1.1                          A bill for an act 
  1.2             relating to lawful gambling; authorizing certain 
  1.3             groupings of paddleticket cards; increasing percentage 
  1.4             of lawful gambling gross profits that may be spent for 
  1.5             expenses; restricting authority of gambling control 
  1.6             board to impose sanctions against lawful gambling 
  1.7             premises permits for illegal gambling; increasing 
  1.8             maximum bingo prices; amending Minnesota Statutes 
  1.9             1996, sections 297E.04, subdivision 3; 349.12, 
  1.10            subdivision 26a; 349.15, subdivision 1; 349.155, by 
  1.11            adding a subdivision; 349.16, by adding a subdivision; 
  1.12            349.163, subdivision 8; 349.211, subdivisions 1 and 2; 
  1.13            and 609.761, by adding a subdivision. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1996, section 297E.04, 
  1.16  subdivision 3, is amended to read: 
  1.17     Subd. 3.  [PADDLETICKET CARD MASTER FLARES.] Each sealed 
  1.18  grouping of 100 or fewer paddleticket cards must have its own 
  1.19  individual master flare.  The manufacturer of the paddleticket 
  1.20  cards must affix to or imprint at the bottom of each master 
  1.21  flare a bar code that provides: 
  1.22     (1) the name of the manufacturer; 
  1.23     (2) the first paddleticket card number in the group; 
  1.24     (3) the number of paddletickets attached to each 
  1.25  paddleticket card in the group; and 
  1.26     (4) all other information required by the commissioner.  
  1.27  This subdivision applies to paddleticket cards (i) sold by a 
  1.28  manufacturer after June 30, 1995, for use or resale in Minnesota 
  1.29  or (ii) shipped into or caused to be shipped into Minnesota by a 
  2.1   manufacturer after June 30, 1995.  Paddleticket cards that are 
  2.2   subject to this subdivision may not have a registration stamp 
  2.3   affixed to the master flare. 
  2.4      Sec. 2.  Minnesota Statutes 1996, section 349.12, 
  2.5   subdivision 26a, is amended to read: 
  2.6      Subd. 26a.  [MASTER FLARE.] "Master flare" is the posted 
  2.7   display, with registration stamp affixed or bar code imprinted 
  2.8   or affixed, that is used in conjunction with sealed groupings of 
  2.9   100 or fewer sequentially numbered paddleticket cards. 
  2.10     Sec. 3.  Minnesota Statutes 1996, section 349.15, 
  2.11  subdivision 1, is amended to read: 
  2.12     Subdivision 1.  [EXPENDITURE RESTRICTIONS.] Gross profits 
  2.13  from lawful gambling may be expended only for lawful purposes or 
  2.14  allowable expenses as authorized by the membership of the 
  2.15  conducting organization at a monthly meeting of the 
  2.16  organization's membership.  Provided that no more than 60 65 
  2.17  percent of the gross profit less the tax imposed under section 
  2.18  297E.02, subdivision 1, from bingo, and no more than 50 55 
  2.19  percent of the gross profit from other forms of lawful gambling, 
  2.20  may be expended for allowable expenses related to lawful 
  2.21  gambling.  
  2.22     Sec. 4.  Minnesota Statutes 1996, section 349.155, is 
  2.23  amended by adding a subdivision to read: 
  2.24     Subd. 4a.  [ILLEGAL GAMBLING.] The board may not deny, 
  2.25  suspend, revoke, or refuse to renew an organization's premises 
  2.26  permit because illegal gambling occurred at the site for which 
  2.27  the premises permit was issued, unless the board determines that:
  2.28  (1) the organization knowingly participated in the illegal 
  2.29  gambling; or (2) the organization or any of its agents knew or 
  2.30  reasonably should have known of the illegal gambling and the 
  2.31  organization did not notify the lessor of the premises, in 
  2.32  writing and with specificity, that illegal gambling was being 
  2.33  conducted on the premises and requesting that the lessor take 
  2.34  appropriate action. 
  2.35     Sec. 5.  Minnesota Statutes 1996, section 349.16, is 
  2.36  amended by adding a subdivision to read: 
  3.1      Subd. 10.  [LICENSE RENEWAL TO MERGED FIRE RELIEF 
  3.2   ASSOCIATIONS.] A new relief association formed from the merger 
  3.3   of the relief associations of two separate city fire 
  3.4   departments, mandated under Laws 1995, chapter 262, article 11, 
  3.5   may apply for a license renewal under this section.  The board 
  3.6   shall consider the application as a license renewal of one of 
  3.7   the relief associations that is a licensed organization and was 
  3.8   merged to form the new relief association. 
