1.1 	A bill for an act
1.2 	relating to state government; creating and funding an early education scholarship 
1.3 	program; authorizing electronic pull-tabs and bingo; appropriating money;
1.4 	amending Minnesota Statutes 2010, sections 349.12, subdivisions 3b, 3c, 5, 6a, 
1.5 	12a, 18, 25b, 25c, 25d, 29, 31, 32, by adding subdivisions; 349.13; 349.151, 
1.6 	subdivisions 4b, 4c, by adding a subdivision; 349.161, subdivisions 1, 5; 
1.7 	349.162, subdivision 5; 349.163, subdivisions 1, 5, 6; 349.1635, subdivisions 2, 
1.8 	3, by adding a subdivision; 349.17, subdivisions 6, 7, 8, by adding a subdivision; 
1.9 	349.1721; 349.18, subdivision 1; 349.19, subdivisions 2, 3, 5, 10; 349.211, 
1.10 	subdivision 1a; proposing coding for new law in Minnesota Statutes, chapter 
1.11 	119B.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	Section 1. [119B.055] EARLY EDUCATION SCHOLARSHIP PROGRAM.
1.14 		Subdivision 1.Establishment. The early education scholarship program is 
1.15 	established to make child care and early education services available to eligible 
1.16 	low-income families.
1.17 		Subd. 2.Eligible family. A family is eligible for a scholarship under this section 
1.18 	if the family:
1.19 	(1) meets the requirements under sections 119B.07; 119B.09, subdivisions 1 and 4; 
1.20 	and 119B.10, except for families participating in the MFIP or diversionary work programs 
1.21 	under chapter 256J and transition year families under section 119B.011, subdivision 20;
1.22 	(2) resides in Minnesota; and
1.23 	(3) has a child who is at least three but not yet six years of age.
1.24 		Subd. 3.Eligible providers; provider choice. (a) Providers eligible to accept an 
1.25 	early education scholarship as payment for child care or early education services for a 
1.26 	child include:
2.1 	(1) an individual or child care center or facility, either licensed or unlicensed, 
2.2 	providing legal child care services as defined under section 245A.03;
2.3 	(2) a school readiness program under section 124D.15; and
2.4 	(3) a federal Head Start program.
2.5 	(b) An eligible provider under paragraph (a) must be approved for program 
2.6 	participation under section 124D.142 or other quality rating system authorized by the 
2.7 	commissioner of education.
2.8 	(c) Parents may choose approved child care or early education providers as defined 
2.9 	under paragraph (a) that best meet the needs of their family. The state shall make resources 
2.10 	available to parents in choosing child care and early education services. The state may 
2.11 	require a parent to sign a release stating their knowledge and responsibilities in choosing a 
2.12 	legal provider described under this subdivision.
2.13 		Subd. 4.Amount and length of early education scholarships. (a) The amount of a 
2.14 	an early education scholarship under this section must be based on:
2.15 	(1) the income of the family, as determined under section 119B.09, subdivision 4;
2.16 	(2) the number of people in the family, as defined under section 119B.011, 
2.17 	subdivision 13; and
2.18 	(3) the number of eligible children in the applicant's family.
2.19 	(b) The maximum scholarship awarded to the applicant for each eligible child in a 
2.20 	12-month time period must be determined by the commissioner of education based on 
2.21 	available funding.
2.22 	(c) Families receiving a scholarship under this section shall continue to receive a 
2.23 	scholarship until they are no longer eligible.
2.24 	(d) Families are responsible for payment to providers of any fees or charges not 
2.25 	covered by the scholarship.
2.26 		Subd. 5.Provider rates. Eligible providers may not charge families using 
2.27 	scholarships under this section a rate that is higher than the rate charged to private paying 
2.28 	clients.
2.29 		Subd. 6.Funds; appropriations; waiting list. Scholarships provided under this 
2.30 	section may be funded with state general funds, federal child care and development 
2.31 	funds, and county funds. Within the limits of available appropriations, the commissioner 
2.32 	shall distribute scholarships to eligible families. If there are insufficient funds to serve 
2.33 	all eligible families, the commissioner must develop a method to prioritize applicants, 
2.34 	provide geographical balance when awarding the scholarships, and keep a written record 
2.35 	of the number of eligible families who have applied for a scholarship. The commissioner 
2.36 	must update the waiting list at least every six months.
3.1 		Subd. 7.Early childhood scholarships. The commissioner of management and 
3.2 	budget must transfer revenue raised by the sale of electronic pull-tabs and bingo under 
3.3 	sections 2 to 41 to the commissioner of education for the purpose of funding early 
3.4 	childhood scholarships under this section. The money provided under this subdivision 
3.5 	must supplement and not supplant state expenditures for these purposes at the time 
3.6 	of enactment of this act.
3.7 		Subd. 8.Information. The commissioner shall develop and provide information 
3.8 	about the program to eligible providers, human service agencies, and potential applicants.
3.9 		Subd. 9.Appropriations. The amount allocated under subdivision 7 is annually 
3.10 	appropriated from the general fund to the commissioner of education for early education 
3.11 	scholarships under this section.

3.12 	EFFECTIVE DATE. This section is effective July 1, 2013.

3.13 	Sec. 2. Minnesota Statutes 2010, section 349.12, subdivision 3b, is amended to read:
3.14 		Subd. 3b.Bar operation. "Bar operation" means a method of selling and redeeming 
3.15 	disposable gambling equipment by an employee of the lessor within a leased premises 
3.16 	which is licensed for the on-sale of alcoholic beverages where such sales and redemptions 
3.17 	are made by an employee of the lessor from a common area where food and beverages 
3.18 	are also sold.

3.19 	Sec. 3. Minnesota Statutes 2010, section 349.12, subdivision 3c, is amended to read:
3.20 		Subd. 3c.Bar bingo. "Bar bingo" is a bingo occasion conducted at a permitted 
3.21 	premises in an area where intoxicating liquor or 3.2 percent malt beverages are sold and 
3.22 	where the licensed organization conducts another form of lawful gambling. Bar bingo 
3.23 	does not include bingo games linked to other permitted premises.

3.24 	Sec. 4. Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read:
3.25 		Subd. 5.Bingo occasion. "Bingo occasion" means a single gathering or session at 
3.26 	which a series of one or more successive bingo games is played. There is no limit on the 
3.27 	number of games conducted during a bingo occasion but. A bingo occasion must not last 
3.28 	longer than eight consecutive hours., except that linked bingo games played on electronic 
3.29 	bingo devices may be played during regular business hours of the permitted premises and 
3.30 	all play during this period is considered a bingo occasion for reporting purposes. For 
3.31 	permitted premises where the primary business is bingo, regular business hours shall be 
3.32 	defined as the hours between 8:00 a.m. and 2:00 a.m.

4.1 	Sec. 5. Minnesota Statutes 2010, section 349.12, subdivision 6a, is amended to read:
4.2 		Subd. 6a.Booth operation. "Booth operation" means a method of selling and 
4.3 	redeeming disposable gambling equipment by an employee of a licensed organization in 
4.4 	a premises the organization leases or owns where such sales and redemptions are made 
4.5 	within a separate enclosure that is distinct from areas where food and beverages are sold.

