Minnesota Legislature
HF 1519
as introduced - 89th Legislature (2015 - 2016) Posted on 03/05/2015 02:14pm
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A bill for an act
relating to lawful gambling; modifying provisions relating to gambling managers;
providing for certain raffles; increasing prize limits; prescribing local regulation;
amending Minnesota Statutes 2014, sections 349.12, subdivision 19; 349.167,
subdivisions 1, 2; 349.173; 349.181, subdivision 2; 349.211, subdivision 1;
349.213, subdivision 1.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2014, section 349.12, subdivision 19, is amended to read:
Subd. 19.
Gambling manager.
"Gambling manager" means a person who has been
designated by deleted text begin thedeleted text end new text begin annew text end organization to supervise the lawful gambling conducted by it, has
been an active member of deleted text begin thedeleted text end new text begin annew text end organization for at least the most recent six months at the
time of the application for a gambling manager license, and meets other qualifications as
prescribed by the board by rule.
Sec. 2.
Minnesota Statutes 2014, section 349.167, subdivision 1, is amended to read:
Subdivision 1.
Gambling manager required.
(a) All lawful gambling conducted by
a licensed organization must be under the supervision of a gambling manager. A gambling
manager designated by an organization to supervise lawful gambling is responsible for the
gambling gross receipts of the organization and for its conduct in compliance with all laws
and rules. A person designated as a gambling manager shall maintain a dishonesty bond in
the sum of $10,000 in favor of the organization conditioned on the faithful performance
of the manager's duties.new text begin A person designated as a gambling manager for more than one
organization shall maintain a separate dishonesty bond in a sum of $10,000 in favor of
each organization that designates the person as gambling manager.new text end The terms of the
bond must provide that notice be given to the board in writing not less than 30 days
before its cancellation.
(b) A person may not act as a gambling manager for more than deleted text begin one organizationdeleted text end new text begin
three organizationsnew text end .
(c) An organization may not conduct lawful gambling without having a gambling
manager.
(d) An organization may not have more than one gambling manager at any time.
Sec. 3.
Minnesota Statutes 2014, section 349.167, subdivision 2, is amended to read:
Subd. 2.
Gambling managers; licenses.
(a) A person may not serve as a gambling
manager for an organization unless the person possesses a valid gambling manager's
license issued by the board or otherwise meets the temporary requirements allowed under
paragraph (d). In addition to the disqualifications in section 349.155, subdivision 3, the
board may not issue a gambling manager's license to a person applying for the license who:
(1) has not complied with subdivision 4, clauses (1) and (2);
(2) within the five years before the date of the license application, has committed a
violation of law or board rule that resulted in the revocation of a license issued by the board;
(3) has ever been convicted of a criminal violation involving fraud, theft, tax
evasion, misrepresentation, or gambling; or
(4) has engaged in conduct the board determines is contrary to the public health,
welfare, or safety or the integrity of lawful gambling.
(b) A gambling manager's license runs concurrent with deleted text begin thedeleted text end new text begin annew text end organization's license
unless the gambling manager's license is suspended or revoked by the board or otherwise
terminated by the organization or gambling manager.
(c) The annual fee for a gambling manager's license is $100.
(d) At the time of the death, disability, or termination of a gambling manager, the
organization must:
(1) contact the board within one business day to establish a plan to replace the
gambling manager; and
(2) submit a complete application and fee within four business days.
(e) An organization that fails to meet the requirements of paragraph (d) must
discontinue its gambling operation until a gambling manager application and fee is
received by the board and a license has been issued by the board and received by the
gambling manager.
Sec. 4.
Minnesota Statutes 2014, section 349.173, is amended to read:
349.173 CONDUCT OF RAFFLES.
(a) Raffle tickets or certificates of participation at a minimum must list the three
most expensive prizes to be awarded and include the location, date, and time of the
selection of the winning entries. If additional prizes will be awarded, a complete list of
additional prizes must be publicly posted at the event and copies of the complete prize list
made available upon request. Raffles conducted under the exemptions in section 349.166
may use tickets that contain only the sequential number of the raffle ticket and no other
information if the organization makes a list of prizes and a statement of other relevant
information required by rule available to persons purchasing tickets and if tickets are only
sold at the event and on the date when the tickets are drawn.
(b) Raffles must be conducted in a manner that ensures:
(1) all entries in the raffle have an equal chance of selection;
(2) entry in the raffle is not conditioned upon any other purchase, except that a
certificate of participation may be a button with a nominal value of less than $5;
(3) the method of selection is conducted in a public forum;
(4) the method of selection cannot be manipulated or based on the outcome of an
event not under the control of the organization;
(5) physical presence at the raffle is not a requirement to win; and
(6) all sold and unsold tickets or certificates of participation are accounted for.
(c) An organization that is permitted under this section and authorized by the
Gambling Control Board to conduct raffles may conduct a raffle in conjunction with a wild
game or fish taking event. The wild game or fish must be legally taken under chapters 97A
to 97C, and rules adopted pursuant to those chapters. The organization may sell a combined
ticket for a single price for the event and raffle, provided that the combined ticket states
the amount of the price that applies to the wild game or fish event, and the amount that
applies to the raffle. All other provisions of sections 349.11 to 349.23 apply to the raffle.
