1.1                          A bill for an act 
  1.2             relating to gambling; making technical amendments to 
  1.3             eliminate references to teleracing facilities; 
  1.4             regulating testing facilities for the testing of 
  1.5             gambling devices; regulating bingo and lawful purpose 
  1.6             expenditures, and credit and sales to delinquent 
  1.7             organizations; providing for contributions to certain 
  1.8             compulsive gambling programs; amending Minnesota 
  1.9             Statutes 1994, sections 240.01, subdivisions 18 and 
  1.10            23; 240.10; 240.19; 240.23; 240.27, subdivisions 2, 3, 
  1.11            4, and 5; 299L.01, subdivision 1; 299L.03, subdivision 
  1.12            1; 299L.05; 299L.07, subdivisions 1, 2, 4, 5, 6, and 
  1.13            by adding a subdivision; 349.12, subdivision 25, and 
  1.14            by adding a subdivision; 349.162, subdivision 1; 
  1.15            349.17, subdivision 1; 349.191, subdivision 1a; and 
  1.16            349.211, subdivision 1; proposing coding for new law 
  1.17            in Minnesota Statutes, chapter 299L; repealing 
  1.18            Minnesota Statutes 1994, section 240.01, subdivisions 
  1.19            17 and 21. 
  1.20  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.21     Section 1.  Minnesota Statutes 1994, section 240.01, 
  1.22  subdivision 18, is amended to read: 
  1.23     Subd. 18.  [ON-TRACK PARI-MUTUEL BETTING.] "On-track 
  1.24  pari-mutuel betting" means wagering conducted at a licensed 
  1.25  racetrack, or at a class E licensed facility whose wagering 
  1.26  system is electronically linked to a licensed racetrack. 
  1.27     Sec. 2.  Minnesota Statutes 1994, section 240.01, 
  1.28  subdivision 23, is amended to read: 
  1.29     Subd. 23.  [FULL RACING CARD.] "Full racing card" means 
  1.30  three or more races that are:  (1) part of a horse racing 
  1.31  program being conducted at a racetrack; and (2) being simulcast 
  1.32  or telerace simulcast at a licensed racetrack or teleracing 
  2.1   facility. 
  2.2      Sec. 3.  Minnesota Statutes 1994, section 240.10, is 
  2.3   amended to read: 
  2.4      240.10 [LICENSE FEES.] 
  2.5      The fee for a class A license is $10,000 per year.  The fee 
  2.6   for a class B license is $100 for each assigned racing day on 
  2.7   which racing is actually conducted, and $50 for each day on 
  2.8   which simulcasting is authorized and actually takes place.  The 
  2.9   fee for a class D license is $50 for each assigned racing day on 
  2.10  which racing is actually conducted.  The fee for a class E 
  2.11  license is $1,000 per year.  Fees imposed on class B and class D 
  2.12  licenses must be paid to the commission at a time and in a 
  2.13  manner as provided by rule of the commission.  
  2.14     The commission shall by rule establish an annual license 
  2.15  fee for each occupation it licenses under section 240.08 but no 
  2.16  annual fee for a class C license may exceed $100.  
  2.17     License fee payments received must be paid by the 
  2.18  commission to the state treasurer for deposit in the general 
  2.19  fund. 
  2.20     Sec. 4.  Minnesota Statutes 1994, section 240.19, is 
  2.21  amended to read: 
  2.22     240.19 [CONTRACTS.] 
  2.23     The commission shall by rule require that all contracts 
  2.24  entered into by a class A, class B, or class D, or class E 
  2.25  licensee for the provision of goods or services, including 
  2.26  concessions contracts, be subject to commission approval.  The 
  2.27  rules must require that the contract include an affirmative 
  2.28  action plan establishing goals and timetables consistent with 
  2.29  the Minnesota Human Rights Act, chapter 363.  The rules may also 
  2.30  establish goals to provide economic opportunity for 
  2.31  disadvantaged and emerging small businesses, racial minorities, 
  2.32  women, and disabled individuals.  The commission may require a 
  2.33  contract holder to submit to it documents and records the 
  2.34  commission deems necessary to evaluate the contract.  
