1.1                          A bill for an act 
  1.2             relating to lawful gambling; providing for linked 
  1.3             bingo games; amending Minnesota Statutes 2002, 
  1.4             sections 349.12, subdivisions 4, 18, by adding 
  1.5             subdivisions; 349.151, subdivision 4; 349.153; 
  1.6             349.155, subdivision 3; 349.163, subdivision 3; 
  1.7             349.166, subdivisions 1, 2; 349.167, subdivision 6; 
  1.8             349.17, subdivisions 3, 6, 7, by adding a subdivision; 
  1.9             349.18, subdivision 1; 349.19, by adding a 
  1.10            subdivision; 349.191, subdivisions 1, 1a; 349.211, 
  1.11            subdivision 1, by adding a subdivision; proposing 
  1.12            coding for new law in Minnesota Statutes, chapter 349. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2002, section 349.12, 
  1.15  subdivision 4, is amended to read: 
  1.16     Subd. 4.  [BINGO.] "Bingo" means a game where each player 
  1.17  has a bingo hard card or bingo paper sheet, for which a 
  1.18  consideration has been paid, and played in accordance with this 
  1.19  chapter and with rules of the board for the conduct of 
  1.20  bingo.  "Bingo" also includes a linked bingo game. 
  1.21     Sec. 2.  Minnesota Statutes 2002, section 349.12, 
  1.22  subdivision 18, is amended to read: 
  1.23     Subd. 18.  [GAMBLING EQUIPMENT.] "Gambling equipment" 
  1.24  means:  bingo hard cards or paper sheets, linked bingo paper 
  1.25  sheets, devices for selecting bingo numbers, pull-tabs, jar 
  1.26  tickets, paddlewheels, paddlewheel tables, paddletickets, 
  1.27  paddleticket cards, tipboards, tipboard tickets, and pull-tab 
  1.28  dispensing devices.  
  1.29     Sec. 3.  Minnesota Statutes 2002, section 349.12, is 
  2.1   amended by adding a subdivision to read: 
  2.2      Subd. 25a.  [LINKED BINGO GAME.] "Linked bingo game" means 
  2.3   a bingo game played at two or more locations where licensed 
  2.4   organizations are authorized to conduct bingo, where there is a 
  2.5   common prize pool and a common selection of numbers or symbols 
  2.6   conducted at one location, and where the results of the 
  2.7   selection are transmitted to all participating locations by 
  2.8   satellite, telephone, or other means by a linked bingo game 
  2.9   provider. 
  2.10     Sec. 4.  Minnesota Statutes 2002, section 349.12, is 
  2.11  amended by adding a subdivision to read: 
  2.12     Subd. 25b.  [LINKED BINGO GAME PROVIDER.] "Linked bingo 
  2.13  game provider" means any person who provides the means to link 
  2.14  bingo prizes in a linked bingo game, who provides linked bingo 
  2.15  paper sheets to the participating organizations, who provides 
  2.16  linked bingo prize management, and who provides the linked bingo 
  2.17  game system. 
  2.18     Sec. 5.  Minnesota Statutes 2002, section 349.12, is 
  2.19  amended by adding a subdivision to read: 
  2.20     Subd. 25c.  [LINKED BINGO GAME SYSTEM.] "Linked bingo game 
  2.21  system" means the equipment used by the linked bingo provider to 
  2.22  conduct, transmit, and track a linked bingo game.  The system 
  2.23  must be approved by the board before its use in this state and 
  2.24  it must have dial-up or other capability to permit the board to 
  2.25  monitor its operation remotely. 
  2.26     Sec. 6.  Minnesota Statutes 2002, section 349.12, is 
  2.27  amended by adding a subdivision to read: 
  2.28     Subd. 25d.  [LINKED BINGO PRIZE POOL.] "Linked bingo prize 
  2.29  pool" means the total of all prize money that each participating 
  2.30  organization has contributed to the linked bingo game prize.  No 
  2.31  participating organization may contribute more than $300 per 
  2.32  bingo occasion to a linked bingo prize pool. 
