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Minnesota Legislature

Office of the Revisor of Statutes

HF 2923

as introduced - 87th Legislature (2011 - 2012) Posted on 03/19/2012 12:54pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/19/2012

Current Version - as introduced

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A bill for an act
relating to state government; creating and funding an early education scholarship
program; authorizing electronic pull-tabs and bingo; appropriating money;
amending Minnesota Statutes 2010, sections 349.12, subdivisions 3b, 3c, 5, 6a,
12a, 18, 25b, 25c, 25d, 29, 31, 32, by adding subdivisions; 349.13; 349.151,
subdivisions 4b, 4c, by adding a subdivision; 349.161, subdivisions 1, 5;
349.162, subdivision 5; 349.163, subdivisions 1, 5, 6; 349.1635, subdivisions 2,
3, by adding a subdivision; 349.17, subdivisions 6, 7, 8, by adding a subdivision;
349.1721; 349.18, subdivision 1; 349.19, subdivisions 2, 3, 5, 10; 349.211,
subdivision 1a; proposing coding for new law in Minnesota Statutes, chapter
119B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [119B.055] EARLY EDUCATION SCHOLARSHIP PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The early education scholarship program is
established to make child care and early education services available to eligible
low-income families.
new text end

new text begin Subd. 2. new text end

new text begin Eligible family. new text end

new text begin A family is eligible for a scholarship under this section
if the family:
new text end

new text begin (1) meets the requirements under sections 119B.07; 119B.09, subdivisions 1 and 4;
and 119B.10, except for families participating in the MFIP or diversionary work programs
under chapter 256J and transition year families under section 119B.011, subdivision 20;
new text end

new text begin (2) resides in Minnesota; and
new text end

new text begin (3) has a child who is at least three but not yet six years of age.
new text end

new text begin Subd. 3. new text end

new text begin Eligible providers; provider choice. new text end

new text begin (a) Providers eligible to accept an
early education scholarship as payment for child care or early education services for a
child include:
new text end

new text begin (1) an individual or child care center or facility, either licensed or unlicensed,
providing legal child care services as defined under section 245A.03;
new text end

new text begin (2) a school readiness program under section 124D.15; and
new text end

new text begin (3) a federal Head Start program.
new text end

new text begin (b) An eligible provider under paragraph (a) must be approved for program
participation under section 124D.142 or other quality rating system authorized by the
commissioner of education.
new text end

new text begin (c) Parents may choose approved child care or early education providers as defined
under paragraph (a) that best meet the needs of their family. The state shall make resources
available to parents in choosing child care and early education services. The state may
require a parent to sign a release stating their knowledge and responsibilities in choosing a
legal provider described under this subdivision.
new text end

new text begin Subd. 4. new text end

new text begin Amount and length of early education scholarships. new text end

new text begin (a) The amount of a
an early education scholarship under this section must be based on:
new text end

new text begin (1) the income of the family, as determined under section 119B.09, subdivision 4;
new text end

new text begin (2) the number of people in the family, as defined under section 119B.011,
subdivision 13; and
new text end

new text begin (3) the number of eligible children in the applicant's family.
new text end

new text begin (b) The maximum scholarship awarded to the applicant for each eligible child in a
12-month time period must be determined by the commissioner of education based on
available funding.
new text end

new text begin (c) Families receiving a scholarship under this section shall continue to receive a
scholarship until they are no longer eligible.
new text end

new text begin (d) Families are responsible for payment to providers of any fees or charges not
covered by the scholarship.
new text end

new text begin Subd. 5. new text end

new text begin Provider rates. new text end

new text begin Eligible providers may not charge families using
scholarships under this section a rate that is higher than the rate charged to private paying
clients.
new text end

new text begin Subd. 6. new text end

new text begin Funds; appropriations; waiting list. new text end

new text begin Scholarships provided under this
section may be funded with state general funds, federal child care and development
funds, and county funds. Within the limits of available appropriations, the commissioner
shall distribute scholarships to eligible families. If there are insufficient funds to serve
all eligible families, the commissioner must develop a method to prioritize applicants,
provide geographical balance when awarding the scholarships, and keep a written record
of the number of eligible families who have applied for a scholarship. The commissioner
must update the waiting list at least every six months.
new text end

new text begin Subd. 7. new text end

new text begin Early childhood scholarships. new text end

new text begin The commissioner of management and
budget must transfer revenue raised by the sale of electronic pull-tabs and bingo under
sections 2 to 41 to the commissioner of education for the purpose of funding early
childhood scholarships under this section. The money provided under this subdivision
must supplement and not supplant state expenditures for these purposes at the time
of enactment of this act.
new text end

new text begin Subd. 8. new text end

new text begin Information. new text end

new text begin The commissioner shall develop and provide information
about the program to eligible providers, human service agencies, and potential applicants.
new text end

new text begin Subd. 9. new text end

new text begin Appropriations. new text end

new text begin The amount allocated under subdivision 7 is annually
appropriated from the general fund to the commissioner of education for early education
scholarships under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2013.
new text end

Sec. 2.

