Minnesota Legislature
HF 1485
as introduced - 87th Legislature (2011 - 2012) Posted on 04/14/2011 11:19am
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A bill for an act
relating to gambling; modifying certain rates of tax on lawful gambling;
providing for linked bingo and electronic pull-tabs; making clarifying,
conforming, and technical changes; amending Minnesota Statutes 2010, sections
297E.02, subdivisions 1, 4, 6; 349.12, subdivisions 5, 9, 12a, 25b, 25c, 25d, 29,
32, 32a; 349.13; 349.151, subdivisions 4b, 4c, by adding a subdivision; 349.161,
subdivision 1; 349.163, subdivisions 1, 9; 349.1635, subdivision 2; 349.17,
subdivisions 6, 7, 8; 349.1721, by adding a subdivision; 349.18, subdivision 1;
349.211, subdivision 1a; proposing coding for new law in Minnesota Statutes,
chapter 349.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 297E.02, subdivision 1, is amended to read:
Subdivision 1.
Imposition.
A tax is imposed on all lawful gambling other than
(1) pull-tab deals or games; (2) tipboard deals or games; and (3) items listed in section
297E.01, subdivision 8, clauses (4) and (5), at the rate of deleted text begin 8.5deleted text end new text begin 5.0 new text end percent on the gross
receipts as defined in section 297E.01, subdivision 8, less prizes actually paid. The tax
imposed by this subdivision is in lieu of the tax imposed by section 297A.62 and all
local taxes and license fees except a fee authorized under section 349.16, subdivision 8,
or a tax authorized under subdivision 5.
The tax imposed under this subdivision is payable by the organization or party
conducting, directly or indirectly, the gambling.
Sec. 2.
Minnesota Statutes 2010, section 297E.02, subdivision 4, is amended to read:
Subd. 4.
Pull-tab and tipboard tax.
(a) A tax is imposed on the sale of each deal of
pull-tabs and tipboards sold by a distributor. The rate of the tax is deleted text begin 1.7deleted text end new text begin 1.0 new text end percent of the
ideal gross of the pull-tab or tipboard deal. The sales tax imposed by chapter 297A on the
sale of the pull-tabs and tipboards by the distributor is imposed on the retail sales price
less the tax imposed by this subdivision. The retail sale of pull-tabs or tipboards by the
organization is exempt from taxes imposed by chapter 297A and is exempt from all local
taxes and license fees except a fee authorized under section 349.16, subdivision 8.
(b) The liability for the tax imposed by this section is incurred when the pull-tabs
and tipboards are delivered by the distributor to the customer or to a common or contract
carrier for delivery to the customer, or when received by the customer's authorized
representative at the distributor's place of business, regardless of the distributor's method
of accounting or the terms of the sale.
The tax imposed by this subdivision is imposed on all sales of pull-tabs and
tipboards, except the following:
(1) sales to the governing body of an Indian tribal organization for use on an Indian
reservation;
(2) sales to distributors licensed under the laws of another state or of a province of
Canada, as long as all statutory and regulatory requirements are met in the other state or
province;
(3) sales of promotional tickets as defined in section 349.12; and
(4) pull-tabs and tipboards sold to an organization that sells pull-tabs and tipboards
under the exemption from licensing in section 349.166, subdivision 2. A distributor shall
require an organization conducting exempt gambling to show proof of its exempt status
before making a tax-exempt sale of pull-tabs or tipboards to the organization. A distributor
shall identify, on all reports submitted to the commissioner, all sales of pull-tabs and
tipboards that are exempt from tax under this subdivision.
(c) A distributor having a liability of $10,000 or more during a fiscal year ending
June 30 must remit all liabilities in the subsequent calendar year by electronic means.
(d) Any customer who purchases deals of pull-tabs or tipboards from a distributor
may file an annual claim for a refund or credit of taxes paid pursuant to this subdivision
for unsold pull-tab and tipboard tickets. The claim must be filed with the commissioner on
a form prescribed by the commissioner by March 20 of the year following the calendar
year for which the refund is claimed. The refund must be filed as part of the customer's
February monthly return. The refund or credit is equal to 1.7 percent of the face value
of the unsold pull-tab or tipboard tickets, provided that the refund or credit will be 1.75
percent of the face value of the unsold pull-tab or tipboard tickets for claims for a refund
or credit of taxes filed on the February 2001 monthly return. The refund claimed will be
applied as a credit against tax owing under this chapter on the February monthly return. If
the refund claimed exceeds the tax owing on the February monthly return, that amount
will be refunded. The amount refunded will bear interest pursuant to section 270C.405
from 90 days after the claim is filed.