  2.33     Sec. 7.  Minnesota Statutes 2002, section 349.151, 
  2.34  subdivision 4, is amended to read: 
  2.35     Subd. 4.  [POWERS AND DUTIES.] (a) The board has the 
  2.36  following powers and duties:  
  3.1      (1) to regulate lawful gambling to ensure it is conducted 
  3.2   in the public interest; 
  3.3      (2) to issue licenses to organizations, distributors, bingo 
  3.4   halls, manufacturers, linked bingo game providers, and gambling 
  3.5   managers; 
  3.6      (3) to collect and deposit license, permit, and 
  3.7   registration fees due under this chapter; 
  3.8      (4) to receive reports required by this chapter and inspect 
  3.9   all premises, records, books, and other documents of 
  3.10  organizations, distributors, manufacturers, linked bingo game 
  3.11  providers, and bingo halls to insure compliance with all 
  3.12  applicable laws and rules; 
  3.13     (5) to make rules authorized by this chapter; 
  3.14     (6) to register gambling equipment and issue registration 
  3.15  stamps; 
  3.16     (7) to provide by rule for the mandatory posting by 
  3.17  organizations conducting lawful gambling of rules of play and 
  3.18  the odds and/or house percentage on each form of lawful 
  3.19  gambling; 
  3.20     (8) to report annually to the governor and legislature on 
  3.21  its activities and on recommended changes in the laws governing 
  3.22  gambling; 
  3.23     (9) to impose civil penalties of not more than $500 per 
  3.24  violation on organizations, distributors, employees eligible to 
  3.25  make sales on behalf of a distributor, manufacturers, bingo 
  3.26  halls, linked bingo game providers, and gambling managers for 
  3.27  failure to comply with any provision of this chapter or any rule 
  3.28  or order of the board; 
  3.29     (10) to issue premises permits to organizations licensed to 
  3.30  conduct lawful gambling; 
  3.31     (11) to delegate to the director the authority to issue or 
  3.32  deny license and premises permit applications and renewals under 
  3.33  criteria established by the board; 
  3.34     (12) to suspend or revoke licenses and premises permits of 
  3.35  organizations, distributors, manufacturers, bingo halls, linked 
  3.36  bingo game providers, or gambling managers as provided in this 
  4.1   chapter; 
  4.2      (13) to register employees of organizations licensed to 
  4.3   conduct lawful gambling; 
  4.4      (14) to require fingerprints from persons determined by 
  4.5   board rule to be subject to fingerprinting; 
  4.6      (15) to delegate to a compliance review group of the board 
  4.7   the authority to investigate alleged violations, issue consent 
  4.8   orders, and initiate contested cases on behalf of the board; 
  4.9      (16) to order organizations, distributors, manufacturers, 
  4.10  bingo halls, linked bingo game providers, and gambling managers 
  4.11  to take corrective actions; and 
  4.12     (17) to take all necessary steps to ensure the integrity of 
  4.13  and public confidence in lawful gambling.  
  4.14     (b) The board, or director if authorized to act on behalf 
  4.15  of the board, may by citation assess any organization, 
  4.16  distributor, employee eligible to make sales on behalf of a 
  4.17  distributor, manufacturer, bingo hall licensee, linked bingo 
  4.18  game provider, or gambling manager a civil penalty of not more 
  4.19  than $500 per violation for a failure to comply with any 
  4.20  provision of this chapter or any rule adopted or order issued by 
  4.21  the board.  Any organization, distributor, bingo hall licensee, 
  4.22  gambling manager, linked bingo game provider, or manufacturer 
  4.23  assessed a civil penalty under this paragraph may request a 
  4.24  hearing before the board.  Appeals of citations imposing a civil 
  4.25  penalty are not subject to the provisions of the Administrative 
  4.26  Procedure Act.  
  4.27     (c) All fees and penalties received by the board must be 
  4.28  deposited in the general fund. 
  4.29     Sec. 8.  Minnesota Statutes 2002, section 349.153, is 
  4.30  amended to read: 
  4.31     349.153 [CONFLICT OF INTEREST.] 
  4.32     (a) A person may not serve on the board, be the director, 
  4.33  or be an employee of the board who has an interest in any 
  4.34  corporation, association, limited liability company, or 
  4.35  partnership that is licensed by the board as a distributor, 
  4.36  manufacturer, linked bingo game provider, or a bingo hall under 
  5.1   section 349.164.  
