HF 3397

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to lawful gambling; making changes to expenditure restrictions;
modifying bingo games and prizes; making clarifying and technical changes
to lawful gambling; amending Minnesota Statutes 2006, section 349.213,
subdivisions 1, 3; Minnesota Statutes 2007 Supplement, sections 349.15,
subdivision 1; 349.17, subdivision 8; 349.211, subdivisions 2, 2a, 2c, 3, by
adding a subdivision.

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

Section 1.

Minnesota Statutes 2007 Supplement, section 349.15, subdivision 1, is
amended to read:

Subdivision 1.

Expenditure restrictions.

Gross profits from lawful gambling
may be expended only for lawful purposes or allowable expenses as authorized by the
membership of the conducting organization at a monthly meeting of the organization's
membership. Provided that no more than 70 percent of the gross profit from bingo, and
no more than 60 percent of the gross profit from other forms of lawful gambling, may
be expended biennially during the term of the license for allowable expenses related to
lawful gambling new text begin , except that for the period of July 1, 2008, to June 30, 2009, no more
than 75 percent of the gross profit from bingo, and no more than 65 percent of the gross
profit from other forms of lawful gambling, may be expended for allowable expenses
related to lawful gambling new text end . For licenses issued after June 30, 2006, compliance with this
subdivision will be measured on a biennial basis that is concurrent with the term of the
license. Compliance with this subdivision is a condition for the renewal of any license
beginning on July 1, 2008. For licenses renewed with an effective date between July 1,
2006, and June 30, 2008, an organization shall carry forward an amount equal to 15
percent of any positive allowable expense carryover amount. This balance must be used to
offset any future negative expense balance at the time of license renewal.

Sec. 2.

Minnesota Statutes 2007 Supplement, section 349.17, subdivision 8, is
amended to read:

Subd. 8.

Linked bingo games.

(a) A licensed organization may conduct or
participate in not more than two linked bingo games per occasion, one of which may be
a progressive game in which a portion of the prize is carried over from one occasion to
another until won by a player achieving a bingo within a predetermined amount of bingo
numbers called.

(b) Each participating licensed organization shall contribute to each prize awarded
in a linked bingo game in an amount not to exceed $300.

(c) new text begin An electronic bingo device as defined in section 349.12, subdivision 12a, may
be used for a linked bingo game.
new text end

new text begin (d) new text end The board may adopt rules to:

(1) specify the manner in which a linked bingo game must be played and how the
linked bingo prizes must be awarded;

(2) specify the records to be maintained by a linked bingo game provider;

(3) require the submission of periodic reports by the linked bingo game provider and
specify the content of the reports;

(4) establish the qualifications required to be licensed as a linked bingo game
provider; and

(5) any other matter involving the operation of a linked bingo game.

Sec. 3.

Minnesota Statutes 2007 Supplement, section 349.211, subdivision 2, is
amended to read:

Subd. 2.

Progressive bingo games.

Except as provided in subdivision 1a, a prize
of up to $2,000 may be awarded for a progressive bingo game, including a cover-all
game. The prize for a progressive bingo game may start at $500 and be increased by
up to $100 for each occasion during which the progressive bingo game is played. A
consolation prize of up to $200 for a progressive bingo game may be awarded in each
occasion during which the progressive bingo game is played and the accumulated prize is
not won. deleted text begin The total amount awarded in progressive bingo game prizes in any calendar year
may not exceed $48,000.
deleted text end

Sec. 4.

Minnesota Statutes 2007 Supplement, section 349.211, subdivision 2a, is
amended to read:

Subd. 2a.

Pull-tab prizes.

The maximum prize which may be awarded for any
single pull-tab is $599 new text begin for $2 and under pull-tabs, $899 for $3 pull-tabs, $1,199 for
$4 pull-tabs, and $1,499 for $5 pull-tabs new text end , not including any cumulative or carryover
prizes. Cumulative or carryover prizes in a pull-tab game shall not exceed $2,500. An
organization may not sell any pull-tab for more than $5.

Sec. 5.

Minnesota Statutes 2007 Supplement, section 349.211, subdivision 2c, is
amended to read:

Subd. 2c.

Tipboard prizes.

The maximum prize which may be awarded for a
tipboard ticket is $599 new text begin for $2 and under tipboard tickets, $899 for $3 tipboard tickets,
$1,199 for $4 tipboard tickets, and $1,499 for $5 tipboard tickets new text end , not including any
cumulative or carryover prizes. Cumulative or carryover prizes in tipboard games shall
not exceed $2,500. An organization may not sell any tipboard new text begin ticket new text end for more than $5.

Sec. 6.

Minnesota Statutes 2007 Supplement, section 349.211, is amended by adding a
subdivision to read:

new text begin Subd. 2d. new text end

new text begin Raffle prizes. new text end

new text begin The board may not impose an annual limit on the value of
raffle prizes awarded by licensed organizations but the total value of an individual raffle
prize may not exceed $50,000.
new text end

Sec. 7.

Minnesota Statutes 2007 Supplement, section 349.211, subdivision 3, is
amended to read:

Subd. 3.

Other gambling.

The board by rule shall establish a schedule of prize
limits for all other forms of gambling consistent with the purposes set out in section
349.11. The schedule may include daily deleted text begin and annual deleted text end prize limits and prize limits for each
game, raffle or operation of a gambling device.

Sec. 8.

Minnesota Statutes 2006, 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, and 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. 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. The authority
granted by this subdivision does not include the authority to require an organization to
make specific expenditures of more than deleted text begin ten deleted text end new text begin five new text end percent per year from its net profits
derived from lawful gambling. 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. 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, except as authorized
under section 349.16, subdivision 8, or 297E.02; provided, however, that an ordinance
requirement that such organizations must contribute deleted text begin ten deleted text end new text begin five new text end 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, for disbursement by the responsible local unit of
government of the receipts 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, 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 making expenditures authorized under this paragraph 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 and new text begin actual new text end expenditures for the previous calendar year.

(b) 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.

(c) 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.

Sec. 9.

Minnesota Statutes 2006, section 349.213, subdivision 3, is amended to read:

Subd. 3.

Local gambling tax.

A statutory or home rule charter city that has one
or more licensed organizations operating lawful gambling, and a county that has one or
more licensed organizations outside incorporated areas operating lawful gambling, may
impose a local gambling tax on each licensed organization within the city's or county's
jurisdiction. The tax may be imposed only if the amount to be received by the city or
county is necessary to cover the costs incurred by the city or county to regulate lawful
gambling. The tax imposed by this subdivision may not exceed three percent per year new text begin for
cities of the first class or one percent per year for all other cities or counties new text end of the gross
receipts of a licensed organization from all lawful gambling less prizes actually paid out
by the organization. A city or county may not use money collected under this subdivision
for any purpose other than to regulate lawful gambling. All documents pertaining to site
inspections, fines, penalties, or other corrective action involving local lawful gambling
regulation must be shared with the board within 30 days of filing at the city or county of
jurisdiction. A tax imposed under this subdivision is in lieu of all other local taxes and
local investigation fees on lawful gambling. A city or county that imposes a tax under this
subdivision shall annually, by March 15, file a report with the board in a form prescribed
by the board showing (1) the amount of revenue produced by the tax during the preceding
calendar year, and (2) the new text begin actual new text end use of the proceeds of the tax.

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 9 are effective the day following final enactment.
new text end