Sec. 3.
Minnesota Statutes 2010, section 297E.02, subdivision 6, is amended to read:
Subd. 6.
Combined receipts tax.
In addition to the taxes imposed under
subdivisions 1 and 4, a tax is imposed on the combined receipts of the organization. As
used in this section, "combined receipts" is the sum of the organization's gross receipts
from lawful gambling less gross receipts directly derived from the conduct of bingo,
raffles, and paddle wheels, as defined in section 297E.01, subdivision 8, for the fiscal year.
The combined receipts of an organization are subject to a tax computed according to
the following schedule:
| If the combined receipts for the fiscal year are: |
The tax is: |
|||
| Not over deleted text begin $500,000 deleted text end new text begin $600,000 new text end |
zero |
|||
| Over deleted text begin $500,000deleted text end new text begin $600,000new text end , |
||||
| but not over deleted text begin $700,000 deleted text end new text begin $800,000 new text end |
deleted text begin 1.7deleted text end new text begin 1.0new text end percent of the amount over deleted text begin $500,000deleted text end new text begin $600,000new text end , but not over deleted text begin $700,000deleted text end new text begin $800,000 new text end |
|||
| Over deleted text begin $700,000deleted text end new text begin $800,000new text end , |
||||
| but not over deleted text begin $900,000 deleted text end new text begin $1,000,000 new text end |
deleted text begin $3,400deleted text end new text begin $2,000new text end plus deleted text begin 3.4deleted text end new text begin 2.0new text end percent of the amount over deleted text begin $700,000deleted text end new text begin $800,000new text end , but not over deleted text begin $900,000deleted text end new text begin $1,000,000 new text end |
|||
| Over deleted text begin $900,000deleted text end new text begin $1,000,000 new text end |
deleted text begin $10,200deleted text end new text begin $6,000new text end plus deleted text begin 5.1deleted text end new text begin 3.0new text end percent of the amount over deleted text begin $900,000 deleted text end new text begin $1,000,000 new text end |
new text begin
The tax imposed under this subdivision is payable by the organization or party
conducting, directly or indirectly, the gambling on a site-by-site basis.
new text end
Sec. 4.
Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read:
Subd. 5.
Bingo occasion.
"Bingo occasion" means a single gathering or session at
which a series of one or more successive bingo games is played. There is no limit on the
number of games conducted during a bingo occasion deleted text begin butdeleted text end new text begin .new text end A bingo occasion must not last
longer than eight consecutive hoursnew text begin , except that linked bingo games played on electronic
bingo devices may be played during regular business hours of the permitted premises and
all play during this period is considered a bingo occasion for reporting purposesnew text end .
Sec. 5.
Minnesota Statutes 2010, section 349.12, subdivision 9, is amended to read:
Subd. 9.
Deal.
"Deal" means each separate package, or series of packagesnew text begin in
paper or electronic formatnew text end , consisting of one game of pull-tabs or tipboards with the
same serial number.
Sec. 6.
Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:
Subd. 12a.
Electronic bingo device.
"Electronic bingo device" means an electronicnew text begin
bingonew text end device used by a bingo player to new text begin (1) new text end monitor bingo paper sheets or a facsimile of
a bingo paper sheet when purchased at the time and place of an organization's bingo
occasion deleted text begin and which (1) provides a means for bingo players todeleted text end new text begin , (2)new text end activate numbers
announced deleted text begin by a bingo caller; (2) comparesdeleted text end new text begin or displayed and comparenew text end the numbers deleted text begin entered
by the playerdeleted text end to the bingo faces previously stored in the memory of the devicedeleted text begin ;deleted text end new text begin ,new text end and (3)
deleted text begin identifiesdeleted text end new text begin identifynew text end a winning bingo pattern.
Electronic bingo device does not mean any device into which coin, currency, or tokens are
inserted to activate playnew text begin but does allow for activation by coded data entrynew text end .
Sec. 7.
Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read:
Subd. 25b.
