an employee of a licensee and the following entities when that transfer is necessary to perform duties prescribed by law relating to wagering on sporting events:

 

(1) the transfer of data to the commissioner, the director, or the commissioner of revenue;

 

(2) the transfer of data to a sports governing body pursuant to section 299L.53, subdivision 3, paragraph (a); and

 

(3) the transfer of data to the University of Minnesota pursuant to section 299L.53, subdivision 3, paragraph (c).

 

Subd. 3.  Wagering by a person under age 21.  (a) A person who is under 21 years of age and does either of the following is guilty of a misdemeanor:

 

(1) places a wager on a sporting event; or

 

(2) misrepresents the person's age as being 21 or older for the purposes of placing a wager on a sporting event.

 

(b) A person licensed under sections 299L.10 to 299L.80 or an employee of a licensee who accepts a wager on a sporting event placed by someone under the age of 21 years is guilty of a gross misdemeanor.

 

(c) Paragraph (a), clause (1) does not prohibit private social bets on sporting events that are not part of or incidental to organized, commercialized, or systematic gambling.


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Subd. 4.  Unauthorized wagers.  (a) The following persons who place a wager with an entity licensed under sections 299L.10 to 299L.80 are guilty of a crime and may be sentenced as provided in paragraphs (b) to (e):

 

(1) a person who is a participant in a sporting event and who places a wager on that event or who induces another to place a wager on the event on behalf of the person;

 

(2) a person licensed under sections 299L.10 to 299L.80, or an employee of a licensee whose exclusive or primary responsibilities involve mobile sports betting, who places a wager on a sporting event on an online website or mobile application with which the person is affiliated;

 

(3) an officer, director, member, or employee of the Department of Public Safety or the division who places a wager on a sporting event; or

 

(4) a person who possesses nonpublic information on a sporting event and who places a wager on that event.

 

(b) A person who violates paragraph (a) is guilty of a misdemeanor if the amount of the wager is no more than $500.

 

(c) A person who violates paragraph (a) is guilty of a gross misdemeanor if:

 

(1) the person has previously been convicted of a violation of this section or section 609.76; or

 

(2) the amount of the wager is more than $500 but not more than $1,000.

 

(d) A person who violates paragraph (a) is guilty of a felony and may be sentenced to imprisonment for not more than two years or to payment of a fine of not more than $4,000, or both, if the amount of the wager is more than $1,000 but not more than $5,000.

 

(e) A person who violates paragraph (a) is guilty of a felony and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both, if:

 

(1) the amount of the wager is more than $5,000; or

 

(2) the person places more than five wagers on any one or more sporting events within any 30-day period and the total amount wagered is more than $2,500.

 

Subd. 5.  Unauthorized acceptance of wagers.  (a) A person licensed under sections 299L.10 to 299L.80, or an employee of a licensee whose exclusive or primary responsibilities involve mobile sports betting, who accepts a wager on a sporting event knowing that the wager was made in violation of subdivision 4, paragraph (a) is guilty of a crime and may be sentenced as provided in paragraphs (b) to (e).

 

(b) A person who violates paragraph (a) is guilty of a misdemeanor if the amount of the wager is no more than $500.

 

(c) A person who violates paragraph (a) is guilty of a gross misdemeanor if:

 

(1) the person has previously been convicted of a violation of this section or section 609.76; or

 

(2) the amount of the wager is more than $500 but not more than $1,000.

 

(d) A person who violates paragraph (a) is guilty of a felony and may be sentenced to imprisonment for not more than two years or to payment of a fine of not more than $4,000, or both, if the amount of the wager is more than $1,000 but not more than $5,000.


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(e) A person who violates paragraph (a) is guilty of a felony and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both, if:

 

(1) the amount of the wager is more than $5,000; or

 

(2) the person accepts one or more wagers knowing that:

 

(i) the wager is prohibited under subdivision 4, paragraph (a);

 

(ii) acceptance of the wager will result in the person making a wager having placed more than five wagers on any one or more sporting events within any 30-day period; and

 

(iii) the total amount wagered is more than $2,500.

 

Subd. 6.  Aggregation; venue.  In any prosecution under subdivision 4 or 5, the amount of money wagered within any six-month period may be aggregated and the accused charged accordingly in applying the provisions of those subdivisions.  In addition, when two or more offenses are committed by the same person in two or more counties, the accused may be prosecuted in any county in which one of the offenses was committed for all of the offenses aggregated under this subdivision.

 

Subd. 7.  Proof of age; defense; seizure of false identification.  (a) Proof of age for placing a wager under sections 299L.10 to 299L.80 on a sporting event may be established only by one of the following:

 

(1) a valid driver's license or identification card issued by Minnesota, another state, a Tribal government, or a province of Canada, that includes the photograph and date of birth of the person;

 

(2) a valid military identification card issued by the United States Department of Defense;

 

(3) a valid United States passport;

 

(4) a valid instructional permit issued under section 171.05 that includes a photograph and the date of birth of the person;

 

(5) a Tribal identification;

 

(6) in the case of a foreign national, a valid passport; or

 

(7) use of an identity verification process approved by the commissioner and implemented by the mobile sports betting operator or mobile sports betting platform provider.

 

(b) In a prosecution for accepting a wager on a sporting event from a person under the age of 21, it is an affirmative defense for the defendant to prove by a preponderance of the evidence that the defendant reasonably and in good faith relied upon representations of proof of age authorized in paragraph (a).

 

(c) A mobile sports betting operator or employee of a mobile sports betting operator, or an official or employee authorized to accept wagers on sporting events under a Tribal-state compact regulating the conduct of class III sports betting on the Indian lands of an Indian Tribe, may seize a form of identification listed under paragraph (a) if the person has reasonable grounds to believe that the form of identification has been altered or falsified or is being used to violate any law.  A person who seizes a form of identification under this paragraph must deliver it to a law enforcement agency, as defined in section 626.84, subdivision 1, paragraph (f), within 24 hours of seizure.


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Sec. 3.  Minnesota Statutes 2022, section 609.75, subdivision 3, is amended to read:

 

Subd. 3.  What are not bets.  The following are not bets:

 

(1) a contract to insure, indemnify, guarantee or otherwise compensate another for a harm or loss sustained, even though the loss depends upon chance;

 

(2) a contract for the purchase or sale at a future date of securities or other commodities;

 

(3) offers of purses, prizes or premiums to the actual contestants in any bona fide contest for the determination of skill, speed, strength, endurance, or quality or to the bona fide owners of animals or other property entered in such a contest;

 

(4) the game of bingo when conducted in compliance with sections 349.11 to 349.23;

 

(5) a private social bet not part of or incidental to organized, commercialized, or systematic gambling;

 

(6) the operation of equipment or the conduct of a raffle under sections 349.11 to 349.22, by an organization licensed by the Gambling Control Board or an organization exempt from licensing under section 349.166;

 

(7) pari-mutuel betting on horse racing when the betting is conducted under chapter 240; and

 

(8) the purchase and sale of State Lottery tickets under chapter 349A;

 

(9) fantasy contests when the betting is conducted pursuant to chapter 349C; and

 

(10) sports betting when the betting is conducted pursuant to sections 299L.10 to 299L.80.

 

Sec. 4.  Minnesota Statutes 2022, section 609.75, subdivision 4, is amended to read:

 

Subd. 4.  Gambling device.  A gambling device is a contrivance the purpose of which is that for a consideration a player is afforded an opportunity to obtain something of value, other than free plays, automatically from the machine or otherwise, the award of which is determined principally by chance, whether or not the contrivance is actually played.  "Gambling device" also includes a video game of chance, as defined in subdivision 8.  Gambling device does not include a website or mobile application, or device used for accessing the website or mobile application, authorized to be used in conducting mobile sports betting pursuant to sections 299L.10 to 299L.80 or fantasy contests pursuant to chapter 349C.

 

Sec. 5.  Minnesota Statutes 2022, section 609.75, subdivision 7, is amended to read:

 

Subd. 7.  Sports bookmaking.  Sports bookmaking is the activity of intentionally receiving, recording or forwarding within any 30-day period more than five bets, or offers to bet, that total more than $2,500 on any one or more sporting events.  Sports bookmaking does not include sports betting when the betting is conducted pursuant to sections 299L.10 to 299L.80 or fantasy contests when betting is conducted pursuant to chapter 349C.

 

Sec. 6.  Minnesota Statutes 2022, section 609.75, is amended by adding a subdivision to read:

 

Subd. 7a.  Sporting event.  "Sporting event" has the meaning given in section 299L.10, subdivision 18, and includes any event, such as a game, match, contest, or activity, or series of games, matches, contests, activities, or tournaments, involving the athletic skill or performance in a video game of one or more players or participants, regardless of whether the event is approved by the commissioner to be an event eligible for wagering under sections 299L.10 to 299L.80.


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Sec. 7.  Minnesota Statutes 2022, section 609.75, is amended by adding a subdivision to read:

 

Subd. 7b.  Fantasy contest.  "Fantasy contest" has the meaning given in section 349C.01, subdivision 9.

 

Sec. 8.  Minnesota Statutes 2022, section 609.755, is amended to read:

 

609.755 GAMBLING; MISDEMEANOR.

 

Whoever does any of the following is guilty of a misdemeanor:

 

(1) makes a bet, other than a bet on a sporting event;

 

(2) sells or transfers a chance to participate in a lottery;

 

(3) disseminates information about a lottery, except a lottery conducted by an adjoining state, with intent to encourage participation therein;

 

(4) permits a structure or location owned or occupied by the actor or under the actor's control to be used as a gambling place; or

 

(5) except where authorized by statute, possesses a gambling device.

 

Clause (5) does not prohibit possession of a gambling device in a person's dwelling for amusement purposes in a manner that does not afford players an opportunity to obtain anything of value.

 

Sec. 9.  Minnesota Statutes 2022, section 609.76, subdivision 2, is amended to read:

 

Subd. 2.  Sports bookmaking.  (a) Whoever makes a bet on a sporting event with a person who is not licensed to engage in sports betting under sections 299L.10 to 299L.80 is guilty of a misdemeanor if the amount of the wager is no more than $500.

 

(b) Whoever makes a bet on a sporting event with a person who is not licensed to engage in sports betting under sections 299L.10 to 299L.80 is guilty of a gross misdemeanor if:

 

(1) the person has previously been convicted of a violation of this section or section 299L.80; or

 

(2) the amount of the wager is more than $500 but not more than $1,000.

 

(c) Whoever makes a bet on a sporting event with a person who is not licensed to engage in sports betting under sections 299L.10 to 299L.80 is guilty of a felony if the amount of the wager is more than $1,000.

 

(d) Whoever engages in sports bookmaking is guilty of a felony.

 

(e) In any prosecution under paragraph (b) or (c), the amount of money wagered within any six-month period may be aggregated and the accused charged accordingly in applying the provisions of those paragraphs.  In addition, when two or more offenses are committed by the same person in two or more counties, the accused may be prosecuted in any county in which one of the offenses was committed for all of the offenses aggregated under this subdivision.


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Sec. 10.  [609.764] SPORTING EVENTS; FRAUD; BRIBERY.

 

(a) As used in this section:

 

(1) "participant in a sporting event" has the meaning given in section 299L.10, subdivision 17; and

 

(2) "sporting event" has the meaning given in section 299L.10, subdivision 18.

 

(b) A person is guilty of a felony and may be sentenced to imprisonment for not more than five years or to payment of a fine of not more than $10,000, or both, if the person:

 

(1) offers, gives, or promises to give, directly or indirectly, to a participant in a sporting event any benefit, reward, or consideration to which the participant is not legally entitled as compensation or a prize, with intent to influence the performance of the participant, or the outcome of the event or a component of the event; or

 

(2) as a participant in a sporting event, requests, receives, or agrees to receive, directly or indirectly, a benefit, reward, or consideration to which the participant is not legally entitled to intentionally lose, cause to lose, or attempt to lose or cause to lose the event, or to intentionally perform below abilities to adversely affect the outcome of the event or a component of the event.

 

Sec. 11.  EFFECTIVE DATE.

 

Sections 1 to 10 are effective the day that sports betting and fantasy contests become lawful under articles 1 and 3 and apply to crimes committed on or after that date.

 

ARTICLE 6

AMATEUR SPORTS AND ACTIVITIES GRANTS

 

Section 1.  [240A.15] GRANTS FOR PROMOTING INTEGRITY AND PARTICIPATION.

 

Subdivision 1.  Account established; appropriation.  (a) The amateur sports integrity and participation account is established in the special revenue fund.  The account shall consist of the amount deposited pursuant to section 297J.02, subdivision 8, paragraph (d).

 

(b) The amount necessary to make grants under subdivisions 2 and 3 is appropriated to the Minnesota Amateur Sports Commission.  The Minnesota Amateur Sports Commission may retain four percent of the total appropriation to administer the grants.

 

(c) The amount necessary to make grants under subdivision 4 is appropriated to the Minnesota State High School League.  The Minnesota State High School League may retain four percent of the total appropriation to administer the grants.

 

Subd. 2.  Grants to promote the integrity of amateur sports.  (a) The Minnesota Amateur Sports Commission shall use 20 percent of the amount deposited in the amateur sports integrity and participation account in the previous fiscal year to award grants to collegiate and amateur sports associations to promote the integrity of amateur sports.  Of this amount, 80 percent of money must be distributed to grant recipients at institutions whose undergraduate enrollment total is fewer than 25,000 students.


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(b) Grant recipients may use money to:

 

(1) provide comprehensive gambling and athlete protection education and programming related to disordered gambling to athletes and others directly involved with amateur athletic organizations;

 

(2) promote the independence, safety, and training of amateur sports leagues and officials;

 

(3) provide educational substance abuse prevention and intervention programs related to the use of performance‑enhancing drugs;

 

(4) provide problem gambling prevention education;

 

(5) provide training to coaches and athletes on safe relationships and how to establish and maintain an environment free from bullying, harassment, and discrimination based on race or sex; or

 

(6) provide training or resources to address the mental health needs of amateur athletes, including programs to address depression, anxiety, and disordered eating.

 

(c) By September 1 of each year, individuals or organizations that received a grant in the previous fiscal year shall provide a report in a form and manner established by the Minnesota Amateur Sports Commission describing how grant money was used and providing any additional information required by the Minnesota Amateur Sports Commission.

 

Subd. 3.  Grants to promote and facilitate participation in youth sports.  (a) The Minnesota Amateur Sports Commission shall use 40 percent of the amount deposited in the amateur sports integrity and participation account in the previous fiscal year to award grants to organizations to promote and facilitate participation in youth sports in areas that have experienced a disproportionately high rate of juvenile crime.

 

(b) Applicants may demonstrate that an area has experienced a disproportionately high rate of juvenile crime through the use of public data or reports, a submission from the local law enforcement agency, or any other reliable information showing that the area to be served by the applicant has experienced more incidents of juvenile crime than the state average or than surrounding communities.

 

(c) Grant recipients may use money to:

 

(1) establish, maintain, or expand youth sports;

 

(2) improve facilities for youth sports;

 

(3) reduce or eliminate participation costs for youth through the use of scholarships, assistance with the purchase of equipment, reductions or elimination of program fees, and accounting for other reasonable costs that serve as a barrier to participation;

 

(4) recruit and train adults to serve as coaches, officials, or in other supportive roles; or

 

(5) coordinate additional services for youth, including tutoring, mental health services, substance abuse treatment, and family counseling.

 

(d) By September 1 of each year, individuals or organizations that received a grant in the previous fiscal year shall provide a report in a form and manner established by the Minnesota Amateur Sports Commission describing how grant money was used and providing any additional information required by the Minnesota Amateur Sports Commission.


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Subd. 4.  Grants to promote and facilitate participation in youth activities.  (a) The Minnesota State High School League shall use 40 percent of the amount deposited in the amateur sports integrity and participation account in the previous fiscal year to award grants to schools or organizations to promote and facilitate participation in competitive, nonathletic youth activities in areas that have experienced a disproportionately high rate of juvenile crime.

 

(b) Applicants may demonstrate that an area has experienced a disproportionately high rate of juvenile crime through the use of public data or reports, a submission from the local law enforcement agency, or any other reliable information showing that the area to be served by the applicant has experienced more incidents of juvenile crime than the state average or than surrounding communities.

 

(c) Grant recipients may use money to:

 

(1) establish, maintain, or expand competitive, nonathletic youth activities;

 

(2) reduce or eliminate participation costs for youth through the use of scholarships, assistance with the purchase of equipment, reductions or elimination of program fees, and accounting for other reasonable costs that serve as a barrier to participation;

 

(3) recruit and train adults to serve as coaches, officials, or in other supportive roles; or

 

(4) coordinate additional services for youth, including tutoring, mental health services, substance abuse treatment, and family counseling.

 

(d) By September 1 of each year, schools or organizations that received a grant in the previous fiscal year shall provide a report in a form and manner established by the Minnesota State High School League describing how grant money was used and providing any additional information required by the Minnesota State High School League.

 

Subd. 5.  Annual report.  By January 15 of each year, the Minnesota Amateur Sports Commission and Minnesota State High School League must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over public safety, the legislative committees with jurisdiction over taxes, the committee in the house of representatives with jurisdiction over commerce, the committee in the senate with jurisdiction over state government finance and policy, the committee in the house of representatives with jurisdiction over ways and means, and the committee in the senate with jurisdiction over finance.  The report must identify the grants issued under this section since the previous report, including the individual or organization that received the grant, the amount awarded, and the purpose of the grant.  The report must also compile and provide the annual reports received from grantees.

 

Sec. 2.  Minnesota Statutes 2022, section 245.98, subdivision 2, is amended to read:

 

Subd. 2.  Program.  The commissioner of human services shall establish a program for the treatment of compulsive gamblers and their families.  The commissioner may contract with an entity with expertise regarding the treatment of compulsive gambling to operate the program.  The program may include the establishment of a statewide toll-free number, resource library, public education programs; regional in-service training programs and conferences for health care professionals, educators, treatment providers, employee assistance programs, and criminal justice representatives; and the establishment of certification standards for programs and service providers.  The commissioner may enter into agreements with other entities and may employ or contract with consultants to facilitate the provision of these services or the training of individuals to qualify them to provide these services.  The program must include up to 60 hours of intervention services for a family member or concerned significant other who is a Minnesota resident and is negatively impacted by problem or compulsive gambling.  The program may also


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include inpatient and outpatient treatment and rehabilitation services for residents in different settings, including a temporary or permanent residential setting for mental health or substance use disorder, and individuals in jails or correctional facilities.  The program may also include research studies.  The research studies must include baseline and prevalence studies for adolescents and adults to identify those at the highest risk.  The program must be approved by the commissioner before it is established.

