1.1                          A bill for an act 
  1.2             relating to gambling; providing for linked bingo games 
  1.3             and electronic bingo devices; providing and modifying 
  1.4             certain definitions and prize amounts relating to 
  1.5             lawful gambling; modifying procedures for pull-tab 
  1.6             dispensing devices; amending Minnesota Statutes 2000, 
  1.7             sections 349.12, subdivisions 4, 18, by adding 
  1.8             subdivisions; 349.151, subdivisions 4, 4b, by adding a 
  1.9             subdivision; 349.155, subdivision 3; 349.161, 
  1.10            subdivision 4; 349.163, subdivision 2; 349.164, 
  1.11            subdivision 4; 349.17, by adding a subdivision; 
  1.12            349.211, subdivisions 1, 2, 2a; Minnesota Statutes 
  1.13            2001 Supplement, sections 349.12, subdivision 25; 
  1.14            349.15, subdivision 1a; proposing coding for new law 
  1.15            in Minnesota Statutes, chapter 349. 
  1.16  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.17     Section 1.  Minnesota Statutes 2000, section 349.12, 
  1.18  subdivision 4, is amended to read: 
  1.19     Subd. 4.  [BINGO.] "Bingo" means a game where each player 
  1.20  has a bingo hard card or bingo paper sheet, for which a 
  1.21  consideration has been paid, and played in accordance with this 
  1.22  chapter and with rules of the board for the conduct of 
  1.23  bingo.  Bingo also includes a linked bingo game. 
  1.24     Sec. 2.  Minnesota Statutes 2000, section 349.12, is 
  1.25  amended by adding a subdivision to read: 
  1.26     Subd. 12a.  [ELECTRONIC BINGO DEVICE.] "Electronic bingo 
  1.27  device" means an electronic device used by a bingo player to 
  1.28  monitor bingo paper sheets purchased at the time and place of an 
  1.29  organization's bingo occasion and which (1) provides a means for 
  1.30  bingo players to input numbers announced by a bingo caller; (2) 
  2.1   compares the numbers entered by the player to the bingo faces 
  2.2   previously stored in the memory of the device; and (3) 
  2.3   identifies a winning bingo pattern.  
  2.4   Electronic bingo device does not mean any device into which 
  2.5   coin, currency, or tokens are inserted to activate play. 
  2.6      Sec. 3.  Minnesota Statutes 2000, section 349.12, 
  2.7   subdivision 18, is amended to read: 
  2.8      Subd. 18.  [GAMBLING EQUIPMENT.] "Gambling equipment" 
  2.9   means:  bingo hard cards or paper sheets, devices for selecting 
  2.10  bingo numbers, electronic bingo devices, linked bingo paper, 
  2.11  pull-tabs, jar tickets, paddlewheels, paddlewheel tables, 
  2.12  paddletickets, paddleticket cards, tipboards, tipboard tickets, 
  2.13  and pull-tab dispensing devices.  
  2.14     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
  2.15  349.12, subdivision 25, is amended to read: 
  2.16     Subd. 25.  [LAWFUL PURPOSE.] (a) "Lawful purpose" means one 
  2.17  or more of the following:  
  2.18     (1) any expenditure by or contribution to a 501(c)(3) or 
  2.19  festival organization, as defined in subdivision 15a, provided 
  2.20  that the organization and expenditure or contribution are in 
  2.21  conformity with standards prescribed by the board under section 
  2.22  349.154, which standards must apply to both types of 
  2.23  organizations in the same manner and to the same extent; 
  2.24     (2) a contribution to an individual or family suffering 
  2.25  from poverty, homelessness, or physical or mental disability, 
  2.26  which is used to relieve the effects of that poverty, 
  2.27  homelessness, or disability; 
  2.28     (3) a contribution to an individual for treatment for 
  2.29  delayed posttraumatic stress syndrome or a contribution to a 
  2.30  program recognized by the Minnesota department of human services 
  2.31  for the education, prevention, or treatment of compulsive 
  2.32  gambling; 
  2.33     (4) a contribution to or expenditure on a public or private 
  2.34  nonprofit educational institution registered with or accredited 
  2.35  by this state or any other state; 
  2.36     (5) a contribution to a scholarship fund for defraying the 