  2.35     Sec. 5.  Minnesota Statutes 1994, section 240.23, is 
  2.36  amended to read: 
  3.1      240.23 [RULEMAKING AUTHORITY.] 
  3.2      The commission has the authority, in addition to all other 
  3.3   rulemaking authority granted elsewhere in this chapter to 
  3.4   promulgate rules governing:  
  3.5      (a) the conduct of horse races held at licensed racetracks 
  3.6   in Minnesota, including but not limited to the rules of racing, 
  3.7   standards of entry, operation of claiming races, filing and 
  3.8   handling of objections, carrying of weights, and declaration of 
  3.9   official results; 
  3.10     (b) wire communications between the premises of a licensed 
  3.11  racetrack and any place outside the premises; 
  3.12     (c) information on horse races which is sold on the 
  3.13  premises of a licensed racetrack; 
  3.14     (d) liability insurance which it may require of all class 
  3.15  A, class B, and class D, and class E licensees; 
  3.16     (e) the auditing of the books and records of a licensee by 
  3.17  an auditor employed or appointed by the commission; 
  3.18     (f) emergency action plans maintained by licensed 
  3.19  racetracks and their periodic review; 
  3.20     (g) safety, security, and sanitation of stabling facilities 
  3.21  at licensed racetracks; 
  3.22     (h) entry fees and other funds received by a licensee in 
  3.23  the course of conducting racing which the commission determines 
  3.24  must be placed in escrow accounts; 
  3.25     (i) affirmative action in employment and contracting by 
  3.26  class A, class B, and class D licensees; and 
  3.27     (j) the operation of teleracing facilities; and 
  3.28     (k) any other aspect of horse racing or pari-mutuel betting 
  3.29  which in its opinion affects the integrity of racing or the 
  3.30  public health, welfare, or safety.  
  3.31     Rules of the commission are subject to chapter 14, the 
  3.32  Administrative Procedure Act. 
  3.33     Sec. 6.  Minnesota Statutes 1994, section 240.27, 
  3.34  subdivision 2, is amended to read: 
  3.35     Subd. 2.  [HEARING; APPEAL.] An order to exclude a person 
  3.36  from any or all licensed racetracks or licensed teleracing 
  4.1   facilities in the state must be made by the commission at a 
  4.2   public hearing of which the person to be excluded must have at 
  4.3   least five days' notice.  If present at the hearing, the person 
  4.4   must be permitted to show cause why the exclusion should not be 
  4.5   ordered.  An appeal of the order may be made in the same manner 
  4.6   as other appeals under section 240.20. 
  4.7      Sec. 7.  Minnesota Statutes 1994, section 240.27, 
  4.8   subdivision 3, is amended to read: 
  4.9      Subd. 3.  [NOTICE TO RACETRACKS.] Upon issuing an order 
  4.10  excluding a person from any or all licensed racetracks or 
  4.11  licensed teleracing facilities, the commission shall send a copy 
  4.12  of the order to the excluded person and to all racetracks or 
  4.13  teleracing facilities named in it, along with other information 
  4.14  as it deems necessary to permit compliance with the order.  
  4.15     Sec. 8.  Minnesota Statutes 1994, section 240.27, 
  4.16  subdivision 4, is amended to read: 
  4.17     Subd. 4.  [PROHIBITIONS.] It is a gross misdemeanor for a 
  4.18  person named in an exclusion order to enter, attempt to enter, 
  4.19  or be on the premises of a racetrack or a teleracing facility 
  4.20  named in the order while it is in effect, and for a person 
  4.21  licensed to conduct racing or operate a racetrack or a 
  4.22  teleracing facility knowingly to permit an excluded person to 
  4.23  enter or be on the premises.  
  4.24     Sec. 9.  Minnesota Statutes 1994, section 240.27, 
  4.25  subdivision 5, is amended to read: 
  4.26     Subd. 5.  [EXCLUSIONS BY RACETRACK.] The holder of a 
  4.27  license to conduct racing or operate a teleracing facility may 
  4.28  eject and exclude from its premises any licensee or any other 
  4.29  person who is in violation of any state law or commission rule 
  4.30  or order or who is a threat to racing integrity or the public 
  4.31  safety.  A person so excluded from racetrack premises or 
  4.32  teleracing facility may appeal the exclusion to the commission 
  4.33  and must be given a public hearing on the appeal upon request.  