  3.9      Sec. 6.  Minnesota Statutes 1996, section 349.163, 
  3.10  subdivision 8, is amended to read: 
  3.11     Subd. 8.  [PADDLETICKET CARD MASTER FLARES.] Each sealed 
  3.12  grouping of 100 or fewer paddleticket cards must have its own 
  3.13  individual master flare.  The manufacturer must affix to or 
  3.14  imprint at the bottom of the master flare a bar code that 
  3.15  provides all information required by the commissioner of revenue 
  3.16  under section 297E.04, subdivision 3. 
  3.17     This subdivision applies to paddleticket cards sold by a 
  3.18  manufacturer after June 30, 1995, for use or resale in Minnesota 
  3.19  or shipped into or caused to be shipped into Minnesota by a 
  3.20  manufacturer after June 30, 1995.  Paddleticket cards which are 
  3.21  subject to this subdivision shall not have a registration stamp 
  3.22  affixed to the master flare. 
  3.23     Sec. 7.  Minnesota Statutes 1996, section 349.211, 
  3.24  subdivision 1, is amended to read: 
  3.25     Subdivision 1.  [BINGO.] Except as provided in subdivision 
  3.26  2, prizes for a single bingo game may not exceed $100 $200 
  3.27  except prizes for a cover-all game, which may exceed $100 $200 
  3.28  if the aggregate value of all cover-all prizes in a bingo 
  3.29  occasion does not exceed $1,000.  Total prizes awarded at a 
  3.30  bingo occasion may not exceed $2,500, unless a cover-all game is 
  3.31  played in which case the limit is $3,500.  A prize may be 
  3.32  determined based on the value of the bingo packet sold to the 
  3.33  player.  For purposes of this subdivision, a cover-all game is 
  3.34  one in which a player must cover all spaces except a single free 
  3.35  space to win. 
  3.36     Sec. 8.  Minnesota Statutes 1996, section 349.211, 
  4.1   subdivision 2, is amended to read: 
  4.2      Subd. 2.  [PROGRESSIVE BINGO GAMES.] A prize of up to 
  4.3   $1,000 $2,000 may be awarded for a progressive bingo game, 
  4.4   including a cover-all game.  The prize for a progressive bingo 
  4.5   game may start at $300 and be increased by up to $100 for each 
  4.6   occasion during which the progressive bingo game is played.  A 
  4.7   consolation prize of up to $100 for a progressive bingo game may 
  4.8   be awarded in each occasion during which the progressive bingo 
  4.9   game is played and the accumulated prize is not won.  The total 
  4.10  amount awarded in progressive bingo game prizes in any calendar 
  4.11  year may not exceed $36,000. 
  4.12     Sec. 9.  Minnesota Statutes 1996, section 609.761, is 
  4.13  amended by adding a subdivision to read: 
  4.14     Subd. 3.  [SOCIAL SKILL GAME.] Sections 609.755 and 609.76 
  4.15  do not prohibit tournaments or contests that satisfy all of the 
  4.16  following requirements: 
  4.17     (1) the tournament or contest consists of the card games of 
  4.18  chance commonly known as cribbage, skat, sheephead, bridge, 
  4.19  euchre, pinochle, gin, 500, smear, or whist; 
  4.20     (2) the tournament or contest does not provide any direct 
  4.21  financial benefit to the promoter or organizer; and 
  4.22     (3) the sum of all prizes awarded for each tournament or 
  4.23  contest does not exceed $200. 
  4.24     Sec. 10.  [DEREGULATION REPORT.] 
  4.25     The senate local and metropolitan government and house 
  4.26  regulated industries committees, in consultation with the lawful 
  4.27  gambling control board, the lawful gambling industry, the 
  4.28  department of revenue, the gambling enforcement division of the 
  4.29  department of public safety, and the office of the attorney 
  4.30  general shall study the feasibility of creating a deregulated 
  4.31  environment for the conduct of lawful gambling.  The study shall 
  4.32  consider, among other possibilities, adopting a Nebraska model 
  4.33  for lawful gambling regulation.  The study shall examine the 
  4.34  reporting and compliance requirements currently used in this 
  4.35  state, and recommend changes to streamline reporting 
  4.36  requirements, reduce paperwork, and lessen the regulatory burden 
  5.1   on gambling organizations. 
  5.2      Sec. 11.  [EFFECTIVE DATE.] 
  5.3      Sections 1 to 7, 9, and 10 are effective the day following 
  5.4   final enactment.