  3.1   cost of education to individuals where the funds are awarded 
  3.2   through an open and fair selection process; 
  3.3      (6) activities by an organization or a government entity 
  3.4   which recognize humanitarian or military service to the United 
  3.5   States, the state of Minnesota, or a community, subject to rules 
  3.6   of the board, provided that the rules must not include mileage 
  3.7   reimbursements in the computation of the per occasion 
  3.8   reimbursement limit and must impose no aggregate annual limit on 
  3.9   the amount of reasonable and necessary expenditures made to 
  3.10  support: 
  3.11     (i) members of a military marching or color guard unit for 
  3.12  activities conducted within the state; 
  3.13     (ii) members of an organization solely for services 
  3.14  performed by the members at funeral services; or 
  3.15     (iii) members of military marching, color guard, or honor 
  3.16  guard units may be reimbursed for participating in color guard, 
  3.17  honor guard, or marching unit events within the state or states 
  3.18  contiguous to Minnesota at a per participant rate of up to $35 
  3.19  per occasion; 
  3.20     (7) recreational, community, and athletic facilities and 
  3.21  activities intended primarily for persons under age 21, provided 
  3.22  that such facilities and activities do not discriminate on the 
  3.23  basis of gender and the organization complies with section 
  3.24  349.154; 
  3.25     (8) payment of local taxes authorized under this chapter, 
  3.26  taxes imposed by the United States on receipts from lawful 
  3.27  gambling, the taxes imposed by section 297E.02, subdivisions 1, 
  3.28  4, 5, and 6, and the tax imposed on unrelated business income by 
  3.29  section 290.05, subdivision 3; 
  3.30     (9) payment of real estate taxes and assessments on 
  3.31  permitted gambling premises wholly owned by the licensed 
  3.32  organization paying the taxes, or wholly leased by a licensed 
  3.33  veterans organization under a national charter recognized under 
  3.34  section 501(c)(19) of the Internal Revenue Code, not to exceed: 
  3.35     (i) for premises used for bingo, the amount that an 
  3.36  organization may expend under board rules on rent for bingo; and 
  4.1      (ii) $35,000 per year for premises used for other forms of 
  4.2   lawful gambling; 
  4.3      (10) a contribution to the United States, this state or any 
  4.4   of its political subdivisions, or any agency or instrumentality 
  4.5   thereof other than a direct contribution to a law enforcement or 
  4.6   prosecutorial agency; 
  4.7      (11) a contribution to or expenditure by a nonprofit 
  4.8   organization which is a church or body of communicants gathered 
  4.9   in common membership for mutual support and edification in 
  4.10  piety, worship, or religious observances; 
  4.11     (12) payment of the reasonable costs of an audit required 
  4.12  in section 297E.06, subdivision 4, provided the annual audit is 
  4.13  filed in a timely manner with the department of revenue; 
  4.14     (13) a contribution to or expenditure on a wildlife 
  4.15  management project that benefits the public at-large, provided 
  4.16  that the state agency with authority over that wildlife 
  4.17  management project approves the project before the contribution 
  4.18  or expenditure is made; 
  4.19     (14) expenditures, approved by the commissioner of natural 
  4.20  resources, by an organization for grooming and maintaining 
  4.21  snowmobile trails and all-terrain vehicle trails that are (1) 
  4.22  grant-in-aid trails established under section 85.019, or (2) 
  4.23  other trails open to public use, including purchase or lease of 
  4.24  equipment for this purpose; or 
  4.25     (15) conducting nutritional programs, food shelves, and 
  4.26  congregate dining programs primarily for persons who are age 62 
  4.27  or older or disabled; or 
  4.28     (16) a contribution to a community arts organization, or an 
  4.29  expenditure to sponsor arts programs in the community, including 
  4.30  but not limited to visual, literary, performing, or musical arts.