  4.34  At the hearing the person must be given the opportunity to show 
  4.35  cause why the exclusion should not have been ordered.  If the 
  4.36  commission after the hearing finds that the integrity of racing 
  5.1   and the public safety do not justify the exclusion, it shall 
  5.2   order the racetrack or teleracing facility making the exclusion 
  5.3   to reinstate or readmit the person.  An appeal of a commission 
  5.4   order upholding the exclusion is governed by section 240.20. 
  5.5      Sec. 10.  Minnesota Statutes 1994, section 299L.01, 
  5.6   subdivision 1, is amended to read: 
  5.7      Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
  5.8   chapter, the terms defined in this subdivision have the meanings 
  5.9   given them. 
  5.10     (b) "Division" means the division of gambling enforcement.  
  5.11     (c) "Commissioner" means the commissioner of public safety. 
  5.12     (d) "Director" means the director of gambling enforcement.  
  5.13     (e) "Manufacturer" means a person who assembles from raw 
  5.14  materials or subparts a gambling device for sale or use in 
  5.15  Minnesota. 
  5.16     (f) "Distributor" means a person who sells, offers to sell, 
  5.17  or otherwise provides a gambling device to a person in Minnesota.
  5.18     (g) "Used gambling device" means a gambling device five or 
  5.19  more years old from the date of manufacture. 
  5.20     (h) "Test" means the process of examining a gambling device 
  5.21  to determine its characteristics or compliance with the 
  5.22  established requirements of any jurisdiction. 
  5.23     (i) "Testing facility" means a person in Minnesota who is 
  5.24  engaged in the testing of gambling devices for use in any 
  5.25  jurisdiction. 
  5.26     Sec. 11.  Minnesota Statutes 1994, section 299L.03, 
  5.27  subdivision 1, is amended to read: 
  5.28     Subdivision 1.  [INSPECTIONS; ACCESS.] In conducting any 
  5.29  inspection authorized under this chapter or chapter 240, 349, or 
  5.30  349A, the employees of the division of gambling enforcement have 
  5.31  free and open access to all parts of the regulated business 
  5.32  premises, and may conduct the inspection at any reasonable time 
  5.33  without notice and without a search warrant.  For purposes of 
  5.34  this subdivision, "regulated business premises" means premises 
  5.35  where: 
  5.36     (1) lawful gambling is conducted by an organization 
  6.1   licensed under chapter 349 or by an organization exempt from 
  6.2   licensing under section 349.166; 
  6.3      (2) gambling equipment is manufactured, sold, distributed, 
  6.4   or serviced by a manufacturer or distributor licensed under 
  6.5   chapter 349; 
  6.6      (3) records required to be maintained under chapter 240, 
  6.7   297E, 349, or 349A are prepared or retained; 
  6.8      (4) lottery tickets are sold by a lottery retailer under 
  6.9   chapter 340A; 
  6.10     (5) races are conducted by a person licensed under chapter 
  6.11  240; or 
  6.12     (6) gambling devices are manufactured or, distributed, or 
  6.13  tested, including places of storage under section 299L.07. 
  6.14     Sec. 12.  Minnesota Statutes 1994, section 299L.05, is 
  6.15  amended to read: 
  6.16     299L.05 [GAMBLING VIOLATIONS; RESTRICTIONS ON FURTHER 
  6.17  ACTIVITY.] 
  6.18     An owner of an establishment is prohibited from having 
  6.19  lawful gambling under chapter 349 conducted on the premises, or 
  6.20  selling any lottery tickets under chapter 349A, or having a 
  6.21  video game of chance as defined under section 349.50 located on 
  6.22  the premises, if a person was convicted of violating section 
  6.23  609.76, subdivision 1, clause (7), or 609.76, subdivision (2), 
  6.24  for an activity occurring on the owner's premises. 