Linked bingo game provider.
"Linked bingo game provider" means
any person who provides the means to link bingo deleted text begin prizes in a linked bingo game, who
provides linked bingo paper sheets to the participating organizationsdeleted text end new text begin gamesnew text end , who provides
linked bingo prize management, and who provides the linked bingo game system.
Sec. 8.
Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read:
Subd. 25c.
Linked bingo game system.
"Linked bingo game system" means the
equipment used by the linked bingo provider to conduct, transmit, and track a linked
bingo game. The system must be approved by the board before its use in this state and it
must have deleted text begin dial-up or otherdeleted text end new text begin the new text end capability to permit the board tonew text begin electronicallynew text end monitor its
operation remotely.
Sec. 9.
Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read:
Subd. 25d.
Linked bingo prize pool.
"Linked bingo prize pool" means the total
of all prize money that each participating organization has contributed to a linked bingo
game prize and includes any portion of the prize pool that is carried over from one
deleted text begin occasiondeleted text end new text begin gamenew text end to another in a progressive linked bingo game.
Sec. 10.
Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read:
Subd. 29.
Paddle wheel.
"Paddle wheel" means a wheel marked off into sections
containing one or more numbers, and which, after being turned or spunnew text begin manually or
electronicallynew text end , uses a pointer or marker to indicate winning chances.
Sec. 11.
Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read:
Subd. 32.
Pull-tab.
"Pull-tab" means a single folded or bandednew text begin paper new text end ticket deleted text begin ordeleted text end new text begin ,new text end a
multi-ply card with perforated break-open tabs,new text begin or a facsimile of a paper pull-tab when
used in conjunction with a pull-tab dispensing device,new text end the face of which is initially covered
to conceal one or more numbers or symbols, where one or more of each set of ticketsnew text begin ,new text end deleted text begin ordeleted text end
cardsnew text begin , or facsimilesnew text end has been designated in advance as a winner.
Sec. 12.
Minnesota Statutes 2010, section 349.12, subdivision 32a, is amended to read:
Subd. 32a.
Pull-tab dispensing device.
"Pull-tab dispensing device" means a
mechanicalnew text begin or electronicnew text end device that dispenses paper pull-tabs deleted text begin and has no additional
function as an amusement or gambling devicedeleted text end new text begin or displays facsimiles of paper pull-tabsnew text end . A
pull-tab dispensing device may have as a component an auditory or visual enhancement to
promote or provide information about a game being dispensednew text begin or displayednew text end , provided the
component does not affect the outcome of a game or display the results of a game deleted text begin or an
individual ticketdeleted text end .new text begin A pull-tab dispensing device that displays facsimiles of paper pull-tabs
is not allowed to accept any coin, currency, or tokens, but does allow for activation by
a coded data entry.
new text end
Sec. 13.
Minnesota Statutes 2010, section 349.13, is amended to read:
349.13 LAWFUL GAMBLING.
Lawful gambling is not a lottery or gambling within the meaning of sections 609.75
to 609.76 if it is conducted under this chapter. A pull-tab dispensing device permitted by
board rule is not a gambling device within the meaning of sections 609.75 to 609.76 and
chapter 299L. new text begin Electronic game devices authorized under this chapter may be used only
in the conduct of lawful gambling permitted under this chapter and may not display or
simulate any other form of gambling or entertainment.
new text end
Sec. 14.
Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:
Subd. 4b.
Pull-tab sales from dispensing devices.
(a) The board may by rule
authorize but not require the use of pull-tab dispensing devices.
(b) Rules adopted under paragraph (a):
(1) must limit the number ofnew text begin papernew text end pull-tab dispensing devices on any permitted
premises to three; andnew text begin for deals with facsimiles of paper pull-tabs, no more than six
devices in play may be located at a permitted premises with 200 seats or less, and no
more than 12 devices in play may be located at a permitted premises with 201 seats or
more. For premises where the primary business is bingo, the number of devices that may
be in play will be determined by the board. Seating capacity is determined as specified
under local fire code; and
new text end
(2) must limit the use of pull-tab dispensing devices to a permitted premises which is
(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages;
or (ii) a premises where bingo is conducted and admission is restricted to persons 18
years or older.
