1.1                          A bill for an act
  1.2             relating to lawful gambling; increasing percentages of 
  1.3             gross profit from lawful gambling that may be expended 
  1.4             on expenses directly related to lawful gambling; 
  1.5             placing restrictions on rules of the gambling control 
  1.6             board relating to illegal gambling on premises where 
  1.7             lawful gambling is permitted; removing limits on 
  1.8             number of paddletickets that may be included in a 
  1.9             sealed grouping; removing certain restrictions on 
  1.10            bingo prizes; amending Minnesota Statutes 1996, 
  1.11            sections 349.15, subdivision 1; 349.151, subdivision 
  1.12            13; 349.163, subdivision 8; and 349.211, subdivisions 
  1.13            1 and 2. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1996, section 349.15, 
  1.16  subdivision 1, is amended to read: 
  1.17     Subdivision 1.  [EXPENDITURE RESTRICTIONS.] Gross profits 
  1.18  from lawful gambling may be expended only for lawful purposes or 
  1.19  allowable expenses as authorized by the membership of the 
  1.20  conducting organization at a monthly meeting of the 
  1.21  organization's membership.  Provided that no more than 60 65 
  1.22  percent of the gross profit less the tax imposed under section 
  1.23  297E.02, subdivision 1, from bingo, and no more than 50 55 
  1.24  percent of the gross profit from other forms of lawful gambling, 
  1.25  may be expended for allowable expenses related to lawful 
  1.26  gambling.  
  1.27     Sec. 2.  Minnesota Statutes 1996, section 349.151, 
  1.28  subdivision 13, is amended to read: 
  1.29     Subd. 13.  [RULEMAKING.] (a) In addition to any authority 
  2.1   to adopt rules specifically authorized under this chapter, the 
  2.2   board may adopt, amend, or repeal rules under chapter 14, when 
  2.3   necessary or proper in discharging the board's powers and duties.
  2.4      (b) Any rule of the board that prohibits the conduct of 
  2.5   lawful gambling at a premises by reason of illegal gambling 
  2.6   having occurred on the premises may not be applied to any 
  2.7   premises unless: 
  2.8      (1) one or more persons have been convicted of a criminal 
  2.9   offense relating to the illegal gambling; or 
  2.10     (2) the license of the premises to sell alcoholic beverages 
  2.11  has been suspended or revoked by the authority issuing or 
  2.12  approving the license as a result of the illegal gambling. 
  2.13     Sec. 3.  Minnesota Statutes 1996, section 349.163, 
  2.14  subdivision 8, is amended to read: 
  2.15     Subd. 8.  [PADDLETICKET CARD MASTER FLARES.] Each sealed 
  2.16  grouping of not greater than 100 paddleticket cards must have 
  2.17  its own individual master flare.  The manufacturer must affix to 
  2.18  or imprint at the bottom of the master flare a bar code that 
  2.19  provides all information required by the commissioner of revenue 
  2.20  under section 297E.04, subdivision 3. 
  2.21     This subdivision applies to paddleticket cards sold by a 
  2.22  manufacturer after June 30, 1995, for use or resale in Minnesota 
  2.23  or shipped into or caused to be shipped into Minnesota by a 
  2.24  manufacturer after June 30, 1995.  Paddleticket cards which are 
  2.25  subject to this subdivision shall not have a registration stamp 
  2.26  affixed to the master flare. 
  2.27     Sec. 4.  Minnesota Statutes 1996, section 349.211, 
  2.28  subdivision 1, is amended to read: 
  2.29     Subdivision 1.  [BINGO.] Except as provided in subdivision 
  2.30  2, prizes for a single bingo game may not exceed $100 except 
  2.31  prizes for a cover-all game, which may exceed $100 if the 
  2.32  aggregate value of all cover-all prizes in a bingo occasion does 
  2.33  not exceed $1,000. total prizes awarded at a bingo occasion may 
  2.34  not exceed $2,500, unless a cover-all game is played in which 
  2.35  case the limit is $3,500.  Except as provided in subdivision 2, 
  2.36  total prizes for all cover-all games in a bingo occasion may not 
  3.1   exceed $1,000.  A prize may be determined based on the value of 
  3.2   the bingo packet sold to the player.  For purposes of this 
  3.3   subdivision, a cover-all game is one in which a player must 
  3.4   cover all spaces except a single free space to win. 
  3.5      Sec. 5.  Minnesota Statutes 1996, section 349.211, 
  3.6   subdivision 2, is amended to read: 
  3.7      Subd. 2.  [PROGRESSIVE BINGO GAMES.] A prize of up to 
  3.8   $1,000 $2,000 may be awarded for a progressive bingo game, 
  3.9   including a cover-all game.  The prize for a progressive bingo 
  3.10  game may start at $300 and be increased by up to $100 for each 
  3.11  occasion during which the progressive bingo game is played.  A 
  3.12  consolation prize of up to $100 for a progressive bingo game may 
  3.13  be awarded in each occasion during which the progressive bingo 
  3.14  game is played and the accumulated prize is not won.  The total 
  3.15  amount awarded in progressive bingo game prizes in any calendar 
  3.16  year may not exceed $36,000.