  6.25     Sec. 13.  Minnesota Statutes 1994, section 299L.07, 
  6.26  subdivision 1, is amended to read: 
  6.27     Subdivision 1.  [LICENSE REQUIRED.] Except as provided in 
  6.28  subdivision 2, a person may not (1) manufacture, sell, offer to 
  6.29  sell, lease, rent, or otherwise provide, in whole or in part, a 
  6.30  gambling device as defined in sections 349.30, subdivision 2, 
  6.31  and 609.75, subdivision 4, or (2) operate a testing facility, 
  6.32  without first obtaining a license under this section.  
  6.33     Sec. 14.  Minnesota Statutes 1994, section 299L.07, 
  6.34  subdivision 2, is amended to read: 
  6.35     Subd. 2.  [EXCLUSIONS.] Notwithstanding subdivision 1, a 
  6.36  gambling device: 
  7.1      (1) may be manufactured without a license as provided in 
  7.2   section 349.40; and 
  7.3      (2) may be sold by a person who is not licensed under this 
  7.4   section, if the person (i) is not engaged in the trade or 
  7.5   business of selling gambling devices, and (ii) does not sell 
  7.6   more than one gambling device in any calendar year; 
  7.7      (2) may be possessed by a person not licensed under this 
  7.8   section if the person holds a permit issued under section 
  7.9   299L.08; and 
  7.10     (3) may be possessed by a state agency, with the written 
  7.11  authorization of the director, for display or evaluation 
  7.12  purposes only and not for the conduct of gambling.  
  7.13     Sec. 15.  Minnesota Statutes 1994, section 299L.07, is 
  7.14  amended by adding a subdivision to read: 
  7.15     Subd. 2b.  [TESTING FACILITIES.] (a) A person holding a 
  7.16  license to operate a testing facility may possess a gambling 
  7.17  device only for the purpose of performing tests on the gambling 
  7.18  device. 
  7.19     (b) No person may hold a license to operate a testing 
  7.20  facility under this section who is licensed as a manufacturer or 
  7.21  distributor of gambling devices under this section or as a 
  7.22  manufacturer or distributor of gambling equipment under chapter 
  7.23  349. 
  7.24     Sec. 16.  Minnesota Statutes 1994, section 299L.07, 
  7.25  subdivision 4, is amended to read: 
  7.26     Subd. 4.  [APPLICATION.] An application for a 
  7.27  manufacturer's or distributor's license under this section must 
  7.28  be on a form prescribed by the commissioner and must, at a 
  7.29  minimum, contain: 
  7.30     (1) the name and address of the applicant and, if it is a 
  7.31  corporation, the names of all officers, directors, and 
  7.32  shareholders with a financial interest of five percent or more; 
  7.33     (2) the names and addresses of any holding corporation, 
  7.34  subsidiary, or affiliate of the applicant, without regard to 
  7.35  whether the holding corporation, subsidiary, or affiliate does 
  7.36  business in Minnesota; and 
  8.1      (3) if the applicant does not maintain a Minnesota office, 
  8.2   an irrevocable consent statement signed by the applicant, 
  8.3   stating that suits and actions relating to the subject matter of 
  8.4   the application or acts of omissions arising from it may be 
  8.5   commenced against the applicant in a court of competent 
  8.6   jurisdiction in this state by service on the secretary of state 
  8.7   of any summons, process, or pleadings authorized by the laws of 
  8.8   this state.  If any summons, process, or pleading is served upon 
  8.9   the secretary of state, it must be by duplicate copies.  One 
  8.10  copy must be retained in the office of the secretary of state 
  8.11  and the other copy must be forwarded immediately by certified 
  8.12  mail to the address of the applicant, as shown on the 
  8.13  application.  
  8.14     Sec. 17.  Minnesota Statutes 1994, section 299L.07, 
  8.15  subdivision 5, is amended to read: 
  8.16     Subd. 5.  [INVESTIGATION.] Before a manufacturer's or 
  8.17  distributor's license under this section is granted, the 
  8.18  director may conduct a background and financial investigation of 
  8.19  the applicant, including the applicant's sources of financing.  
