SF 1420

as introduced - 89th Legislature (2015 - 2016) Posted on 09/14/2015 01:53pm

A bill for an act
relating to lawful gambling; clarifying an exemption for certain raffles; amending
Minnesota Statutes 2014, section 349.166, subdivision 2.

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

Section 1.

Minnesota Statutes 2014, section 349.166, subdivision 2, is amended to read:

Subd. 2.

Exemptions.

(a) Lawful gambling, with the exception of linked bingo
games, may be conducted by an organization without a license and without complying
with sections 349.168, subdivisions 1 and 2; 349.17, subdivision 4; 349.18, subdivision 1;
and 349.19 if:

(1) the organization conducts lawful gambling on five or fewer days in a calendar year;

(2) the organization does not award more than $50,000 in prizes for lawful gambling
in a calendar year;

(3) the organization submits a board-prescribed application and pays a fee of $50 to
the board for each gambling occasion, and receives an exempt permit number from the
board. If the application is postmarked or received less than 30 days before the gambling
occasion, the fee is $100 for that application. The application must include the date and
location of the occasion, the types of lawful gambling to be conducted, and the prizes
to be awarded;

deleted text begin (4) the organization notifies the local government unit 30 days before the lawful
gambling occasion, or 60 days for an occasion held in a city of the first class;
deleted text end

deleted text begin (5) deleted text end new text begin (4) new text end the organization purchases all gambling equipment and supplies from a
licensed distributor; and

deleted text begin (6) deleted text end new text begin (5) new text end the organization reports to the board, on a single-page form prescribed by
the board, within 30 days of each gambling occasion, the gross receipts, prizes, expenses,
expenditures of net profits from the occasion, and the identification of the licensed
distributor from whom all gambling equipment was purchased.

(b) If the organization fails to file a timely report as required by paragraph (a), clause
(6), the board shall not issue any authorization, license, or permit to the organization to
conduct lawful gambling on an exempt, excluded, or licensed basis until the report has
been filed and the organization may be subject to penalty as determined by the board. The
board may refuse to issue any authorization, license, or permit if a report or application is
determined to be incomplete or knowingly contains false or inaccurate information.

(c) Merchandise prizes must be valued at their fair market value.

(d) Organizations that qualify to conduct exempt raffles under paragraph (a), are
exempt from section 349.173, paragraph (b), clause (2), if the raffle tickets are sold
only in combination with an organization's membership or a ticket for an organization's
membership dinner and are not included with any other raffle conducted under the exempt
permit. new text begin The organization may sell a combined ticket for a single price for the membership
or membership dinner, provided that the combined ticket states the amount of the price
that applies to the membership or membership dinner, and the amount that applies to
the raffle. The membership sold by the organization may be for the organization or the
organization's parent organization.
new text end

(e) Unused pull-tab and tipboard deals must be returned to the distributor within
seven working days after the end of the lawful gambling occasion. The distributor must
accept and pay a refund for all returns of unopened and undamaged deals returned under
this paragraph.

(f) The organization must maintain all required records of exempt gambling activity
for 3-1/2 years.