  4.31     (b) Notwithstanding paragraph (a), "lawful purpose" does 
  4.32  not include: 
  4.33     (1) any expenditure made or incurred for the purpose of 
  4.34  influencing the nomination or election of a candidate for public 
  4.35  office or for the purpose of promoting or defeating a ballot 
  4.36  question; 
  5.1      (2) any activity intended to influence an election or a 
  5.2   governmental decision-making process; 
  5.3      (3) the erection, acquisition, improvement, expansion, 
  5.4   repair, or maintenance of real property or capital assets owned 
  5.5   or leased by an organization, unless the board has first 
  5.6   specifically authorized the expenditures after finding that (i) 
  5.7   the real property or capital assets will be used exclusively for 
  5.8   one or more of the purposes in paragraph (a); (ii) with respect 
  5.9   to expenditures for repair or maintenance only, that the 
  5.10  property is or will be used extensively as a meeting place or 
  5.11  event location by other nonprofit organizations or community or 
  5.12  service groups and that no rental fee is charged for the use; 
  5.13  (iii) with respect to expenditures, including a mortgage payment 
  5.14  or other debt service payment, for erection or acquisition only, 
  5.15  that the erection or acquisition is necessary to replace with a 
  5.16  comparable building, a building owned by the organization and 
  5.17  destroyed or made uninhabitable by fire or natural disaster, 
  5.18  provided that the expenditure may be only for that part of the 
  5.19  replacement cost not reimbursed by insurance; (iv) with respect 
  5.20  to expenditures, including a mortgage payment or other debt 
  5.21  service payment, for erection or acquisition only, that the 
  5.22  erection or acquisition is necessary to replace with a 
  5.23  comparable building a building owned by the organization that 
  5.24  was acquired from the organization by eminent domain or sold by 
  5.25  the organization to a purchaser that the organization reasonably 
  5.26  believed would otherwise have acquired the building by eminent 
  5.27  domain, provided that the expenditure may be only for that part 
  5.28  of the replacement cost that exceeds the compensation received 
  5.29  by the organization for the building being replaced; or (v) with 
  5.30  respect to an expenditure to bring an existing building into 
  5.31  compliance with the Americans with Disabilities Act under item 
  5.32  (ii), an organization has the option to apply the amount of the 
  5.33  board-approved expenditure to the erection or acquisition of a 
  5.34  replacement building that is in compliance with the Americans 
  5.35  with Disabilities Act; 
  5.36     (4) an expenditure by an organization which is a 
  6.1   contribution to a parent organization, foundation, or affiliate 
  6.2   of the contributing organization, if the parent organization, 
  6.3   foundation, or affiliate has provided to the contributing 
  6.4   organization within one year of the contribution any money, 
  6.5   grants, property, or other thing of value; 
  6.6      (5) a contribution by a licensed organization to another 
  6.7   licensed organization unless the board has specifically 
  6.8   authorized the contribution.  The board must authorize such a 
  6.9   contribution when requested to do so by the contributing 
  6.10  organization unless it makes an affirmative finding that the 
  6.11  contribution will not be used by the recipient organization for 
  6.12  one or more of the purposes in paragraph (a); or 
  6.13     (6) a contribution to a statutory or home rule charter 
  6.14  city, county, or town by a licensed organization with the 
  6.15  knowledge that the governmental unit intends to use the 
  6.16  contribution for a pension or retirement fund. 
  6.17     Sec. 5.  Minnesota Statutes 2000, section 349.12, is 
  6.18  amended by adding a subdivision to read: 
  6.19     Subd. 25a.  [LINKED BINGO PAPER.] "Linked bingo paper" 
  6.20  means a bingo paper sheet that is sealed by the manufacturer so 
  6.21  that the bingo faces are concealed until opened by the player.  
  6.22  Linked bingo paper must bear a serial number and a bar code 
  6.23  containing information prescribed by the board by rule. 
  6.24     Sec. 6.  Minnesota Statutes 2000, section 349.12, is 
  6.25  amended by adding a subdivision to read: 
  6.26     Subd. 25b.  [LINKED BINGO GAME.] "Linked bingo game" means 
  6.27  a single bingo game conducted during a bingo occasion, and 
  6.28  played using linked bingo paper in which players participate 
  6.29  simultaneously at two or more locations within Minnesota where 
  6.30  the organizations have premises permits to conduct bingo and for 
  6.31  which there is a common prize pool and a common selection of 
  6.32  numbers or symbols conducted at one location, with the results 
  6.33  of the selection transmitted electronically to all participating 
  6.34  organizations by satellite, telephone, or other means. 
  6.35     Sec. 7.  Minnesota Statutes 2000, section 349.12, is 
  6.36  amended by adding a subdivision to read: 
  7.1      Subd. 25c.  [LINKED BINGO GAME PRIZE PROVIDER.] "Linked 
  7.2   bingo game prize provider" means any person who provides the 
  7.3   means to link bingo prizes in a linked bingo game, who provides 
  7.4   linked bingo prize management, or provides the gambling 
  7.5   equipment to be used exclusively in a linked bingo game. 