4.6 	Sec. 6. Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:
4.7 		Subd. 12a.Electronic bingo device. "Electronic bingo device" means an a 
4.8 	handheld and portable electronic device that:
4.9 	(a) is used by a bingo player to:
4.10 	(1) monitor bingo paper sheets or a facsimile of a bingo paper sheet when purchased 
4.11 	and played at the time and place of an organization's bingo occasion and which (1) 
4.12 	provides a means for bingo players to, or to play an electronic bingo game that is linked 
4.13 	with other permitted premises;
4.14 	(2) activate numbers announced by a bingo caller; (2) compares or displayed, and 
4.15 	to compare the numbers entered by the player to the bingo faces previously stored in 
4.16 	the memory of the device; and 
4.17 	(3) identifies identify a winning bingo pattern. or game requirement; and
4.18 	(4) play against other bingo players;
4.19 	(b) limits the play of bingo faces to 36 faces per game;
4.20 	(c) requires coded entry to activate play but does not allow the use of a coin, 
4.21 	currency, or tokens to be inserted to activate play;
4.22 	(d) may only be used for play against other bingo players in a bingo game;
4.23 	(e) has no additional function as an amusement or gambling device;
4.24 	(f) has the capability to ensure adequate levels of security and internal controls; and
4.25 	(g) has the capability to permit the board to electronically monitor the operation of 
4.26 	the device and the internal accounting systems.
4.27 	Electronic bingo device does not mean any device into which coin, currency, or tokens are 
4.28 	inserted to activate play.

4.29 	Sec. 7. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 
4.30 	to read:
4.31 		Subd. 12b.Electronic pull-tab device. "Electronic pull-tab device" means a 
4.32 	handheld and portable electronic device that:
4.33 	(a) is used to play one or more electronic pull-tab games;
5.1 	(b) requires coded entry to activate play but does not allow the use of coin, currency, 
5.2 	or tokens to be inserted to activate play;
5.3 	(c) allows a player the option to activate the opening of:
5.4 	(1) all tabs of a ticket at the same time; or 
5.5 	(2) each tab of a ticket separately;
5.6 	(d) records and maintains information pertaining to accumulated win credits that 
5.7 	may be applied to games in play or redeemed upon termination of play;
5.8 	(e) has no spinning symbols or other representations that mimic a video slot machine;
5.9 	(f) has no additional function as a gambling device;
5.10 	(g) may incorporate an amusement game feature as part of the pull-tab game but 
5.11 	may not require additional consideration for that feature or contain or award any points, 
5.12 	prizes, or other benefit for that feature;
5.13 	(h) may have auditory or visual enhancements to promote or provide information 
5.14 	about the game being played, provided the component does not affect the outcome of 
5.15 	a game or display the results of a game;
5.16 	(i) maintains, on nonresettable meters, a printable, permanent record of all 
5.17 	transactions involving each device and electronic pull-tab games played on the device; and
5.18 	(j) is not a pull-tab dispensing device as defined under subdivision 32a.

5.19 	Sec. 8. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 
5.20 	to read:
5.21 		Subd. 12c.Electronic pull-tab game. "Electronic pull-tab game" means a pull-tab 
5.22 	game containing:
5.23 	(a) facsimiles of pull-tab tickets that are played on an electronic pull-tab device;
5.24 	(b) a predetermined finite number of winning and losing tickets;
5.25 	(c) the same price for each ticket in the game;
5.26 	(d) a price paid by the player of not less than 25 cents per ticket;
5.27 	(e) tickets that are in conformance with applicable board rules for pull-tabs;
5.28 	(f) winning tickets that comply with prize limits under section 349.211;
5.29 	(g) a unique serial number that may not be regenerated;
5.30 	(h) an electronic flare that displays the game name, form number, predetermined 
5.31 	finite number of tickets in the game, and prize tier; and
5.32 	(i) no spinning symbols or other representations that mimic a video slot machine.

5.33 	Sec. 9. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision 
5.34 	to read:
6.1 		Subd. 12d.Electronic pull-tab game system. "Electronic pull-tab game system" 
6.2 	means the equipment leased from a licensed distributor and used by a licensed organization 
6.3 	to conduct, manage, and record electronic pull-tab games, and to report and transmit the 
6.4 	game results as prescribed by the board and the Department of Revenue. The system must 
6.5 	provide security and access levels sufficient so that internal control objectives are met as 
6.6 	prescribed by the board. The system must contain a point of sale station.

6.7 	Sec. 10. Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read:
6.8 		Subd. 18.Gambling equipment. "Gambling equipment" means: gambling 
6.9 	equipment that is either disposable or permanent gambling equipment. 
6.10 	(a) Disposable gambling equipment includes the following:
6.11 	(1) bingo hard cards or paper sheets, including linked bingo paper sheets, devices for 
6.12 	selecting bingo numbers, electronic bingo devices,;
6.13 	(2) paper and electronic pull-tabs,;
6.14 	(3) jar tickets, paddle wheels, paddle wheel tables,;
6.15 	(4) paddle tickets, and paddle ticket cards,;
6.16 	(5) tipboards, and tipboard tickets,;and
6.17 	(6) promotional tickets that mimic a pull-tab or tipboard, pull-tab dispensing devices, 
6.18 	and programmable electronic devices that have no effect on the outcome of a game and 
6.19 	are used to provide a visual or auditory enhancement of a game.
6.20 	(b) Permanent gambling equipment includes the following:
6.21 	(1) devices for selecting bingo numbers;
6.22 	(2) electronic bingo devices;
6.23 	(3) electronic pull-tab devices;
6.24 	(4) pull-tab dispensing devices;
6.25 	(5) programmable electronic devices that have no effect on the outcome of a game 
6.26 	and are used to provide a visual or auditory enhancement of a game;
6.27 	(6) paddle wheels; and
6.28 	(7) paddle wheel tables.

6.29 	Sec. 11. Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read:
6.30 		Subd. 25b.Linked bingo game provider. "Linked bingo game provider" means 
6.31 	any person who provides the means to link bingo prizes in a linked bingo game, who 
6.32 	provides linked bingo paper sheets to the participating organizations games, who provides 
6.33 	linked bingo prize management, and who provides the linked bingo game system.

7.1 	Sec. 12. Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read:
7.2 		Subd. 25c.Linked bingo game system. "Linked bingo game system" means the 
7.3 	equipment used by the linked bingo provider to conduct, transmit, and track a linked 
7.4 	bingo game. The system must be approved by the board before its use in this state and 
7.5 	it must have dial-up or other the capability to permit the board to electronically monitor 
7.6 	its operation remotely. For linked electronic bingo games, the system includes electronic 
7.7 	bingo devices.

7.8 	Sec. 13. Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read:
7.9 		Subd. 25d.Linked bingo prize pool. "Linked bingo prize pool" means the total 
7.10 	of all prize money that each participating organization has contributed to a linked bingo 
7.11 	game prize and includes any portion of the prize pool that is carried over from one 
7.12 	occasion game to another in a progressive linked bingo game.

7.13 	Sec. 14. Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read:
7.14 		Subd. 29.Paddle wheel. "Paddle wheel" means a vertical wheel marked off into 
7.15 	sections containing one or more numbers, and which, after being turned or spun, uses a 
7.16 	pointer or marker to indicate winning chances, and may only be used to determine a 
7.17 	winning number or numbers matching a winning paddle ticket purchased by a player. A 
7.18 	paddle wheel may be an electronic device that simulates a paddle wheel.

7.19 	Sec. 15. Minnesota Statutes 2010, section 349.12, subdivision 31, is amended to read:
7.20 		Subd. 31.Promotional ticket. A paper pull-tab ticket or paper tipboard ticket 
7.21 	created and printed by a licensed manufacturer with the words "no purchase necessary" and 
7.22 	"for promotional use only" and for which no consideration is given is a promotional ticket.