 

Sec. 3.  EFFECTIVE DATE.

 

This article is effective the day following final enactment.

 

ARTICLE 7

CHARITABLE GAMBLING

 

Section 1.  Minnesota Statutes 2023 Supplement, section 297E.02, subdivision 6, is amended to read:

 

Subd. 6.  Combined net receipts tax.  (a) In addition to the taxes imposed under subdivision 1, a tax is imposed on the combined net receipts of the organization.  As used in this section, "combined net receipts" is the sum of the organization's gross receipts from lawful gambling less gross receipts directly derived from the conduct of paper bingo, raffles, and paddlewheels, as defined in section 297E.01, subdivision 8, and less the net prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddlewheels, for the fiscal year.  The combined net receipts of an organization are subject to a tax computed according to the following schedule:

 

 

If the combined net receipts for the fiscal year are: 

 

 

 

The tax is: 

 

Not over $87,500

 

eight percent

 

Over $87,500, but not over $122,500

 

$7,000 plus 17 percent of the amount over $87,500,

 but not over $122,500

 

Over $122,500, but not over $157,500

 

$12,950 plus 25 percent of the amount over $122,500,

 but not over $157,500

 

Over $157,500

 

$21,700 plus 33.5 percent of the amount over $157,500

 

(b) On or before April 1, 2025, the commissioner shall estimate the total amount of revenue, including interest and penalties, that will be collected for fiscal year 2026 from taxes imposed under sections 297J.02 and 297K.02.  If the amount estimated by the commissioner equals or exceeds $6,900,000, the commissioner shall certify that effective July 1, 2025, the rates under this paragraph apply in lieu of the rates imposed under paragraph (a).  If the rates under this paragraph apply, the combined net receipts of an organization are subject to a tax computed according to the following schedule:

 

 

If the combined net receipts for the fiscal year are: 

 

 

 

The tax is: 

 

Not over $87,500

 

5.5 percent

 

Over $87,500, but not over $122,500

 

$4,813 plus 15 percent of the amount over $87,500,

 but not over $122,500

 

Over $122,500, but not over $157,500

 

$5,250 plus 23 percent of the amount over $122,500,

 but not over $157,500

 

Over $157,500

 

$8,050 plus 32.5 percent of the amount over $157,500

 

(c) On or before April 1, 2026, the commissioner shall estimate the total amount of revenue, including interest and penalties, that will be collected for fiscal year 2027 from taxes imposed under sections 297J.02 and 297K.02.  If the amount estimated by the commissioner equals or exceeds $27,100,000, the commissioner shall certify that


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effective July 1, 2026, the rates under this paragraph apply in lieu of the rates imposed under paragraph (a) or (b) and shall publish a notice to the effect in the state registry and notify taxpayers by June 1, 2026.  If the rates under this paragraph apply, the combined net receipts of an organization are subject to a tax computed according to the following schedule:

 

 

If the combined net receipts for the fiscal year are: 

 

 

 

The tax is: 

 

Not over $87,500

 

four percent

 

Over $87,500, but not over $122,500

 

$3,500 plus 13 percent of the amount over $87,500,

 but not over $122,500

 

Over $122,500, but not over $157,500

 

$4,550 plus 20 percent of the amount over $122,500,

 but not over $157,500

 

Over $157,500

 

$7,000 plus 28.5 percent of the amount over $157,500

 

(d) On or before April 1, 2027, the commissioner shall estimate the total amount of revenue, including interest and penalties, that will be collected for fiscal year 2028 from taxes imposed under sections 297J.02 and 297K.02.  If the amount estimated by the commissioner equals or exceeds $39,900,000, the commissioner shall certify that effective July 1, 2027, the rates under this paragraph apply in lieu of the rates imposed under paragraph (a), (b), or (c) and shall publish a notice to the effect in the state registry and notify taxpayers by June 1, 2027.  If the rates under this paragraph apply, the combined net receipts of an organization are subject to a tax computed according to the following schedule:

 

 

If the combined net receipts for the fiscal year are: 

 

 

 

The tax is: 

 

Not over $87,500

 

three percent

 

Over $87,500, but not over $122,500

 

$2,625 plus ten percent of the amount over $87,500,

 but not over $122,500

 

Over $122,500, but not over $157,500

 

$3,500 plus 18 percent of the amount over $122,500,

 but not over $157,500

 

Over $157,500

 

$6,300 plus 26 percent of the amount over $157,500

 

(b) (e) Gross receipts derived from sports-themed tipboards are exempt from taxation under this section.  For purposes of this paragraph, a sports-themed tipboard means a sports-themed tipboard as defined in section 349.12, subdivision 34, under which the winning numbers are determined by the numerical outcome of a professional sporting event.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 2.  Minnesota Statutes 2023 Supplement, section 349.12, subdivision 25, is amended to read:

 

Subd. 25.  Lawful purpose.  (a) "Lawful purpose" means one or more of the following:

 

(1) any expenditure by or contribution to a 501(c)(3) or festival organization, as defined in subdivision 15c, provided that the organization and expenditure or contribution are in conformity with standards prescribed by the board under section 349.154, which standards must apply to both types of organizations in the same manner and to the same extent;

 

(2) a contribution to or expenditure for goods and services for an individual or family suffering from poverty, homelessness, or disability, which is used to relieve the effects of that suffering;


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(3) a contribution to a program recognized by the Minnesota Department of Human Services for the education, prevention, or treatment of problem gambling;

 

(4) a contribution to or expenditure on a public or private nonprofit educational institution registered with or accredited by this state or any other state;

 

(5) a contribution to an individual, public or private nonprofit educational institution registered with or accredited by this state or any other state, or to a scholarship fund of a nonprofit organization whose primary mission is to award scholarships, for defraying the cost of education to individuals where the funds are awarded through an open and fair selection process;

 

(6) activities by an organization or a government entity which recognize military service to the United States, the state of Minnesota, or a community, subject to rules of the board, provided that the rules must not include mileage reimbursements in the computation of the per diem reimbursement limit and must impose no aggregate annual limit on the amount of reasonable and necessary expenditures made to support:

 

(i) members of a military marching or color guard unit for activities conducted within the state;

 

(ii) members of an organization solely for services performed by the members at funeral services;

 

(iii) members of military marching, color guard, or honor guard units may be reimbursed for participating in color guard, honor guard, or marching unit events within the state or states contiguous to Minnesota at a per participant rate of up to $50 per diem; or

 

(iv) active military personnel and their immediate family members in need of support services;

 

(7) recreational, community, and athletic facilities and activities, intended primarily for persons under age 21, provided that such facilities and activities do not discriminate on the basis of gender and the organization complies with section 349.154, subdivision 3a;

 

(8) payment of local taxes authorized under this chapter, including local gambling taxes authorized under section 349.213, subdivision 3, taxes imposed by the United States on receipts from lawful gambling, the taxes imposed by section 297E.02, subdivisions 1 and 6, and the tax imposed on unrelated business income by section 290.05, subdivision 3;

 

(9) payment of real estate taxes and assessments on permitted gambling premises owned by the licensed organization paying the taxes, or wholly leased by a licensed veterans organization under a national charter recognized under section 501(c)(19) of the Internal Revenue Code;

 

(10) a contribution to the United States, this state or any of its political subdivisions, or any agency or instrumentality thereof other than a direct contribution to a law enforcement or prosecutorial agency;

 

(11) a contribution to or expenditure by a nonprofit organization which is a church or body of communicants gathered in common membership for mutual support and edification in piety, worship, or religious observances;

 

(12) an expenditure for citizen monitoring of surface water quality by individuals or nongovernmental organizations that is consistent with section 115.06, subdivision 4, and Minnesota Pollution Control Agency guidance on monitoring procedures, quality assurance protocols, and data management, provided that the resulting data is submitted to the Minnesota Pollution Control Agency for review and inclusion in the state water quality database;


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(13) a contribution to or expenditure on projects or activities approved by the commissioner of natural resources for:

 

(i) wildlife management projects that benefit the public at large;

 

(ii) grant-in-aid trail maintenance and grooming established under sections 84.83 and 84.927, and other trails open to public use, including purchase or lease of equipment for this purpose; and

 

(iii) supplies and materials for safety training and educational programs coordinated by the Department of Natural Resources, including the Enforcement Division;

 

(14) conducting nutritional programs, food shelves, and congregate dining programs primarily for persons who are age 62 or older or disabled;

 

(15) a contribution to a community arts organization, or an expenditure to sponsor arts programs in the community, including but not limited to visual, literary, performing, or musical arts;

 

(16) an expenditure by a licensed fraternal organization or a licensed veterans organization for payment of water, fuel for heating, electricity, and sewer costs for:

 

(i) up to 100 percent for a building wholly owned or wholly leased by and used as the primary headquarters of the licensed veteran or fraternal organization; or

 

(ii) a proportional amount subject to approval by the director and based on the portion of a building used as the primary headquarters of the licensed veteran or fraternal organization;

 

(17) expenditure by a licensed veterans organization of up to $5,000 in a calendar year in net costs to the organization for meals and other membership events, limited to members and spouses, held in recognition of military service.  No more than $5,000 can be expended in total per calendar year under this clause by all licensed veterans organizations sharing the same veterans post home;

 

(18) payment of fees authorized under this chapter imposed by the state of Minnesota to conduct lawful gambling in Minnesota;

 

(19) a contribution or expenditure to honor an individual's humanitarian service as demonstrated through philanthropy or volunteerism to the United States, this state, or local community;

 

(20) a contribution by a licensed organization to another licensed organization with prior board approval, with the contribution designated to be used for one or more of the following lawful purposes under this section:  clauses (1) to (7), (11) to (15), (19), and (25);

 

(21) an expenditure that is a contribution to a parent organization, if the parent organization:  (i) has not provided to the contributing organization within one year of the contribution any money, grants, property, or other thing of value, and (ii) has received prior board approval for the contribution that will be used for a program that meets one or more of the lawful purposes under subdivision 7a;

 

(22) an expenditure for the repair, maintenance, or improvement of real property and capital assets owned by an organization, or for the replacement of a capital asset that can no longer be repaired, with a fiscal year limit of five percent of gross profits from the previous fiscal year, with no carryforward of unused allowances.  The fiscal year is July 1 through June 30.  Total expenditures for the fiscal year may not exceed the limit unless the board has specifically approved the expenditures that exceed the limit due to extenuating circumstances beyond the organization's control.  An expansion of a building or bar-related expenditures are not allowed under this provision.


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(i) The expenditure must be related to the portion of the real property or capital asset that must be made available for use free of any charge to other nonprofit organizations, community groups, or service groups, and is used for the organization's primary mission or headquarters.

 

(ii) An expenditure may be made to bring an existing building that the organization owns into compliance with the Americans with Disabilities Act.

 

(iii) An organization may apply the amount that is allowed under item (ii) to the erection or acquisition of a replacement building that is in compliance with the Americans with Disabilities Act if the board has specifically approved the amount.  The cost of the erection or acquisition of a replacement building may not be made from gambling proceeds, except for the portion allowed under this item;

 

(23) an expenditure for the acquisition or improvement of a capital asset with a cost greater than $2,000, excluding real property, that will be used exclusively for lawful purposes under this section if the board has specifically approved the amount;

 

(24) an expenditure for the acquisition, erection, improvement, or expansion of real property, if the board has first specifically authorized the expenditure after finding that the real property will be used exclusively for lawful purpose under this section;

 

(25) an expenditure, including a mortgage payment or other debt service payment, for the erection or acquisition of a comparable building to replace an organization-owned building that was destroyed or made uninhabitable by fire or catastrophe or to replace an organization-owned building that was taken or sold under an eminent domain proceeding.  The expenditure may be only for that part of the replacement cost not reimbursed by insurance for the fire or catastrophe or compensation not received from a governmental unit under the eminent domain proceeding, if the board has first specifically authorized the expenditure; or

 

(26) a contribution to a 501(c)(19) organization that does not have an organization license under section 349.16 and is not affiliated with the contributing organization, and whose owned or leased property is not a permitted premises under section 349.165.  The 501(c)(19) organization may only use the contribution for lawful purposes under this subdivision or for the organization's primary mission.  The 501(c)(19) organization may not use the contribution for expansion of a building or for bar-related expenditures.  A contribution may not be made to a statewide organization representing a consortia of 501(c)(19) organizations.; or

 

(27)(i) an expenditure made after June 30, 2024, and before August 1, 2029, for the repair, maintenance, or improvement of real property and capital assets owned by the following organizations, or for the replacement of a capital asset owned by the following organizations that can no longer be repaired:

 

(A) American Legion;

 

(B) Veterans of Foreign Wars of the United States (VFW);

 

(C) Jewish War Veterans of the United States of America;

 

(D) Military Order of the Purple Heart;

 

(E) AMVETS;

 

(F) Marine Corps League;

 

(G) Paralyzed Veterans of America; or

 

(H) Disabled American Veterans.


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(ii) The expenditure is limited to 50 percent of gross profits from the previous fiscal year.  The fiscal year is July 1 through June 30.  Any unused allowances may carry forward pursuant to the requirements in item (iii).

 

(iii) For qualifying organizations whose gross receipts exceed $400,000 per year, the organization may carry forward unused allowances for up to two years.  For qualifying organizations whose gross receipts do not exceed $400,000 per year, the organization may carry forward unused allowances for up to three years.  Any organization carrying forward funds must identify the planned project for which the funds will be used prior to carrying forward the unused allowances.

 

(iv) Total expenditures for the fiscal year may not exceed the limit imposed under item (ii) unless the board has specifically approved the expenditures that exceed the limit due to extenuating circumstances beyond the organization's control.  An expansion of a building or any capital improvements within the building regardless of use of the improvement are allowed under this provision.  This provision applies only to capital improvements to the existing building square footage and does not apply to the new construction of a new or replacement building.

 

(b) Expenditures authorized by the board under paragraph (a), clauses (24) and (25), must be 51 percent completed within two years of the date of board approval; otherwise the organization must reapply to the board for approval of the project.  "Fifty-one percent completed" means that the work completed must represent at least 51 percent of the value of the project as documented by the contractor or vendor.

 

(c) Notwithstanding paragraph (a), "lawful purpose" does not include:

 

(1) any expenditure made or incurred for the purpose of influencing the nomination or election of a candidate for public office or for the purpose of promoting or defeating a ballot question;

 

(2) any activity intended to influence an election or a governmental decision-making process;

 

(3) a contribution to a statutory or home rule charter city, county, or town by a licensed organization with the knowledge that the governmental unit intends to use the contribution for a pension or retirement fund; or

 

(4) a contribution to a 501(c)(3) organization or other entity with the intent or effect of not complying with lawful purpose restrictions or requirements.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

ARTICLE 8

PARI-MUTUEL HORSE RACING

 

Section 1.  Minnesota Statutes 2022, section 240.01, subdivision 1c, is amended to read:

 

Subd. 1c.  Advance deposit wagering; ADW.  "Advance deposit wagering" or "ADW" means a system of pari‑mutuel wagering betting in which wagers and withdrawals are debited and winning payoffs and deposits are credited to an account held by an authorized ADW provider on behalf of an account holder.  Advance deposit wagering shall not mean or include historical horse racing, nor any televised, video, or computer screen depicting a video game of chance or slot machine.

 

Sec. 2.  Minnesota Statutes 2022, section 240.01, subdivision 8, is amended to read:

 

Subd. 8.  Horse racing.  "Horse racing" is any form of live or simulcast of a live horse racing race in which horses carry a human rider or pull a sulky with a human.  Horse racing shall not include any form that has happened in the past or is considered historical horse racing.


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Sec. 3.  Minnesota Statutes 2022, section 240.01, is amended by adding a subdivision to read:

 

Subd. 8a.  Historical horse racing.  "Historical horse racing" means any horse race that was previously conducted at a licensed racetrack, concluded with results, and concluded without scratches, disqualifications, or dead-heat finishes.

 

Sec. 4.  Minnesota Statutes 2022, section 240.01, subdivision 14, is amended to read:

 

Subd. 14.  Pari-mutuel betting.  "Pari-mutuel betting" is the system of betting on horse races where those who bet on horses that finish in the position or positions for which bets are taken share in the total amounts bet, less deductions required or permitted by law.  Pari-mutuel betting shall not include betting on a race that has occurred in the past or is considered historical horse racing or where bettors are not wagering on the same live or simulcast horse race or bettors do not share in the total amount of bets taken.

 

Sec. 5.  [240.071] PROHIBITED ACTS.

 

A licensed racetrack shall only conduct horse racing and may be authorized to operate a card club in accordance with this chapter.  A licensed racetrack shall not conduct or provide for play any other forms of gambling, including but not limited to historical horse racing, slot machines, video games of chance, and other gambling devices.

 

Sec. 6.  [240.1563] RACING COMMISSION ECONOMIC DEVELOPMENT ACCOUNT.

 

The Racing Commission economic development account is established in the special revenue fund.  The account shall consist of any amounts transferred from the general fund.  The amounts deposited into the account are appropriated to the Minnesota Racing Commission.  The commission must provide money annually as follows to fund purse supplements:

 

(1) 28 percent to a licensed racetrack that primarily conducts standardbred horse racing; and

 

(2) 72 percent to a licensed racetrack that primarily conducts Thoroughbred and Quarter Horse racing.

 

Sec. 7.  [240.231] LIMITATIONS ON RULEMAKING AND OTHER AUTHORITY.

 

The commission's rulemaking and other authority, whether derived from section 240.23 or other sections in this chapter, shall only pertain to horse racing and card games at a card club as expressly authorized in this chapter and shall not include the authority to expand gambling, nor the authority to approve or regulate historical horse racing, slot machines, video games of chance, and other gambling devices, by means of rulemaking, a contested case hearing, the review and approval of a plan of operation or proposed or amended plan of operation, the approval of any proposal or request, or any other commission or agency action.

 

Sec. 8.  Minnesota Statutes 2022, section 240.30, subdivision 8, is amended to read:

 

Subd. 8.  Limitations.  The commission may not approve any plan of operation under subdivision 6 that exceeds any of the following limitations:

 

(1) the maximum number of tables used for card playing at the card club at any one time, other than tables used for instruction, demonstrations, or poker tournament play, may not exceed 80;

 

(2) except as provided in clause (3), no wager may exceed $100;


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(3) for games in which each player is allowed to make only one wager or has a limited opportunity to change that wager, no wager may exceed $300.; and

 

(4) no inclusion of any historical horse racing or any other form of gambling that is not expressly authorized for racetracks under this chapter.