  7.6      Sec. 8.  Minnesota Statutes 2001 Supplement, section 
  7.7   349.15, subdivision 1a, is amended to read: 
  7.8      Subd. 1a.  [NATURAL DISASTER RELIEF.] An organization may 
  7.9   expend net profits from lawful gambling to relieve the effects 
  7.10  of a natural disaster as defined in section 12.03, subdivision 
  7.11  2, without the prior approval of its membership if: 
  7.12     (1) the contribution is a lawful purpose under section 
  7.13  349.12, subdivision 25; 
  7.14     (2) the contribution is authorized by the organization's 
  7.15  chief executive officer and gambling manager; and 
  7.16     (3) the contribution is approved by the membership of the 
  7.17  organization at its next regularly scheduled monthly meeting. 
  7.18  If the contribution is not approved by the membership of the 
  7.19  organization at its next regularly scheduled monthly meeting, 
  7.20  the organization shall reimburse its gambling account in the 
  7.21  amount of the contribution. 
  7.22     Sec. 9.  Minnesota Statutes 2000, section 349.151, 
  7.23  subdivision 4, is amended to read: 
  7.24     Subd. 4.  [POWERS AND DUTIES.] (a) The board has the 
  7.25  following powers and duties:  
  7.26     (1) to regulate lawful gambling to ensure it is conducted 
  7.27  in the public interest; 
  7.28     (2) to issue licenses to organizations, distributors, bingo 
  7.29  halls, linked bingo game prize providers, manufacturers, and 
  7.30  gambling managers; 
  7.31     (3) to collect and deposit license, permit, and 
  7.32  registration fees due under this chapter; 
  7.33     (4) to receive reports required by this chapter and inspect 
  7.34  all premises, records, books, and other documents of 
  7.35  organizations, distributors, manufacturers, and bingo halls, and 
  7.36  linked bingo game prize providers to insure compliance with all 
  8.1   applicable laws and rules; 
  8.2      (5) to make rules authorized by this chapter; 
  8.3      (6) to register gambling equipment and issue registration 
  8.4   stamps; 
  8.5      (7) to provide by rule for the mandatory posting by 
  8.6   organizations conducting lawful gambling of rules of play and 
  8.7   the odds and/or house percentage on each form of lawful 
  8.8   gambling; 
  8.9      (8) to report annually to the governor and legislature on 
  8.10  its activities and on recommended changes in the laws governing 
  8.11  gambling; 
  8.12     (9) to impose civil penalties of not more than $500 per 
  8.13  violation on organizations, distributors, employees eligible to 
  8.14  make sales on behalf of a distributor, manufacturers, bingo 
  8.15  halls, linked bingo game prize providers, and gambling managers 
  8.16  for failure to comply with any provision of this chapter or any 
  8.17  rule or order of the board; 
  8.18     (10) to issue premises permits to organizations licensed to 
  8.19  conduct lawful gambling; 
  8.20     (11) to delegate to the director the authority to issue or 
  8.21  deny license and premises permit applications and renewals under 
  8.22  criteria established by the board; 
  8.23     (12) to suspend or revoke licenses and premises permits of 
  8.24  organizations, distributors, manufacturers, bingo halls, linked 
  8.25  bingo game prize providers, or gambling managers as provided in 
  8.26  this chapter; 
  8.27     (13) to register employees of organizations licensed to 
  8.28  conduct lawful gambling; 
  8.29     (14) to require fingerprints from persons determined by 
  8.30  board rule to be subject to fingerprinting; 
  8.31     (15) to delegate to a compliance review group of the board 
  8.32  the authority to investigate alleged violations, issue consent 
  8.33  orders, and initiate contested cases on behalf of the board; 
  8.34     (16) to order organizations, distributors, manufacturers, 
  8.35  bingo halls, linked bingo game prize providers, and gambling 
  8.36  managers to take corrective actions; and 
  9.1      (17) to take all necessary steps to ensure the integrity of 
  9.2   and public confidence in lawful gambling.  