7.23 	Sec. 16. Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read:
7.24 		Subd. 32.Pull-tab. "Pull-tab" means a single folded or banded paper ticket or a,
7.25 	multi-ply card with perforated break-open tabs, or a facsimile of a paper pull-tab ticket 
7.26 	used in conjunction with an electronic pull-tab device, the face of which is initially 
7.27 	covered to conceal one or more numbers or symbols, and where one or more of each set of 
7.28 	tickets or, cards, or facsimiles has been designated in advance as a winner.

7.29 	Sec. 17. Minnesota Statutes 2010, section 349.13, is amended to read:
7.30 	349.13 LAWFUL GAMBLING.
8.1 	Lawful gambling is not a lottery or gambling within the meaning of sections 609.75
8.2 	to 609.76 if it is conducted under this chapter. A pull-tab dispensing device, electronic 
8.3 	bingo device, and electronic pull-tab device permitted under this chapter and by board 
8.4 	rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter 
8.5 	299L. An electronic game device allowed under this chapter may not be a slot machine. 
8.6 	Electronic game devices, including but not limited to electronic bingo devices, electronic 
8.7 	paddle wheels, and electronic pull-tab devices authorized under this chapter, may only 
8.8 	be used in the conduct of lawful gambling permitted under this chapter and board rule 
8.9 	and may not display or simulate any other form of gambling or entertainment, except 
8.10 	as otherwise allowed under this chapter. 

8.11 	Sec. 18. Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:
8.12 		Subd. 4b.Pull-tab sales from dispensing devices. (a) The board may by rule 
8.13 	authorize but not require the use of pull-tab dispensing devices.
8.14 	(b) Rules adopted under paragraph (a):
8.15 	(1) must limit the number of pull-tab dispensing devices on any permitted premises 
8.16 	to three; and
8.17 	(2) must limit the use of pull-tab dispensing devices to a permitted premises which is 
8.18 	(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages; 
8.19 	or (ii) a premises where bingo is conducted and admission is restricted to persons 18 
8.20 	years or older.
8.21 	(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices 
8.22 	may be used in establishments licensed for the off-sale of intoxicating liquor, other than 
8.23 	drugstores and general food stores licensed under section 340A.405, subdivision 1.

8.24 	Sec. 19. Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read:
8.25 		Subd. 4c.Electronic bingo devices. (a) The board may by rule authorize but not 
8.26 	require the use of electronic bingo devices.
8.27 	(b) Rules adopted under paragraph (a):
8.28 	(1) must limit the number of bingo faces that can be played using an electronic 
8.29 	bingo device to 36;
8.30 	(2) must require that an electronic bingo device be used with corresponding bingo 
8.31 	paper sheets or a facsimile, printed at the point of sale, as approved by the board;
8.32 	(3) must require that the electronic bingo device site system have dial-up capability 
8.33 	to permit the board to remotely monitor the operation of the device and the internal 
8.34 	accounting systems; and
9.1 	(4) must prohibit the price of a face played on an electronic bingo device from being 
9.2 	less than the price of a face on a bingo paper sheet sold at the same occasion.
9.3 	(b) The board, or the director if authorized by the board, may require the deactivation 
9.4 	of an electronic bingo device for violation of a law or rule and to implement any other 
9.5 	controls deemed necessary to ensure and maintain the integrity of electronic bingo devices 
9.6 	and the electronic bingo games played on the devices.

9.7 	Sec. 20. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision 
9.8 	to read:
9.9 		Subd. 4d.Electronic pull-tab devices and electronic pull-tab game system. (a) 
9.10 	The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab 
9.11 	devices, the electronic pull-tab games played on the devices, and the electronic pull-tab 
9.12 	game system necessary to operate them.
9.13 	(b) The board may not require an organization to use electronic pull-tab devices.
9.14 	(c) Before authorizing the lease or sale of electronic pull-tab devices and the 
9.15 	electronic pull-tab game system, the board shall examine electronic pull-tab devices 
9.16 	allowed under section 349.12, subdivision 12b. The board may contract for the 
9.17 	examination of the game system and electronic pull-tab devices and may require a working 
9.18 	model to be transported to locations the board designates for testing, examination, and 
9.19 	analysis. The manufacturer must pay all costs of any testing, examination, analysis, and 
9.20 	transportation of the model. The system must be approved by the board before its use in 
9.21 	the state and must have the capability to permit the board to electronically monitor its 
9.22 	operation and internal accounting systems. 
9.23 	(d) The board may require a manufacturer to submit a certificate from an independent 
9.24 	testing laboratory approved by the board to perform testing services, stating that the 
9.25 	equipment has been tested, analyzed, and meets the standards required in this chapter 
9.26 	and any applicable board rules.
9.27 	(e) The board, or the director if authorized by the board, may require the deactivation 
9.28 	of an electronic pull-tab device for violation of a law or rule and to implement any other 
9.29 	controls deemed necessary to ensure and maintain the integrity of electronic pull-tab 
9.30 	devices and the electronic pull-tab games played on the devices.

9.31 	Sec. 21. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read:
9.32 		Subdivision 1.Prohibited acts; licenses required. (a) No person may:
10.1 	(1) sell, offer for sale, or furnish gambling equipment for use within the state other 
10.2 	than for lawful gambling exempt or excluded from licensing, except to an organization 
10.3 	licensed for lawful gambling;
10.4 	(2) sell, offer for sale, or furnish gambling equipment for use within the state without 
10.5 	having obtained a distributor license or a distributor salesperson license under this section 
10.6 	except that an organization authorized to conduct bingo by the board may loan bingo 
10.7 	hard cards and devices for selecting bingo numbers to another organization authorized to 
10.8 	conduct bingo and a linked bingo game provider may provide electronic bingo devices for 
10.9 	linked electronic bingo games;
10.10 	(3) sell, offer for sale, or furnish gambling equipment for use within the state that is 
10.11 	not purchased or obtained from a manufacturer or distributor licensed under this chapter; or
10.12 	(4) sell, offer for sale, or furnish gambling equipment for use within the state that 
10.13 	has the same serial number as another item of gambling equipment of the same type sold 
10.14 	or offered for sale or furnished for use in the state by that distributor.
10.15 	(b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling 
10.16 	equipment for use within the state without being employed by a licensed distributor or 
10.17 	owning a distributor license.
10.18 	(c) No distributor or distributor salesperson may also be licensed as a linked bingo 
10.19 	game provider under section 349.1635.