 

Sec. 9.  EFFECTIVE DATE.

 

This article is effective the day following final enactment.

 

ARTICLE 9

APPROPRIATIONS; MISCELLANEOUS

 

Section 1.  Minnesota Statutes 2022, section 609.761, subdivision 3, is amended to read:

 

Subd. 3.  Social skill game.  Sections 609.755 and 609.76 do not prohibit tournaments or contests that satisfy all of the following requirements:

 

(1) the tournament or contest consists of the card games of chance commonly known as cribbage, skat, sheepshead, bridge, euchre, hasenpfeffer, pinochle, gin, 500, smear, Texas hold'em, or whist;

 

(2) the tournament or contest does not provide any direct financial benefit to the promoter or organizer;

 

(3) the value of all prizes awarded for each tournament or contest does not exceed $200; and

 

(4) for a tournament or contest involving Texas hold'em:

 

(i) no person under 18 years of age may participate;

 

(ii) the payment of an entry fee or other consideration for participating is prohibited;

 

(iii) the value of all prizes awarded to an individual winner of a tournament or contest at a single location may not exceed $200 each day; and

 

(iv) the organizer or promoter must ensure that reasonable accommodations are made for players with disabilities.  Accommodations to the table and the cards shall include the announcement of the cards visible to the entire table and the use of Braille cards for players who are blind.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 2.  DEPARTMENT OF PUBLIC SAFETY; APPROPRIATION.

 

$8,316,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of public safety to perform the duties required to establish and regulate mobile sports betting under Minnesota Statutes, sections 299L.10 to 299L.80, and fantasy contests under Minnesota Statutes, chapter 349C.  The base for this appropriation is $5,486,000 in fiscal year 2026 and $5,466,000 in fiscal year 2027 and each fiscal year thereafter.

 

Sec. 3.  DEPARTMENT OF REVENUE; APPROPRIATION.

 

$10,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of revenue to perform the duties necessary to establish and enforce the taxation of mobile sports betting and fantasy contests under Minnesota Statutes, chapters 297J and 297K.  The base for this appropriation is $2,023,000 in fiscal year 2026 and $1,740,000 in fiscal year 2027 and each fiscal year thereafter.


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Sec. 4.  DEPARTMENT OF HUMAN SERVICES; APPROPRIATION.

 

The base appropriation in fiscal year 2026 is $216,000 and $422,000 in fiscal year 2027 and each fiscal year thereafter to the commissioner of human services to administer the money appropriated under Minnesota Statutes, section 297J.02, subdivision 8.

 

Sec. 5.  OFFICE OF THE ATTORNEY GENERAL; APPROPRIATION.

 

$702,000 in fiscal year 2025 is appropriated from the general fund to the Office of the Attorney General to perform the duties required to support state agencies regarding the regulation of mobile sports betting under Minnesota Statutes, sections 299L.10 to 299L.80, and fantasy contests under Minnesota Statutes, chapter 349C.  This is an ongoing appropriation.

 

Sec. 6.  RACING COMMISSION ECONOMIC DEVELOPMENT ACCOUNT; TRANSFER.

 

$625,000 in fiscal year 2026 is transferred from the general fund to the Racing Commission economic development account in the special revenue fund to perform the duties imposed under Minnesota Statutes, section 240.1563.  This transfer is ongoing.

 

Sec. 7.  STUDY ON MOTIVATIONS AND BELIEFS OF YOUNG ADULT GAMBLERS; APPROPRIATION.

 

Subdivision 1.  Appropriation.  $150,000 in fiscal year 2025 is appropriated from the general fund to the commissioner of public safety for a grant to a nonprofit organization to conduct a study on the gambling motivations and beliefs of young adult gamblers.  The commissioner may not use any amount of this appropriation to administer the grant.  This is a onetime appropriation.

 

Subd. 2.  Award.  The commissioner shall award the grant to a nonprofit, gambling-neutral organization with experience raising public awareness about problem gambling and providing professional training for those who work with problem gamblers.

 

Subd. 3.  Focus group.  (a) The grant recipient shall convene a focus group of 40 individuals who are at least 18 years of age but not more than 35 years of age and who have experience gambling in Minnesota.

 

(b) Membership of the focus group shall reflect the geographical and demographic diversity of Minnesotans who are 18 to 35 years of age.

 

(c) The focus group shall identify the reasons that young adults gamble and the ways in which they engage in gambling, including whether they wager on sporting events; participate in fantasy sports; purchase lottery tickets; visit casinos; engage in online gambling; participate in card playing as defined in Minnesota Statutes, section 240.01, subdivision 5; engage in pari-mutuel betting as defined in Minnesota Statutes, section 240.01, subdivision 14; or participate in lawful gambling authorized under Minnesota Statutes, chapter 349.

 

Subd. 4.  Qualitative survey.  Following completion of the focus group described in subdivision 3, the grant recipient shall create a qualitative survey and obtain responses from a sample of at least 50,000 individuals.

 

Subd. 5.  Report.  By January 15, 2026, the grant recipient shall submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over public safety, the legislative committees with jurisdiction over taxes, the committee in the house of representatives with jurisdiction over commerce, the committee in the senate with jurisdiction over state government finance and policy, the committee in the house of representatives with jurisdiction over ways and means, and the committee in the senate with jurisdiction over finance.  The report shall summarize the actions and findings of the grant recipient and shall make recommendations for policies and the use of financial resources to prevent and address problem gambling by young adults."


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Delete the title and insert:

 

"A bill for an act relating to gambling; authorizing and providing for sports betting and fantasy contests; establishing licenses; prohibiting local restrictions; providing for taxation of sports betting and fantasy contests; providing civil and criminal penalties; providing for amateur sports grants; providing for charitable gambling and modifying certain rates of tax on lawful gambling; providing for pari-mutuel horse racing; making clarifying, conforming, and technical changes; requiring reports; appropriating money; amending Minnesota Statutes 2022, sections 240.01, subdivisions 1c, 8, 14, by adding a subdivision; 240.30, subdivision 8; 245.98, subdivision 2; 260B.007, subdivision 16; 270B.07, by adding a subdivision; 609.75, subdivisions 3, 4, 7, by adding subdivisions; 609.755; 609.76, subdivision 2; 609.761, subdivision 3; Minnesota Statutes 2023 Supplement, sections 297E.02, subdivision 6; 349.12, subdivision 25; proposing coding for new law in Minnesota Statutes, chapters 240; 240A; 299L; 609; proposing coding for new law as Minnesota Statutes, chapters 297J; 297K; 349C."

 

 

With the recommendation that when so amended the bill be placed on the General Register.

 

      The report was adopted.

 

 

Olson, L., from the Committee on Ways and Means to which was referred:

 

H. F. No. 5363, A bill for an act relating to employees; modifying paid leave provisions; amending Minnesota Statutes 2023 Supplement, sections 268B.01, subdivisions 3, 5, 8, 15, 23, 44, by adding subdivisions; 268B.04; 268B.06, subdivisions 2, 3, 4, 5, by adding a subdivision; 268B.07, subdivisions 1, 2, 3; 268B.09, subdivisions 1, 6, 7; 268B.10, subdivisions 1, 2, 3, 6, 12, 16, 17, by adding subdivisions; 268B.14, subdivisions 3, 7, by adding subdivisions; 268B.15, subdivision 7; 268B.155, subdivision 2; 268B.185, subdivision 2; 268B.19; 268B.26; 268B.27, subdivision 2; 268B.29; proposing coding for new law in Minnesota Statutes, chapter 268B; repealing Minnesota Statutes 2023 Supplement, sections 268B.06, subdivision 7; 268B.08; 268B.10, subdivision 11; 268B.14, subdivision 5.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  [268B.001] CITATION.

 

This chapter may be cited as the "Minnesota Paid Leave Law."

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 2.  Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 3, is amended to read:

 

Subd. 3.  Applicant.  "Applicant" means an individual or the individual's authorized representative applying for leave with benefits under this chapter.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.


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Sec. 3.  Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a subdivision to read:

 

Subd. 4a.  Authorized representative.  "Authorized representative" means an individual designated by the person or the individual's legal representative to act on their behalf.  This individual may be a family member, guardian, or other individual designated by the person or the individual's legal representative, if any, to assist in purchasing and arranging for supports.  For the purposes of this chapter, an authorized representative must be at least 18 years of age.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 4.  Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 5, is amended to read:

 

Subd. 5.  Base period.  (a) "Base period," unless otherwise provided in this subdivision, means the most recent four completed calendar quarters before the effective date of an applicant's application for family or medical leave benefits if the application has an effective date occurring after the month following the most recent completed calendar quarter.  The base period under this paragraph is as follows:

 

If the application for family or medical leave benefits

is effective on or between these dates: 

 

 

The base period is the prior: 

February 1 to March 31

January 1 to December 31

May 1 to June 30

April 1 to March 31

August 1 to September 30

July 1 to June 30

November 1 to December 31

October 1 to September 30

 

(b) If an application for family or medical leave benefits has an effective date that is during the month following the most recent completed calendar quarter, then the base period is the first four of the most recent five completed calendar quarters before the effective date of an applicant's application for family or medical leave benefits.  The base period under this paragraph is as follows:

 

If the application for family or medical leave benefits

is effective on or between these dates: 

 

 

The base period is the prior: 

January 1 to January 31

October 1 to September 30

April 1 to April 30

January 1 to December 31

July 1 to July 31

April 1 to March 31

October 1 to October 31

July 1 to June 30

 

(c) Regardless of paragraph (a), a base period of the first four of the most recent five completed calendar quarters must be used if the applicant would have more wage credits under that base period than under a base period of the four most recent completed calendar quarters.

 

(d) If the applicant has insufficient wage credits to establish a benefit account under a base period of the four most recent completed calendar quarters, or a base period of the first four of the most recent five completed calendar quarters, but during either base period the applicant received workers' compensation for temporary disability under chapter 176 or a similar federal law or similar law of another state, or if the applicant whose own serious illness caused a loss of work for which the applicant received compensation for loss of wages from some other source, the applicant may request a base period as follows:


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(1) if an applicant was compensated for a loss of work of seven to 13 weeks during a base period referred to in paragraph (a) or (b), then the base period is the first four of the most recent six completed calendar quarters before the effective date of the application for family or medical leave benefits;

 

(2) if an applicant was compensated for a loss of work of 14 to 26 weeks during a base period referred to in paragraph (a) or (b), then the base period is the first four of the most recent seven completed calendar quarters before the effective date of the application for family or medical leave benefits;

 

(3) if an applicant was compensated for a loss of work of 27 to 39 weeks during a base period referred to in paragraph (a) or (b), then the base period is the first four of the most recent eight completed calendar quarters before the effective date of the application for family or medical leave benefits; and

 

(4) if an applicant was compensated for a loss of work of 40 to 52 or more weeks during a base period referred to in paragraph (a) or (b), then the base period is the first four of the most recent nine completed calendar quarters before the effective date of the application for family or medical leave benefits.

 

(e) For an applicant under a private plan as provided in section 268B.10, the base period is those most recent four quarters in which wage credits were earned with the current employer as provided by the current employer.  If an employer does not have four quarters of wage detail information, the employer must accept an employee's certification of wage credits, based on the employee's records.  If the employee does not provide certification of additional wage credits, the employer may use a base period that consists of all available quarters.

 

(f) The base period is calculated once during the benefit year.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 5.  Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 8, is amended to read:

 

Subd. 8.  Benefit year.  (a) Except as provided in paragraph paragraphs (b) to (d), "benefit year" means the period of 52 calendar weeks beginning the date a benefit account effective date of leave under section 268B.04 is effective.  For a benefit account established an effective date of leave that is any January 1, April 1, July 1, or October 1, the benefit year will be a period of 53 calendar weeks.

 

(b) For an individual with multiple employers participating in the state plan, "benefit year" means the period of 52 calendar weeks beginning the date an effective date of leave under section 268B.04 is effective for any of the multiple employers.

 

(b) (c) For a private plan under section 268B.10, "benefit year" means:

 

(1) a calendar year;

 

(2) any fixed 12-month period, such as a fiscal year or a 12-month period measured forward from an employee's first date of employment;

 

(3) a 12-month period measured forward from an employee's first day of leave taken; or

 

(4) a rolling 12-month period measured backward from an employee's first day of leave taken.

 

Employers are required to notify employees of their benefit year within 30 days of the private plan approval and first day of employment.


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(d) For individuals with multiple employers with at least one employer participating in the state plan and at least one employer participating in a private plan:

 

(1) for the employer or employers participating in the state plan, "benefit year" means the period of 52 calendar weeks beginning the effective date of leave is effective for any employer; and

 

(2) the employer or employers participating in a private plan may define their benefit year according to paragraph (b).

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 6.  Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 15, is amended to read:

 

Subd. 15.  Covered employment.  (a) "Covered employment" means performing services of whatever nature, unlimited by the relationship of master and servant as known to the common law, or any other legal relationship performed for wages or under any contract calling for the performance of services, written or oral, express or implied.

 

(b) For the purposes of this chapter, covered employment means an employee's entire employment during a calendar year quarter if:

 

(1) 50 percent or more of the employment during the calendar year quarter is performed in Minnesota; or

 

(2) 50 percent or more of the employment during the calendar year quarter is not performed in Minnesota or any other single state within the United States, or Canada United States territory or foreign nation, but some of the employment is performed in Minnesota and the employee's residence is in Minnesota during 50 percent or more of the calendar year; or quarter.

 

(3) 50 percent or more of the employment during the calendar year is not performed in Minnesota or any other state, or Canada, but the place from where the employee's employment is controlled and directed is based in Minnesota.

 

(c) "Covered employment" does not include:

 

(1) a self-employed individual;

 

(2) an independent contractor; or

 

(3) employment by a seasonal employee, as defined in subdivision 35.

 

(d) Entities that are excluded under this section may opt in to coverage following a procedure determined by the commissioner.  In such cases, services provided by employees are considered covered employment under subdivision 15.

 

(e) The commissioner may adopt rules in accordance with chapter 14 to:

 

(1) further define the application of this subdivision; and

 

(2) establish the criteria for covered employment for individuals that do not meet the criteria in paragraphs (a) and (b), but that perform services as an employee to a Minnesota employer.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.


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Sec. 7.  Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a subdivision to read:

 

Subd. 15a.  Covered individual.  "Covered individual" means either:

 

(1) an applicant who meets the financial eligibility requirements of section 268B.04, subdivision 2, if services provided are covered employment under subdivision 15; or

 

(2) a self-employed individual or independent contractor who has elected coverage under section 268B.11 and who meets the financial eligibility requirements under section 268B.11.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 8.  Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a subdivision to read:

 

Subd. 15b.  Effective date of application.  "Effective date of application" means the date on which an application is submitted to the department.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 9.  Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a subdivision to read:

 

Subd. 15c.  Effective date of leave.  "Effective date of leave" means the date of first absence associated with a leave under section 268B.09.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 10.  Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 23, is amended to read:

 

Subd. 23.  Family member.  (a) "Family member" means, with respect to an applicant:

 

(1) a spouse or domestic partner;

 

(2) a child, including a biological child, adopted child, or foster child, a stepchild, child of a domestic partner, or a child to whom the applicant stands in loco parentis, is a legal guardian, or is a de facto parent custodian;

 

(3) a parent or legal guardian of the applicant;

 

(4) a sibling;

 

(5) a grandchild;

 

(6) a grandparent or spouse's grandparent;

 

(7) a son-in-law or daughter-in-law; and

 

(8) an individual who has a personal relationship with the applicant that creates an expectation and reliance that the applicant care for the individual without compensation, whether or not the applicant and the individual reside together.

 

(b) For the purposes of this chapter, "grandchild" means a child of the applicant's child.


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(c) For the purposes of this chapter, "grandparent" means a parent of the applicant's parent.

 

(d) For the purposes of this chapter, "parent" means the biological, adoptive, de facto custodian, or foster parent, stepparent, or legal guardian of an applicant or the applicant's spouse, or an individual who stood in loco parentis to an applicant when the applicant was a child.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 11.  Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a subdivision to read:

 

Subd. 23a.  Financially eligible.  "Financially eligible" means an applicant meets the requirements established under section 268B.04, subdivision 2.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 12.  Minnesota Statutes 2023 Supplement, section 268B.01, is amended by adding a subdivision to read:

 

Subd. 27a.  Initial paid week.  "Initial paid week" means the first seven days of a leave, which must be paid and is a payable period for leave types including family care, medical care related to pregnancy, serious health condition, qualifying exigency, or safety leave.  For intermittent leave, initial paid week means seven consecutive or nonconsecutive, or a combination of consecutive and nonconsecutive, calendar days from the effective date of leave, of which only days when leave is taken are payable.  The initial week must be paid retroactively after the applicant has met the seven-day qualifying event under section 268B.06, subdivision 2.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 13.  Minnesota Statutes 2023 Supplement, section 268B.01, subdivision 44, is amended to read:

 

Subd. 44.  Typical workweek.  "Typical workweek" means:

 

(1) for an hourly employee, the average number of hours worked per week by an employee within the high quarter during the base year; or last two quarters prior to the effective date of application.

 

(2) 40 hours for a salaried employee, regardless of the number of hours the salaried employee typically works.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 14.  Minnesota Statutes 2023 Supplement, section 268B.04, is amended to read:

 

268B.04 BENEFIT ACCOUNT FINANCIAL ELIGIBILITY; BENEFITS.

 

Subdivision 1.  Application for benefits; determination of benefit account financial eligibility.  (a) An application for benefits may be filed up to 60 days before leave taken under chapter 268B in person, by mail, or by electronic transmission as the commissioner may require.  The applicant must include certification supporting a request for leave under this chapter.  The applicant must meet eligibility requirements and must provide all requested information in the manner required.  If the applicant fails to provide all requested information, the communication is not an application for family and medical leave benefits within a time period to be specified by the commissioner, the application is considered closed and the division must not further act on it.


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(b) The commissioner must examine each application for benefits to determine the base period and the benefit year, and based upon all the covered employment in the base period the commissioner must determine the financial eligibility of the applicant, which includes the weekly benefit amount available, if any, and the maximum amount of benefits available, if any.  The determination, which is a document separate and distinct from a document titled a determination of eligibility or determination of ineligibility, must be titled determination of benefit account.  A determination of benefit account must be sent to the applicant and all base period employers, by mail or electronic transmission. The department must notify all employers from which the applicant is taking leave, either in writing or electronically, not more than five business days after a claim for benefits has been filed by an employee or former employee as provided under this section.