  8.20  The director may, or shall when required by law, require that 
  8.21  fingerprints be taken and the director may forward the 
  8.22  fingerprints to the Federal Bureau of Investigation for a 
  8.23  national criminal history check.  The director may charge an 
  8.24  investigation fee to cover the cost of the investigation. 
  8.25     Sec. 18.  Minnesota Statutes 1994, section 299L.07, 
  8.26  subdivision 6, is amended to read: 
  8.27     Subd. 6.  [LICENSE FEES.] (a) A license issued under this 
  8.28  section is valid for one year. 
  8.29     (b) For a person who distributes 100 or fewer used gambling 
  8.30  devices per year, the fee is $1,500.  For a person who 
  8.31  distributes more than 100 used gambling devices per year, the 
  8.32  fee is $2,000.  
  8.33     (c) For a person who manufactures or distributes 100 or 
  8.34  fewer new, or new and used gambling devices in a year, the fee 
  8.35  is $5,000.  For a person who manufactures or distributes more 
  8.36  than 100 new, or new and used gambling devices in a year, the 
  9.1   fee is $7,500. 
  9.2      (d) For a testing facility the fee is $5,000. 
  9.3      Sec. 19.  [299L.08] [TEMPORARY POSSESSION; PERMIT.] 
  9.4      Subdivision 1.  [PERMIT AUTHORIZED.] The director may issue 
  9.5   a temporary permit for a person to possess a gambling device for 
  9.6   the purpose of displaying the gambling device at a trade show, 
  9.7   convention, or other event where gambling devices are displayed. 
  9.8      Subd. 2.  [APPLICATION; FEE.] An application for a 
  9.9   temporary permit under this section must contain: 
  9.10     (1) the applicant's name, address, and telephone number; 
  9.11     (2) the name, date, and location of the event where the 
  9.12  gambling device will be displayed; 
  9.13     (3) the method or methods by which the gambling device will 
  9.14  be transported to the event, including the name of all carriers 
  9.15  performing the transportation and the date of expected shipment; 
  9.16     (4) the individual or individuals who will be responsible 
  9.17  for the gambling device while it is in Minnesota; 
  9.18     (5) the type, make, model, and serial number of the device; 
  9.19     (6) the location where the device will be stored in 
  9.20  Minnesota while not at the event location; 
  9.21     (7) the date on which the device will be transported 
  9.22  outside Minnesota; 
  9.23     (8) evidence satisfactory to the director that the 
  9.24  applicant is registered and in compliance with United States 
  9.25  Code, title 15, sections 1171 to 1178; and 
  9.26     (9) other information the director deems necessary. 
  9.27     The fee for a permit under this section is $100. 
  9.28     Subd. 3.  [TERMS.] A permit under this section authorizes 
  9.29  possession of a gambling device only during the period and for 
  9.30  the event named in the permit.  The permit authorizes the 
  9.31  possession of a gambling device for display, educational, and 
  9.32  information purposes only, and does not authorize the conduct of 
  9.33  any gambling.  The permit may not extend for more than 72 hours 
  9.34  beyond the end of the event named in the permit. 
  9.35     Subd. 4.  [INSPECTION.] The director may conduct 
  9.36  inspections of events where gambling devices are displayed to 
 10.1   ensure compliance with this section and other laws relating to 
 10.2   gambling. 
 10.3      Sec. 20.  Minnesota Statutes 1994, section 349.12, is 
 10.4   amended by adding a subdivision to read: 
 10.5      Subd. 15a.  [FESTIVAL ORGANIZATION.] "Festival 
 10.6   organization" is an organization conducting a community festival 
 10.7   that is exempt from the payment of federal income taxes under 
 10.8   section 501(c)(4) of the Internal Revenue Code. 