10.20 	Sec. 22. Minnesota Statutes 2010, section 349.161, subdivision 5, is amended to read:
10.21 		Subd. 5.Prohibition. (a) No distributor, distributor salesperson, or other employee 
10.22 	of a distributor, may also be a wholesale distributor of alcoholic beverages or an employee 
10.23 	of a wholesale distributor of alcoholic beverages.
10.24 	(b) No distributor, distributor salesperson, or any representative, agent, affiliate, or 
10.25 	other employee of a distributor, may: (1) be involved in the conduct of lawful gambling 
10.26 	by an organization; (2) keep or assist in the keeping of an organization's financial records, 
10.27 	accounts, and inventories; or (3) prepare or assist in the preparation of tax forms and other 
10.28 	reporting forms required to be submitted to the state by an organization.
10.29 	(c) No distributor, distributor salesperson, or any representative, agent, affiliate, 
10.30 	or other employee of a distributor may provide a lessor of gambling premises any 
10.31 	compensation, gift, gratuity, premium, or other thing of value.
10.32 	(d) No distributor, distributor salesperson, or any representative, agent, affiliate, or 
10.33 	other employee of a distributor may provide an employee or agent of the organization 
10.34 	any compensation, gift, gratuity, premium, or other thing of value greater than $25 per 
10.35 	organization in a calendar year.
11.1 	(e) No distributor, distributor salesperson, or any representative, agent, affiliate, or 
11.2 	other employee of a distributor may participate in any gambling activity at any gambling 
11.3 	site or premises where gambling equipment purchased or leased from that distributor or 
11.4 	distributor salesperson is being used in the conduct of lawful gambling.
11.5 	(f) No distributor, distributor salesperson, or any representative, agent, affiliate, or 
11.6 	other employee of a distributor may alter or modify any gambling equipment, except to 
11.7 	add a "last ticket sold" prize sticker for a paper pull-tab game.
11.8 	(g) No distributor, distributor salesperson, or any representative, agent, affiliate, or 
11.9 	other employee of a distributor may: (1) recruit a person to become a gambling manager 
11.10 	of an organization or identify to an organization a person as a candidate to become 
11.11 	gambling manager for the organization; or (2) identify for an organization a potential 
11.12 	gambling location.
11.13 	(h) No distributor or distributor salesperson may purchase or lease gambling 
11.14 	equipment for resale or lease to a person for use within the state from any person not 
11.15 	licensed as a manufacturer under section 349.163, except for gambling equipment 
11.16 	returned from an organization licensed under section 349.16, or exempt or excluded from 
11.17 	licensing under section 349.166.
11.18 	(i) No distributor or distributor salesperson may sell gambling equipment, except 
11.19 	gambling equipment identified as a promotional ticket, to any person for use in Minnesota 
11.20 	other than (i) a licensed organization or organization excluded or exempt from licensing, 
11.21 	or (ii) the governing body of an Indian tribe.
11.22 	(j) No distributor or distributor salesperson may sell or otherwise provide a paper
11.23 	pull-tab or tipboard deal with the symbol required by section 349.163, subdivision 5, 
11.24 	paragraph (d), visible on the flare to any person other than in Minnesota to a licensed 
11.25 	organization or organization exempt from licensing.

11.26 	Sec. 23. Minnesota Statutes 2010, section 349.162, subdivision 5, is amended to read:
11.27 		Subd. 5.Sales from facilities. (a) All gambling equipment purchased or possessed 
11.28 	by a licensed distributor for resale or lease to any person for use in Minnesota must, prior 
11.29 	to the equipment's resale or lease, be unloaded into a storage facility located in Minnesota 
11.30 	which the distributor owns or leases; and which has been registered, in advance and in 
11.31 	writing, with the Division of Alcohol and Gambling Enforcement as a storage facility of 
11.32 	the distributor. All unregistered gambling equipment and all unaffixed registration stamps 
11.33 	owned by, or in the possession of, a licensed distributor in the state of Minnesota shall be 
11.34 	stored at a storage facility which has been registered with the Division of Alcohol and 
11.35 	Gambling Enforcement. No gambling equipment may be moved from the facility unless 
12.1 	the gambling equipment has been first registered with the board or the Department of 
12.2 	Revenue. A distributor must notify the board of the method that it will use to sell and 
12.3 	transfer electronic pull-tab games to licensed organizations, and must receive approval of 
12.4 	the board before implementing or making changes to the approved method.
12.5 	(b) Notwithstanding section 349.163, subdivisions 5, 6, and 8, a licensed 
12.6 	manufacturer may ship into Minnesota approved or unapproved gambling equipment if the 
12.7 	licensed manufacturer ships the gambling equipment to a Minnesota storage facility that 
12.8 	is: (1) owned or leased by the licensed manufacturer; and (2) registered, in advance and 
12.9 	in writing, with the Division of Alcohol and Gambling Enforcement as a manufacturer's 
12.10 	storage facility. No gambling equipment may be shipped into Minnesota to the 
12.11 	manufacturer's registered storage facility unless the shipment of the gambling equipment 
12.12 	is reported to the Department of Revenue in a manner prescribed by the department. 
12.13 	No gambling equipment may be moved from the storage facility unless the gambling 
12.14 	equipment is sold to a licensed distributor and is otherwise in conformity with this chapter, 
12.15 	is shipped to an out-of-state site and the shipment is reported to the Department of 
12.16 	Revenue in a manner prescribed by the department, or is otherwise sold and shipped as 
12.17 	permitted by board rule. A manufacturer must notify the board of the method that it will 
12.18 	use to sell and transfer electronic pull-tab games to licensed distributors, and must receive 
12.19 	approval of the board before implementing or making changes to the approved method.
12.20 	(c) All storage facilities owned, leased, used, or operated by a licensed distributor 
12.21 	or manufacturer may be entered upon and inspected by the employees of the Division of 
12.22 	Alcohol and Gambling Enforcement, the Division of Alcohol and Gambling Enforcement 
12.23 	director's authorized representatives, employees of the Gambling Control Board or its 
12.24 	authorized representatives, employees of the Department of Revenue, or authorized 
12.25 	representatives of the director of the Division of Special Taxes of the Department of 
12.26 	Revenue during reasonable and regular business hours. Obstruction of, or failure to 
12.27 	permit, entry and inspection is cause for revocation or suspension of a manufacturer's or 
12.28 	distributor's licenses and permits issued under this chapter.
12.29 	(d) Unregistered gambling equipment found at any location in Minnesota other than 
12.30 	the manufacturing plant of a licensed manufacturer or a registered storage facility are 
12.31 	contraband under section 349.2125. This paragraph does not apply:
12.32 	(1) to unregistered gambling equipment being transported in interstate commerce 
12.33 	between locations outside this state, if the interstate shipment is verified by a bill of lading 
12.34 	or other valid shipping document; and
12.35 	(2) to gambling equipment registered with the Department of Revenue for 
12.36 	distribution to the tribal casinos.

13.1 	Sec. 24. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read:
13.2 		Subdivision 1.License required. No manufacturer of gambling equipment may 
13.3 	sell any gambling equipment to any person for use or resale within the state, unless the 
13.4 	manufacturer has a current and valid license issued by the board under this section and has 
13.5 	satisfied other criteria prescribed by the board by rule. A manufacturer licensed under this 
13.6 	section may also be licensed as a linked bingo game provider under section 349.1635. 
13.7 	A manufacturer licensed under this section may not also be directly or indirectly 
13.8 	licensed as a distributor under section 349.161.