  9.3      (b) The board, or director if authorized to act on behalf 
  9.4   of the board, may by citation assess any organization, 
  9.5   distributor, employee eligible to make sales on behalf of a 
  9.6   distributor, manufacturer, bingo hall licensee, linked bingo 
  9.7   game prize provider, or gambling manager a civil penalty of not 
  9.8   more than $500 per violation for a failure to comply with any 
  9.9   provision of this chapter or any rule adopted or order issued by 
  9.10  the board.  Any organization, distributor, bingo hall licensee, 
  9.11  gambling manager, linked bingo game prize provider, or 
  9.12  manufacturer assessed a civil penalty under this paragraph may 
  9.13  request a hearing before the board.  Appeals of citations 
  9.14  imposing a civil penalty are not subject to the provisions of 
  9.15  the Administrative Procedure Act.  
  9.16     (c) All fees and penalties received by the board must be 
  9.17  deposited in the general fund. 
  9.18     Sec. 10.  Minnesota Statutes 2000, section 349.151, 
  9.19  subdivision 4b, is amended to read: 
  9.20     Subd. 4b.  [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 
  9.21  The board may by rule authorize but not require the use of 
  9.22  pull-tab dispensing devices. 
  9.23     (b) Rules adopted under paragraph (a): 
  9.24     (1) must limit the number of pull-tab dispensing devices on 
  9.25  any permitted premises to three; and 
  9.26     (2) must limit the use of pull-tab dispensing devices to a 
  9.27  permitted premises which is (i) a licensed premises for on-sales 
  9.28  of intoxicating liquor or 3.2 percent malt beverages; or (ii) a 
  9.29  licensed bingo hall that allows gambling only by persons 18 
  9.30  years or older; and 
  9.31     (3) must prohibit the use of pull-tab dispensing devices at 
  9.32  any licensed premises where pull-tabs are sold other than 
  9.33  through a pull-tab dispensing device by an employee of the 
  9.34  organization who is also the lessor or an employee of the lessor.
  9.35     (c) Notwithstanding rules adopted under paragraph (b), 
  9.36  pull-tab dispensing devices may be used in establishments 
 10.1   licensed for the off-sale of intoxicating liquor, other than 
 10.2   drugstores and general food stores licensed under section 
 10.3   340A.405, subdivision 1. 
 10.4      (d) The director may charge a manufacturer a fee of up to 
 10.5   $5,000 per pull-tab dispensing device to cover the costs of 
 10.6   services provided by an independent testing laboratory to 
 10.7   perform testing and analysis of pull-tab dispensing devices.  
 10.8   The director shall deposit in a separate account in the state 
 10.9   treasury all money the director receives as reimbursement for 
 10.10  the costs of services provided by independent testing 
 10.11  laboratories that have entered into contracts with the state to 
 10.12  perform testing and analysis of pull-tab dispensing devices.  
 10.13  Money in the account is appropriated to the director to pay the 
 10.14  costs of services under those contracts. 
 10.15     Sec. 11.  Minnesota Statutes 2000, section 349.151, is 
 10.16  amended by adding a subdivision to read: 
 10.17     Subd. 4c.  [ELECTRONIC BINGO.] (a) The board may by rule 
 10.18  authorize but not require the use of electronic bingo devices. 
 10.19     (b) Rules adopted under paragraph (a): 
 10.20     (1) must limit the number of bingo faces that can be played 
 10.21  using an electronic bingo device to 72; 
 10.22     (2) must require that an electronic bingo device be used 
 10.23  with corresponding bingo paper sheets; 
 10.24     (3) must require that the electronic bingo device site 
 10.25  system have dial-up capability to permit the board to remotely 
 10.26  monitor the operation of the device and the internal accounting 
 10.27  systems; and 
 10.28     (4) must prohibit the price of a face played on an 
 10.29  electronic bingo device from being less than the price of a face 
 10.30  on a bingo paper sheet sold at the same occasion. 