 

(c) If a base period employer did not provide wage detail information for the applicant as required under section 268B.12, the commissioner may accept an applicant certification of wage credits, based upon the applicant's records, and issue a determination of benefit account determine the financial eligibility of the applicant.

 

(d) The commissioner may, at any time within 12 months from the establishment of a benefit account leave, reconsider any determination of benefit account and make an amended determination if the commissioner finds that the wage credits listed in the determination were incorrect for any reason.  An amended determination of benefit account must be promptly sent to the applicant and all any impacted base period employers, by mail or electronic transmission.  This paragraph does not apply to documents titled determinations of eligibility or determinations of ineligibility issued.

 

(e) If an amended determination of benefit account reduces the weekly benefit amount or maximum amount of benefits available, any benefits that have been paid greater than the applicant was entitled is an overpayment of benefits.  A determination or amended determination issued under this section that results in an overpayment of benefits must set out the amount of the overpayment and the requirement that the overpaid benefits must be repaid according to section 268B.185.

 

Subd. 2.  Benefit account requirements.  To establish a benefit account, an applicant must have wage credits of at least 5.3 percent of the state's average annual wage rounded down to the next lower $100.

 

Subd. 3.  Weekly benefit amount; maximum amount of benefits available; prorated amount.  (a) Subject to the maximum weekly benefit amount, an applicant's weekly benefit is calculated by adding the amounts obtained by applying the following percentage to an applicant's average typical workweek and weekly wage during the high quarter of the base period:

 

(1) 90 percent of wages that do not exceed 50 percent of the state's average weekly wage; plus

 

(2) 66 percent of wages that exceed 50 percent of the state's average weekly wage but not 100 percent; plus

 

(3) 55 percent of wages that exceed 100 percent of the state's average weekly wage.

 

(b) For applicants that have changed employers within the base period, the weekly benefit amount is calculated based on the highest quarter of wages in the base period.

 

(b) (c) The state's average weekly wage is the average wage as calculated under section 268.035, subdivision 23, at the time a benefit amount is first determined.

 

(c) (d) The maximum weekly benefit amount is the state's average weekly wage as calculated under section 268.035, subdivision 23.


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(d) (e) The state's maximum weekly benefit amount, computed in accordance with section 268.035, subdivision 23, applies to a benefit account leaves established effective on or after the last Sunday in October.  Once established, an applicant's weekly benefit amount is not affected by the last Sunday in October change in the state's maximum weekly benefit amount.

 

(e) (f) For an employee a covered individual receiving family or medical leave, a weekly benefit amount is prorated when:

 

(1) the employee covered individual works hours for wages;

 

(2) the employee covered individual uses paid sick leave, paid vacation leave, or other paid time off that is not considered a supplemental benefit payment as defined in section 268B.01, subdivision 41; or

 

(3) leave is taken intermittently.

 

Subd. 4.  Timing of payment.  Except as otherwise provided for in this chapter, benefits must be paid weekly.

 

Subd. 5.  Maximum length of benefits.  (a) The total number of weeks that an applicant may take benefits in a single benefit year for a serious health condition is the lesser of 12 weeks, or 12 weeks minus the number of weeks within the same benefit year that the applicant received benefits for bonding, safety leave, family care, or and qualifying exigency plus eight weeks.

 

(b) The total number of weeks that an applicant may take benefits in a single benefit year for bonding, safety leave, family care, or and qualifying exigency is the lesser of 12 weeks, or 12 weeks minus the number of weeks within the same benefit year that the applicant received benefits for a serious health condition plus eight weeks.

 

Subd. 6.  Minimum period for which benefits payable.  Except for a claim for benefits for bonding leave, any claim for benefits must be based on a single qualifying event of at least seven calendar days.  The minimum duration to receive benefits under this chapter is one work day in a work week.

 

Subd. 6a.  Minimum increment of leave.  Intermittent leave must be taken in increments consistent with the established policy of the employer to account for use of other forms of leave, so long as such employer's policy permits a minimum increment of at most one calendar day of intermittent leave.  An applicant is not permitted to apply for payment for benefits associated with intermittent leave until the applicant has eight hours of accumulated leave time, unless more than 30 calendar days have lapsed since the initial taking of the leave.

 

Subd. 7.  Right of appeal.  (a) A determination or amended determination of benefit account is final unless an appeal is filed by the applicant within 60 calendar days after the sending of the determination or amended determination.

 

(b) Any applicant may appeal from a determination or amended determination of benefit account on the issue of whether services performed constitute employment, whether the employment is covered employment, and whether money paid constitutes wages.

 

Subd. 8.  Limitations on applications and benefit accounts leaves.  (a) An application for family or medical leave benefits is effective the Sunday of the calendar week that the application was filed.  An application for benefits may be backdated one calendar week before the Sunday of the week the application was actually filed if the applicant requests the backdating within seven calendar days of the date the application is filed effective date of application.  An application may be backdated only if the applicant was eligible for the benefit during the period of the backdating.  If an individual attempted to file an application for benefits, but was prevented from filing an application by the department, the application is effective the Sunday of the calendar week the individual first attempted to file an application.


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(b) If the applicant was unable to apply in a timely manner due to incapacitation or due to no fault of their own, the commissioner may backdate the claim beyond one calendar week to the effective date of leave.  The commissioner may require the employee to prove the circumstances that prevented timely filing.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.

 

Sec. 15.  Minnesota Statutes 2023 Supplement, section 268B.06, subdivision 2, is amended to read:

 

Subd. 2.  Seven-day qualifying event.  (a) The period for which an applicant is seeking benefits must be or have been based on a single event of at least seven calendar days' duration related to medical care related to pregnancy, family care, a qualifying exigency, safety leave, or the applicant's serious health condition.  The days must be consecutive, unless the leave is intermittent.  The seven-day qualifying event under this paragraph is a retroactively payable period, not an unpaid waiting period. 

 

(b) Benefits related to bonding need not meet the seven-day qualifying event requirement.

 

(c) The commissioner shall use the rulemaking authority under section 268B.02, subdivision 3, to adopt rules regarding what serious health conditions and other events are prospectively presumed to constitute seven-day qualifying events under this chapter.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.

 

Sec. 16.  Minnesota Statutes 2023 Supplement, section 268B.06, subdivision 3, is amended to read:

 

Subd. 3.  Certification.  (a) Certification for an applicant taking leave related to the applicant's serious health condition shall be sufficient if the certification states the date on which the serious health condition began, the probable duration of the condition, and the appropriate medical facts within the knowledge of the health care provider as required by the commissioner.  If the applicant requests intermittent leave, the certification must include the health care provider's reasonable estimate of the frequency and duration and estimated treatment schedule, if applicable.

 

(b) Certification for an applicant taking leave to care for a family member with a serious health condition shall be sufficient if the certification states the date on which the serious health condition commenced, the probable duration of the condition, the appropriate medical facts within the knowledge of the health care provider as required by the commissioner, a statement that the family member requires care, and an estimate of the amount of time that the family member will require care.

 

(c) Certification for an applicant taking leave due to medical care related to pregnancy shall be sufficient if the certification states the applicant is experiencing medical care related to pregnancy and recovery period based on appropriate medical facts within the knowledge of the health care provider.

 

(d) Certification for an applicant taking bonding leave because of the birth of the applicant's child shall be sufficient if the certification includes either the child's birth certificate or a document issued by the health care provider of the child or the health care provider of the person who gave birth, stating the child's birth date or estimated due date.

 

(e) Certification for an applicant taking bonding leave because of the placement of a child with the applicant for adoption or foster care shall be sufficient if the applicant provides a document issued by the health care provider of the child, an adoption or foster care agency involved in the placement, or by other individuals as determined by the


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commissioner that confirms the placement and the date of placement.  To the extent that the status of an applicant as an adoptive or foster parent changes while an application for benefits is pending, or while the covered individual is receiving benefits, the applicant must notify the department of such change in status in writing.

 

(f) Certification for an applicant taking leave because of a qualifying exigency shall be sufficient if the certification includes:

 

(1) a copy of the family member's active-duty orders;

 

(2) other documentation issued by the United States armed forces; or

 

(3) other documentation permitted by the commissioner.

 

(g) Certification for an applicant taking safety leave is sufficient if the certification includes a court record or documentation signed by an employee of a victim's services organization, an attorney, a police officer, or an antiviolence counselor a provider acting in the provider's professional capacity to declare a need for safety leave.  The commissioner must not require disclosure of details relating to an applicant's or applicant's family member's domestic abuse, sexual assault, or stalking.  The commissioner may adopt rules regarding an individual's capacity to declare a need for safety leave.

 

(h) Certifications under paragraphs (a) to (e) (d) must be reviewed and signed by a health care provider with knowledge of the qualifying event associated with the leave.

 

(i) For a leave taken on an intermittent basis, based on a serious health condition of an applicant or applicant's family member, the certification under this subdivision must include an explanation of how such leave would be medically beneficial to the individual with the serious health condition.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.

 

Sec. 17.  Minnesota Statutes 2023 Supplement, section 268B.06, subdivision 4, is amended to read:

 

Subd. 4.  Not eligible.  An applicant is ineligible for family or medical leave benefits for any portion of a typical workweek:

 

(1) that occurs before the effective date of a benefit account leave;

 

(2) that the applicant fails or refuses to provide information on an issue of ineligibility required under section 268B.07, subdivision 2; or

 

(3) for which the applicant worked for pay.;

 

(4) for which the applicant is incarcerated; or

 

(5) for which the applicant is receiving or has received unemployment insurance benefits.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.


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Sec. 18.  Minnesota Statutes 2023 Supplement, section 268B.06, subdivision 5, is amended to read:

 

Subd. 5.  Vacation, sick leave, and paid time off, and disability insurance payments.  (a) An employee may use vacation pay, sick pay, or paid time off pay, or disability insurance payments, in lieu of family or medical leave program benefits under this chapter, provided the employee is concurrently eligible and subject to the total amount of leave available under section 268B.04, subdivision 5.  Subject to the limitations of section 268B.09, subdivision 1 subdivisions 6 and 7, an employee is entitled to the employment protections under section 268B.09 for those workdays during which this option is exercised.  This subdivision applies to private plans under section 268B.10.

 

(b) An employer may offer supplemental benefit payments, as defined in section 268B.01, subdivision 41, to an employee taking leave under this chapter.  The choice to receive supplemental benefits lies with the employee.  Nothing in this section shall be construed as requiring an employee to receive or an employer to provide supplemental benefits payments.  The total amount of paid benefits under this chapter and the supplemental benefits paid must not exceed the employee's usual salary.

 

(c) An employer may provide an employee with wage replacement during an absence.  If the total amount of paid benefits under this chapter and the supplemental benefits paid exceed the employee's usual salary, the employee must refund the excess to either the employer or the paid leave division. 

 

(d) If an employer provides wage replacement to an employee for weeks that should be paid by the division, the department may reimburse the employer directly for those weeks.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.

 

Sec. 19.  Minnesota Statutes 2023 Supplement, section 268B.06, is amended by adding a subdivision to read:

 

Subd. 7a.  Disability insurance offset.  An employee may receive disability insurance payments in addition to family and medical leave benefits provided the employee is concurrently eligible for both benefits.  Disability insurance benefits may be offset by family and medical leave benefits paid to the employee pursuant to the terms of a disability insurance policy.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.

 

Sec. 20.  Minnesota Statutes 2023 Supplement, section 268B.07, subdivision 1, is amended to read:

 

Subdivision 1.  Employer notification.  (a) Upon a determination that an applicant is entitled to benefits, the commissioner must promptly send a notification to each current employer the employer or employers of the applicant from which the applicant is taking leave, if any, in accordance with paragraph (b).

 

(b) The notification under paragraph (a) must include, at a minimum:

 

(1) the name of the applicant;

 

(2) that the applicant has applied for and received benefits;

 

(3) the week the benefits commence;

 

(4) the weekly benefit amount payable; and

 

(5) the maximum duration of benefits.


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(c) The commissioner may adopt rules regarding additional information that may be requested from an applicant and notifications provided to an employer as part of the application and eligibility determination process for benefits.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.

 

Sec. 21.  Minnesota Statutes 2023 Supplement, section 268B.07, subdivision 2, is amended to read:

 

Subd. 2.  Determination.  (a) The commissioner must determine any issue of ineligibility raised by information required from an applicant and send to the applicant and any current base period employer from which the applicant applied to take leave, by mail or electronic transmission, a document titled a determination of eligibility or a determination of ineligibility, as is appropriate, within two weeks, unless the application is incomplete due to outstanding requests for information including clerical or other errors.  Nothing prohibits the commissioner from requesting additional information or the applicant from supplementing their initial application before a determination of eligibility.  The commissioner may extend the deadline for a determination under this subdivision due to extenuating circumstances.

 

(b) The commissioner shall set requirements for an applicant to respond to a request for information.  If the required information is not provided in the timeline provided in paragraph (a), the application is denied.

 

(c) The commissioner shall prescribe requirements for when an incomplete application is closed.  Applicants shall have the ability to reopen closed claims in a manner and form prescribed by the commissioner.

 

(b) (d) If an applicant obtained benefits through misrepresentation, the department is authorized to issue a determination of ineligibility within 12 months of the establishment of the benefit account effective date of leave.

 

(c) (e) If the department has filed an intervention in a worker's workers' compensation matter under section 176.361, the department is authorized to issue a determination of ineligibility within 48 months of the establishment of the benefit account effective date of leave.

 

(d) A determination of eligibility or determination of ineligibility is final unless an appeal is filed by the applicant within 60 calendar days after sending. (f) The determination must contain a prominent statement indicating the consequences of not appealing.  Proceedings on the appeal are conducted in accordance with section 268B.08.

 

(e) (g) An issue of ineligibility required to be determined under this section includes any question regarding the denial or allowing of benefits under this chapter.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.

 

Sec. 22.  Minnesota Statutes 2023 Supplement, section 268B.07, subdivision 3, is amended to read:

 

Subd. 3.  Amended determination.  Unless an appeal has been filed, the commissioner, on the commissioner's own motion, may reconsider a determination of eligibility or determination of ineligibility that has not become final and issue an amended determination.  Any amended determination must be sent to the applicant and any employer in the current base period from which the applicant applied for leave by mail or electronic transmission.  Any amended determination is final unless an appeal is filed by the applicant within 60 calendar days after sending.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.


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Sec. 23.  [268B.081] APPEALS.

 

Subdivision 1.  Appeal filing.  (a) The commissioner may allow an appeal to be filed by electronic transmission.  The commissioner may restrict the manner and format under which an appeal by electronic transmission may be filed.  The notification of the determination or decision that is subject to appeal must clearly state the manner in which the determination or decision may be appealed.  Subject to paragraph (b), this paragraph applies to requests for reconsideration under subdivision 6.

 

(b) Except as provided in paragraph (c), the commissioner must allow an applicant to file an appeal by mail even if an appeal by electronic transmission is allowed.  To be considered an appeal, a written statement delivered or mailed to the department must identify:

 

(1) the determination or decision that the applicant disagrees with; and

 

(2) the reason the applicant disagrees with the determination or decision.

 

(c) If an agent files an appeal on behalf of an employer, the commissioner may require the appeal to be filed online.  If the commissioner requires the appeal to be filed online, the appeal must be filed through the electronic address provided on the determination being appealed and use of another method of filing does not constitute an appeal.  This paragraph does not apply to:

 

(1) an employee filing an appeal on behalf of an employer; or

 

(2) an attorney licensed to practice law who is directly representing the employer on appeal.

 

(d) All information requested by the department when the appeal is filed must be supplied or the communication does not constitute an appeal.

 

(e) If no appeal is filed by the deadlines listed in subdivision 2, the determination or decision is conclusive and final, unless the appealing party can demonstrate good cause for failing to file in a timely manner.  For purposes of this paragraph, "good cause" is a reason that would have prevented a reasonable person acting with due diligence from filing in a timely manner.  Unless otherwise specified, deadlines in this section may be extended up to 60 days for good cause.

 

Subd. 2.  Appealable issues and deadlines.  (a) An applicant may appeal to the department:

 

(1) within 30 calendar days after a financial eligibility determination or amended financial eligibility determination sent by mail or electronic transmission by the department under section 268B.04 regarding:

 

(i) whether services performed constitute employment;

 

(ii) whether the employment is covered employment;

 

(iii) whether money paid constitutes wages; or

 

(iv) a denial resulting from the applicant's missing or incomplete documentation;

 

(2) within 30 calendar days after an eligibility determination sent by the department related to seasonal employment status under section 268B.06, subdivision 9;


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(3) within 30 calendar days after an eligibility determination sent by the department under section 268B.07 regarding:

 

(i) financial eligibility, calculations of benefit amount, work schedule, and leave balance available; or

 

(ii) a denial resulting from missing or incomplete documentation;

 

(4) within 30 calendar days after the denial of a good cause demonstration under subdivision 1, paragraph (e).  The deadline for appeals of denials of good cause demonstration may not be extended;

 

(5) within 30 calendar days after an applicant receives a decision from an insurer, approved private plan administrator, or employer under section 268B.10, subdivision 6, regarding the results of the administrative review under section 268B.10, subdivision 6, paragraph (b); and

 

(6) within 30 calendar days after a determination of overpayment penalty sent by the department under section 268B.185.

 

(b) A base period employer may appeal to the department:

 

(1) within 30 calendar days after a denial of an application for seasonal worker status under section 268B.01, subdivision 35;

 

(2) within 30 calendar days after a financial eligibility determination or amended financial eligibility determination sent by mail or electronic transmission by the department under section 268B.04 regarding:

 

(i) whether services performed constitute employment;

 

(ii) whether the employment is covered employment; or

 

(iii) whether money paid constitutes wages;

 

(3) within 30 calendar days after a denial of an application for substitution of a private plan is sent under section 268B.10;

 

(4) within 30 calendar days after a notice of termination of a private plan is sent by the department under section 268B.10, subdivision 16;

 

(5) within 30 calendar days after a notice of penalties is sent by the department under section 268B.10, subdivision 17;

 

(6) within 30 calendar days after the notice of the determination of the calculation of premiums has been sent by the department under section 268B.14, subdivision 1;

 

(7) within 30 calendar days after a determination of denial is sent by the department under section 268B.15, subdivision 7; and

 

(8) within 30 calendar days after a determination of penalty is sent by the department under section 268B.19.


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(c) Notwithstanding any provision of this chapter, the commissioner or a hearing officer may, before a determination is made under this chapter, refer any issue of ineligibility, or any other issue under this chapter, directly for hearing in accordance with this section.  The status of the issue is the same as if a determination had been made and an appeal filed. 