13.9 	Sec. 25. Minnesota Statutes 2010, section 349.163, subdivision 5, is amended to read:
13.10 		Subd. 5.Paper pull-tab and tipboard flares. (a) A manufacturer may not ship or 
13.11 	cause to be shipped into this state or sell for use or resale in this state any deal of paper
13.12 	pull-tabs or tipboards that does not have its own individual flare as required for that deal 
13.13 	by this subdivision and rule of the board. A person other than a manufacturer may not 
13.14 	manufacture, alter, modify, or otherwise change a flare for a deal of paper pull-tabs or 
13.15 	tipboards except as allowed by this chapter or board rules.
13.16 	(b) The flare of each paper pull-tab and tipboard game must have affixed to 
13.17 	or imprinted at the bottom a bar code that provides all information required by the 
13.18 	commissioner of revenue under section 297E.04, subdivision 2.
13.19 	The serial number included in the bar code must be the same as the serial number 
13.20 	of the tickets included in the deal. A manufacturer who manufactures a deal of paper
13.21 	pull-tabs must affix to the outside of the box containing that game the same bar code that 
13.22 	is affixed to or imprinted at the bottom of a flare for that deal.
13.23 	(c) No person may alter the bar code that appears on the outside of a box containing 
13.24 	a deal of paper pull-tabs and tipboards. Possession of a box containing a deal of paper
13.25 	pull-tabs and tipboards that has a bar code different from the bar code of the deal inside 
13.26 	the box is prima facie evidence that the possessor has altered the bar code on the box.
13.27 	(d) The flare of each deal of paper pull-tabs and tipboards sold by a manufacturer for 
13.28 	use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high 
13.29 	and one inch wide consisting of an outline of the geographic boundaries of Minnesota 
13.30 	with the letters "MN" inside the outline. The flare must be placed inside the wrapping of 
13.31 	the deal which the flare describes.
13.32 	(e) Each paper pull-tab and tipboard flare must bear the following statement printed 
13.33 	in letters large enough to be clearly legible:
13.34 	"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in 
13.35 	Minnesota unless:
14.1 	-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and
14.2 	-- the serial number imprinted on the bar code at the bottom of this sheet is the same 
14.3 	as the serial number on the pull-tab (or tipboard) ticket you have purchased."
14.4 	(f) The flare of each paper pull-tab and tipboard game must have the serial number 
14.5 	of the game imprinted on the bar code at the bottom of the flare in numerals at least 
14.6 	one-half inch high.

14.7 	Sec. 26. Minnesota Statutes 2010, section 349.163, subdivision 6, is amended to read:
14.8 		Subd. 6.Samples of gambling equipment. (a) The board shall require each 
14.9 	licensed manufacturer to submit to the board one or more samples of each item of gambling 
14.10 	equipment the manufacturer manufactures manufactured for use or resale in this state.
14.11 	For purposes of this subdivision, a manufacturer is also required to submit the applicable 
14.12 	version of any software necessary to operate electronic devices and related systems.
14.13 	(b) The board shall inspect and test all the equipment, including software and 
14.14 	software upgrades, it deems necessary to determine the equipment's compliance with 
14.15 	law and board rules. Samples required under this subdivision must be approved by the 
14.16 	board before the equipment being sampled is shipped into or sold for use or resale in this 
14.17 	state. The board shall impose a fee of $25 for each item of gambling equipment that the 
14.18 	manufacturer submits for approval or for which the manufacturer requests approval. The 
14.19 	board shall impose a fee of $100 for each sample of gambling equipment that it tests.
14.20 	(c) The board may require samples of gambling equipment to be tested by an 
14.21 	independent testing laboratory prior to submission to the board for approval. All costs 
14.22 	of testing by an independent testing laboratory must be borne by the manufacturer. An 
14.23 	independent testing laboratory used by a manufacturer to test samples of gambling 
14.24 	equipment must be approved by the board before the equipment is submitted to the 
14.25 	laboratory for testing.
14.26 	(d) The board may request the assistance of the commissioner of public safety and 
14.27 	the director of the State Lottery in performing the tests.

14.28 	Sec. 27. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read:
14.29 		Subd. 2.License application. The board may issue a license to a linked bingo game 
14.30 	provider or to a manufacturer licensed under section 349.163 who meets the qualifications 
14.31 	of this chapter and the rules promulgated by the board. The application shall be on a form 
14.32 	prescribed by the board. The license is valid for two years and the fee for a linked bingo 
14.33 	game provider license is $5,000 per year.

15.1 	Sec. 28. Minnesota Statutes 2010, section 349.1635, subdivision 3, is amended to read:
15.2 		Subd. 3.Attachments to application. An applicant for a linked bingo game 
15.3 	provider license must attach to its application:
15.4 	(1) evidence of a bond in the principal amount of $100,000 payable to the state of 
15.5 	Minnesota conditioned on the payment of all linked bingo prizes and any other money due 
15.6 	and payable under this chapter;
15.7 	(2) detailed plans and specifications for the operation of the linked bingo game and 
15.8 	the linked bingo system, along with a proposed fee schedule for the cost of providing 
15.9 	services and equipment to licensed organizations which may not exceed ... percent of 
15.10 	gross profits. The fee schedule must incorporate costs paid to distributors for services 
15.11 	provided under subdivision 5; and
15.12 	(3) any other information required by the board by rule.

15.13 	Sec. 29. Minnesota Statutes 2010, section 349.1635, is amended by adding a 
15.14 	subdivision to read:
15.15 		Subd. 5.Linked bingo game services requirements. (a) A linked bingo game 
15.16 	provider must contract with licensed distributors for linked bingo game services including, 
15.17 	but not limited to, the solicitation of agreements with licensed organizations, and 
15.18 	installation, repair, or maintenance of the linked bingo game system.
15.19 	(b) A distributor may not charge a fee to licensed organizations for services 
15.20 	authorized and rendered under paragraph (a).
15.21 	(c) A linked bingo game provider may not contract with any distributor on an 
15.22 	exclusive basis.
15.23 	(d) A linked bingo game provider may refuse to contract with a licensed distributor 
15.24 	if the linked bingo game provider demonstrates that the licensed distributor is not capable 
15.25 	of performing the services under the contract.

15.26 	Sec. 30. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:
15.27 		Subd. 6.Conduct of bingo. The price of a face played on an electronic bingo 
15.28 	device may not be less than the price of a face on a bingo paper sheet sold for the same 
15.29 	game at the same occasion. A game of bingo begins with the first letter and number called
15.30 	or displayed. Each player must cover, mark, or activate the numbers when bingo numbers 
15.31 	are randomly selected, and announced, and or displayed to the players, either manually 
15.32 	or with a flashboard and monitor. The game is won when a player, using bingo paper, 
15.33 	bingo hard card, or a facsimile of a bingo paper sheet, has completed, as described in the 
15.34 	bingo program, a previously designated pattern or previously determined requirements 
16.1 	of the game and declared bingo. The game is completed when a winning card, sheet, or 
16.2 	facsimile is verified and a prize awarded pursuant to subdivision 3.

16.3 	Sec. 31. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read:
16.4 		Subd. 7.Bar bingo. An organization may conduct bar bingo subject to the 
16.5 	following restrictions:
16.6 	(1) the bingo is conducted at a site the organization owns or leases and which has a 
16.7 	license for the sale of intoxicating beverages on the premises under chapter 340A; and
16.8 	(2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper 
16.9 	sheets purchased from a licensed distributor or licensed linked bingo game provider; and.
16.10 	(3) no rent may be paid for a bar bingo occasion.

16.11 	Sec. 32. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:
16.12 		Subd. 8.Linked bingo games. (a) A licensed organization may conduct or 
16.13 	participate in not more than two linked bingo games per occasion, one of which may be, 
16.14 	including a progressive game in which a portion of the prize is carried over from one 
16.15 	occasion game to another until won by a player achieving a bingo within a predetermined 
16.16 	amount of bingo numbers called.
16.17 	(b) Each participating licensed organization shall contribute to each prize awarded in 
16.18 	a linked bingo game in an amount not to exceed $300. Linked bingo games may only be 
16.19 	conducted by licensed organizations who have a valid agreement with the linked bingo 
16.20 	game provider.
16.21 	(c) An electronic bingo device as defined in section 349.12, subdivision 12a, may 
16.22 	be used for a linked bingo game.
16.23 	(d) The board may adopt rules to:
16.24 	(1) specify the manner in which a linked bingo game must be played and how the 
16.25 	linked bingo prizes must be awarded;
16.26 	(2) specify the records to be maintained by a linked bingo game provider;
16.27 	(3) require the submission of periodic reports by the linked bingo game provider and 
16.28 	specify the content of the reports;
16.29 	(4) establish the qualifications required to be licensed as a linked bingo game 
16.30 	provider; and
16.31 	(5) any other matter involving the operation of a linked bingo game.