 10.9      Sec. 21.  Minnesota Statutes 1994, section 349.12, 
 10.10  subdivision 25, is amended to read: 
 10.11     Subd. 25.  [LAWFUL PURPOSE.] (a) "Lawful purpose" means one 
 10.12  or more of the following:  
 10.13     (1) any expenditure by or contribution to a 501(c)(3) or 
 10.14  festival organization, as defined in subdivision 15a, provided 
 10.15  that the organization and expenditure or contribution are in 
 10.16  conformity with standards prescribed by the board under section 
 10.17  349.154, which standards must apply to both types of 
 10.18  organizations in the same manner and to the same extent; 
 10.19     (2) a contribution to an individual or family suffering 
 10.20  from poverty, homelessness, or physical or mental disability, 
 10.21  which is used to relieve the effects of that poverty, 
 10.22  homelessness, or disability; 
 10.23     (3) a contribution to an individual for treatment for 
 10.24  delayed posttraumatic stress syndrome or a contribution to a 
 10.25  recognized program recognized by the Minnesota department of 
 10.26  human services for the education, prevention, or treatment of 
 10.27  compulsive gambling on behalf of an individual who is a 
 10.28  compulsive gambler; 
 10.29     (4) a contribution to or expenditure on a public or private 
 10.30  nonprofit educational institution registered with or accredited 
 10.31  by this state or any other state; 
 10.32     (5) a contribution to a scholarship fund for defraying the 
 10.33  cost of education to individuals where the funds are awarded 
 10.34  through an open and fair selection process; 
 10.35     (6) activities by an organization or a government entity 
 10.36  which recognize humanitarian or military service to the United 
 11.1   States, the state of Minnesota, or a community, subject to rules 
 11.2   of the board, provided that the rules must not include mileage 
 11.3   reimbursements in the computation of the per occasion 
 11.4   reimbursement limit and must impose no aggregate annual limit on 
 11.5   the amount of reasonable and necessary expenditures made to 
 11.6   support: 
 11.7      (i) members of a military marching or colorguard unit for 
 11.8   activities conducted within the state; or 
 11.9      (ii) members of an organization solely for services 
 11.10  performed by the members at funeral services; 
 11.11     (7) recreational, community, and athletic facilities and 
 11.12  activities intended primarily for persons under age 21, provided 
 11.13  that such facilities and activities do not discriminate on the 
 11.14  basis of gender and the organization complies with section 
 11.15  349.154; 
 11.16     (8) payment of local taxes authorized under this chapter, 
 11.17  taxes imposed by the United States on receipts from lawful 
 11.18  gambling, the taxes imposed by section 297E.02, subdivisions 1, 
 11.19  4, 5, and 6, and the tax imposed on unrelated business income by 
 11.20  section 290.05, subdivision 3; 
 11.21     (9) payment of real estate taxes and assessments on 
 11.22  permitted gambling premises wholly owned by the licensed 
 11.23  organization paying the taxes, not to exceed: 
 11.24     (i) the amount which an organization may expend under board 
 11.25  rule on rent for premises used for bingo, the amount that an 
 11.26  organization may expend under board rules on rent for bingo; or 
 11.27  and 
 11.28     (ii) $15,000 $35,000 per year for premises used for other 
 11.29  forms of lawful gambling; 
 11.30     (10) a contribution to the United States, this state or any 
 11.31  of its political subdivisions, or any agency or instrumentality 
 11.32  thereof other than a direct contribution to a law enforcement or 
 11.33  prosecutorial agency; 
 11.34     (11) a contribution to or expenditure by a nonprofit 
 11.35  organization which is a church or body of communicants gathered 
 11.36  in common membership for mutual support and edification in 
 12.1   piety, worship, or religious observances; 
 12.2      (12) payment of one-half of the reasonable costs of an 
 12.3   audit required in section 297E.06, subdivision 4; 
 12.4      (13) a contribution to or expenditure on a wildlife 
 12.5   management project that benefits the public at-large, provided 
 12.6   that the state agency with authority over that wildlife 
 12.7   management project approves the project before the contribution 
 12.8   or expenditure is made; or 
 12.9      (14) expenditures, approved by the commissioner of natural 
 12.10  resources, by an organization for grooming and maintaining 
 12.11  snowmobile trails that are (1) grant-in-aid trails established 
 12.12  under section 116J.406, or (2) other trails open to public use, 
 12.13  including purchase or lease of equipment for this purpose. 