 

(d) The computation of time provisions of sections 645.15 and 645.151 apply to this section.

 

Subd. 3.  Notice of hearing.  The notice of hearing must include materials that provide:

 

(1) a statement that the purpose of the hearing is to take sworn testimony and other evidence on the issues involved, that the hearing is the only procedure available under the law at which a party may present evidence, and that further appeals consist of a review of the evidence submitted at the hearing;

 

(2) a statement of the parties' right to represent themselves or to be represented by an attorney or other authorized representative;

 

(3) a brief description of the procedure to be followed to request a continuance of the hearing;

 

(4) a brief description of the procedure to be followed at the hearing, including the role of the hearing officer;

 

(5) a statement that the parties should arrange in advance for the participation of witnesses the parties need to support their position;

 

(6) a statement that a party may find out the name of the other party's attorney or other authorized representative, names of the witnesses that the other party intends to have testify at the hearing, and an explanation of the process for making the request;

 

(7) a statement that subpoenas may be available to compel the participation of witnesses or the production of documents and an explanation of the process for requesting a subpoena;

 

(8) a statement that documents contained in the department's records and documents submitted by the parties that will be introduced at the hearing as possible exhibits will be sent to the parties in advance of the hearing;

 

(9) a statement that even if the applicant already received benefits, the applicant should participate in the hearing, because if the applicant is held ineligible, the applicant is not eligible to receive further benefits and will have to pay back the benefits already received;

 

(10) a statement that the hearing officer will determine the facts based upon a preponderance of the evidence along with the statutory definition of "preponderance of the evidence"; and

 

(11) a statement that a party who fails to participate in the hearing will not be allowed a rehearing unless the party can show good cause for failing to participate, along with the statutory definition of "good cause."

 

Subd. 4.  Hearing.  (a) Upon a timely appeal to a determination having been filed or upon a referral for direct hearing, the department must set a time and date for a de novo due process hearing and send notice to an applicant and an employer, by mail or electronic transmission, not less than ten calendar days before the date of the hearing.

 

(b) The commissioner may adopt rules on procedures for hearings.  The rules need not conform to common law or statutory rules of evidence and other technical rules of procedure.

 

(c) The department has discretion regarding the method by which the hearing is conducted.


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(d) The department may conduct a joint hearing with the unemployment insurance division if the substance of the appeal pertains to both programs. 

 

(e) The department must assign a hearing officer to conduct a hearing and may transfer to another hearing officer any proceedings pending before another hearing officer.

 

(f) The department has discretion regarding the method by which the hearing is conducted.  The hearing must be conducted by a hearing officer as an evidence-gathering inquiry, without regard to a burden of proof.  The order of presentation of evidence is determined by the hearing officer.

 

(g) Each party may present and examine witnesses and offer their own documents or other exhibits.  Parties have the right to examine witnesses, object to exhibits and testimony, and cross-examine the other party's witnesses.  The hearing officer must assist all parties in the presentation of evidence.  The hearing officer must rule upon evidentiary objections on the record.  The hearing officer must permit rebuttal testimony.  Parties have the right to make closing statements.  Closing statements may include comments based upon the evidence and arguments of law.  The hearing officer may limit repetitious testimony and arguments. 

 

(h) The hearing officer must exercise control over the hearing procedure in a manner that protects the parties' rights to a fair hearing, including the sequestration of witnesses to avoid prejudice or collusion.  The hearing officer must ensure that all relevant facts are clearly and fully developed.  The hearing officer may obtain testimony and other evidence from department employees and any other person the hearing officer believes will assist in reaching a proper result.

 

(i) Before taking testimony, the hearing officer must inform the parties:

 

(1) that the purpose of the hearing is to take testimony and other evidence on the issues;

 

(2) that the hearing is the only opportunity available to the parties to present testimony and other evidence on the issues involved;

 

(3) of an explanation of how the hearing will be conducted, including the role and obligations of the hearing officer;

 

(4) that the parties have the right to request that the hearing be continued so that additional witnesses and documents can be presented, by subpoena if necessary;

 

(5) that the facts will be determined upon a preponderance of the evidence, along with the statutory definition of "preponderance of the evidence";

 

(6) of the statutory provision on burden of proof;

 

(7) that certain government agencies may have access to the information provided at the hearing if allowed by statute and that the information provided may be disclosed under a district court order; and

 

(8) that after the hearing is over, the hearing officer will issue a written decision, which will be sent to the parties by mail or electronic transmission.

 

Subd. 5.  Decision.  (a) After the conclusion of the hearing, upon the evidence obtained, the hearing officer must serve by mail or electronic transmission to all parties the decision, reasons for the decision, and written findings of fact.  The hearing officer's decision is final unless a request for reconsideration is filed under subdivision 6.


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(b) If the appellant fails to participate in the hearing, the hearing officer has the discretion to dismiss the appeal by summary decision.  By failing to participate, the appellant is considered to have failed to exhaust available administrative remedies unless the appellant files a request for reconsideration under subdivision 6 and establishes good cause for failing to participate in the hearing.  Submission of a written statement does not constitute participation.  The appellant must participate personally or through an authorized representative.

 

(c) The hearing officer must issue a decision dismissing the appeal as untimely if the judge decides the appeal was not filed in accordance with the deadlines under subdivision 2 after sending the determination.  The hearing officer may dismiss the appeal by summary decision or may conduct a hearing to obtain evidence on the timeliness of the appeal.

 

(d) Decisions of a hearing officer are not precedential.

 

Subd. 6.  Request for reconsideration.  (a) Any party, or the commissioner, may, within 30 calendar days after service of the hearing officer's decision, file a request for reconsideration asking the hearing officer to reconsider that decision.  Upon the filing of a request for reconsideration, the division must send a notice by mail or electronic transmission to the appellant that a request for reconsideration has been filed.  The notice must inform the appellant:

 

(1) that reconsideration is the procedure for the hearing officer to correct any factual or legal mistake in the decision or to order an additional hearing when appropriate;

 

(2) of the opportunity to provide comment on the request for reconsideration and the right to obtain a copy of any recorded testimony and exhibits offered or received into evidence at the hearing;

 

(3) that providing specific comments as to a perceived factual or legal mistake in the decision, or a perceived mistake in procedure during the hearing, will assist the hearing officer in deciding the request for reconsideration;

 

(4) of the right to obtain any comments and submissions provided by any other party regarding the request for reconsideration; and

 

(5) of the provisions of paragraph (c) regarding additional evidence.

 

This paragraph does not apply if paragraph (d) is applicable.  Sending the notice does not mean the hearing officer has decided the request for reconsideration was timely filed.

 

(b) In deciding a request for reconsideration, the hearing officer must not consider evidence that was not submitted at the hearing, except for purposes of determining whether to order an additional hearing.  The hearing officer must order an additional hearing if a party shows that evidence which was not submitted at the hearing:

 

(1) would likely change the outcome of the decision and there was good cause for not having previously submitted that evidence; or

 

(2) would show that the evidence that was submitted at the hearing was likely false and that the likely false evidence had an effect on the outcome of the decision.

 

For purposes of this paragraph, "good cause" is a reason that would have prevented a reasonable person acting with due diligence from submitting the evidence.

 

(c) If the appellant failed to participate in the hearing, the hearing officer must issue an order setting aside the decision and ordering an additional hearing if the party who failed to participate had good cause for failing to do so.  The appellant who failed to participate in the hearing must be informed of the requirement to show good cause for


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failing to participate.  If the hearing officer determines that good cause for failure to participate has not been shown, the judge must state that determination in the decision issued under paragraph (f).  Submission of a written statement at the hearing does not constitute participation for purposes of this paragraph.  "Good cause" for purposes of this paragraph is a reason that would have prevented a reasonable person acting with due diligence from participating in the hearing.

 

(d) A request for reconsideration must be decided by the hearing officer who issued the decision under subdivision 5 unless that hearing officer:

 

(1) is no longer employed by the department as a hearing officer;

 

(2) is on an extended or indefinite leave; or

 

(3) has been removed from the proceedings by the department.

 

(e) If a request for reconsideration is timely filed, the hearing officer must issue:

 

(1) a decision affirming the findings of fact, reasons for the decision, and a decision issued under subdivision 5;

 

(2) a decision modifying the findings of fact, reasons for the decision, and a decision issued under subdivision 5; or

 

(3) an order setting aside the findings of fact, reasons for the decision, and a decision issued under subdivision 5 and ordering an additional hearing.

 

(f) The hearing officer must issue a decision dismissing the request for reconsideration as untimely if the judge decides the request for reconsideration was not filed within 30 calendar days after sending the decision under subdivision 5.

 

(g) The hearing officer must send to all parties by mail or electronic transmission the decision or order issued under this subdivision.  A decision affirming or modifying the previously issued findings of fact, reasons for the decision, and a decision issued under subdivision 5, or a decision dismissing the request for reconsideration as untimely, is the final decision on the matter and is binding on the parties unless judicial review is sought under subdivision 9.

 

Subd. 7.  Withdrawal of an appeal.  (a) An appeal that is pending before a hearing officer may be withdrawn by the appealing party, or an authorized representative of that party, by filing a notice of withdrawal.  A notice of withdrawal may be filed by mail or by electronic transmission.

 

(b) The appeal must, by order, be dismissed if a notice of withdrawal is filed, unless a hearing officer directs that further proceedings are required.  An order of dismissal issued because of a notice of withdrawal is not subject to reconsideration or appeal.

 

(c) A party may file a new appeal after the order of dismissal, but the original deadline period for appeal begins from the date of issuance of the determination, and that period is not suspended or restarted by the notice of withdrawal and order of dismissal.  The new appeal may only be filed by mail or facsimile transmission.

 

(d) For purposes of this subdivision, "appeals" includes a request for reconsideration filed under subdivision 6.

 

Subd. 8.  Effect of decisions.  (a) If a hearing officer's decision allows benefits to an applicant, the benefits must be paid regardless of any request for reconsideration or petition to the Minnesota Court of Appeals.


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(b) If a hearing officer's decision modifies or reverses a determination that allowed benefits to be paid, or on reconsideration the decision modifies or reverses a prior decision that allowed benefits to be paid, any benefits paid are an overpayment of those benefits.  A decision that results in an overpayment of benefits must set out the amount of the overpayment and the requirement under section 268B.185, subdivision 1, that the benefits must be repaid.

 

(c) If a hearing officer, on reconsideration under subdivision 6, orders the taking of additional evidence, the hearing officer's prior decision must continue to be enforced until new findings of fact and decision are made by the hearing officer.

 

Subd. 9.  Use of evidence; data privacy.  (a) All testimony at a hearing must be recorded.  A copy of recorded testimony and exhibits offered or received into evidence at the hearing must, upon request, be furnished to a party at no cost:

 

(1) during the time period for filing a request for reconsideration;

 

(2) while a request for reconsideration is pending;

 

(3) during the time for filing a petition under subdivision 12; or

 

(4) while a petition is pending.

 

Regardless of any law to the contrary, recorded testimony and other evidence may later be made available only under a district court order.  A subpoena is not considered a district court order.

 

(b) Testimony obtained at a hearing must not be used or considered for any purpose, including impeachment, in any civil, administrative, or contractual proceeding, except by a local, state, or federal human rights agency with enforcement powers, unless the proceeding is initiated by the department.  This paragraph does not apply to criminal proceedings.

 

Subd. 10.  No collateral estoppel.  No findings of fact, decision, or order issued by a hearing officer may be held conclusive or binding or used as evidence in any separate or subsequent action in any other forum, be it contractual, administrative, or judicial, except proceedings provided for under this chapter, regardless of whether the action involves the same or related parties or involves the same facts.

 

Subd. 11.  Representation; fees.  (a) In any proceeding under subdivision 4 or 6, an applicant or employer may be self-represented or represented by an attorney or an authorized representative.  Except for services provided by a licensed attorney, no person may charge an applicant a fee of any kind for advising, assisting, or representing an applicant in a hearing, on reconsideration, or in a proceeding under subdivision 12.

 

(b) A hearing officer may refuse to allow a person to represent others in a hearing if that person acts in an unethical manner or repeatedly fails to follow the instructions of the hearing officer.

 

(c) An applicant may not be charged fees, costs, or disbursements of any kind in a proceeding before a hearing officer, the Minnesota Court of Appeals, or the Supreme Court of Minnesota.

 

(d) No attorney fees may be awarded, or costs or disbursements assessed, against the department as a result of any proceedings under this section. 

 

Subd. 12.  Appeal to court of appeals.  (a) Any final determination on a request for reconsideration may be appealed by any party directly to the Minnesota Court of Appeals.  The Minnesota Court of Appeals must, by writ of certiorari to the department, review the hearing officer's decision on reconsideration, provided a petition for the writ


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is filed with the court and a copy is served upon the hearing officer or the commissioner and any other party within 30 calendar days of the sending of the hearing officer's decision on reconsideration under subdivision 6.  Three days are added to the 30-calendar-day period if the decision on reconsideration was mailed to the parties.

 

(b) Any employer petitioning for a writ of certiorari must pay to the court the required filing fee in accordance with the Rules of Civil Appellate Procedure.  If the employer requests a written transcript of the testimony received at the hearing conducted under this section, the employer must pay to the department the cost of preparing the transcript.  That money is credited to the administration account.

 

(c) Upon issuance by the Minnesota Court of Appeals of a writ of certiorari as a result of an applicant's petition, the department must furnish to the applicant at no cost a written transcript of any testimony received at the hearing conducted under this section and, if requested, a copy of all exhibits entered into evidence.  No filing fee or cost bond is required of an applicant petitioning the Minnesota Court of Appeals for a writ of certiorari.

 

(d) The Minnesota Court of Appeals may affirm the decision of the hearing officer or remand the case for further proceedings, or it may reverse or modify the decision if the substantial rights of the petitioner may have been prejudiced because the findings, inferences, conclusion, or decision are:

 

(1) in violation of constitutional provisions;

 

(2) in excess of the statutory authority or jurisdiction of the department;

 

(3) made upon unlawful procedure;

 

(4) affected by other error of law;

 

(5) unsupported by substantial evidence in view of the hearing record as submitted; or

 

(6) arbitrary or capricious.

 

(e) The department is the primary responding party to any judicial action involving a hearing officer's decision.  The department may be represented by an attorney licensed to practice law in Minnesota.

 

Subd. 13.  Rescheduling and continuances.  (a) Requests to reschedule a hearing must be addressed in a manner and form prescribed by the commissioner in advance of the regularly scheduled hearing date.  A hearing must be rescheduled based on a party's good cause need for additional time to obtain necessary evidence or to obtain representation or adequately prepare, inability to participate due to illness, or other compelling reasons beyond the control of the party that prevent participation at the originally scheduled time.  A hearing may be rescheduled only once by each party except in the case of an emergency.  If requested, a written statement by mail or electronic transmission confirming the reasons for requesting that the case be rescheduled must be provided to the department. 

 

(b) The ten-calendar-day notice requirement for hearings does not apply to rescheduled hearings.

 

(c) If a request for rescheduling is made because of the unavailability of a witness or the need to obtain documents, the hearing officer may direct that the hearing take place as scheduled.  After obtaining the testimony and other evidence then available, the hearing officer must determine whether the hearing should be continued to obtain the testimony of the unavailable witness or the unavailable documents.  The ten-calendar-day notice requirement for hearings does not apply to continued hearings.  The hearing officer has the discretion to continue a hearing if the hearing officer determines that additional evidence is necessary for a proper result.


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Subd. 14.  Consolidation of parties, issues, and new issues.  Upon the request of a party or on the hearing officer's motion, the hearing officer may consolidate for hearing issues involving one or more of the same parties.  The hearing officer may take testimony and render a decision on issues not listed on the notice of hearing if each party is notified on the record, is advised of the right to object, and does not object.  If a party objects, the hearing officer must:

 

(1) continue the hearing to allow the party to prepare for consideration of the issue; or

 

(2) direct the department to address the issue and send to the parties a determination by mail or electronic transmission.

 

Subd. 15.  Interpreters.  (a) The department must provide an interpreter, when necessary, upon the request of a party.  The requesting party must notify the department at least five calendar days before the date of the hearing that an interpreter is required.  The hearing officer must continue any hearing where a witness or party needs an interpreter to be understood or to understand the proceedings.

 

(b) A written statement in the five most common languages spoken in Minnesota must accompany all notices and written materials sent to the parties stating that the accompanying documents are important and that if the reader does not understand the documents the reader should seek immediate assistance.

 

Subd. 16.  Exhibits in hearings.  (a) Upon receipt of the notice of hearing, and no later than five calendar days before the scheduled date of hearing, parties may submit to the department, by electronic transmission or mail, any documents a party would like to offer as exhibits at the hearing.  Copies of the documents submitted by the parties, as well as all documents that are contained in the department's records that will be introduced as exhibits, must be mailed, or sent by electronic transmission, to all parties or the parties' authorized representatives by the department in advance of the hearing.

 

(b) If a party requests to introduce additional documents during the hearing, and the hearing officer rules that the documents should be considered, the requesting party must provide copies of the documents to the hearing officer and the other party.  The record must be left open for sufficient time for the submission of a written response to the documents.  The response may be sent by mail or electronic transmission.  The hearing officer may, when appropriate, reconvene the hearing to obtain a response or permit cross-examination regarding the late filed exhibits.

 

Subd. 17.  Access to data.  The parties to a hearing must be allowed reasonable access to department data necessary to represent themselves in the hearing.  Access to data must be consistent with all laws relating to data practices.  The data must be provided by the department at no cost and mailed or sent by electronic transmission to the party or the party's authorized representative.

 

Subd. 18.  Subpoenas and discovery.  (a) The hearing officer may issue subpoenas to compel the attendance of witnesses, the production of documents, or other exhibits upon a showing of necessity by the requesting party.  Requests for issuance of subpoenas must be made to the department, by electronic transmission or mail, sufficiently in advance of the scheduled hearing to allow for the service of the subpoenas.  The requesting party must identify the person or documents to be subpoenaed and the subject matter and necessity of the evidence requested.  A request for a subpoena may be denied if the testimony or documents sought would be irrelevant, immaterial, or unduly cumulative or repetitious.

 

(b) If a request for a subpoena has been denied, the hearing officer must reconsider the request during the hearing and determine whether the request was properly denied.  If the hearing officer determines that the request for a subpoena was not properly denied, the hearing officer must continue the hearing to allow for service of and compliance with the subpoena.  The hearing officer may issue a subpoena even if a party has not requested one.