(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices
may be used in establishments licensed for the off-sale of intoxicating liquor, other than
drugstores and general food stores licensed under section 340A.405, subdivision 1.
Sec. 15.
Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read:
Subd. 4c.
Electronic bingo.
(a) The board may by rule authorize but not require the
use of electronic bingo devices.
(b) Rules adopted under paragraph (a):
(1) must limit the number of bingo faces that can be played using an electronic
bingo device to 36;
(2) must require that an electronic bingo device be used with corresponding bingo
paper sheets or a facsimiledeleted text begin , printed at the point of sale,deleted text end new text begin of a bingo paper sheetnew text end as approved
by the board;
(3) must require that the electronic bingo device site system have deleted text begin dial-updeleted text end new text begin thenew text end
capability to permit the board to remotely monitor the operation of the device and the
internal accounting systems; and
(4) must prohibit the price of a face played on an electronic bingo device from
being less than the price of a face on a bingo paper sheet soldnew text begin for the same gamenew text end at the
same occasion.
Sec. 16.
Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision
to read:
new text begin Subd. 4d. new text end
new text begin Electronic game devices. new text end
new text begin
Notwithstanding other rulemaking
requirements under chapter 349, the adoption of rules by the board for manufacturing
standards and game procedures for games played on electronic devices is exempt from
chapter 14 and exempt from section 14.386.
new text end
Sec. 17.
Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read:
Subdivision 1.
Prohibited acts; licenses required.
(a) No person may:
(1) sell, offer for sale, or furnish gambling equipment for use within the state other
than for lawful gambling exempt or excluded from licensing, except to an organization
licensed for lawful gambling;
(2) sell, offer for sale, or furnish gambling equipment for use within the state
without having obtained a distributor license or a distributor salesperson license under
this section except that an organization authorized to conduct bingo by the board may
loan bingo hard cards and devices for selecting bingo numbers to another organization
authorized to conduct bingo;
(3) sell, offer for sale, or furnish gambling equipment for use within the state that is
not purchased or obtained from a manufacturer or distributor licensed under this chapter; or
(4) sell, offer for sale, or furnish gambling equipment for use within the state that
has the same serial number as another item of gambling equipment of the same type sold
or offered for sale or furnished for use in the state by that distributor.
(b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling
equipment for use within the state without being employed by a licensed distributor or
owning a distributor license.
new text begin
(c) No distributor or distributor salesperson may also be licensed as a linked bingo
game provider under section 349.1635.
new text end
Sec. 18.
Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read:
Subdivision 1.
License required.
No manufacturer of gambling equipment may
sell any gambling equipment to any person for use or resale within the state, unless the
manufacturer has a current and valid license issued by the board under this section and has
satisfied other criteria prescribed by the board by rule.new text begin A manufacturer licensed under this
section may also be licensed as a linked bingo game provider under section 349.1635.
new text end
A manufacturer licensed under this section may not also be directly or indirectly
licensed as a distributor under section 349.161.
Sec. 19.
Minnesota Statutes 2010, section 349.163, subdivision 9, is amended to read:
Subd. 9.
Sales required.
No licensed manufacturer may refuse to sell gambling
equipment to a licensed distributor unless:
(1) a specific type of gambling equipment soldnew text begin or leasednew text end on an exclusive basis is at
issuenew text begin , except that electronic bingo devices used to conduct linked bingo games or pull-tab
dispensing devices may not be sold or leased on an exclusive basisnew text end ;
(2) the manufacturer does not sell gambling equipment to any distributor in
Minnesota;
(3) a Minnesota statute or rule prohibits the sale; or
(4) the distributor is delinquent on any payment owed to the manufacturer.
Sec. 20.
Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read:
Subd. 2.
License application.
The board may issue a license to a linked bingo game
provider new text begin or to a manufacturer licensed under section 349.163 new text end who meets the qualifications
of this chapter and the rules promulgated by the board. The application shall be on a form
prescribed by the board. The license is valid for two years and the fee for a linked bingo
game provider license is $5,000 per year.
Sec. 21.
Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:
Subd. 6.
Conduct of bingo.