 10.31     Sec. 12.  Minnesota Statutes 2000, section 349.155, 
 10.32  subdivision 3, is amended to read: 
 10.33     Subd. 3.  [MANDATORY DISQUALIFICATIONS.] (a) In the case of 
 10.34  licenses for manufacturers, distributors, bingo halls, linked 
 10.35  bingo game prize providers, and gambling managers, the board may 
 10.36  not issue or renew a license under this chapter, and shall 
 11.1   revoke a license under this chapter, if the applicant or 
 11.2   licensee, or a director, officer, partner, governor, person in a 
 11.3   supervisory or management position of the applicant or licensee, 
 11.4   or an employee eligible to make sales on behalf of the applicant 
 11.5   or licensee: 
 11.6      (1) has ever been convicted of a felony or a crime 
 11.7   involving gambling; 
 11.8      (2) has ever been convicted of (i) assault, (ii) a criminal 
 11.9   violation involving the use of a firearm, or (iii) making 
 11.10  terroristic threats; 
 11.11     (3) is or has ever been connected with or engaged in an 
 11.12  illegal business; 
 11.13     (4) owes $500 or more in delinquent taxes as defined in 
 11.14  section 270.72; 
 11.15     (5) had a sales and use tax permit revoked by the 
 11.16  commissioner of revenue within the past two years; or 
 11.17     (6) after demand, has not filed tax returns required by the 
 11.18  commissioner of revenue.  The board may deny or refuse to renew 
 11.19  a license under this chapter, and may revoke a license under 
 11.20  this chapter, if any of the conditions in this paragraph are 
 11.21  applicable to an affiliate or direct or indirect holder of more 
 11.22  than a five percent financial interest in the applicant or 
 11.23  licensee.  
 11.24     (b) In the case of licenses for organizations, the board 
 11.25  may not issue or renew a license under this chapter, and shall 
 11.26  revoke a license under this chapter, if the organization, or an 
 11.27  officer or member of the governing body of the organization:  
 11.28     (1) has been convicted of a felony or gross misdemeanor 
 11.29  within the five years before the issuance or renewal of the 
 11.30  license; 
 11.31     (2) has ever been convicted of a crime involving gambling; 
 11.32  or 
 11.33     (3) has had a license issued by the board or director 
 11.34  permanently revoked for violation of law or board rule. 
 11.35     Sec. 13.  Minnesota Statutes 2000, section 349.161, 
 11.36  subdivision 4, is amended to read: 
 12.1      Subd. 4.  [FEES.] The annual initial fee for a 
 12.2   distributor's license is $3,500.  The initial term of a 
 12.3   distributor's license is one year.  Renewal licenses under this 
 12.4   section are valid for two years and the fee for the renewal 
 12.5   license is $7,000. 
 12.6      Sec. 14.  Minnesota Statutes 2000, section 349.163, 
 12.7   subdivision 2, is amended to read: 
 12.8      Subd. 2.  [LICENSE; FEE.] A The initial license under this 
 12.9   section is valid for one year.  The annual fee for the initial 
 12.10  license is $5,000.  Renewal licenses under this section are 
 12.11  valid for two years and the fee for the renewal license is 
 12.12  $10,000. 
 12.13     Sec. 15.  [349.1635] [LINKED BINGO LICENSES.] 
 12.14     Subdivision 1.  [LICENSE REQUIRED.] No person may do any of 
 12.15  the following without having first obtained a license from the 
 12.16  board: 
 12.17     (1) provide the means to link prizes in a linked bingo 
 12.18  game; 
 12.19     (2) provide linked bingo game prize management; or 
 12.20     (3) unless the person is licensed as a distributor, provide 
 12.21  gambling equipment used exclusively in a linked bingo game. 
 12.22     Subd. 2.  [APPLICATION.] The board may issue a license to a 
 12.23  linked bingo game prize provider who meets the qualifications of 
 12.24  this chapter.  The application shall be on a form prescribed by 
 12.25  the board.  Attached to the application must be evidence of bond 
 12.26  of sufficient size to cover all linked bingo game prize jackpots 
 12.27  and any linked bingo prizes guaranteed by the linked bingo game 
 12.28  provider.  The initial fee for a linked bingo game prize 
 12.29  provider license is $3,500.  The term of an initial license is 
 12.30  one year.  Renewal licenses under this section are valid for two 
 12.31  years and the fee for a renewal license is $7,000. 
 12.32     Subd. 3.  [PROHIBITION.] (a) Except for services associated 
 12.33  exclusively with a linked bingo game, a linked bingo game prize 
 12.34  provider may not participate or assist in any way in the conduct 
 12.35  of lawful gambling by an organization. 
 12.36     (b) No linked bingo game prize provider may also be 
 13.1   licensed as a bingo hall or hold any financial or managerial 
 13.2   interest in a bingo hall.  