 12.14     (b) Notwithstanding paragraph (a), "lawful purpose" does 
 12.15  not include: 
 12.16     (1) any expenditure made or incurred for the purpose of 
 12.17  influencing the nomination or election of a candidate for public 
 12.18  office or for the purpose of promoting or defeating a ballot 
 12.19  question; 
 12.20     (2) any activity intended to influence an election or a 
 12.21  governmental decision-making process; 
 12.22     (3) the erection, acquisition, improvement, expansion, 
 12.23  repair, or maintenance of real property or capital assets owned 
 12.24  or leased by an organization, unless the board has first 
 12.25  specifically authorized the expenditures after finding that (i) 
 12.26  the real property or capital assets will be used exclusively for 
 12.27  one or more of the purposes in paragraph (a); (ii) with respect 
 12.28  to expenditures for repair or maintenance only, that the 
 12.29  property is or will be used extensively as a meeting place or 
 12.30  event location by other nonprofit organizations or community or 
 12.31  service groups and that no rental fee is charged for the use; 
 12.32  (iii) with respect to expenditures, including a mortgage payment 
 12.33  or other debt service payment, for erection or acquisition only, 
 12.34  that the erection or acquisition is necessary to replace with a 
 12.35  comparable building, a building owned by the organization and 
 12.36  destroyed or made uninhabitable by fire or natural disaster, 
 13.1   provided that the expenditure may be only for that part of the 
 13.2   replacement cost not reimbursed by insurance; or (iv) with 
 13.3   respect to expenditures, including a mortgage payment or other 
 13.4   debt service payment, for erection or acquisition only, that the 
 13.5   erection or acquisition is necessary to replace with a 
 13.6   comparable building a building owned by the organization that 
 13.7   was acquired from the organization by eminent domain or sold by 
 13.8   the organization to a purchaser that the organization reasonably 
 13.9   believed would otherwise have acquired the building by eminent 
 13.10  domain, provided that the expenditure may be only for that part 
 13.11  of the replacement cost that exceeds the compensation received 
 13.12  by the organization for the building being replaced; 
 13.13     (4) an expenditure by an organization which is a 
 13.14  contribution to a parent organization, foundation, or affiliate 
 13.15  of the contributing organization, if the parent organization, 
 13.16  foundation, or affiliate has provided to the contributing 
 13.17  organization within one year of the contribution any money, 
 13.18  grants, property, or other thing of value; 
 13.19     (5) a contribution by a licensed organization to another 
 13.20  licensed organization unless the board has specifically 
 13.21  authorized the contribution.  The board must authorize such a 
 13.22  contribution when requested to do so by the contributing 
 13.23  organization unless it makes an affirmative finding that the 
 13.24  contribution will not be used by the recipient organization for 
 13.25  one or more of the purposes in paragraph (a); or 
 13.26     (6) a contribution to a statutory or home rule charter 
 13.27  city, county, or town by a licensed organization with the 
 13.28  knowledge that the governmental unit intends to use the 
 13.29  contribution for a pension or retirement fund. 
 13.30     Sec. 22.  Minnesota Statutes 1994, section 349.162, 
 13.31  subdivision 1, is amended to read: 
 13.32     Subdivision 1.  [STAMP REQUIRED.] (a) A distributor may not 
 13.33  sell, transfer, furnish, or otherwise provide to a person, and 
 13.34  no person may purchase, borrow, accept, or acquire from a 
 13.35  distributor gambling equipment for use within the state unless 
 13.36  the equipment has been registered with the board and has a 
 14.1   registration stamp affixed, except for gambling equipment not 
 14.2   stamped by the manufacturer pursuant to section 349.163, 
 14.3   subdivision 5 or 8.  The board shall charge a fee of five cents 
 14.4   for each stamp.  Each stamp must bear a registration number 
 14.5   assigned by the board.  A distributor or manufacturer is 
 14.6   entitled to a refund for unused registration stamps and 
 14.7   replacement for registration stamps which are defective or 
 14.8   canceled by the distributor or manufacturer. 