  5.2      (b) A member of the board, the director, or an employee of 
  5.3   the board may not accept employment with, receive compensation 
  5.4   directly or indirectly from, or enter into a contractual 
  5.5   relationship with an organization that conducts lawful gambling, 
  5.6   a distributor, a linked bingo game provider, a bingo hall, or a 
  5.7   manufacturer while employed with or a member of the board or 
  5.8   within one year after terminating employment with or leaving the 
  5.9   board. 
  5.10     (c) A distributor, bingo hall, manufacturer, linked bingo 
  5.11  game provider, or organization licensed to conduct lawful 
  5.12  gambling may not hire a former employee, director, or member of 
  5.13  the gambling control board for one year after the employee, 
  5.14  director, or member has terminated employment with or left the 
  5.15  gambling control board.  
  5.16     Sec. 9.  Minnesota Statutes 2002, section 349.155, 
  5.17  subdivision 3, is amended to read: 
  5.18     Subd. 3.  [MANDATORY DISQUALIFICATIONS.] (a) In the case of 
  5.19  licenses for manufacturers, distributors, bingo halls, linked 
  5.20  bingo game providers, and gambling managers, the board may not 
  5.21  issue or renew a license under this chapter, and shall revoke a 
  5.22  license under this chapter, if the applicant or licensee, or a 
  5.23  director, officer, partner, governor, person in a supervisory or 
  5.24  management position of the applicant or licensee, or an employee 
  5.25  eligible to make sales on behalf of the applicant or licensee: 
  5.26     (1) has ever been convicted of a felony or a crime 
  5.27  involving gambling; 
  5.28     (2) has ever been convicted of (i) assault, (ii) a criminal 
  5.29  violation involving the use of a firearm, or (iii) making 
  5.30  terroristic threats; 
  5.31     (3) is or has ever been connected with or engaged in an 
  5.32  illegal business; 
  5.33     (4) owes $500 or more in delinquent taxes as defined in 
  5.34  section 270.72; 
  5.35     (5) had a sales and use tax permit revoked by the 
  5.36  commissioner of revenue within the past two years; or 
  6.1      (6) after demand, has not filed tax returns required by the 
  6.2   commissioner of revenue.  The board may deny or refuse to renew 
  6.3   a license under this chapter, and may revoke a license under 
  6.4   this chapter, if any of the conditions in this paragraph are 
  6.5   applicable to an affiliate or direct or indirect holder of more 
  6.6   than a five percent financial interest in the applicant or 
  6.7   licensee.  
  6.8      (b) In the case of licenses for organizations, the board 
  6.9   may not issue or renew a license under this chapter, and shall 
  6.10  revoke a license under this chapter, if the organization, or an 
  6.11  officer or member of the governing body of the organization:  
  6.12     (1) has been convicted of a felony or gross misdemeanor 
  6.13  within the five years before the issuance or renewal of the 
  6.14  license; 
  6.15     (2) has ever been convicted of a crime involving gambling; 
  6.16  or 
  6.17     (3) has had a license issued by the board or director 
  6.18  permanently revoked for violation of law or board rule. 
  6.19     Sec. 10.  Minnesota Statutes 2002, section 349.163, 
  6.20  subdivision 3, is amended to read: 
  6.21     Subd. 3.  [PROHIBITED SALES.] (a) A manufacturer may not: 
  6.22     (1) sell gambling equipment for use or resale within the 
  6.23  state to any person not licensed as a distributor, except that 
  6.24  gambling equipment used exclusively in a linked bingo game may 
  6.25  be sold to a licensed linked bingo provider; or 
  6.26     (2) sell gambling equipment to a distributor in this state 
  6.27  that has the same serial number as another item of gambling 
  6.28  equipment of the same type that is sold by that manufacturer for 
  6.29  use or resale in this state. 
  6.30     (b) A manufacturer, affiliate of a manufacturer, or person 
  6.31  acting as a representative or agent of a manufacturer may not 
  6.32  provide a lessor of gambling premises or an appointed official 
  6.33  any compensation, gift, gratuity, premium, contribution, or 
  6.34  other thing of value. 
  6.35     (c) A manufacturer may not sell or otherwise provide a 
  6.36  pull-tab or tipboard deal with the symbol required by 
  7.1   subdivision 5, paragraph (h), imprinted on the flare to any 
  7.2   person other than a licensed distributor unless the manufacturer 
  7.3   first renders the symbol permanently invisible. 