 13.3      (c) No linked bingo game prize provider may also be 
 13.4   licensed as a distributor, hold any financial or managerial 
 13.5   interest in a distributor, or be employed by a distributor. 
 13.6      Sec. 16.  Minnesota Statutes 2000, section 349.164, 
 13.7   subdivision 4, is amended to read: 
 13.8      Subd. 4.  [FEES; TERM OF LICENSE.] The annual initial fee 
 13.9   for a bingo hall license is $2,500.  An initial license under 
 13.10  this section is valid for one year.  Renewal licenses under this 
 13.11  section are valid for two years and the fee for the renewal 
 13.12  license is $5,000. 
 13.13     Sec. 17.  Minnesota Statutes 2000, section 349.17, is 
 13.14  amended by adding a subdivision to read: 
 13.15     Subd. 8.  [LINKED BINGO GAMES.] (a) A licensed organization 
 13.16  may conduct or participate in a linked bingo game in association 
 13.17  with one or more other licensed organizations. 
 13.18     (b) Each participating organization shall contribute to 
 13.19  each prize awarded in a linked bingo game in proportion to the 
 13.20  organization's gross receipts derived from the conduct of the 
 13.21  linked bingo game at each location where the organization has a 
 13.22  premises permit to conduct bingo and is participating in the 
 13.23  linked bingo game as compared with the total gross receipts 
 13.24  derived from all locations participating in the game, except 
 13.25  that in no instance may the minimum contribution be less than 
 13.26  $250 and the maximum contribution more than $1,000. 
 13.27     (c) The board may adopt rules to: 
 13.28     (1) specify the manner in which a linked bingo game must be 
 13.29  played and how the linked bingo prizes must be paid; 
 13.30     (2) specify the records to be maintained by a linked bingo 
 13.31  game prize provider and each participating organization; 
 13.32     (3) require the submission of reports by the linked bingo 
 13.33  game prize provider and specify the content of the reports; 
 13.34     (4) prohibit linked bingo games from being progressive 
 13.35  games; and 
 13.36     (5) prescribe any other matter involving the operation of a 
 14.1   linked bingo game. 
 14.2      Sec. 18.  Minnesota Statutes 2000, section 349.211, 
 14.3   subdivision 1, is amended to read: 
 14.4      Subdivision 1.  [BINGO.] (a) Except as provided in 
 14.5   subdivision 2, prizes for a single bingo game may not exceed 
 14.6   $200 except prizes for a cover-all game, which may exceed $200 
 14.7   if the aggregate value of all cover-all prizes in a bingo 
 14.8   occasion does not exceed $1,000.  
 14.9      (b) Total prizes awarded at a bingo occasion may not exceed 
 14.10  $2,500, unless a cover-all game is played in which case the 
 14.11  limit is $3,500.  
 14.12     (c) A prize may be determined based on the value of the 
 14.13  bingo packet sold to the player.  For purposes of this 
 14.14  subdivision, a cover-all game is one in which a player must 
 14.15  cover all spaces except a single free space to win.  
 14.16     (d) Paragraphs (a) and (c) do not apply to a linked bingo 
 14.17  game. 
 14.18     Sec. 19.  Minnesota Statutes 2000, section 349.211, 
 14.19  subdivision 2, is amended to read: 
 14.20     Subd. 2.  [PROGRESSIVE BINGO GAMES.] A prize of up to 
 14.21  $2,000 may be awarded for a progressive bingo game, including a 
 14.22  cover-all game.  The prize for a progressive bingo game may 
 14.23  start at $300 $500 and be increased by up to $100 for each 
 14.24  occasion during which the progressive bingo game is played.  A 
 14.25  consolation prize of up to $200 for a progressive bingo game may 
 14.26  be awarded in each occasion during which the progressive bingo 
 14.27  game is played and the accumulated prize is not won.  The total 
 14.28  amount awarded in progressive bingo game prizes in any calendar 
 14.29  year may not exceed $36,000 $48,000. 
 14.30     Sec. 20.  Minnesota Statutes 2000, section 349.211, 
 14.31  subdivision 2a, is amended to read: 
 14.32     Subd. 2a.  [PULL-TAB PRIZES.] The maximum prize which may 
 14.33  be awarded for any single pull-tab is $500 $599.  An 
 14.34  organization may not sell any pull-tab for more than $2.