A game of bingo begins with the first letter and number
callednew text begin or displayednew text end . Each player must cover, mark, or activate the numbers when bingo
numbers are randomly selecteddeleted text begin ,deleted text end new text begin andnew text end announceddeleted text begin , anddeleted text end new text begin ornew text end displayed to the playersdeleted text begin , either
manually or with a flashboard and monitordeleted text end . The game is won when a player, using
bingo paper, bingo hard card, or a facsimile of a bingo paper sheet, has completed, as
described in the bingo program, a previously designated pattern or previously determined
requirements of the game and declared bingo. The game is completed when a winning
card, sheet, or facsimile is verified and a prize awarded pursuant to subdivision 3.
Sec. 22.
Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read:
Subd. 7.
Bar bingo.
An organization may conduct bar bingo subject to the
following restrictions:
(1) the bingo is conducted at a site the organization owns or leases and which has a
license for the sale of intoxicating beverages on the premises under chapter 340A;
(2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper
sheets purchased from a licensed distributor or licensed linked bingo game provider; and
(3)new text begin except as allowed in section 349.185,new text end no rent may be paid for a bar bingo
occasion.
Sec. 23.
Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:
Subd. 8.
Linked bingo games.
(a) A licensed organization may conduct or
participate in deleted text begin not more than twodeleted text end linked bingo games deleted text begin per occasiondeleted text end , deleted text begin one of which may be adeleted text end
new text begin including new text end progressive deleted text begin gamedeleted text end new text begin gamesnew text end in which a portion of the prize is carried over from
one occasion to another until won by a player achieving a bingo within a predetermined
amount of bingo numbers called.
(b) deleted text begin Each participating licensed organization shall contribute to each prize awarded
in a linked bingo game in an amount not to exceed $300deleted text end new text begin Linked bingo games may only
be conducted by licensed organizations who have a valid contract with the linked bingo
game providernew text end .
(c) An electronic bingo device as defined in section 349.12, subdivision 12a, may
be used for a linked bingo game.
new text begin
(d) Linked bingo games played on an electronic bingo device may be located only
at a permitted premises where the organization conducts another form of gambling and
the premises is:
new text end
new text begin
(1) a licensed premises for the on-sale or off-sale of intoxicating liquor or 3.2 percent
malt beverages, except for a general foods store or drug store permitted to sell alcoholic
beverages under section 340A.405, subdivision 1; and
new text end
new text begin
(2) where bingo is conducted as the primary business, the premises has a seating
capacity of at least 100, and admission is restricted to persons 18 years or older.
new text end
new text begin
(e) For linked bingo games played on an electronic bingo device, no more than six
electronic bingo devices may be in play at a permitted premises with 200 seats or less, and
no more than 12 electronic bingo devices may be in play at a permitted premises with 201
seats or more. For premises where the primary business is bingo, the number of electronic
bingo devices that may be in play will be determined by the board. Seating capacity is
determined as specified under local fire code.
new text end
new text begin
(f) Prior to a bingo occasion for linked bingo games played on an electronic bingo
device, the linked bingo game provider, on behalf of the participating organizations, must
provide to the board a bingo program in a format prescribed by the board.
new text end
deleted text begin (d)deleted text end new text begin (g)new text end The board may adopt rules to:
(1) specify the manner in which a linked bingo game must be played and how the
linked bingo prizes must be awarded;
(2) specify the records to be maintained by a linked bingo game provider;
(3) require the submission of periodic reports by the linked bingo game provider and
specify the content of the reports;
(4) establish the qualifications required to be licensed as a linked bingo game
provider; and
(5) any other matter involving the operation of a linked bingo game.
Sec. 24.
Minnesota Statutes 2010, section 349.1721, is amended by adding a
subdivision to read:
new text begin Subd. 3. new text end
new text begin Electronic pull-tabs. new text end
new text begin
(a) Tickets and deals must be in conformance with
board rules for pull-tabs.
new text end
new text begin
(b) Deals must contain:
new text end
new text begin
(1) a finite number of tickets in each electronic deal;
new text end
new text begin
(2) a predetermined number of winning and losing tickets;
new text end
new text begin
(3) serialized tracking for each deal;
new text end
new text begin
(4) no regeneration of a serialized deal; and
new text end
new text begin
(5) no spinning symbols which mimic a video slot machine.
new text end
new text begin
(c) All deals in play must be played on site at a permitted premises and cannot be
transferred electronically or otherwise to any other location by the licensed organization.
new text end
new text begin
(d) Deals cannot be shared or co-mingled with any other deals or locations.