16.32 	Sec. 33. Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision 
16.33 	to read:
17.1 		Subd. 9.Linked bingo games played exclusively on electronic bingo devices. In 
17.2 	addition to the requirements of subdivision 8, the following requirements and restrictions 
17.3 	apply when linked bingo games are played exclusively on electronic bingo devices:
17.4 	(a) The permitted premises must be:
17.5 	(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent 
17.6 	malt beverages, except for a general food store or drug store permitted to sell alcoholic 
17.7 	beverages under section 340A.405, subdivision 1; or
17.8 	(2) a premises where bingo is conducted as the primary business and has a seating 
17.9 	capacity of at least 100.
17.10 	(b) The number of electronic bingo devices is limited to:
17.11 	(1) no more than six devices in play for permitted premises with 200 seats or less;
17.12 	(2) no more than 12 devices in play for permitted premises with 201 seats or more; 
17.13 	and
17.14 	(3) no more than 50 devices in play for permitted premises where bingo is the 
17.15 	primary business.
17.16 	Seating capacity is determined as specified under the local fire code.
17.17 	(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the 
17.18 	participating organizations, must provide to the board a bingo program in a format 
17.19 	prescribed by the board.
17.20 	(d) Before participating in the play of a linked bingo game, a player must present 
17.21 	and register a valid picture identification card that includes the player's address and 
17.22 	date of birth.
17.23 	(e) An organization may remove from play a device that a player has not maintained 
17.24 	in an activated mode for a specified period of time determined by the organization. The 
17.25 	organization must provide the notice in its house rules.

17.26 	Sec. 34. Minnesota Statutes 2010, section 349.1721, is amended to read:
17.27 	349.1721 CONDUCT OF PULL-TABS.
17.28 		Subdivision 1.Cumulative or carryover games. The board shall by rule permit 
17.29 	pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games with 
17.30 	cumulative or carryover prizes. The rules shall also apply to electronic pull-tab games.
17.31 		Subd. 2.Event games. The board shall by rule permit pull-tab games in which 
17.32 	certain winners are determined by the random selection of one or more bingo numbers 
17.33 	or by another method approved by the board. The rules shall also apply to electronic 
17.34 	pull-tab games. 
18.1 		Subd. 3.Pull-tab dispensing device location restrictions and requirements.
 18.2 	The following pertain to pull-tab dispensing devices as defined under section 349.12, 
18.3 	subdivision 32a.
18.4 	(a) The use of any pull-tab dispensing device must be at a permitted premises 
18.5 	which is:
18.6 	(1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt 
18.7 	beverages;
18.8 	(2) a premises where bingo is conducted as the primary business; or
18.9 	(3) an establishment licensed for the off-sale of intoxicating liquor, other than drug 
18.10 	stores and general food stores licensed under section 340A.405, subdivision 1.
18.11 	(b) The number of pull-tab dispensing devices located at any permitted premises 
18.12 	is limited to three.
18.13 		Subd. 4.Electronic pull-tab device requirements and restrictions. The following 
18.14 	pertain to the use of electronic pull-tab devices as defined under section 349.12, 
18.15 	subdivision 12b.
18.16 	(a) The use of any electronic pull-tab device must be at a permitted premises that is:
18.17 	(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent 
18.18 	malt beverages, except for a general food store or drug store permitted to sell alcoholic 
18.19 	beverages under section 340A.405, subdivision 1; or
18.20 	(2) a premises where bingo is conducted as the primary business and has a seating 
18.21 	capacity of at least 100; and
18.22 	(3) where the sale of paper pull-tabs is conducted by the licensed organization.
18.23 	(b) The number of electronic pull-tab devices is limited to:
18.24 	(1) no more than six devices in play at any permitted premises with 200 seats or less;
18.25 	(2) no more than 12 devices in play at any permitted premises with 201 seats 
18.26 	or more; and
18.27 	(3) no more than 50 devices in play at any permitted premises where the primary 
18.28 	business is bingo.
18.29 	Seating capacity is determined as specified under the local fire code.
18.30 	(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.
18.31 	(d) All electronic pull-tab games must be sold and played on the permitted premises 
18.32 	and may not be linked to other permitted premises.
18.33 	(e) Electronic pull-tab games may not be transferred electronically or otherwise to 
18.34 	any other location by the licensed organization.
18.35 	(f) Electronic pull-tab games may be commingled if the games are from the same 
18.36 	family of games and manufacturer and contain the same game name, form number, type 
19.1 	of game, ticket count, prize amounts, and prize denominations. Each commingled game 
19.2 	must have a unique serial number.
19.3 	(g) An organization may remove from play a device that a player has not maintained 
19.4 	in an activated mode for a specified period of time determined by the organization. The 
19.5 	organization must provide the notice in its house rules. 
19.6 	(h) Before participating in the play of an electronic pull-tab game, a player must 
19.7 	present and register a valid picture identification card that includes the player's address 
19.8 	and date of birth.
19.9 	(i) Each player is limited to the use of one device at a time.

