WeVote
Log In

Bill

Bill

HF 3032

Minnesota Sports Facilities Authority funding provided contingent on certain revenues from the conduct of electronic pull-tabs, and money appropriated.

2025-2026 Regular Session Introduced by Greg Davids and 3 co-sponsors

Creates a revenue-driven annual appropriation to the MSFA for stadium improvements using incremental EPT tax revenue, up to a $20 million cap.

Introduction and first reading, referred to Taxes
#gambling #taxation
0
WeVote Research Nonpartisan
Bill Summary · HF 3032

Summary of HF3032 (2025-2026) – Minnesota

Purpose and intent

HF3032 proposes to create an additional, contingent funding stream for stadium improvements through a targeted appropriation to the Minnesota Sports Facilities Authority (MSFA). The funding is tied to revenues generated from electronic pull-tabs (EPTs) and is designed to ensure that a portion of EPT-derived tax revenue is dedicated to stadium improvements, subject to specified caps and annual adjustments.

Key provisions and changes

  • New subdivision added to Minnesota Statutes 2024, section 297E.02 (Subd. 3a): “Appropriation; stadium improvements.”

    • Establishes a framework to determine annual appropriations to the MSFA for stadium improvements, contingent on EPT revenues.

  • Annual revenue calculation (by March 15 each year):

    • The Commissioner, in consultation with the Commissioner of Management and Budget, must compute: 1) The difference between:
      • (A) Revenue from the tax imposed under subdivision 6 after dispositions under subdivision 3(a) and after the appropriation under subdivision 3(c) attributable to EPT conduct in the preceding fiscal year; and
      • (B) Revenue from the tax after the same dispositions attributable to EPT conduct in the base year (fiscal year 2024).
    • In simple terms, this measures the year-over-year incremental EPT tax revenue attributable to EPT activity, relative to the base year.

  • Appropriation mechanism (if positive difference):

    • If the calculated amount (the increment) is greater than zero, a portion of that increment—specified as “... percent” of the increment up to a defined maximum—is annually appropriated from the General Fund to the MSFA for stadium improvements.
    • The exact percentage is not specified in the text excerpt provided (represented as “... percent”); the provision implies a fixed fraction of the positive difference.

  • Maximum annual appropriation and adjustments:

    • Maximum amount: $20,000,000.
    • Beginning July 1, 2026, and each year thereafter, the Commissioner must adjust the maximum amount as provided in another statute (section 270C.22). Adjusted amounts are rounded down to the nearest $50.
    • The law defines the “base year” as FY 2024 and the “stadium” reference aligns with the statutory definition in section 437J.03, subdivision 8.

  • Effective date:

    • This section becomes effective July 1, 2025.

Who/what is affected

  • Minnesota Sports Facilities Authority (MSFA): Potential new annual funding for stadium improvements, contingent on EPT revenue performance.
  • Department of Revenue (or the tax administrator): Responsible for calculating EPT-related tax revenues and the year-over-year incremental amount.
  • Department of Management and Budget (MMB): Collaborates with the Revenue Commissioner to compute annual appropriations.
  • Taxpayers and electronic pull-tab operators: The mechanism relies on EPT tax revenues, which are generated by the conduct of electronic pull-tabs.

Procedural and timeline aspects

  • Calculation date: By March 15 each year, starting in 2026 (the first full calculation would occur after the base year and the preceding fiscal year data are available).
  • Funding trigger: The appropriation is only made if the calculated incremental revenue is positive.
  • Limitations: Annual appropriation cannot exceed $20 million (subject to annual adjustments beginning 2026 and beyond).
  • Adjustments: The maximum amount is subject to statutory adjustments per section 270C.22, with rounding rules (down to the nearest $50).

Potential impact

  • Creates a dedicated, revenue-driven funding stream for stadium improvements, contingent on growth in EPT-related tax receipts beyond the base-year level.
  • Provides a predictable ceiling ($20 million, adjustable) for annual MSFA funding, helping plan long-term stadium improvement projects.
  • Ties a portion of state revenue to gaming-related activities, which may influence decisions by EPT operators and affect perceptions of gaming-related public finance.

Note: Some specifics (e.g., the exact percentage of the positive incremental amount to be appropriated) are not stated in the provided text and would be determined by the final language or subsequent amendments.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.