new text end
new text begin
(e) The electronic pull-tab dispensing device must have the capability to:
new text end
new text begin
(1) allow the board to electronically monitor the operation of the electronic pull-tab
devices and the internal accounting systems;
new text end
new text begin
(2) maintain a printable, permanent record of all transactions involving the device;
and
new text end
new text begin
(3) allow the board to deactivate a device without notice for violation of a law or
rule and to implement any other controls deemed by the board necessary to ensure and
maintain the integrity of games operated under this subdivision.
new text end
new text begin
(f) The board shall examine prototypes of pull-tab devices that display facsimiles
of paper pull-tabs. The board may contract for the examination of the devices and may
require working models of the devices to be transported to locations the board designates
for testing, examination, and analysis. The manufacturer shall pay all costs of any testing,
examination, analysis, and transportation of the model.
new text end
new text begin
(g) The board may adopt rules necessary or proper to ensure the integrity of games
played with facsimiles of paper pull-tabs in conjunction with an electronic pull-tab
dispensing device.
new text end
Sec. 25.
Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read:
Subdivision 1.
Lease or ownership required; rent limitations.
(a) An organization
may conduct lawful gambling only on premises it owns or leases. Leases must be on a
form prescribed by the board. The term of the lease is concurrent with the premises permit.
Leases approved by the board must specify that the board may authorize an organization
to withhold rent from a lessor for a period of up to 90 days if the board determines that
illegal gambling occurred on the premises or that the lessor or its employees participated
in the illegal gambling or knew of the gambling and did not take prompt action to stop the
gambling. The lease must authorize the continued tenancy of the organization without
the payment of rent during the time period determined by the board under this paragraph.
Copies of all leases must be made available to employees of the board and the Division of
Alcohol and Gambling Enforcement on request.
(b) Rent paid by an organization for leased premises for the conduct of pull-tabs,
tipboards, and paddle wheels is subject to the following limits:
(1) for booth operations, including booth operations where a pull-tab dispensing
device is located, booth operations where a bar operation is also conducted, and booth
operations where both a pull-tab dispensing device is located and a bar operation is also
conducted, the maximum rent is:
(i) in any month where the organization's gross profit at those premises does not
exceed $4,000, up to $400; and
(ii) in any month where the organization's gross profit at those premises exceeds
$4,000, up to $400 plus not more than ten percent of the gross profit for that month in
excess of $4,000;
(2) for bar operations, including bar operations where a pull-tab dispensing device
is located but not including bar operations subject to clause (1), and for locations where
only a pull-tab dispensing device is located:
(i) in any month where the organization's gross profit at those premises does not
exceed $1,000, up to $200; and
(ii) in any month where the organization's gross profit at those premises exceeds
$1,000, up to $200 plus not more than 20 percent of the gross profit for that month
in excess of $1,000;
(3) a lease not governed by clauses (1) and (2) must be approved by the board
before becoming effective;
(4) total rent paid to a lessor from all organizations from leases governed by clause
(1) may not exceed $1,750 per month.
(c) Rent paid by an organization for leased premises for the conduct of bingo is
subject to either of the following limits at the option of the parties to the lease:
(1) not more than ten percent of the monthly gross profit from all lawful gambling
activities held during bingo occasions excluding bar bingo or at a rate based on a cost per
square foot not to exceed 110 percent of a comparable cost per square foot for leased space
as approved by the director; and
(2) no rent may be paid for bar bingonew text begin or linked bingo except as allowed under
section 349.185new text end .
(d) Amounts paid as rent under leases are all-inclusive. No other services or
expenses provided or contracted by the lessor may be paid by the organization, including,
but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn
services, electricity, heat, security, security monitoring, storage, other utilities or services,
and, in the case of bar operations, cash shortages, unless approved by the director. Any
other expenditure made by an organization that is related to a leased premises must be
approved by the director. An organization may not provide any compensation or thing of
value to a lessor or the lessor's employees from any fund source other than its gambling
account. Rent payments may not be made to an individual.
(e) Notwithstanding paragraph (b), an organization may pay a lessor for food or
beverages or meeting room rental if the charge made is comparable to similar charges
made to other individuals or groups.
(f) No entity other than the licensed organization may conduct any activity within
a booth operation on a leased premises.