(d) Methods of selecting winning entries from a raffle other than prescribed in rule
may be used with the prior written approval of the board.
new text begin
(e) For 50/50 or "share the pot" raffles conducted by a licensed organization in
conjunction with a professional or amateur sporting event, the winning entry may be
selected by use of a random number generator if, at the time of sale, the number contained
on the raffle ticket is captured by the point of sale system and electronically recorded
as an entry in the raffle.
new text end
Sec. 5.
Minnesota Statutes 2014, section 349.181, subdivision 2, is amended to read:
Subd. 2.
Gambling manager.
A gambling manager may not participate directly
or indirectly as a player in any lawful gambling conducted by deleted text begin thedeleted text end new text begin annew text end organization for
which the gambling manager is licensed.
Sec. 6.
Minnesota Statutes 2014, section 349.211, subdivision 1, is amended to read:
Subdivision 1.
Bingo.
Except as provided in subdivisions 1a and 2, prizes for a
single bingo game may not exceed deleted text begin $200deleted text end new text begin $500new text end except prizes for a cover-all game, which
may exceed deleted text begin $200deleted text end new text begin $500new text end if the aggregate value of all cover-all prizes in a bingo occasion
does not exceed deleted text begin $1,000deleted text end new text begin $2,000new text end . Total prizes awarded at a bingo occasion may not exceed
deleted text begin $2,800deleted text end new text begin $5,000new text end , unless a cover-all game is played in which case the limit is deleted text begin $3,800deleted text end new text begin $7,000new text end .
A prize may be determined based on the value of the bingo packet sold to the player. For
purposes of this subdivision, a cover-all game is one in which a player must cover all
spaces except a single free space to win and includes a game in which all odd or all even
numbers are designated by the organization as covered prior to the start of the game.
Sec. 7.
Minnesota Statutes 2014, section 349.213, subdivision 1, is amended to read:
Subdivision 1.
Local regulation.
(a) A statutory or home rule city or county has the
authority to adopt more stringent regulation of lawful gambling within its jurisdiction,
including the prohibition of lawful gambling.
(b) A statutory or home rule city or county may require a permit for the conduct
of gambling exempt from licensing under section 349.166. The fee for a permit issued
under section 349.166 may not exceed $100.
(c) The authority granted by this subdivision does not include the authority to require
a license or fee for a license or permit to conduct gambling by organizations, gambling
managers, gambling employees, or sales by distributors or linked bingo game providers
licensed by or registered with the board.
(d) The authority granted by this subdivision does not include the authority to require
an organization to make specific expenditures deleted text begin of more than ten percent per yeardeleted text end from its
net profits derived from lawful gambling.
(e) For the purposes of this subdivision, net profits are gross profits less amounts
expended for allowable expenses and paid in taxes assessed on lawful gambling.
(f) A statutory or home rule charter city or a county may not require an organization
conducting lawful gambling within its jurisdiction to make an expenditure to the city or
county as a condition to operate within that city or county, exceptdeleted text begin :
deleted text end
deleted text begin (1)deleted text end as authorized under section 349.16, subdivision 8, or 297E.02deleted text begin ; ordeleted text end new text begin .
new text end
deleted text begin
(2) by an ordinance requirement that such organizations must contribute ten percent
per year of their net profits derived from lawful gambling conducted at premises within
the city's or county's jurisdiction to a fund administered and regulated by the responsible
local unit of government without cost to such fund. The funds must be disbursed by the
local unit of government for (i) charitable contributions as defined in section 349.12,
subdivision 7a, or (ii) police, fire, and other emergency or public safety-related services,
equipment, and training, excluding pension obligations. A contribution made by an
organization is not considered an expenditure to the city or county nor a tax under section
297E.02, and is valid and lawful. A city or county receiving and making expenditures
authorized under this clause must by March 15 of each year file a report with the board, on
a form the board prescribes, that lists all such revenues collected, interest received on fund
balances, and expenditures for the previous calendar year.
deleted text end
(g) A statutory or home rule city or county may by ordinance require that a licensed
organization conducting lawful gambling within its jurisdiction expend all or a portion
of its expenditures for lawful purposes on lawful purposes conducted or located within
the city's or county's trade area. Such an ordinance must be limited to lawful purpose
expenditures of gross profits derived from lawful gambling conducted at premises within
the city's or county's jurisdiction, must define the city's or county's trade area, and must
specify the percentage of lawful purpose expenditures which must be expended within the
trade area. A trade area defined by a city under this subdivision must include each city and
township contiguous to the defining city.
(h) A more stringent regulation or prohibition of lawful gambling adopted by a
political subdivision under this subdivision must apply equally to all forms of lawful
gambling within the jurisdiction of the political subdivision, except a political subdivision
may prohibit the use of paddlewheels.