  7.4      Sec. 11.  [349.1635] [LINKED BINGO GAME PROVIDER LICENSE.] 
  7.5      Subdivision 1.  [LICENSE REQUIRED.] No person may do any of 
  7.6   the following without having first obtained a license from the 
  7.7   board: 
  7.8      (1) provide the means to link prizes in a linked bingo 
  7.9   game; 
  7.10     (2) provide linked bingo game prize management; 
  7.11     (3) provide the linked bingo system; or 
  7.12     (4) provide linked bingo paper sheets to an organization. 
  7.13     Subd. 2.  [LICENSE APPLICATION.] The board may issue a 
  7.14  license to a linked bingo game provider who meets the 
  7.15  qualifications of this chapter and the rules promulgated by the 
  7.16  board.  The application shall be on a form prescribed by the 
  7.17  board.  The license is valid for two years and the fee for a 
  7.18  linked bingo game provider license is $5,000 per year.  
  7.19     Subd. 3.  [ATTACHMENTS TO APPLICATION.] An applicant for a 
  7.20  linked bingo game provider license must attach to its 
  7.21  application: 
  7.22     (1) evidence of a bond in the principal amount of $250,000 
  7.23  payable to the state of Minnesota conditioned on the payment of 
  7.24  all linked bingo prizes and any other money due and payable 
  7.25  under this chapter; 
  7.26     (2) detailed plans and specifications for the operation of 
  7.27  the linked bingo game and the linked bingo system; and 
  7.28     (3) any other information required by the board by rule.  
  7.29     Subd. 4.  [PROHIBITION.] (a) Except for services associated 
  7.30  exclusively with a linked bingo game, a linked bingo game 
  7.31  provider may not participate or assist in the conduct of lawful 
  7.32  gambling by an organization.  No linked bingo game provider may: 
  7.33     (1) also be licensed as a bingo hall or hold any financial 
  7.34  or managerial interest in a bingo hall; 
  7.35     (2) also be licensed as a distributor or hold any financial 
  7.36  or managerial interest in a distributor; 
  8.1      (3) sell or lease linked bingo game equipment to any person 
  8.2   not licensed as an organization; 
  8.3      (4) purchase gambling equipment to be used exclusively in a 
  8.4   linked bingo game from any person not licensed as a manufacturer 
  8.5   under section 349.163; and 
  8.6      (5) provide an organization, a lessor of gambling premises, 
  8.7   or an appointed official any compensation, gift, gratuity, 
  8.8   premium, or contribution. 
  8.9      (b) Employees of the board and the division of alcohol and 
  8.10  gambling enforcement may inspect the books, records, inventory, 
  8.11  and business premises of a licensed linked bingo game provider 
  8.12  without notice during the normal business hours of the linked 
  8.13  bingo game provider.  The board may charge a linked bingo game 
  8.14  provider for the actual cost of conducting scheduled or 
  8.15  unscheduled inspections of the licensee's facilities. 
  8.16     Sec. 12.  Minnesota Statutes 2002, section 349.166, 
  8.17  subdivision 1, is amended to read: 
  8.18     Subdivision 1.  [EXCLUSIONS.] (a) Bingo, with the exception 
  8.19  of linked bingo games, may be conducted without a license and 
  8.20  without complying with sections 349.168, subdivisions 1 and 2; 
  8.21  349.17, subdivisions 1, 4, and 5; 349.18, subdivision 1; and 
  8.22  349.19, if it is conducted:  
  8.23     (1) by an organization in connection with a county fair, 
  8.24  the state fair, or a civic celebration and is not conducted for 
  8.25  more than 12 consecutive days and is limited to no more than 
  8.26  four separate applications for activities applied for and 
  8.27  approved in a calendar year; or 
  8.28     (2) by an organization that conducts four or fewer bingo 
  8.29  occasions in a calendar year.  
  8.30     An organization that holds a license to conduct lawful 
  8.31  gambling under this chapter may not conduct bingo under this 
  8.32  subdivision.  