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(c) Within five calendar days following request by another party, each party must disclose the name of the party's attorney or other authorized representative and the names of all witnesses the party intends to have testify at the hearing.  The request and the response may be made by mail or by electronic transmission.  Any witnesses unknown at the time of the request must be disclosed as soon as they become known.  If a party fails to comply with the disclosure requirements, the hearing officer may, upon notice to the parties, continue the hearing.

 

Subd. 19.  Disqualification of hearing officer.  (a) A hearing officer must request to be removed from any case by the department where the hearing officer believes that presiding over the case would create the appearance of impropriety.  The department must remove a hearing officer from any case if the hearing officer has a financial or personal interest in the outcome.

 

(b) Any party may request the removal of a hearing officer by submitting to the department, by mail or electronic transmission, a written statement of the basis for removal.  The department must decide the fitness of the hearing officer to hear the particular case.

 

Subd. 20.  Public access to hearings and recording of hearings.  (a) Hearings are not public.  Only parties, the parties' authorized representatives and witnesses, and authorized department personnel are permitted to participate in or listen to hearings.  If any other person wishes to listen to or sit in on a hearing, the parties must provide their consent as required by section 13.05, subdivision 4.

 

(b) The hearing officer must make a recording of all testimony that is the official record.  No other voice recordings or pictures may be made of any party, representative, or witness during the hearing.

 

Subd. 21.  Administration of oath or affirmation.  A hearing officer has authority to administer oaths and affirmations.  Before testifying, every witness is required to declare to testify truthfully, by oath or affirmation under sections 358.07 and 358.08.

 

Subd. 22.  Receipt of evidence.  Only evidence received into the record of any hearing may be considered by the hearing officer.  The parties may stipulate to the existence of any fact or the authenticity of any exhibit.  All competent, relevant, and material evidence, including records and documents in the possession of the parties that are offered into evidence, are part of the hearing record.  A hearing officer may receive any evidence that possesses probative value, including hearsay, if it is the type of evidence on which reasonable, prudent persons are accustomed to rely in the conduct of their serious affairs.  A hearing officer may exclude any evidence that is irrelevant, immaterial, unreliable, or unduly repetitious.  A hearing officer is not bound by statutory and common law rules of evidence.  The rules of evidence may be used as a guide in determining the quality of evidence offered.  A hearing officer may draw adverse inferences from the refusal of a party or witness to testify on the basis of any privilege.  A hearing officer may only use reliable, probative, and substantial evidence as a basis for decision.

 

Subd. 23.  Official notice.  A hearing officer may take official notice of matters of common knowledge and may take notice of facts within the hearing officer's specialized knowledge in the field of paid leave.  The hearing officer must state on the record any fact that is judicially noticed.  The hearing officer must give the parties an opportunity to contest the noticed facts.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.

 

Sec. 24.  Minnesota Statutes 2023 Supplement, section 268B.085, subdivision 3, is amended to read:

 

Subd. 3.  Intermittent schedule.  (a) Leave under this chapter, based on a serious health condition, may be taken intermittently if such leave is reasonable and appropriate to the needs of the individual with the serious health condition.  For all other leaves under this chapter, leave may be taken intermittently.  Intermittent leave is leave taken in separate blocks of time due to a single, seven-day qualifying event.


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(b) For an applicant who takes leave on an intermittent schedule, the weekly benefit amount shall be prorated.

 

(c) An employee requesting leave taken intermittently shall provide the employer with a schedule of needed workdays off as soon as practicable and must make a reasonable effort to schedule the intermittent leave so as not to disrupt unduly the operations of the employer.  If this cannot be done to the satisfaction of both employer and employee, the employer cannot require the employee to change their leave schedule in order to accommodate the employer.

 

(d) Notwithstanding the allowance for intermittent leave under this subdivision, an employer shall not be required under this chapter to provide, but may elect to provide, more than 480 hours of intermittent leave in any 12‑month period.  If an employer limits hours of intermittent leave pursuant to this paragraph, an employee is entitled to take their remaining leave continuously, subject to the total amount of leave available under section 268B.04, subdivision 5.  An employer may run intermittent leave available under the Family and Medical Leave Act, United States Code, title 29, sections 2601 to 2654, as amended, concurrent with an employee's entitlement to intermittent leave under this chapter.

 

Sec. 25.  Minnesota Statutes 2023 Supplement, section 268B.09, subdivision 1, is amended to read:

 

Subdivision 1.  Retaliation prohibited.  (a) An employer must not discharge, discipline, penalize, interfere with, threaten, restrain, coerce, or otherwise retaliate or discriminate against an employee for requesting or obtaining benefits or leave, or for exercising any other right under this chapter.

 

(b) For the purposes of this section, the term "leave" includes but is not limited to:

 

(1) leave taken for any day for which the commissioner has determined that the employee has been deemed is eligible for benefits or leave under this chapter; or

 

(2) any day for which the employee meets the eligibility criteria under section 268B.06, subdivision 1, clause paragraph (a), clauses (2) or and (3), and or the employee has applied for benefits in good faith under this chapter.  For the purposes of this subdivision, "good faith" is defined as anything that is not knowingly false or in reckless disregard of the truth.

 

(c) In addition to the remedies provided in subdivision 8, the commissioner of labor and industry may also issue a penalty to the employer of not less than $1,000 and not more than $10,000 per violation, payable to the employee aggrieved.  In determining the amount of the penalty under this subdivision, the appropriateness of the penalty to the size of the employer's business and the gravity of the violation shall be considered.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.

 

Sec. 26.  Minnesota Statutes 2023 Supplement, section 268B.09, subdivision 6, is amended to read:

 

Subd. 6.  Employee right to reinstatement.  (a) On return from leave under this chapter, an employee is entitled to be returned to the same position the employee held when leave commenced or to an equivalent position with equivalent benefits, pay, and other terms and conditions of employment.  Except as provided under subdivision 7, an employee is entitled to reinstatement even if the employee has been replaced or the employee's position has been restructured to accommodate the employee's absence.

 

(b)(1) An equivalent position is one that is virtually identical to the employee's former position in terms of pay, benefits, and working conditions, including privileges, prerequisites, and status.  It must involve the same or substantially similar duties and responsibilities, which must entail substantially equivalent skill, effort, responsibility, and authority.


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(2) If an employee is no longer qualified for the position because of the employee's inability to attend a necessary course, renew a license, fly a minimum number of hours, or similar condition, as a result of the leave, the employee must be given a reasonable opportunity to fulfill those conditions upon return from leave.

 

(c)(1) An employee is entitled to any unconditional pay increases which may have occurred during the leave period, such as cost of living increases.  Pay increases conditioned upon seniority, length of service, or work performed must be granted in accordance with the employer's policy or, practice, or contract with respect to other employees on an equivalent leave status for a reason that does not qualify for leave under this chapter.  An employee is entitled to be restored to a position with the same or equivalent pay premiums, such as a shift differential.  If an employee departed from a position averaging ten hours of overtime, and corresponding overtime pay, each week an for which they receive overtime pay, the employee is ordinarily entitled to such a position with overtime pay and overtime hours on return from leave under this chapter.  If a pay premium, such as a shift differential, or overtime has been decreased or eliminated for other similarly classified employees, an employee is not entitled to restoration of the pay premium or overtime.

 

(2) Equivalent pay includes any bonus or payment, whether it is discretionary or nondiscretionary, made to employees consistent with clause (1).  If a bonus or other payment is based on the achievement of a specified goal such as hours worked, products sold, or perfect attendance, and the employee has not met the goal due to leave under this chapter, the payment may be denied, unless otherwise paid to employees on an equivalent leave status for a reason that does not qualify for leave under this chapter.

 

(d) Benefits under this section include all benefits provided or made available to employees by an employer, including group life insurance, health insurance, disability insurance, sick leave, annual leave, educational benefits, and pensions, regardless of whether benefits are provided by a practice or written policy of an employer through an employee benefit plan as defined in section 3(3) of United States Code, title 29, section 1002(3).

 

(1) At the end of an employee's leave under this chapter, benefits must be resumed in the same manner and at the same levels as provided when the leave began, and subject to any changes in benefit levels that may have taken place during the period of leave affecting the entire workforce, unless otherwise elected by the employee.  Upon return from a leave under this chapter, an employee must not be required to requalify for any benefits the employee enjoyed before leave began, including family or dependent coverages.

 

(2) An employee may, but is not entitled to, accrue any additional benefits or seniority during a leave under this chapter.  Benefits accrued at the time leave began must be available to an employee upon return from leave.

 

(3) With respect to pension and other retirement plans, leave under this chapter must not be treated as or counted toward a break in service for purposes of vesting and eligibility to participate.  If the plan requires an employee to be employed on a specific date in order to be credited with a year of service for vesting, contributions, or participation purposes, an employee on leave under this chapter must be treated as employed on that date.  Periods of leave under this chapter need not be treated as credited service for purposes of benefit accrual, vesting, and eligibility to participate.

 

(4) Employees on leave under this chapter must be treated as if they continued to work for purposes of changes to benefit plans.  Employees on leave under this chapter are entitled to changes in benefit plans, except those which may be dependent upon seniority or accrual during the leave period, immediately upon return from leave or to the same extent they would have qualified if no leave had been taken.

 

(e) An equivalent position must have substantially similar duties, conditions, responsibilities, privileges, and status as the employee's original position.


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(1) The employee must be reinstated to the same or a geographically proximate worksite from where the employee had previously been employed.  If the employee's original worksite has been closed, the employee is entitled to the same rights as if the employee had not been on leave when the worksite closed.

 

(2) The employee is ordinarily entitled to return to the same shift or the same or an equivalent work schedule.

 

(3) The employee must have the same or an equivalent opportunity for bonuses, profit-sharing, and other similar discretionary and nondiscretionary payments, excluding any bonus paid to another employee or employees for covering the work of the employee while the employee was on leave.

 

(4) This chapter does not prohibit an employer from accommodating an employee's request to be restored to a different shift, schedule, or position which better suits the employee's personal needs on return from leave, or to offer a promotion to a better position.  However, an employee must not be induced by the employer to accept a different position against the employee's wishes.

 

(f) The requirement that an employee be restored to the same or equivalent job with the same or equivalent pay, benefits, and terms and conditions of employment does not extend to de minimis, intangible, or unmeasurable aspects of the job.

 

(g) Nothing in this section shall be deemed to affect the Americans with Disabilities Act, United States Code, title 42, chapter 126.

 

(h) Ninety calendar days from the date of hire, an employee has a right and is entitled to reinstatement as provided under this subdivision for any day for which:

 

(1) the employee has been deemed eligible for benefits under this chapter; or

 

(2) the employee meets the eligibility criteria under section 268B.06, subdivision 1, clause paragraph (a), clauses (2) or and (3), and or the employee has applied for benefits in good faith under this chapter.  For the purposes of this paragraph, good faith is defined as anything that is not knowingly false or in reckless disregard of the truth.

 

(i) This subdivision and subdivision 7 may be waived for employees who are working in the construction industry under a bona fide collective bargaining agreement with a construction trade union that maintains a referral‑to-work procedure for employees to obtain employment with multiple signatory employers, but only if the waiver is set forth in clear and unambiguous terms in the collective bargaining agreement and explicitly cites this subdivision and subdivision 7.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 27.  Minnesota Statutes 2023 Supplement, section 268B.09, subdivision 7, is amended to read:

 

Subd. 7.  Limitations on an employee's right to reinstatement.  An employee has no greater right to reinstatement or to other benefits and conditions of employment than if the employee had been continuously employed during the period of leave under this chapter.  An employer must be able to show that an employee would not otherwise have been employed at the time reinstatement is requested in order to deny restoration to employment.

 

(1) If an employee is laid off during the course of taking a leave under this chapter and employment is terminated, the employer's responsibility to continue the leave, maintain group health plan benefits, and restore the employee cease at the time the employee is laid off, provided the employer has no continuing obligations under a


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collective bargaining agreement or otherwise.  An employer has the burden of proving that an employee would have been laid off during the period of leave under this chapter and, therefore, would not be entitled to restoration to a job slated for layoff when the employee's original position would not meet the requirements of an equivalent position.

 

(2) If a shift has been eliminated or overtime has been decreased, an employee would not be entitled to return to work that shift or the original overtime hours upon restoration.  However, if a position on, for example, a night shift has been filled by another employee, the employee is entitled to return to the same shift on which employed before taking leave under this chapter.

 

(3) If an employee was hired for a specific term or only to perform work on a discrete project, the employer has no obligation to maintain group health plan benefits and restore the employee if the employment term or project is over and the employer would not otherwise have continued to employ the employee.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 28.  Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 1, is amended to read:

 

Subdivision 1.  Application for substitution.  (a) Employers may apply to the commissioner for approval to meet their obligations under this chapter through the substitution of a private plan that provides paid family, paid medical, or paid family and medical benefits.  In order to be approved as meeting an employer's obligations under this chapter, a private plan must confer all of the same rights, protections, and benefits provided to employees under this chapter, including but not limited to benefits under section 268B.04 and employment protections under section 268B.09.  Employers may apply for approval of private plans that exceed the benefits provided to employees under this chapter.  An employee covered by a private plan under this section retains all applicable rights and remedies under section 268B.09.

 

(b) An insurer must file every form, application, rider, endorsement, and rate used in connection with an insurance product that provides coverage for paid family and medical leave benefits as described in this section with the commissioner at least 60 days prior to the form or rate's effective date.  The commissioner may extend this filing review period for an additional period not to exceed 60 days.  If any form, rate, or amendment is not disapproved by the commissioner within the filing review period, the insurer may implement it.  If the commissioner notifies an insurer that has filed any form or rate that the form or rate does not comply with this section, section 62A.02, or chapter 72A, it is unlawful for the insurer to issue or use the form or rate.  In the notice, the commissioner shall specify the reasons for disapproval. 

 

(c) Any insurer authorized to write accident and sickness insurance in Minnesota has the power to issue an insurance product that provides coverage for paid family and medical leave benefits as described in this section.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 29.  Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 2, is amended to read:

 

Subd. 2.  Private plan requirements; medical benefit program.  The commissioner, in consultation with the commissioner of commerce, must approve an application for private provision of the medical benefit program if the commissioner determines:

 

(1) all of the employees of the employer are to be covered under the provisions of the employer plan;

 

(2) eligibility requirements for benefits and leave are no more restrictive than as provided under this chapter;


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(3) the weekly benefits payable under the private plan for any week are at least equal to the weekly benefit amount payable under this chapter;

 

(4) the total number of weeks for which benefits are payable under the private plan is at least equal to the total number of weeks for which benefits would have been payable under this chapter;

 

(5) no greater amount is required to be paid by employees toward the cost of benefits under the employer plan than by this chapter;

 

(6) wage replacement benefits are stated in the plan separately and distinctly from other benefits;

 

(7) the private plan will provide benefits and leave for any serious health condition or medical care related to pregnancy for which benefits are payable, and leave provided, under this chapter;

 

(8) the private plan will impose no additional condition or restriction on the use of medical benefits beyond those explicitly authorized by this chapter or regulations promulgated pursuant to this chapter;

 

(9) the private plan will allow any employee covered under the private plan who is eligible to receive medical benefits under this chapter to receive medical benefits under the employer plan; and

 

(10) coverage will continue under the private plan while an employee remains employed by the employer.  For former employees, coverage for the purposes of benefits applies until the individual is hired by a new employer or 26 weeks pass, whichever occurs first; and

 

(11) if an application for leave is filed by a former employee to a private plan, the plan pays benefits for the totality of the leave.  Private plans may not cut off eligibility for a former employee during the course of an approved leave. 

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 30.  Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 3, is amended to read:

 

Subd. 3.  Private plan requirements; family benefit program.  The commissioner, in consultation with the commissioner of commerce, must approve an application for private provision of the family benefit program if the commissioner determines:

 

(1) all of the employees of the employer are to be covered under the provisions of the employer plan;

 

(2) eligibility requirements for benefits and leave are no more restrictive than as provided under this chapter;

 

(3) the weekly benefits payable under the private plan for any week are at least equal to the weekly benefit amount payable under this chapter;

 

(4) the total number of weeks for which benefits are payable under the private plan is at least equal to the total number of weeks for which benefits would have been payable under this chapter;

 

(5) no greater amount is required to be paid by employees toward the cost of benefits under the employer plan than by this chapter;

 

(6) wage replacement benefits are stated in the plan separately and distinctly from other benefits;


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(7) the private plan will provide benefits and leave for any care for a family member with a serious health condition, bonding with a child, qualifying exigency, or safety leave event for which benefits are payable, and leave provided, under this chapter;

 

(8) the private plan will impose no additional condition or restriction on the use of family benefits beyond those explicitly authorized by this chapter or regulations promulgated pursuant to this chapter;

 

(9) the private plan will allow any employee covered under the private plan who is eligible to receive family benefits under this chapter to receive family benefits under the employer plan; and

 

(10) coverage will continue under the private plan while an employee remains employed by the employer.  For former employees, coverage for the purposes of benefits applies until the individual is hired by a new employer or 26 weeks pass, whichever occurs first; and

 

(11) if an application for leave is filed by a former employee to a private plan, the private plan is required to pay benefits for the totality of the leave.  Private plans must not discontinue eligibility for a former employee during the course of an approved leave.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 31.  Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 6, is amended to read:

 

Subd. 6.  Private plan requirements; weekly benefit determination.  (a) For purposes of determining the family and medical benefit amount and duration under a private plan, the weekly benefit amount and duration shall be based on the employee's typical work week and wages earned with the employer at the time of an application for benefits.  If an employer does not have complete base period wage detail information, the employer may accept an employee's certification of wage credits, based on the employee's records.

 

(b) In the event that an employee's request for benefits is denied, in whole or in part, or the amount of the benefits is contested, the employee has the right to request administrative review of a decision by the private plan within 30 calendar days.  If the private plan maintains the denial, the employee may appeal to the department as permitted in section 268B.08. 

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 32.  Minnesota Statutes 2023 Supplement, section 268B.10, is amended by adding a subdivision to read:

 

Subd. 9a.  Plan changes during approved leave.  If an employee is using approved leave under this chapter when their employer changes from the state plan to a private plan, from a private plan to the state plan, or from one private plan to another private plan, the plan under which the employee was covered when their benefits were approved is required to continue paying benefits for continuous, intermittent, and reduced schedule leave through the duration previously approved.  If the employee requests an extension of their original leave, or recertification is required, the employee may reapply for benefits with their new plan.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 33.  Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 12, is amended to read:

 

Subd. 12.  Employees no longer covered.  (a) An employee is no longer covered by an approved private plan if a leave under this chapter occurs after the employment relationship with the private plan employer ends, or if the commissioner revokes the approval of the private plan.