19.10 	Sec. 35. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read:
19.11 		Subdivision 1.Lease or ownership required; rent limitations. (a) An organization 
19.12 	may conduct lawful gambling only on premises it owns or leases. Leases must be on a 
19.13 	form prescribed by the board. The term of the lease is concurrent with the premises permit. 
19.14 	Leases approved by the board must specify that the board may authorize an organization 
19.15 	to withhold rent from a lessor for a period of up to 90 days if the board determines that 
19.16 	illegal gambling occurred on the premises or that the lessor or its employees participated 
19.17 	in the illegal gambling or knew of the gambling and did not take prompt action to stop the 
19.18 	gambling. The lease must authorize the continued tenancy of the organization without 
19.19 	the payment of rent during the time period determined by the board under this paragraph. 
19.20 	Copies of all leases must be made available to employees of the board and the Division of 
19.21 	Alcohol and Gambling Enforcement on request.
19.22 	(b) Rent paid by an organization for leased premises for the conduct of pull-tabs, 
19.23 	tipboards, and paddle wheels lawful gambling is subject to the following limits and 
19.24 	restrictions:
19.25 	(1) For booth operations, including booth operations where a pull-tab dispensing 
19.26 	device is located, booth operations where a bar operation is also conducted, and booth 
19.27 	operations where both a pull-tab dispensing device is located and a bar operation is also 
19.28 	conducted, the maximum rent is: monthly rent may not exceed ten percent of gross profits 
19.29 	for that month.
19.30 	(i) in any month where the organization's gross profit at those premises does not 
19.31 	exceed $4,000, up to $400; and
19.32 	(ii) in any month where the organization's gross profit at those premises exceeds 
19.33 	$4,000, up to $400 plus not more than ten percent of the gross profit for that month in 
19.34 	excess of $4,000;
20.1 	(2) For bar operations, including bar operations where a pull-tab dispensing device 
20.2 	is located but not including bar operations subject to clause (1), and for locations where 
20.3 	only a pull-tab dispensing device is located: monthly rent may not exceed 15 percent of 
20.4 	the gross profits for that month.
20.5 	(i) in any month where the organization's gross profit at those premises does not 
20.6 	exceed $1,000, up to $200; and
20.7 	(ii) in any month where the organization's gross profit at those premises exceeds 
20.8 	$1,000, up to $200 plus not more than 20 percent of the gross profit for that month 
20.9 	in excess of $1,000;
20.10 	(3) a lease not governed by clauses (1) and (2) must be approved by the board before 
20.11 	becoming effective; For electronic linked bingo games and electronic pull-tab games that 
20.12 	are operated for separate time periods within a business day by an organization and the 
20.13 	lessor, monthly rent may not be more than:
20.14 	(i) 15 percent of the gross profits for that month for the time periods operated by 
20.15 	the lessor. The lessor is responsible for cash shortages that occur during the time periods 
20.16 	the games are operated by the lessor; and
20.17 	(ii) ten percent of gross profits for that month for the time periods operated by the 
20.18 	organization. The organization is responsible for cash shortages that occur during the time 
20.19 	periods the games are operated by the organization.
20.20 	(4) total rent paid to a lessor from all organizations from leases governed by clause 
20.21 	(1) may not exceed $1,750 per month.
20.22 	(c) Rent paid by an organization for leased premises for the conduct of bingo is 
20.23 	subject to either of the following limits at the option of the parties to the lease:
20.24 	(1) (4) For bingo conducted at a leased premises where the primary business is 
20.25 	bingo, rent is limited to either not more than ten percent of the monthly gross profit from 
20.26 	all lawful gambling activities held during bingo occasions, excluding bar bingo or at a 
20.27 	rate based on a cost per square foot not to exceed 110 percent of a comparable cost per 
20.28 	square foot for leased space as approved by the director; and.
20.29 	(2) (5) No rent may be paid for bar bingo as defined in section 349.12, subdivision 3c.
20.30 	(6) A lease not governed by clauses (1) to (5) must be approved by the director 
20.31 	before becoming effective.
20.32 	(d) (c) Amounts paid as rent under leases are all-inclusive. No other services or 
20.33 	expenses provided or contracted by the lessor may be paid by the organization, including, 
20.34 	but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn 
20.35 	services, electricity, heat, security, security monitoring, storage, and other utilities or 
20.36 	services, and, in the case of bar operations, cash shortages, unless approved by the 
21.1 	director. The lessor shall be responsible for the cost of any communications network or 
21.2 	service required to conduct electronic pull-tab games or electronic bingo games. Any 
21.3 	other expenditure made by an organization that is related to a leased premises must be 
21.4 	approved by the director. For bar operations, the lessor is responsible for cash shortages.
21.5 	An organization may not provide any compensation or thing of value to a lessor or the 
21.6 	lessor's employees from any fund source other than its gambling account. Rent payments 
21.7 	may not be made to an individual.
21.8 	(e) (d) Notwithstanding paragraph (b), an organization may pay a lessor for food 
21.9 	or beverages or meeting room rental if the charge made is comparable to similar charges 
21.10 	made to other individuals or groups.
21.11 	(f) No entity other than the (e) A licensed organization may not conduct any activity 
21.12 	within a booth operation on behalf of the lessor on a leased premises.

21.13 	Sec. 36. Minnesota Statutes 2010, section 349.19, subdivision 2, is amended to read:
21.14 		Subd. 2.Accounts. (a) Gross receipts from lawful gambling by each organization 
21.15 	must be segregated from all other revenues of the conducting organization and placed in a 
21.16 	separate gambling bank account.
21.17 	(b) All expenditures for allowable expenses, taxes, and lawful purposes must be 
21.18 	made from the separate account except (1) in the case of expenditures previously approved 
21.19 	by the organization's membership for emergencies as defined by board rule, (2) as provided 
21.20 	in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment 
21.21 	of taxes for the organization as a whole, the organization may transfer the amount of taxes 
21.22 	related to the conduct of gambling to the general account at the time when due and payable.
21.23 	(c) The name and address of the bank, the account number for the separate account, 
21.24 	and the names of organization members authorized as signatories on the separate account 
21.25 	must be provided to the board when the application is submitted. Changes in the 
21.26 	information must be submitted to the board at least ten days before the change is made.
21.27 	(d) Except for gambling receipts from electronic pull-tab games and linked 
21.28 	electronic bingo games, gambling receipts must be deposited into the gambling bank 
21.29 	account within four business days of completion of the bingo occasion, deal, or game from 
21.30 	which they are received.
21.31 	(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of 
21.32 	the deal is sold or the organization does not continue the play of the deal during the next 
21.33 	scheduled period of time in which the organization will conduct pull-tabs.
22.1 	(2) A tipboard game is considered complete when the seal on the game flare is 
22.2 	uncovered or the organization does not continue the play of the deal during the next 
22.3 	scheduled period of time in which the organization will conduct tipboards.
22.4 	(e) Gambling receipts from all electronic pull-tab games and all linked electronic 
22.5 	bingo games must be recorded on a daily basis and deposited into the gambling bank 
22.6 	account within two business days.
22.7 	(e) (f) Deposit records must be sufficient to allow determination of deposits made 
22.8 	from each bingo occasion, deal, or game at each permitted premises.
22.9 	(f) (g) The person who accounts for gambling gross receipts and profits may not be 
22.10 	the same person who accounts for other revenues of the organization.

22.11 	Sec. 37. Minnesota Statutes 2010, section 349.19, subdivision 3, is amended to read:
22.12 		Subd. 3.Expenditures. (a) All expenditures of gross profits from lawful gambling 
22.13 	must be itemized as to payee, purpose, amount, and date of payment.
22.14 	(b) Each licensed organization must report monthly to the board on a form in an 
22.15 	electronic format prescribed by the board each expenditure or contribution of net profits 
22.16 	from lawful gambling. The reports must provide for each expenditure or contribution:
22.17 	(1) the name of the recipient of the expenditure or contribution;
22.18 	(2) the date the expenditure or contribution was approved by the organization;
22.19 	(3) the date, amount, and check number or electronic transfer confirmation number 
22.20 	of the expenditure or contribution;
22.21 	(4) a brief description of how the expenditure or contribution meets one or more of 
22.22 	the purposes in section 349.12, subdivision 25; and
22.23 	(5) in the case of expenditures authorized under section 349.12, subdivision 25, 
22.24 	paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily 
22.25 	benefits male or female participants.
22.26 	(c) Authorization of the expenditures must be recorded in the monthly meeting 
22.27 	minutes of the licensed organization.
22.28 	(d) Checks or authorizations for electronic fund transfers for expenditures of gross 
22.29 	profits must be signed by at least two persons authorized by board rules to sign the 
22.30 	checks or authorizations.
22.31 	(e) Expenditures of gross profits from lawful gambling for local, state, and federal 
22.32 	taxes as identified in section 349.12, subdivision 25, paragraph (a), clause (8), may be 
22.33 	transferred electronically from the organization's gambling account directly to bank 
22.34 	accounts identified by local, state, or federal agencies if the organization's gambling 
23.1 	account monthly bank statement specifically identifies the payee by name, the amount 
23.2 	transferred, and the date of the transaction.
23.3 	(f) Expenditures of gross profits from lawful gambling for payments for lawful 
23.4 	purpose expenditures and allowable expenses may be transferred electronically from the 
23.5 	organization's gambling account directly to bank accounts identified by the vendor if the 
23.6 	organization's gambling account monthly bank statement specifically identifies the payee 
23.7 	by name, the amount transferred, the account number of the account into which the funds 
23.8 	were transferred, and the date of the transaction.
23.9 	(g) Expenditures of gross profits from lawful gambling for payroll compensation 
23.10 	to an employee's account and for the payment of local, state, and federal withholding 
23.11 	taxes may be transferred electronically to and from the account of a payroll processing 
23.12 	firm provided that the firm:
23.13 	(1) is currently registered with and meets the criteria of the Department of Revenue 
23.14 	as a third-party bulk filer under section 290.92, subdivision 30;
23.15 	(2) is able to provide proof of a third-party audit and an annual report and statement 
23.16 	of financial condition;
23.17 	(3) is able to provide evidence of a fidelity bond; and
23.18 	(4) can provide proof of having been in business as a third-party bulk filer for the 
23.19 	most recent three years.
23.20 	(h) Electronic payments of taxes, lawful purpose expenditures, and allowable 
23.21 	expenses are permitted only if they have been authorized by the membership, the 
23.22 	organization maintains supporting documentation, and the expenditures can be verified.

