1.1                          A bill for an act 
  1.2             relating to lawful gambling; expanding the use of 
  1.3             pull-tab dispensing machines; making technical 
  1.4             changes; modifying progressive bingo prizes; 
  1.5             specifying maximum tipboard prizes; amending Minnesota 
  1.6             Statutes 1998, sections 349.151, subdivision 4b; 
  1.7             349.165, subdivisions 1 and 3; and 349.211, 
  1.8             subdivision 2, and by adding a subdivision. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 349.151, 
  1.11  subdivision 4b, is amended to read: 
  1.12     Subd. 4b.  [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 
  1.13  The board may by rule authorize but not require the use of 
  1.14  pull-tab dispensing devices. 
  1.15     (b) Rules adopted under paragraph (a): 
  1.16     (1) must limit the number of pull-tab dispensing devices on 
  1.17  any permitted premises to three; 
  1.18     (2) must limit the use of pull-tab dispensing devices to a 
  1.19  permitted premises which is (i) a licensed premises for on-sales 
  1.20  on or off sales of intoxicating liquor or on sales of 3.2 
  1.21  percent malt beverages or (ii) a licensed bingo hall that allows 
  1.22  gambling only by persons 18 years or older; and 
  1.23     (3) must prohibit the use of pull-tab dispensing devices at 
  1.24  any licensed premises where pull-tabs are sold other than 
  1.25  through a pull-tab dispensing device by an employee of the 
  1.26  organization who is also the lessor or an employee of the lessor.
  1.27     (c) The director may charge a manufacturer a fee of up to 
  2.1   $5,000 per pull-tab dispensing device to cover the costs of 
  2.2   services provided by an independent testing laboratory to 
  2.3   perform testing and analysis of pull-tab dispensing devices.  
  2.4   The director shall deposit in a separate account in the state 
  2.5   treasury all money the director receives as reimbursement for 
  2.6   the costs of services provided by independent testing 
  2.7   laboratories that have entered into contracts with the state to 
  2.8   perform testing and analysis of pull-tab dispensing devices.  
  2.9   Money in the account is appropriated to the director to pay the 
  2.10  costs of services under those contracts. 
  2.11     Sec. 2.  Minnesota Statutes 1998, section 349.165, 
  2.12  subdivision 1, is amended to read: 
  2.13     Subdivision 1.  [PREMISES PERMIT REQUIRED; APPLICATION.] A 
  2.14  licensed organization may not conduct lawful gambling at any 
  2.15  site unless it has first obtained from the board a premises 
  2.16  permit for the site.  The board shall prescribe a form for 
  2.17  permit applications, and each application for a permit must be 
  2.18  submitted on a separate form.  A premises permit issued by the 
  2.19  board is valid for two years, or such time as the organization's 
  2.20  license is valid.  The board may by rule limit the number of 
  2.21  premises permits that may be issued to an organization. 
  2.22     Sec. 3.  Minnesota Statutes 1998, section 349.165, 
  2.23  subdivision 3, is amended to read: 
  2.24     Subd. 3.  [FEES.] The board may issue four classes of 
  2.25  premises permits corresponding to the classes of licenses 
  2.26  authorized under section 349.16, subdivision 6.  The fee for 
  2.27  each class of permit is: 
  2.28     (1) $400 for a class A permit; 
  2.29     (2) $250 for a class B permit; 
  2.30     (3) $200 for a class C permit; and 
  2.31     (4) $150 for a class D permit. 
  2.32     If the premises permit runs for less than two years, as 
  2.33  provided in subdivision 1, the board must reduce the fee for the 
  2.34  permit on a pro rata basis. 
  2.35     Sec. 4.  Minnesota Statutes 1998, section 349.211, 
  2.36  subdivision 2, is amended to read: 
  3.1      Subd. 2.  [PROGRESSIVE BINGO GAMES.] A prize of up to 
  3.2   $2,000 may be awarded for a progressive bingo game, including a 
  3.3   cover-all game.  The prize for a progressive bingo game may 
  3.4   start at $300 and be increased by up to $100 $200 for each 
  3.5   occasion during which the progressive bingo game is played.  A 
  3.6   consolation prize of up to $100 for a progressive bingo game may 
  3.7   be awarded in each occasion during which the progressive bingo 
  3.8   game is played and the accumulated prize is not won.  The total 
  3.9   amount awarded in progressive bingo game prizes in any calendar 
  3.10  year may not exceed $36,000. 
  3.11     Sec. 5.  Minnesota Statutes 1998, section 349.211, is 
  3.12  amended by adding a subdivision to read: 
  3.13     Subd. 2c.  [TIPBOARD PRIZES.] The maximum prize which may 
  3.14  be awarded for a tipboard ticket is $500, not including any 
  3.15  cumulative or carryover prizes.  Cumulative or carryover prizes 
  3.16  in tipboard games shall not exceed $2,500.  Any unclaimed money 
  3.17  or prizes return to the charitable organization.