  8.33     (b) Bingo may be conducted within a nursing home or a 
  8.34  senior citizen housing project or by a senior citizen 
  8.35  organization if the prizes for a single bingo game do not exceed 
  8.36  $10, total prizes awarded at a single bingo occasion do not 
  9.1   exceed $200, no more than two bingo occasions are held by the 
  9.2   organization or at the facility each week, only members of the 
  9.3   organization or residents of the nursing home or housing project 
  9.4   are allowed to play in a bingo game, no compensation is paid for 
  9.5   any persons who conduct the bingo, and a manager is appointed to 
  9.6   supervise the bingo.  Bingo conducted under this paragraph is 
  9.7   exempt from sections 349.11 to 349.23, and the board may not 
  9.8   require an organization that conducts bingo under this 
  9.9   paragraph, or the manager who supervises the bingo, to register 
  9.10  or file a report with the board.  The gross receipts from bingo 
  9.11  conducted under the limitations of this subdivision are exempt 
  9.12  from taxation under chapter 297A.  
  9.13     (c) Raffles may be conducted by an organization without a 
  9.14  license and without complying with sections 349.154 to 349.165 
  9.15  and 349.167 to 349.213 if the value of all raffle prizes awarded 
  9.16  by the organization in a calendar year does not exceed $750.  
  9.17     (d) Except as provided in paragraph (b), the organization 
  9.18  must maintain all required records of excluded gambling activity 
  9.19  for 3-1/2 years. 
  9.20     Sec. 13.  Minnesota Statutes 2002, section 349.166, 
  9.21  subdivision 2, is amended to read: 
  9.22     Subd. 2.  [EXEMPTIONS.] (a) Lawful gambling, with the 
  9.23  exception of linked bingo games, may be conducted by an 
  9.24  organization without a license and without complying with 
  9.25  sections 349.168, subdivisions 1 and 2; 349.17, subdivisions 4 
  9.26  and 5; 349.18, subdivision 1; and 349.19 if: 
  9.27     (1) the organization conducts lawful gambling on five or 
  9.28  fewer days in a calendar year; 
  9.29     (2) the organization does not award more than $50,000 in 
  9.30  prizes for lawful gambling in a calendar year; 
  9.31     (3) the organization pays a fee of $25 to the board, 
  9.32  notifies the board in writing not less than 30 days before each 
  9.33  lawful gambling occasion of the date and location of the 
  9.34  occasion, or 60 days for an occasion held in the case of a city 
  9.35  of the first class, the types of lawful gambling to be 
  9.36  conducted, the prizes to be awarded, and receives an exemption 
 10.1   identification number; 
 10.2      (4) the organization notifies the local government unit 30 
 10.3   days before the lawful gambling occasion, or 60 days for an 
 10.4   occasion held in a city of the first class; 
 10.5      (5) the organization purchases all gambling equipment and 
 10.6   supplies from a licensed distributor; and 
 10.7      (6) the organization reports to the board, on a single-page 
 10.8   form prescribed by the board, within 30 days of each gambling 
 10.9   occasion, the gross receipts, prizes, expenses, expenditures of 
 10.10  net profits from the occasion, and the identification of the 
 10.11  licensed distributor from whom all gambling equipment was 
 10.12  purchased.  
 10.13     (b) If the organization fails to file a timely report as 
 10.14  required by paragraph (a), clause (3) or (6), the board shall 
 10.15  not issue any authorization, license, or permit to the 
 10.16  organization to conduct lawful gambling on an exempt, excluded, 
 10.17  or licensed basis until the report has been filed. 
 10.18     (c) Merchandise prizes must be valued at their fair market 
 10.19  value. 
 10.20     (d) Unused pull-tab and tipboard deals must be returned to 
 10.21  the distributor within seven working days after the end of the 
 10.22  lawful gambling occasion.  The distributor must accept and pay a 
 10.23  refund for all returns of unopened and undamaged deals returned 
 10.24  under this paragraph. 
 10.25     (e) An organization that is exempt from taxation on 
 10.26  purchases of pull-tabs and tipboards under section 297E.02, 
 10.27  subdivision 4, paragraph (b), clause (4), must return to the 
 10.28  distributor any tipboard or pull-tab deal no part of which is 
 10.29  used at the lawful gambling occasion for which it was purchased 
 10.30  by the organization. 
 10.31     (f) The organization must maintain all required records of 
 10.32  exempt gambling activity for 3-1/2 years. 