23.23 	Sec. 38. Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read:
23.24 		Subd. 5.Reports. (a) A licensed organization must report monthly to the 
23.25 	Department of Revenue board in an electronic format prescribed by the board and to its 
23.26 	membership monthly, or quarterly in the case of a licensed organization which does not 
23.27 	report more than $1,000 in gross receipts from lawful gambling in any calendar quarter,
23.28 	on its gross receipts, expenses, profits, and expenditure of profits from lawful gambling
23.29 	for each permitted premises. The organization must account for and report on each form 
23.30 	of lawful gambling conducted. The report organization must include a reconciliation of 
23.31 	the organization's profit carryover with its cash balance on hand. If the organization 
23.32 	conducts both bingo and other forms of lawful gambling, the figures for both must be 
23.33 	reported separately.
23.34 	(b) The organization must report annually to its membership and annually file with 
23.35 	the board a financial summary report in a format prescribed by the board that identifies the 
24.1 	organization's receipts and use of lawful gambling proceeds, including: monthly to the 
24.2 	commissioner of revenue as required under section 297E.06.
24.3 	(1) gross receipts;
24.4 	(2) prizes paid;
24.5 	(3) allowable expenses;
24.6 	(4) lawful purpose expenditures, including annual totals for types of charitable 
24.7 	contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph 
24.8 	(a), clauses (8) and (18);
24.9 	(5) the percentage of annual gross profits used for charitable contributions; and
24.10 	(6) the percentage of annual gross profits used for all taxes and fees as per section 
24.11 	349.12, subdivision 25, paragraph (a), clauses (8) and (18).

24.12 	Sec. 39. Minnesota Statutes 2010, section 349.19, subdivision 10, is amended to read:
24.13 		Subd. 10.Pull-tab records. (a) The board shall by rule require a licensed 
24.14 	organization to require each winner of a paper pull-tab prize of $50 or more to present 
24.15 	identification in the form of a driver's license, Minnesota identification card, or other 
24.16 	identification the board deems sufficient to allow the identification and tracking of the 
24.17 	winner. The rule must require the organization to retain winning paper pull-tabs of $50 or 
24.18 	more, and the identification of the winner of the pull-tab, for 3-1/2 years.
24.19 	(b) An organization must maintain separate cash banks for each deal of paper
24.20 	pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the 
24.21 	organization uses a cash register, of a type approved by the board, which records all 
24.22 	sales of paper pull-tabs by separate deals.
24.23 	(c) The board shall:
24.24 	(1) by rule adopt minimum technical standards for cash registers that may be used 
24.25 	by organizations, and shall approve for use by organizations any cash register that meets 
24.26 	the standards; and
24.27 	(2) before allowing an organization to use a cash register that commingles receipts 
24.28 	from several different paper pull-tab games in play, adopt rules that define how cash 
24.29 	registers may be used and that establish a procedure for organizations to reconcile all 
24.30 	pull-tab games in play at the end of each month.

24.31 	Sec. 40. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read:
24.32 		Subd. 1a.Linked bingo prizes. Prizes for a linked bingo game shall be limited 
24.33 	as follows:
25.1 	(1) no organization may contribute more than $300 per linked bingo game to a 
25.2 	linked bingo prize pool for linked bingo games played without electronic bingo devices, 
25.3 	an organization may not contribute to a linked bingo game prize pool more than $300 
25.4 	per linked bingo game per site;
25.5 	(2) for linked bingo games played exclusively with electronic bingo devices, an 
25.6 	organization may not contribute more than 85 percent of the gross receipts per permitted 
25.7 	premises to a linked bingo game prize pool;
25.8 	(2) (3) no organization may award more than $200 for a linked bingo game 
25.9 	consolation prize. For purposes of this subdivision, a linked bingo game consolation 
25.10 	prize is a prize awarded by an organization after a prize from the linked bingo prize pool 
25.11 	has been won; and
25.12 	(3) (4) for a progressive linked bingo game, if no player declares a valid bingo 
25.13 	within the for a progressive prize or prizes based on a predetermined amount of bingo 
25.14 	numbers called and posted win determination, a portion of the prize is gross receipts 
25.15 	may be carried over to another occasion game until the accumulated progressive prize 
25.16 	is won. The portion of the prize that is not carried over must be awarded to the first 
25.17 	player or players who declares a valid bingo as additional numbers are called. If a valid 
25.18 	bingo is declared within the predetermined amount of bingo numbers called, the entire 
25.19 	prize pool for that game is awarded to the winner. The annual limit for progressive bingo 
25.20 	game prizes contained in subdivision 2 must be reduced by the amount an organization 
25.21 	contributes to progressive linked bingo games during the same calendar year.; and
25.22 	(5) for linked bingo games played exclusively with electronic bingo devices, linked 
25.23 	bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the 
25.24 	player within three business days. Winners of linked bingo prizes in excess of $599 will 
25.25 	be given a receipt or claim voucher as proof of a win.

25.26 	Sec. 41. APPROPRIATION.
 25.27 	(a) $450,000 in fiscal year 2012 and $779,000 in fiscal year 2013 are appropriated 
25.28 	from the lawful gambling regulation account in the special revenue fund to the Gambling 
25.29 	Control Board for operating expenses related to the regulatory oversight of lawful 
25.30 	gambling for electronic pull-tabs and electronic linked bingo.
25.31 	(b) One-half of one percent of the revenue deposited in the general fund under 
25.32 	Minnesota Statutes, section 16A.695, subdivision 8, paragraph (a), is appropriated to 
25.33 	the commissioner of human services for the compulsive gambling treatment program 
25.34 	established under Minnesota Statutes, section 245.98. One-half of one percent of the 
25.35 	revenue deposited in the general fund under Minnesota Statutes, section 16A.695, 
26.1 	subdivision 8, paragraph (a), is appropriated to the Gambling Control Board for a 
26.2 	grant to the state affiliate recognized by the National Council on Problem Gambling to 
26.3 	increase public awareness of problem gambling, education and training for individuals 
26.4 	and organizations providing effective treatment services to problem gamblers and 
26.5 	their families, and research relating to problem gambling. Money appropriated by this 
26.6 	paragraph must supplement and must not replace existing state funding for these programs.

26.7 	Sec. 42. EFFECTIVE DATE.
 26.8 	Sections 2 to 41 are effective the day following final enactment.