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(b) An employee no longer covered by an approved private plan is, if otherwise eligible, immediately entitled to benefits under this chapter to the same extent as though there had been no approval of the private plan.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 34.  Minnesota Statutes 2023 Supplement, section 268B.10, is amended by adding a subdivision to read:

 

Subd. 12a.  Former employees and benefit applications.  Covered individuals that have been separated from an employer with a private plan for less than 26 weeks shall file applications for benefits as follows:

 

(1) if the former employee remains unemployed on the date that an application for benefits is filed, the former employee shall submit an application for benefits with the private plan of their former employer; and

 

(2) if the former employee has become employed by a different employer at the time that an application for benefits is filed, the former employee shall submit an application for benefits based on the new employer's coverage.  If the new employer is covered under the state plan, the former employee shall submit the application to the state.  If the new employer has an approved private plan, the covered individual shall submit the application for benefits to the private plan in accordance with the requirements established by their employer. 

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 35.  Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 16, is amended to read:

 

Subd. 16.  Revocation of approval by commissioner.  (a) The commissioner may terminate any private plan if the commissioner determines the employer or agents of the employer:

 

(1) failed to pay benefits;

 

(2) failed to pay benefits in a timely manner, consistent with the requirements of this chapter;

 

(3) failed to submit reports as required by this chapter or rule adopted under this chapter; or

 

(4) otherwise failed to comply with this chapter or rule adopted under this chapter.

 

(b) The commissioner must give notice of the intention to terminate a plan to the employer at least ten days before taking any final action.  The notice must state the effective date and the reason for the termination.

 

(c) The employer may, within ten days from mailing or personal service of the notice, file an appeal to the commissioner in the time, manner, method, and procedure provided by the commissioner under subdivision 11.

 

(d) (c) The payment of benefits must not be delayed during an employer's appeal of the revocation of approval of a private plan.

 

(e) (d) If the commissioner revokes approval of an employer's private plan, that employer is ineligible to apply for approval of another private plan for a period of three years, beginning on the date of revocation.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.


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Sec. 36.  Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 17, is amended to read:

 

Subd. 17.  Employer penalties.  (a) The commissioner may assess the following monetary penalties against an employer with an approved private plan found to have violated this chapter:

 

(1) $1,000 for the first violation; and

 

(2) $2,000 for the second, and each successive violation.

 

(b) The commissioner must waive collection of any penalty if the employer corrects the violation within 30 days of receiving a notice of the violation and the notice is for a first violation.

 

(c) The commissioner may waive collection of any penalty if the commissioner determines the violation to be an inadvertent error by the employer.

 

(d) Monetary penalties collected under this section shall be deposited in the family and medical benefit insurance account.

 

(e) Assessment of penalties under this subdivision may be appealed as provided by the commissioner under subdivision 11.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 37.  Minnesota Statutes 2023 Supplement, section 268B.10, is amended by adding a subdivision to read:

 

Subd. 21a.  Filing obligation.  Employers covered under a private plan are subject to the quarterly wage reporting requirements under section 268B.12.

 

EFFECTIVE DATE.  This section is effective July 1, 2025.

 

Sec. 38.  Minnesota Statutes 2023 Supplement, section 268B.14, subdivision 3, is amended to read:

 

Subd. 3.  Employee charge back.  Notwithstanding section 177.24, subdivision 4, or 181.06, subdivision 1, and subject to subdivision 6, employers must pay a minimum of 50 percent of the annual premiums paid under this section.  Employees, through a deduction in their wages to the employer, must pay the remaining portion, if any, of the premium not paid by the employer.  Such deductions for any given employee must be in equal proportion to the premiums paid based on the wages of that employee.  Deductions under this section must not cause an employee's wage, after the deduction, to fall below the rate required to be paid to the worker employee by law, including any applicable statute, regulation, rule, ordinance, or government resolution or policy, or other legal authority, whichever rate of pay is greater.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 39.  Minnesota Statutes 2023 Supplement, section 268B.14, is amended by adding a subdivision to read:

 

Subd. 5a.  Small employer premium rate.  (a) Small employers are eligible for the premium rates provided by this subdivision if the employer:

 

(1) has 30 or fewer employees pursuant to subdivision 5b; and


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(2) the average wage for that employer as calculated in subdivision 5c is less than or equal to 150 percent of the state's average wage in covered employment for the basis period.

 

(b) The premium rate for small employers eligible under this subdivision is 75 percent of the annual premium rate calculated in subdivisions 6 and 7, as follows:

 

(1) employers must pay a minimum of 25 percent of the rate calculated in subdivisions 6 and 7.  Employers shall not deduct from any employees' pay to fund the employer portion of the premium; and

 

(2) employees must pay the remaining portion due under this subdivision, if any, of the premium not paid by the employer.  The employer must make wage deductions as necessary under this subdivision to fund the employee portion of the premium.

 

Sec. 40.  Minnesota Statutes 2023 Supplement, section 268B.14, is amended by adding a subdivision to read:

 

Subd. 5b.  Employee count.  (a) The basis period for determining premiums under:

 

(1) subdivision 5a;

 

(2) average employer wages under subdivision 5c; and

 

(3) eligibility for small employer assistance grants under section 268B.29

 

for any tax year shall be the four-quarter period ending September 30 of the prior year.

 

(b) For each employer that has been covered for the entirety of the basis period, the maximum number of quarterly wage records reported by the employer during the basis period shall be used to determine premiums under subdivision 5a and eligibility for small employer assistance grants under section 268B.29.

 

(c) For any employer not covered for the entirety of the basis period, the number of employees used to determine premiums under subdivision 5a and eligibility for small employer assistance grants under section 268B.29 shall be based on the number of employees working in Minnesota the employer estimates they will employ in the following calendar year.

 

(d) If upon a review of the actual number of wage records reported, it is found that a new employer's estimate at time of registration was ten percent or more less than the actual number of records reported, the employer's premiums under subdivision 5a and eligibility for small employer assistance grants under section 268B.29 shall be recalculated based on the wage records reported.

 

Sec. 41.  Minnesota Statutes 2023 Supplement, section 268B.14, is amended by adding a subdivision to read:

 

Subd. 5c.  Average wage for employer.  (a) For each employer that has been covered for the entirety of the basis period, the employer's average wage shall be calculated by dividing the maximum amount of covered wages reported by the employer in a single quarterly wage record during the basis period by the maximum number of quarterly wage records reported by the employer during the basis period.

 

(b) For any employer not covered for the entirety of the basis period, the employer's average wage shall by calculated by dividing the employer's estimated amount of covered wages in the following tax year by the employer's estimated number of employees working in Minnesota the employer will employ in the following calendar year.


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(c) If upon a review of the actual amount of covered wages reported it is found that a new employer's estimate at time of registration was ten percent or more less than the actual amount of covered wages, the employer's premiums under subdivision 5a and eligibility for small employer assistance grants under section 268B.29 shall be recalculated based on the wage records reported.

 

Sec. 42.  Minnesota Statutes 2023 Supplement, section 268B.14, subdivision 7, is amended to read:

 

Subd. 7.  Premium rate adjustments.  (a) Beginning January 1, 2027 The commissioner may adjust the annual premium rates pursuant to this section prior to January 1, 2026.  By July 31, 2026, and then by July 31 of each year thereafter, the commissioner must adjust the annual premium rates using the formula in paragraph (b) for the following calendar year based on program historical experience and sound actuarial principles and so that the projected fund balance as a percentage of total program expenditure does not fall below 25 percent.  The commissioner shall contract with a qualified independent actuarial consultant to conduct an actuarial study for this purpose no less than every year.  A copy of the actuarial study must be provided promptly to the chairs and ranking minority members of the legislative committees with jurisdiction over this chapter.  The actuarial study must also be filed with the Legislative Reference Library in compliance with section 3.195.  A qualified independent actuarial consultant is one who is a Fellow of the Society of Actuaries (FSA) and a Member of the American Academy of Actuaries (MAAA) and who has experience directly relevant to the analysis required.  In no year shall the annual premium rate exceed 1.2 percent of taxable wages paid to each employee.

 

(b) To calculate the employer rates for a calendar year, the commissioner must:

 

(1) multiply 1.45 times the amount disbursed from the family and medical benefit insurance account for the 52‑week period ending September 30 of the prior year;

 

(2) subtract the amount in the family and medical benefit insurance account on that September 30 from the resulting figure;

 

(3) divide the resulting figure by the total wages in covered employment of employees of employers without approved private plans under section 268B.10 for either the family or medical benefit program.  For employers with an approved private plan for either the medical benefit program or the family benefit program, but not both, count only the proportion of wages in covered employment associated with the program for which the employer does not have an approved private plan; and

 

(4) round the resulting figure down to the nearest one-hundredth of one percent.

 

(c) The commissioner must apportion the premium rate between the family and medical benefit programs based on the relative proportion of expenditures for each program during the preceding year.

 

EFFECTIVE DATE.  This section is effective the day following final enactment.

 

Sec. 43.  Minnesota Statutes 2023 Supplement, section 268B.15, subdivision 7, is amended to read:

 

Subd. 7.  Credit adjustments; refunds.  (a) If an employer makes an application for a credit adjustment of any amount paid under this chapter within four years of the date that the payment was due, in a manner and format prescribed by the commissioner, and the commissioner determines that the payment or any portion thereof was erroneous, the commissioner must make an adjustment and issue a credit without interest.  If a credit cannot be used, the commissioner must refund, without interest, the amount erroneously paid.  The commissioner, on the commissioner's own motion, may make a credit adjustment or refund under this subdivision.

 

(b) Any refund returned to the commissioner is considered unclaimed property under chapter 345.


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(c) If a credit adjustment or refund is denied in whole or in part, a determination of denial must be sent to the employer by mail or electronic transmission.  The determination of denial is final unless an employer files an appeal within 20 calendar days after sending.  Proceedings on the appeal are conducted in accordance with section 268B.08.

 

(d) If an employer receives a credit adjustment or refund under this section, the employer must determine the amount of any overpayment attributable to a deduction from employee wages under section 268B.14, subdivision 3, and return any amount erroneously deducted to each affected employee.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 44.  Minnesota Statutes 2023 Supplement, section 268B.155, subdivision 2, is amended to read:

 

Subd. 2.  Notice upon application.  In an application for family or medical leave benefits, the applicant must disclose if child support obligations are owed and, if so, in what state and county.  If child support obligations are owed, the commissioner must, if the applicant establishes a benefit account leave, notify the child support agency.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 45.  Minnesota Statutes 2023 Supplement, section 268B.185, subdivision 2, is amended to read:

 

Subd. 2.  Overpayment because of misrepresentation.  (a) An applicant has committed misrepresentation if the applicant is overpaid benefits by making an intentional false statement or representation in an effort to fraudulently collect benefits.  Overpayment because of misrepresentation does not occur where there is an unintentional mistake or a good faith belief as to the eligibility or correctness of the statement or representation.

 

(b) After the discovery of facts indicating misrepresentation, the commissioner must issue a determination of overpayment penalty assessing a penalty equal to 15 percent of the amount overpaid.

 

(c) Unless the applicant files an appeal within 30 calendar days after the sending of a determination of overpayment penalty to the applicant by mail or electronic transmission, the determination is final.  Proceedings on the appeal are conducted in accordance with section 268B.08.

 

(d) (c) A determination of overpayment penalty must state the methods of collection the commissioner may use to recover the overpayment, penalty, and interest assessed.  Money received in repayment of overpaid benefits, penalties, and interest is first applied to the benefits overpaid, second to the penalty amount due, and third to any interest due.

 

(e) (d) The department is authorized to issue a determination of overpayment penalty under this subdivision within 24 months of the establishment of the benefit account leave upon which the benefits were obtained through misrepresentation.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 46.  Minnesota Statutes 2023 Supplement, section 268B.19, is amended to read:

 

268B.19 EMPLOYER MISCONDUCT; PENALTY.

 

(a) The commissioner must penalize an employer if that employer or any employee, officer, or agent of that employer is in collusion with any applicant for the purpose of assisting the applicant in receiving benefits fraudulently.  The penalty is $500 or the amount of benefits determined to be overpaid, whichever is greater.


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(b) The commissioner must penalize an employer if that employer or any employee, officer, or agent of that employer:

 

(1) made a false statement or representation knowing it to be false;

 

(2) made a false statement or representation without a good-faith belief as to the correctness of the statement or representation; or

 

(3) knowingly failed to disclose a material fact.

 

(c) The penalty is the greater of $500 or 50 percent of the following resulting from the employer's action:

 

(1) the amount of any overpaid benefits to an applicant;

 

(2) the amount of benefits not paid to an applicant that would otherwise have been paid; or

 

(3) the amount of any payment required from the employer under this chapter that was not paid.

 

(d) Penalties must be paid within 30 calendar days of issuance of the determination of penalty and credited to the family and medical benefit insurance account.

 

(e) The determination of penalty is final unless the employer files an appeal within 30 calendar days after the sending of the determination of penalty to the employer by United States mail or electronic transmission.

 

EFFECTIVE DATE.  This section is effective July 1, 2024.

 

Sec. 47.  Minnesota Statutes 2023 Supplement, section 268B.26, is amended to read:

 

268B.26 NOTICE REQUIREMENTS.

 

(a) Each employer must post in a conspicuous place on each of its premises a workplace notice prepared by the commissioner providing notice of benefits available under this chapter.  The required workplace notice must be in English and each language other than English which is the primary language of five or more employees or independent contractors of that workplace, if such notice is available from the department.

 

(b) Each employer must issue to each employee not more than 30 days from the beginning date of the employee's employment, or 30 days before premium collection begins, whichever is later, the following written information provided by the department in the primary language of the employee:

 

(1) an explanation of the availability of family and medical leave benefits provided under this chapter, including rights to reinstatement and continuation of health insurance;

 

(2) the amount of premium deductions made by the employer under this chapter;

 

(3) the employer's premium amount and obligations under this chapter;

 

(4) the name and mailing address of the employer;

 

(5) the identification number assigned to the employer by the department;

 

(6) instructions on how to file a claim for family and medical leave benefits;


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(7) the mailing address, email address, and telephone number of the department; and

 

(8) any other information required by the department.

 

Delivery is made when an employee provides written or electronic acknowledgment of receipt of the information, or signs a statement indicating the employee's refusal to sign such acknowledgment.  In cases where an employee refuses to acknowledge receipt, an employer must be able to demonstrate the way the employee had been notified.

 

(c) An employer that fails to comply with this section may be issued, for a first violation, a civil penalty of $50 per employee, and for each subsequent violation, a civil penalty of $300 per employee.  The employer shall have the burden of demonstrating compliance with this section.

 

(d) Employer notice to an employee under this section may be provided in paper or electronic format.  For notice provided in electronic format only, the employer must provide employee access to an employer-owned computer during an employee's regular working hours to review and print required notices.

 

(e) The department shall prepare a uniform employee notice form for employers to use that provides the notice information required under this section.  The commissioner shall prepare the uniform employee notice in the five most common languages spoken in Minnesota.

 

(f) Each employer who employs or intends to employ seasonal employees as defined in section 268B.01, subdivision 35, must issue to each seasonal employee a notice that the employee is not eligible to receive paid family and medical leave benefits while the employee is so employed.  The notice must be provided at the time an employment offer is made, or within 30 days of November 1, 2025, for the employer's existing seasonal employees, and be in a form provided by the department.  Delivery is made when an employee provides written or electronic acknowledgment of receipt of the information, or signs a statement indicating the employee's refusal to sign such acknowledgment.

 

EFFECTIVE DATE.  This section is effective November 1, 2025.

 

Sec. 48.  Minnesota Statutes 2023 Supplement, section 268B.27, subdivision 2, is amended to read:

 

Subd. 2.  Construction.  Nothing in this chapter shall be construed to:

 

(1) allow an employer to compel an employee to exhaust accumulated sick, vacation, or personal time before or while taking leave under this chapter;

 

(2) prohibit an employer from providing additional benefits, including but not limited to covering the portion of earnings not provided during periods of leave covered under this chapter including through a supplemental benefit payment, as defined under section 268B.01, subdivision 41;

 

(3) limit the parties to a collective bargaining agreement from bargaining and agreeing with respect to leave benefits and related procedures policies and employee protections that meet or exceed, and do not otherwise conflict with, the minimum standards and requirements in this chapter; or

 

(4) be applied so as to create any power or duty in conflict with federal law.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.


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Sec. 49.  Minnesota Statutes 2023 Supplement, section 268B.29, is amended to read:

 

268B.29 SMALL BUSINESS EMPLOYER ASSISTANCE GRANTS.

 

(a) Employers with 30 or fewer employees and less than $3,000,000 in gross annual revenues as calculated under section 268B.14, subdivision 5b, and an average wage for that employer under section 268B.14, subdivision 5c, less than or equal to 150 percent of the state's average wage in covered employment for the prior year may apply to the department for grants under this section.

 

(b) The commissioner may approve a grant of up to $3,000 if the employer hires a temporary worker, or increases another existing worker's wages, to substitute for an employee on family or medical leave for a period of seven days or more.

 

(c) The maximum total grant per eligible employer in a calendar year is $6,000.

 

(d) Grants must be used to hire temporary workers or to increase wages for current employees.  To be eligible for consideration for a grant under this section, the employer must documentation attest, in a manner and format prescribed by the commissioner, that:

 

(1) the temporary worker hired or wage-related costs incurred are due to an employee's use of leave under this chapter;

 

(2) the amount of the grant requested is less than or equal to the additional costs incurred by the employer; and

 

(3) the employer meets the revenue requirements in paragraph (a).

 

(e) Applications shall be submitted and processed on a first-received, first-processed basis in a form and manner determined by the commissioner within each calendar year until funding is exhausted.  Applications received after funding has been exhausted in a calendar year are not eligible for reimbursement.

 

(f) For the purposes of this section, the commissioner shall average the number of employees reported by an employer over the last four completed calendar quarters as submitted in the wage detail records required in section 268B.12 to determine the size of the employer.

 

(g) (f) An employer who has an approved private plan is not eligible to receive a grant under this section.

 

(h) (g) Unless additional funds are appropriated, the commissioner may award grants under this section up to a maximum of $5,000,000 per calendar year from the family and medical benefit insurance account.

 

EFFECTIVE DATE.  This section is effective January 1, 2026.

 

Sec. 50.  [268B.30] DATA PRIVACY.