 10.33     Sec. 14.  Minnesota Statutes 2002, section 349.167, 
 10.34  subdivision 6, is amended to read: 
 10.35     Subd. 6.  [RECRUITMENT OF GAMBLING MANAGERS.] No 
 10.36  organization may seek or accept assistance from a manufacturer 
 11.1   or, distributor, or linked bingo game provider, or a 
 11.2   representative, agent, affiliate, or employee of a manufacturer 
 11.3   or, distributor, or linked bingo game provider, in identifying 
 11.4   or recruiting candidates to become a gambling manager for the 
 11.5   organization. 
 11.6      Sec. 15.  Minnesota Statutes 2002, section 349.17, 
 11.7   subdivision 3, is amended to read: 
 11.8      Subd. 3.  [WINNERS.] Each bingo winner must be determined 
 11.9   and every prize shall be awarded and delivered the same day on 
 11.10  which the bingo occasion is conducted, except that prizes won in 
 11.11  a linked bingo game must be delivered within three business days 
 11.12  of the day on which the occasion was conducted. 
 11.13     Sec. 16.  Minnesota Statutes 2002, section 349.17, 
 11.14  subdivision 6, is amended to read: 
 11.15     Subd. 6.  [CONDUCT OF BINGO.] (a) Each bingo hard card and 
 11.16  paper sheets must have five horizontal rows of spaces with each 
 11.17  row except one having five numbers.  The center row must have 
 11.18  four numbers and the center space marked "free."  Each column 
 11.19  must have one of the letters B-I-N-G-O in order at the top.  
 11.20  Bingo paper sheets may also have numbers that are not preprinted 
 11.21  but are filled in by players. 
 11.22     (b) A game of bingo begins with the first letter and number 
 11.23  called.  Each player must cover or mark with a liquid dauber the 
 11.24  numbers when bingo balls, similarly numbered, are randomly 
 11.25  drawn, announced, and displayed to the players, either manually 
 11.26  or with a flashboard and monitor.  The game is won when a player 
 11.27  has covered or marked a previously designated arrangement of 
 11.28  numbers on the card or sheet and declared bingo.  The game is 
 11.29  completed when a winning card or sheet is verified and a prize 
 11.30  awarded, except that prizes won in linked bingo games may be 
 11.31  awarded pursuant to subdivision 3.  
 11.32     Sec. 17.  Minnesota Statutes 2002, section 349.17, 
 11.33  subdivision 7, is amended to read: 
 11.34     Subd. 7.  [NOON HOUR BINGO.] Notwithstanding subdivisions 1 
 11.35  and 3, an organization may conduct bingo subject to the 
 11.36  following restrictions: 
 12.1      (1) the bingo is conducted only between the hours of 11:00 
 12.2   a.m. and 2:00 p.m.; 
 12.3      (2) the bingo is conducted at a site the organization owns 
 12.4   or leases and which has a license for the sale of intoxicating 
 12.5   beverages on the premises under chapter 340A; 
 12.6      (3) the bingo is limited to one progressive bingo game per 
 12.7   site as defined by section 349.211, subdivision 2; 
 12.8      (4) the bingo is conducted using only bingo paper sheets; 
 12.9   and 
 12.10     (5) if the premises are leased, the rent may not exceed $25 
 12.11  per day for each day bingo is conducted; and 
 12.12     (6) linked bingo games may not be conducted at a noon hour 
 12.13  bingo occasion. 
 12.14     Sec. 18.  Minnesota Statutes 2002, section 349.17, is 
 12.15  amended by adding a subdivision to read: 
 12.16     Subd. 8.  [LINKED BINGO GAMES.] (a) A licensed organization 
 12.17  may conduct or participate in a linked bingo game in association 
 12.18  with one or more other licensed organizations. 
 12.19     (b) Each participating licensed organization shall 
 12.20  contribute to each prize awarded in a linked bingo game in an 
 12.21  amount not to exceed $300 per occasion. 
 12.22     (c) The board may adopt rules to: 
 12.23     (1) specify the manner in which a linked bingo game must be 
 12.24  played and how the linked bingo prizes must be awarded; 
 12.25     (2) specify the records to be maintained by a linked bingo 
 12.26  game provider; 
 12.27     (3) require the submission of periodic reports by the 
 12.28  linked bingo game provider and specify the content of the 
 12.29  reports; 
 12.30     (4) establish the qualifications required to be licensed as 
 12.31  a linked bingo game provider; and 
 12.32     (5) any other matter involving the operation of a linked 
 12.33  bingo game. 
