1.1 	A bill for an act
1.2 	relating to lawful gambling; modifying the definition
1.3 	of "raffle"; amending Minnesota Statutes 2004,
1.4 	sections 349.12, subdivision 33; 349.173; 609.75,
1.5 	subdivision 1.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 349.12,
1.8 	subdivision 33, is amended to read:
1.9 		Subd. 33.Raffle.  "Raffle" means a game in which a
1.10 	participant buys a ticket for a chance at a prize with the
1.11 	winner determined by a random drawing to take place at a
1.12 	location and date printed upon the ticket or other certificate
1.13 	of participation in an event where the prize determination is
1.14 	based on a method of random selection and all entries have an
1.15 	equal chance of selection.  The ticket or certificate of
1.16 	participation must include the location, date, and time of the
1.17 	selection of the winning entries.

1.18 	Sec. 2. Minnesota Statutes 2004, section 349.173, is
1.19 	amended to read:
1.20 	349.173 CONDUCT OF RAFFLES.
1.21 	(a) Raffle tickets or certificates of participation at a
1.22 	minimum must list the three most expensive prizes to be
1.23 	awarded.  If additional prizes will be awarded that are not
1.24 	contained on the raffle ticket, the raffle ticket must contain
1.25 	the statement "A complete list of additional prizes is available
2.1 	upon request." , a complete list of additional prizes must be
2.2 	publicly posted at the event and copies of the complete prize
2.3 	list made available upon request.Notwithstanding section
2.4 	349.12, subdivision 33, raffles conducted under the exemptions
2.5 	in section 349.166 may use tickets that contain only the
2.6 	sequential number of the raffle ticket and no other information
2.7 	if the organization makes a list of prizes and a statement of
2.8 	other relevant information required by rule available to persons
2.9 	purchasing tickets and if tickets are only sold at the event and
2.10 	on the date when the tickets are drawn.
2.11 	(b) Raffles must be conducted in a manner that ensures:
2.12 	(1) all entries in the raffle have an equal chance of
2.13 	selection;
2.14 	(2) entry is not conditional upon any purchase other than
2.15 	the ticket or certificate of participation in the event;
2.16 	(3) the method of selection is conducted in a public forum;
2.17 	(4) the method of selection cannot be manipulated or based
2.18 	on the outcome of an event not under the control of the
2.19 	organization;
2.20 	(5) physical presence at the raffle is not a requirement to
2.21 	win; and 
2.22 	(6) all sold and unsold tickets or certificates of
2.23 	participation are accounted for.
2.24 	(c) Methods of selecting winning entries from a raffle
2.25 	other than prescribed in rule may be used with the prior written
2.26 	approval of the board.

2.27 	Sec. 3. Minnesota Statutes 2004, section 609.75,
2.28 	subdivision 1, is amended to read:
2.29 		Subdivision 1.Lottery.  (a) A lottery is a plan which
2.30 	provides for the distribution of money, property or other reward
2.31 	or benefit to persons selected by chance from among participants
2.32 	some or all of whom have given a consideration for the chance of
2.33 	being selected.  A participant's payment for use of a 900
2.34 	telephone number or another means of communication that results
2.35 	in payment to the sponsor of the plan constitutes consideration
2.36 	under this paragraph.
3.1 	(b) An in-package chance promotion is not a lottery if all
3.2 	of the following are met:
3.3 	(1) participation is available, free and without purchase
3.4 	of the package, from the retailer or by mail or toll-free
3.5 	telephone request to the sponsor for entry or for a game piece;
3.6 	(2) the label of the promotional package and any related
3.7 	advertising clearly states any method of participation and the
3.8 	scheduled termination date of the promotion;
3.9 	(3) the sponsor on request provides a retailer with a
3.10 	supply of entry forms or game pieces adequate to permit free
3.11 	participation in the promotion by the retailer's customers;
3.12 	(4) the sponsor does not misrepresent a participant's
3.13 	chances of winning any prize;
3.14 	(5) the sponsor randomly distributes all game pieces and
3.15 	maintains records of random distribution for at least one year
3.16 	after the termination date of the promotion;
3.17 	(6) all prizes are randomly awarded if game pieces are not
3.18 	used in the promotion; and
3.19 	(7) the sponsor provides on request of a state agency a
3.20 	record of the names and addresses of all winners of prizes
3.21 	valued at $100 or more, if the request is made within one year
3.22 	after the termination date of the promotion.
3.23 	(c) Except as provided by section 349.40, acts in this
3.24 	state in furtherance of a lottery conducted outside of this
3.25 	state are included notwithstanding its validity where conducted.
3.26 	(d) The distribution of property, or other reward or
3.27 	benefit by an employer to persons selected by chance from among
3.28 	participants who , all of whom:
3.29 	(1) have made a contribution through a payroll or pension
3.30 	deduction campaign to a registered combined charitable
3.31 	organization, within the meaning of section 309.501; or 
3.32 	(2) have paid other consideration to the employer entirely
3.33 	for the benefit of such a registered combined charitable
3.34 	organization, as a precondition to the chance of being selected,
3.35 	is not a lottery if:
3.36 	(1) (i) all of the persons eligible to be selected are
4.1 	employed by or retirees of the employer; and
4.2 	(2) (ii) the cost of the property or other reward or
4.3 	benefit distributed and all costs associated with the
4.4 	distribution are borne by the employer.

4.5 	Sec. 4. EFFECTIVE DATE.
 4.6 	Section 1 is effective the day following final enactment.