 14.9      (b) A manufacturer must return all unused registration 
 14.10  stamps in its possession to the board by February 1, 1995.  No 
 14.11  manufacturer may possess unaffixed registration stamps after 
 14.12  February 1, 1995. 
 14.13     (c) After February 1, 1996, no person may possess any 
 14.14  unplayed pull-tab or tipboard deals with a registration stamp 
 14.15  affixed to the flare or any unplayed paddleticket cards with a 
 14.16  registration stamp affixed to the master flare.  This paragraph 
 14.17  does not apply to unplayed pull-tab or tipboard deals with a 
 14.18  registration stamp affixed to the flare, or to unplayed 
 14.19  paddleticket cards with a registration stamp affixed to the 
 14.20  master flare, if the deals or cards are identified on a list of 
 14.21  existing inventory submitted by a licensed organization or a 
 14.22  licensed distributor, in a format prescribed by the commissioner 
 14.23  of revenue, to the commissioner of revenue on or before February 
 14.24  1, 1996.  Gambling equipment kept in violation of this paragraph 
 14.25  is contraband under section 349.2125. 
 14.26     Sec. 23.  Minnesota Statutes 1994, section 349.17, 
 14.27  subdivision 1, is amended to read: 
 14.28     Subdivision 1.  [BINGO OCCASIONS.] Not more than seven ten 
 14.29  bingo occasions each week may be conducted by an organization.  
 14.30  At least 15 bingo games must be held at each occasion and a 
 14.31  bingo occasion must continue for at least 1-1/2 hours but not 
 14.32  more than four consecutive hours. 
 14.33     Sec. 24.  Minnesota Statutes 1994, section 349.191, 
 14.34  subdivision 1a, is amended to read: 
 14.35     Subd. 1a.  [CREDIT AND SALES TO DELINQUENT ORGANIZATIONS.] 
 14.36  (a) If a distributor does not receive payment in full from an 
 15.1   organization within 30 35 days of the delivery of gambling 
 15.2   equipment, the distributor must notify the board in writing of 
 15.3   the delinquency. 
 15.4      (b) If a distributor who has notified the board under 
 15.5   paragraph (a) has not received payment in full from the 
 15.6   organization within 60 days of the notification under paragraph 
 15.7   (a), the distributor must notify the board of the continuing 
 15.8   delinquency. 
 15.9      (c) On receipt of a notice under paragraph (a), the board 
 15.10  shall order all distributors that until further notice from the 
 15.11  board, they may sell gambling equipment to the delinquent 
 15.12  organizations only on a cash basis with no credit extended.  On 
 15.13  receipt of a notice under paragraph (b), the board shall order 
 15.14  all distributors not to sell any gambling equipment to the 
 15.15  delinquent organization. 
 15.16     (d) No distributor may extend credit or sell gambling 
 15.17  equipment to an organization in violation of an order under 
 15.18  paragraph (c) until the board has authorized such credit or sale.
 15.19     Sec. 25.  Minnesota Statutes 1994, section 349.211, 
 15.20  subdivision 1, is amended to read: 
 15.21     Subdivision 1.  [BINGO.] Except as provided in subdivision 
 15.22  2, prizes for a single bingo game may not exceed $100 except 
 15.23  prizes for a cover-all game, which may exceed $100 if the 
 15.24  aggregate value of all cover-all prizes in a bingo occasion does 
 15.25  not exceed $1,000.  Total prizes awarded at a bingo occasion may 
 15.26  not exceed $2,500, unless a cover-all game is played in which 
 15.27  case the limit is $3,500.  A prize may be determined based on 
 15.28  the value of the bingo packet sold to the player.  For purposes 
 15.29  of this subdivision, a cover-all game is one in which a player 
 15.30  must cover all spaces except a single free space to win. 
 15.31     Sec. 26.  [REPEALER.] 
 15.32     Minnesota Statutes 1994, section 240.01, subdivisions 17, 
 15.33  20, and 21, are repealed. 
 15.34     Sec. 27.  [EFFECTIVE DATE.] 
 15.35     Sections 1 to 26 are effective the day following final 
 15.36  enactment.