 12.34     Sec. 19.  Minnesota Statutes 2002, section 349.18, 
 12.35  subdivision 1, is amended to read: 
 12.36     Subdivision 1.  [LEASE OR OWNERSHIP REQUIRED.] (a) An 
 13.1   organization may conduct lawful gambling only on premises it 
 13.2   owns or leases.  Leases must be on a form prescribed by the 
 13.4   board.  Except for leases entered into before August 1, 1994, 
 13.5   the term of the lease may not begin before the effective date of 
 13.6   the premises permit and must expire on the same day that the 
 13.7   premises permit expires.  Copies of all leases must be made 
 13.8   available to employees of the board and the division of alcohol 
 13.9   and gambling enforcement on request.  A lease may not provide 
 13.10  for payments determined directly or indirectly by the receipts 
 13.11  or profits from lawful gambling.  The board may prescribe by 
 13.12  rule limits on the amount of rent which an organization may pay 
 13.13  to a lessor for premises leased for lawful gambling provided 
 13.14  that no rule of the board may prescribe a limit of less than 
 13.15  $1,000 per month on rent paid for premises used for lawful 
 13.16  gambling other than bingo.  Any rule adopted by the board 
 13.17  limiting the amount of rent to be paid may only be effective for 
 13.18  leases entered into, or renewed, after the effective date of the 
 13.19  rule. 
 13.20     (b) No person, distributor, manufacturer, lessor, linked 
 13.21  bingo game provider, or organization other than the licensed 
 13.22  organization leasing the space may conduct any activity other 
 13.23  than the sale or serving of food and beverages on the leased 
 13.24  premises during times when lawful gambling is being conducted on 
 13.25  the premises. 
 13.26     (c) At a site where the leased premises consists of an area 
 13.27  on or behind a bar at which alcoholic beverages are sold and 
 13.28  employees of the lessor are employed by the organization as 
 13.29  pull-tab sellers at the site, pull-tabs and tipboard tickets may 
 13.30  be sold and redeemed by those employees at any place on or 
 13.31  behind the bar, but the tipboards and receptacles for pull-tabs 
 13.32  and cash drawers for lawful gambling receipts must be maintained 
 13.33  only within the leased premises. 
 13.34     (d) Employees of a lessor may participate in lawful 
 13.35  gambling on the premises provided (1) if pull-tabs or tipboards 
 13.36  are sold, the organization voluntarily posts, or is required to 
 13.37  post, the major prizes as specified in section 349.172; and (2) 
 14.1   any employee of the lessor participating in lawful gambling is 
 14.2   not a gambling employee for the organization conducting lawful 
 14.3   gambling on the premises. 
 14.4      (e) A gambling employee may purchase pull-tabs at the site 
 14.5   of the employee's place of employment provided: 
 14.6      (1) the organization voluntarily posts, or is required to 
 14.7   post, the major prizes for pull-tab or tipboard games as 
 14.8   specified in section 349.172; and 
 14.9      (2) the employee is not involved in the sale of pull-tabs 
 14.10  at that site. 
 14.11     (f) At a leased site where an organization uses a 
 14.12  paddlewheel consisting of 30 numbers or less or a tipboard 
 14.13  consisting of 30 tickets or less, tickets may be sold throughout 
 14.14  the permitted premises, but winning tickets must be redeemed, 
 14.15  the paddlewheel must be located, and the tipboard seal must be 
 14.16  opened within the leased premises. 
 14.17     Sec. 20.  Minnesota Statutes 2002, section 349.19, is 
 14.18  amended by adding a subdivision to read: 
 14.19     Subd. 2b.  [LINKED BINGO PRIZE POOL ACCOUNT.] A licensed 
 14.20  organization participating in a linked bingo game must maintain 
 14.21  a separate account in a bank for the deposit of the 
 14.22  organization's portion of the linked bingo game prize pool.  The 
 14.23  name of the bank, the account number, and authorization for 
 14.24  electronic funds transfer must be provided by the organization 
 14.25  to the linked bingo game provider.  Deposits must be made into 
 14.26  the account by the organization as designated by the linked 
 14.27  bingo game provider.  Money in the account must be available to 
 14.28  the linked bingo game provider at all times by electronic funds 
 14.29  transfer, unless the linked bingo provider agrees to the 
 14.30  transfer of the funds by other means. 