 

(a) Except as provided by this section, data collected, created, or maintained under this chapter are private data on individuals or nonpublic data not on individuals as defined in section 13.02, subdivisions 9 and 12, and must not be disclosed except according to a district court order or section 13.05.  A subpoena is not considered a district court order.

 

(b) Data classified under paragraph (a) may be disseminated to and used by the following without the consent of the subject of the data:

 

(1) state and federal agencies specifically authorized access to the data by state or federal law;


Journal of the House - 115th Day - Monday, May 13, 2024 - Top of Page 16508

(2) the unemployment insurance division, to the extent necessary to administer the programs established under this chapter and chapter 268;

 

(3) employers, to the extent necessary to support adjudication of application requests and to support the employer's administration of a leave of absence;

 

(4) health care providers, to the extent necessary to support verification of health care conditions and qualifying events;. 

 

(5) the public authority responsible for child support in Minnesota or any other state in accordance with section 256.978;

 

(6) human rights agencies within Minnesota that have enforcement powers;

 

(7) the Department of Revenue, to the extent necessary for its duties under Minnesota laws;

 

(8) public and private agencies responsible for administering publicly financed assistance programs for the purpose of monitoring the eligibility of the program's recipients;

 

(9) the Department of Labor and Industry and the Commerce Fraud Bureau in the Department of Commerce for uses consistent with the administration of their duties under Minnesota law;

 

(10) the Department of Human Services and the Office of Inspector General and its agents within the Department of Human Services, including county fraud investigators, for investigations related to recipient or provider fraud and employees of providers when the provider is suspected of committing public assistance fraud;

 

(11) the Department of Public Safety for support in identify verification;

 

(12) local, state, and federal law enforcement agencies for the purpose of ascertaining the last known address and employment location of an individual who is the subject of a criminal investigation;

 

(13) the Department of Health for the purposes of epidemiologic investigations;

 

(14) the Department of Corrections for the purposes of tracking incarceration of applicants; and

 

(15) contracted third parties, to the extent necessary to aid in identity verification, adjudication, administration, and evaluation of the program.

 

(c) Data on individuals and employers that are collected, maintained, or used by the department in an investigation under section 268B.19, 268B.21, 268B.22, or 268B.23 are confidential as to data on individuals and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3 and 13, and must not be disclosed except under statute or district court order or to a party named in a criminal proceeding, administrative or judicial, for preparation of a defense.

 

(d) Data gathered by the department in the administration of this chapter must not be made the subject or the basis for any suit in any civil proceedings, administrative or judicial, unless the action is initiated by the department.

 

Sec. 51.  REPEALER.

 

(a) Minnesota Statutes 2023 Supplement, section 268B.06, subdivision 7, is repealed effective the day following final enactment.


Journal of the House - 115th Day - Monday, May 13, 2024 - Top of Page 16509

(b) Minnesota Statutes 2023 Supplement, section 268B.10, subdivision 11, is repealed effective July 1, 2025.

 

(c) Minnesota Statutes 2023 Supplement, section 268B.14, subdivision 5, is repealed effective January 1, 2026.

 

(d) Minnesota Statutes 2023 Supplement, section 268B.08, is repealed effective November 1, 2025."

 

Delete the title and insert:

 

"A bill for an act relating to employees; modifying paid leave provisions; amending Minnesota Statutes 2023 Supplement, sections 268B.01, subdivisions 3, 5, 8, 15, 23, 44, by adding subdivisions; 268B.04; 268B.06, subdivisions 2, 3, 4, 5, by adding a subdivision; 268B.07, subdivisions 1, 2, 3; 268B.085, subdivision 3; 268B.09, subdivisions 1, 6, 7; 268B.10, subdivisions 1, 2, 3, 6, 12, 16, 17, by adding subdivisions; 268B.14, subdivisions 3, 7, by adding subdivisions; 268B.15, subdivision 7; 268B.155, subdivision 2; 268B.185, subdivision 2; 268B.19; 268B.26; 268B.27, subdivision 2; 268B.29; proposing coding for new law in Minnesota Statutes, chapter 268B; repealing Minnesota Statutes 2023 Supplement, sections 268B.06, subdivision 7; 268B.08; 268B.10, subdivision 11; 268B.14, subdivision 5."

 

 

With the recommendation that when so amended the bill be placed on the General Register.

 

      The report was adopted.

 

 

SECOND READING OF HOUSE BILLS

 

 

      H. F. Nos. 4746, 5274 and 5363 were read for the second time.

 

 

SECOND READING OF SENATE BILLS

 

 

      S. F. No. 716 was read for the second time.

 

 

INTRODUCTION AND FIRST READING OF HOUSE BILLS

 

 

      The following House Files were introduced:

 

 

      Engen introduced:

 

H. F. No. 5465, A bill for an act relating to government data practices; classifying as public police body-worn camera footage of state legislators and executive branch officials; amending Minnesota Statutes 2023 Supplement, section 13.825, subdivision 2.

 

The bill was read for the first time and referred to the Committee on Public Safety Finance and Policy.


Journal of the House - 115th Day - Monday, May 13, 2024 - Top of Page 16510

Kozlowski introduced:

 

H. F. No. 5466, A bill for an act relating to taxation; property; modifying class rates for manufactured home parks; amending Minnesota Statutes 2023 Supplement, section 273.13, subdivision 25.

 

The bill was read for the first time and referred to the Committee on Taxes.

 

 

Norris introduced:

 

H. F. No. 5467, A bill for an act relating to taxation; providing limitations on assessments of individual income, corporate franchise, and sales and use taxes; amending Minnesota Statutes 2022, section 270C.33, by adding a subdivision.

 

The bill was read for the first time and referred to the Committee on Taxes.

 

 

Clardy and Pérez-Vega introduced:

 

H. F. No. 5468, A bill for an act relating to human services licensing; modifying licensing violation actions against chapter 245D providers; requiring reports; amending Minnesota Statutes 2022, section 245A.06, subdivision 1a; Minnesota Statutes 2023 Supplement, section 245A.06, subdivision 2.

 

The bill was read for the first time and referred to the Committee on Human Services Policy.

 

 

Elkins, Bierman, Smith, Bahner and Fischer introduced:

 

H. F. No. 5469, A bill for an act relating to health; requiring pharmacy benefit managers and health carriers to include lower-cost drugs in their formularies; requiring formulary structure and formulary tiering for each health plan to give preference to the drug with the lowest out-of-pocket cost to the patient; proposing coding for new law in Minnesota Statutes, chapter 62W.

 

The bill was read for the first time and referred to the Committee on Health Finance and Policy.

 

 

Elkins, Bierman, Smith, Bahner and Fischer introduced:

 

H. F. No. 5470, A bill for an act relating to health care; modifying pharmacy benefit manager business practices; establishing pharmacy benefit manager general reimbursement practices; modifying maximum allowable cost pricing requirements; amending Minnesota Statutes 2022, sections 62W.02, by adding subdivisions; 62W.04; 62W.08; 62W.13; proposing coding for new law in Minnesota Statutes, chapter 62W.

 

The bill was read for the first time and referred to the Committee on Health Finance and Policy.


Journal of the House - 115th Day - Monday, May 13, 2024 - Top of Page 16511

         Long moved that the House recess subject to the call of the Chair.  The motion prevailed.

 

 

RECESS

 

 

RECONVENED

 

      The House reconvened and was called to order by Speaker pro tempore Tabke.

 

 

REPORT FROM THE COMMITTEE ON RULES

AND LEGISLATIVE ADMINISTRATION

 

      Long from the Committee on Rules and Legislative Administration, pursuant to rules 1.21 and 3.33, designated the following bills to be placed on the Calendar for the Day for Wednesday, May 15, 2024 and established a prefiling requirement for amendments offered to the following bills:

 

      H. F. Nos. 5363 and 5274; S. F. No. 716; and H. F. No. 4273.

 

 

      The following Conference Committee Reports were received:

 

CONFERENCE COMMITTEE REPORT ON H. F. No. 3438

 

A bill for an act relating to consumer protection; adding the failure to disclose mandatory fees in advertising as a deceptive trade practice; amending Minnesota Statutes 2022, sections 325D.43, by adding a subdivision; 325D.44, by adding subdivisions.

 

May 10, 2024

The Honorable Melissa Hortman

Speaker of the House of Representatives

 

The Honorable Bobby Joe Champion

President of the Senate

 

We, the undersigned conferees for H. F. No. 3438 report that we have agreed upon the items in dispute and recommend as follows:

 

That the Senate recede from its amendment and that H. F. No. 3438 be further amended as follows:

 

Delete everything after the enacting clause and insert:

 

"Section 1.  Minnesota Statutes 2022, section 325D.44, is amended by adding a subdivision to read:

 

Subd. 1a.  Advertisements, displays, or offers.  (a) A person engages in a deceptive trade practice when, in the course of business, vocation, or occupation, the person advertises, displays, or offers a price for goods or services that does not include all mandatory fees or surcharges.  If the person that disseminates an advertisement is independent of the advertiser, the person is not liable for the content of the advertisement.


Journal of the House - 115th Day - Monday, May 13, 2024 - Top of Page 16512

(b) For purposes of this subdivision, "mandatory fee" includes but is not limited to a fee or surcharge that:

 

(1) must be paid in order to purchase the goods or services being advertised;

 

(2) is not reasonably avoidable by the consumer; or

 

(3) a reasonable person would expect to be included in the purchase of the goods or services being advertised.

 

For the purposes of this subdivision, mandatory fee does not include taxes imposed by a government entity on the sale, use, purchase, receipt, or delivery of the goods or services.

 

(c) A delivery platform is compliant with this subdivision if the platform satisfies all of the following requirements:

 

(1) at the point when a consumer views and selects either a vendor or items for purchase, a delivery platform must display in a clear and conspicuous manner that an additional flat fee or percentage is charged.  The disclosure must include the additional fee or percentage amount; and

 

(2) after a consumer selects items for purchase, but prior to checkout, a delivery platform must display a subtotal page that itemizes the price of the menu items and the additional fee that is included in the total cost.

 

(d) A person may charge a reasonable postage or shipping fee that is actually incurred by a consumer who has purchased a good that requires shipping.

 

(e) Nothing in this subdivision prevents a person from offering goods or services at a discounted price from the advertised, displayed, or offered price.

 

(f) A person offering goods or services in an auction where consumers can place bids on the goods or services and the total cost is indeterminable is compliant with this subdivision if the person discloses in a clear and conspicuous manner any mandatory fees associated with the transaction and that the total cost of the goods or services may vary.

 

(g) A person offering services where the total cost of a service is determined by consumer selections and preferences, or where the total cost of the service relates to distance or time, is compliant with this subdivision if the person discloses in a clear and conspicuous manner (1) the factors that determine the total price, (2) any mandatory fees associated with the transaction, and (3) that the total cost of the services may vary.

 

(h) A food or beverage service establishment, including a hotel, is compliant with this subdivision if, in every offer or advertisement for the purchase of a good or service that includes pricing information, the total price of the good or service being offered or advertised includes a clear and conspicuous disclosure of the percentage of any automatic and mandatory gratuities charged.

 

(i) A person is compliant with this subdivision if the person providing broadband Internet access service on its own or as part of a bundle is compliant with the broadband consumer label requirements under Code of Federal Regulations, title 47, section 8.1(a).

 

(j) A person is compliant with this subdivision if the person is compliant with the pricing requirements under United States Code, title 47, section 552.

 

(k) This subdivision is enforceable unless preempted by federal law.

 

EFFECTIVE DATE.  This section is effective January 1, 2025, except that this section is effective June 1, 2025, for industries where the prices are regulated by the Metropolitan Airports Commission.


Journal of the House - 115th Day - Monday, May 13, 2024 - Top of Page 16513

Sec. 2.  Minnesota Statutes 2022, section 325D.44, is amended by adding a subdivision to read:

 

Subd. 1b.  Exemptions.  Subdivision 1a does not apply to the following:

 

(1) fees authorized by law related to the purchase or lease of a motor vehicle that are charged by a motor vehicle dealer, as defined by section 168.27, subdivision 1, paragraph (f);

 

(2) any business or the business' affiliate where either the business or the affiliate is regulated by the Minnesota Public Utilities Commission; or

 

(3) any fees, surcharges, or other costs associated with settlement services, as defined in the Real Estate Settlement Procedures Act, United States Code, title 12, section 2602(3).  This clause does not apply to real estate broker commissions and fees.

 

EFFECTIVE DATE.  This section is effective January 1, 2025, except that this section is effective June 1, 2025, for industries where the prices are regulated by the Metropolitan Airports Commission."

 

Delete the title and insert:

 

"A bill for an act relating to consumer protection; making the failure to disclose mandatory fees in advertising a deceptive trade practice; providing exemptions; amending Minnesota Statutes 2022, section 325D.44, by adding subdivisions."

 

 

We request the adoption of this report and repassage of the bill. 

 

House Conferees:  Emma Greenman and Lucy Rehm.

 

Senate Conferees:  Lindsey Port and John Marty.

 

 

      Greenman moved that the report of the Conference Committee on H. F. No. 3438 be adopted and that the bill be repassed as amended by the Conference Committee. 

 

 

      A roll call was requested and properly seconded.

 

 

      Schultz moved that the House refuse to adopt the report of the Conference Committee on H. F. No. 3438 and that the bill be returned to the Conference Committee.

 

 

      A roll call was requested and properly seconded.

 

 

      Speaker pro tempore Tabke called Vang to the Chair.


Journal of the House - 115th Day - Monday, May 13, 2024 - Top of Page 16514

         The question was taken on the Schultz motion and the roll was called.  There were 63 yeas and 70 nays as follows:

 

      Those who voted in the affirmative were:

 


Altendorf

Anderson, P. E.

Anderson, P. H.

Backer

Bakeberg

Baker

Bennett

Bliss

Burkel

Daniels

Davids

Davis

Demuth

Dotseth

Engen

Fogelman

Franson

Garofalo

Gillman

Grossell

Harder

Heintzeman

Hudson

Igo

Jacob

Johnson

Joy

Kiel

Knudsen

Koznick

Kresha

Lawrence

McDonald

Mekeland

Mueller

Murphy

Myers

Nadeau

Nash

Nelson, N.

Neu Brindley

Niska

Novotny

O'Driscoll

Olson, B.

Perryman

Petersburg

Pfarr

Quam

Rarick

Robbins

Schomacker

Schultz

Scott

Skraba

Swedzinski

Torkelson

Urdahl

West

Wiener

Wiens

Witte

Zeleznikar


 

      Those who voted in the negative were:

 


Acomb

Agbaje

Bahner

Becker-Finn

Berg

Bierman

Brand

Carroll

Cha

Clardy

Coulter

Curran

Edelson

Elkins

Feist

Finke

Fischer

Frazier

Frederick

Freiberg

Gomez

Greenman

Hansen, R.

Hanson, J.

Hassan

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hornstein

Howard

Huot

Hussein

Jordan

Keeler

Klevorn

Koegel

Kotyza-Witthuhn

Kozlowski

Kraft

Lee, F.

Lee, K.

Liebling

Lillie

Lislegard

Long

Moller

Nelson, M.

Newton

Noor

Norris

Olson, L.

Pelowski

Pérez-Vega

Pinto

Pryor

Pursell

Rehm

Reyer

Sencer-Mura

Smith

Stephenson

Tabke

Vang

Virnig

Wolgamott

Xiong

Youakim

Spk. Hortman


 

 

      The motion did not prevail.

 

 

      The question recurred on the Greenman motion and the roll was called.  There were 73 yeas and 60 nays as follows:

 

      Those who voted in the affirmative were:

 


Acomb

Agbaje

Bahner

Becker-Finn

Berg

Bierman

Brand

Carroll

Cha

Clardy

Coulter

Curran

Edelson

Elkins

Engen

Feist

Finke

Fischer

Frazier

Frederick

Freiberg

Gomez

Greenman

Hansen, R.

Hanson, J.

Hassan

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hornstein

Howard

Huot

Hussein

Jordan

Keeler

Klevorn

Koegel

Kotyza-Witthuhn

Kozlowski

Kraft

Lee, F.

Lee, K.

Liebling

Lillie

Lislegard

Long

Moller

Myers

Nelson, M.

Newton

Noor

Norris

Olson, L.

Pelowski

Pérez-Vega

Pinto

Pryor

Pursell

Rehm

Reyer

Sencer-Mura

Smith

Stephenson

Tabke

Vang

Virnig

West

Wolgamott

Xiong

Youakim

Spk. Hortman



Journal of the House - 115th Day - Monday, May 13, 2024 - Top of Page 16515

         Those who voted in the negative were:

 


Altendorf

Anderson, P. E.

Anderson, P. H.

Backer

Bakeberg

Baker

Bennett

Bliss

Burkel

Daniels

Davids

Davis

Demuth

Dotseth

Fogelman

Franson

Garofalo

Gillman

Grossell

Harder

Heintzeman

Hudson

Igo

Jacob

Johnson

Joy

Kiel

Knudsen

Koznick

Kresha

Lawrence

McDonald

Mekeland

Mueller

Murphy

Nadeau

Nash

Nelson, N.

Neu Brindley

Niska

Novotny

O'Driscoll

Olson, B.

Perryman

Petersburg

Pfarr

Quam

Rarick

Robbins

Schomacker

Schultz

Scott

Skraba

Swedzinski

Torkelson

Urdahl

Wiener

Wiens

Witte

Zeleznikar


 

 

      The motion prevailed.

 

 

H. F. No. 3438, A bill for an act relating to consumer protection; adding the failure to disclose mandatory fees in advertising as a deceptive trade practice; amending Minnesota Statutes 2022, sections 325D.43, by adding a subdivision; 325D.44, by adding subdivisions.

 

 

      The bill was read for the third time, as amended by Conference, and placed upon its repassage.

 

      The question was taken on the repassage of the bill and the roll was called.  There were 76 yeas and 57 nays as follows:

 

      Those who voted in the affirmative were:

 


Acomb

Agbaje

Bahner

Becker-Finn

Berg

Bierman

Brand

Carroll

Cha

Clardy

Coulter

Curran

Edelson

Elkins

Engen

Feist

Finke

Fischer

Frazier

Frederick

Freiberg

Gomez

Greenman

Hansen, R.

Hanson, J.

Hassan

Hemmingsen-Jaeger

Her

Hicks

Hill

Hollins

Hornstein

Howard

Huot

Hussein

Jordan

Keeler

Klevorn

Koegel

Kotyza-Witthuhn

Kozlowski

Kraft

Lee, F.

Lee, K.

Liebling

Lillie

Lislegard

Long

Moller

Myers

Nelson, M.