Sec. 26.
new text begin
[349.185] GROSS PROFIT ALLOCATION; LINKED BINGO ON AN
ELECTRONIC BINGO DEVICE.
new text end
new text begin Subdivision 1. new text end
new text begin Definition. new text end
new text begin
For the purposes of this section, a "year" is determined to
start on the first date of operation of a linked bingo game played on an electronic bingo
device at a permitted premises.
new text end
new text begin Subd. 2. new text end
new text begin Gross profit allocation. new text end
new text begin
The allocation of gross profits from the operation
of linked bingo on an electronic bingo device is as follows.
new text end
new text begin
(a) The licensed organization shall receive:
new text end
new text begin
(1) a minimum of 50 percent of gross profits to be used exclusively for lawful
purpose expenditures as defined under section 349.12, subdivision 25; and
new text end
new text begin
(2) no more than 15 percent each year for allowable expenses as defined under
section 349.12, subdivision 3a.
new text end
new text begin
(b) A linked bingo game provider shall receive:
new text end
new text begin
(1) no more than 25 percent of gross profits in the first year;
new text end
new text begin
(2) no more than 19 percent in the second year; and
new text end
new text begin
(3) no more than 15 percent thereafter.
new text end
new text begin
(c) The lessor shall receive, when linked bingo using an electronic bingo device is
played in a location where the primary business is not bingo:
new text end
new text begin
(1) no more than ten percent of the gross profits in the first year;
new text end
new text begin
(2) no more than 16 percent in the second year; and
new text end
new text begin
(3) no more than 20 percent thereafter.
new text end
new text begin
The licensed organization shall be responsible for the overall conduct of linked
bingo games but the lessor shall provide staffing to operate the linked bingo games at the
premises in order to receive the percentage of profit allocation and the lessor is responsible
for cash shortages.
new text end
new text begin
(d) Where the primary business is bingo and the use of electronic bingo devices are
used, the lessor is subject to the rent limitations under section 349.18, subdivision 1,
paragraph (c), clause (1), and the licensed organization will receive the value identified
under section 349.185, subdivision 2, paragraph (c).
new text end
Sec. 27.
Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read:
Subd. 1a.
Linked bingo prizes.
Prizes for a linked bingo game shall be limited
as follows:
(1) deleted text begin no organization may contribute more than $300 per linked bingo game to a
linked bingo prize pooldeleted text end new text begin for linked bingo games played without electronic bingo devices,
an organization may not contribute to a linked bingo game prize pool more than $300
per linked bingo game per sitenew text end ;
new text begin
(2) for linked bingo games played with electronic bingo devices, an organization
may not contribute more than 85 percent of the gross receipts per permitted premises to
a linked bingo game prize pool;
new text end
deleted text begin (2)deleted text end new text begin (3)new text end no organization may award more than $200 for a linked bingo game
consolation prize. For purposes of this subdivision, a linked bingo game consolation
prize is a prize awarded by an organization after a prize from the linked bingo prize pool
has been won; deleted text begin and
deleted text end
deleted text begin (3)deleted text end new text begin (4)new text end for a progressive linked bingo game, if no player declares a valid bingo
deleted text begin within thedeleted text end new text begin for a progressive prize or prizes based on anew text end predetermined deleted text begin amount of bingo
numbers calleddeleted text end new text begin and posted win determinationnew text end , a portion of the deleted text begin prize isdeleted text end new text begin gross receipts may
benew text end carried over to another deleted text begin occasiondeleted text end new text begin gamenew text end until the accumulatednew text begin progressivenew text end prize is won.
The portion of the prize that is not carried over must be awarded to the first player or
players who declares a valid bingo as additional numbers are called. If a valid bingo is
declared within the predetermined amount of bingo numbers called, the entire prize pool
for that game is awarded to the winner. deleted text begin The annual limit for progressive bingo game prizes
contained in subdivision 2 must be reduced by the amount an organization contributes to
progressive linked bingo games during the same calendar year.deleted text end new text begin ; and
new text end
new text begin
(5) for linked bingo games played on an electronic device, linked bingo prizes in
excess of $599 shall be paid by the linked bingo game provider to the player within three
business days. Winners of linked bingo prizes in excess of $599 will be given a receipt or
claim voucher as proof of a win.
new text end