 14.31     Sec. 21.  Minnesota Statutes 2002, section 349.191, 
 14.32  subdivision 1, is amended to read: 
 14.33     Subdivision 1.  [CREDIT RESTRICTION.] A manufacturer may 
 14.34  not offer or extend to a distributor, a linked bingo game 
 14.35  provider may not offer or extend to an organization, and a 
 14.36  distributor may not offer or extend to an organization, credit 
 15.1   for a period of more than 30 days for the sale or lease of any 
 15.2   gambling equipment.  No right of action exists for the 
 15.3   collection of any claim based on credit prohibited by this 
 15.4   subdivision.  The 30-day period allowed by this subdivision 
 15.5   begins with the day immediately following the day of invoice and 
 15.6   includes all successive days, including Sundays and holidays, to 
 15.7   and including the 30th successive day. 
 15.8      Sec. 22.  Minnesota Statutes 2002, section 349.191, 
 15.9   subdivision 1a, is amended to read: 
 15.10     Subd. 1a.  [CREDIT AND SALES TO DELINQUENT ORGANIZATIONS.] 
 15.11  (a) If a distributor or linked bingo game provider does not 
 15.12  receive payment in full from an organization within 35 days of 
 15.13  the day immediately following the date of the invoice, the 
 15.14  distributor or linked bingo game provider must notify the board 
 15.15  in writing of the delinquency on the next business day. 
 15.16     (b) If a distributor or linked bingo game provider who has 
 15.17  notified the board under paragraph (a) has not received payment 
 15.18  in full from the organization within 60 days of the notification 
 15.19  under paragraph (a), the distributor or linked bingo game 
 15.20  provider must notify the board of the continuing delinquency. 
 15.21     (c) On receipt of a notice under paragraph (a), the board 
 15.22  shall order all distributors and linked bingo game providers 
 15.23  that until further notice from the board, they may sell gambling 
 15.24  equipment to the delinquent organizations only on a cash basis 
 15.25  with no credit extended.  On receipt of a notice under paragraph 
 15.26  (b), the board shall order all distributors and linked bingo 
 15.27  game providers not to sell any gambling equipment to the 
 15.28  delinquent organization. 
 15.29     (d) No distributor or linked bingo game provider may extend 
 15.30  credit or sell gambling equipment to an organization in 
 15.31  violation of an order under paragraph (c) until the board has 
 15.32  authorized such credit or sale. 
 15.33     Sec. 23.  Minnesota Statutes 2002, section 349.211, 
 15.34  subdivision 1, is amended to read: 
 15.35     Subdivision 1.  [BINGO.] Except as provided in 
 15.36  subdivision subdivisions 1a and 2, prizes for a single bingo 
 16.1   game may not exceed $200 except prizes for a cover-all game, 
 16.2   which may exceed $200 if the aggregate value of all cover-all 
 16.3   prizes in a bingo occasion does not exceed $1,000.  Total prizes 
 16.4   awarded at a bingo occasion may not exceed $2,500, unless a 
 16.5   cover-all game is played in which case the limit is $3,500.  A 
 16.6   prize may be determined based on the value of the bingo packet 
 16.7   sold to the player.  For purposes of this subdivision, a 
 16.8   cover-all game is one in which a player must cover all spaces 
 16.9   except a single free space to win. 
 16.10     Sec. 24.  Minnesota Statutes 2002, section 349.211, is 
 16.11  amended by adding a subdivision to read: 
 16.12     Subd. 1a.  [LINKED BINGO PRIZES.] Prizes for a linked bingo 
 16.13  game shall be limited as follows: 
 16.14     (1) no organization may contribute more than $300 per 
 16.15  occasion to a linked bingo game prize pool; and 
 16.16     (2) if an organization contributes to a linked bingo game 
 16.17  prize pool, the organization's aggregate value of cover-all 
 16.18  prizes available during the bingo occasion must be reduced by 
 16.19  the amount contributed to the linked bingo game prize pool.