Minnesota Statutes 2010, section 349.12, subdivision 3b, is amended to read:


Subd. 3b.

Bar operation.

"Bar operation" means a method of selling and redeeming
new text begin disposable new text endgambling equipment new text beginby an employee of the lessor new text endwithin a leased premises
which is licensed for the on-sale of alcoholic beverages deleted text beginwhere such sales and redemptions
are made by an employee of the lessor from a common area where food and beverages
are also sold
deleted text end.

Sec. 3.

Minnesota Statutes 2010, section 349.12, subdivision 3c, is amended to read:


Subd. 3c.

Bar bingo.

"Bar bingo" is a bingo occasion conducted at a permitted
premises in an area where intoxicating liquor or 3.2 percent malt beverages are sold and
where the licensed organization conducts another form of lawful gambling.new text begin Bar bingo
does not include bingo games linked to other permitted premises.
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 beginbutdeleted text endnew text begin.new text end A bingo occasion must not last
longer than eight consecutive hoursdeleted text begin.deleted text endnew 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 purposes. For
permitted premises where the primary business is bingo, regular business hours shall be
defined as the hours between 8:00 a.m. and 2:00 a.m.
new text end

Sec. 5.

Minnesota Statutes 2010, section 349.12, subdivision 6a, is amended to read:


Subd. 6a.

Booth operation.

"Booth operation" means a method of selling and
redeeming new text begindisposable new text endgambling equipment by an employee of a licensed organization in
a premises the organization leases or owns deleted text beginwhere such sales and redemptions are made
within a separate enclosure that is distinct from areas where food and beverages are sold
deleted text end.

Sec. 6.

Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:


Subd. 12a.

Electronic bingo device.

"Electronic bingo device" means deleted text beginandeleted text endnew text begin a
handheld and portable
new text end electronic device new text beginthat:
new text end

new text begin (a) is new text endused by a bingo player tonew text begin:
new text end

new text begin (1)new text end monitor bingo paper sheets or a facsimile of a bingo paper sheet deleted text beginwhendeleted text end purchased
new text begin and played new text endat the time and place of an organization's bingo occasion deleted text beginand which (1)
provides a means for bingo players to
deleted text endnew text begin, or to play an electronic bingo game that is linked
with other permitted premises;
new text end

new text begin (2)new text end activate numbers announced deleted text beginby a bingo caller; (2) comparesdeleted text endnew text begin or displayed, and
to compare
new text end the numbers deleted text beginentered by the playerdeleted text end to the bingo faces previously stored in
the memory of the device; deleted text beginand
deleted text end

(3) deleted text beginidentifiesdeleted text endnew text begin identifynew text end a winning bingo patterndeleted text begin.deleted text endnew text begin or game requirement; and
new text end

new text begin (4) play against other bingo players;
new text end

new text begin (b) limits the play of bingo faces to 36 faces per game;
new text end

new text begin (c) requires coded entry to activate play but does not allow the use of a coin,
currency, or tokens to be inserted to activate play;
new text end

new text begin (d) may only be used for play against other bingo players in a bingo game;
new text end

new text begin (e) has no additional function as an amusement or gambling device;
new text end

new text begin (f) has the capability to ensure adequate levels of security and internal controls; and
new text end

new text begin (g) has the capability to permit the board to electronically monitor the operation of
the device and the internal accounting systems.
new text end

deleted text begin Electronic bingo device does not mean any device into which coin, currency, or tokens are
inserted to activate play.
deleted text end

Sec. 7.

Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
to read:


new text begin Subd. 12b. new text end

new text begin Electronic pull-tab device. new text end

new text begin "Electronic pull-tab device" means a
handheld and portable electronic device that:
new text end

new text begin (a) is used to play one or more electronic pull-tab games;
new text end

new text begin (b) requires coded entry to activate play but does not allow the use of coin, currency,
or tokens to be inserted to activate play;
new text end

new text begin (c) allows a player the option to activate the opening of:
new text end

new text begin (1) all tabs of a ticket at the same time; or
new text end

new text begin (2) each tab of a ticket separately;
new text end

new text begin (d) records and maintains information pertaining to accumulated win credits that
may be applied to games in play or redeemed upon termination of play;
new text end

new text begin (e) has no spinning symbols or other representations that mimic a video slot machine;
new text end

new text begin (f) has no additional function as a gambling device;
new text end

new text begin (g) may incorporate an amusement game feature as part of the pull-tab game but
may not require additional consideration for that feature or contain or award any points,
prizes, or other benefit for that feature;
new text end

new text begin (h) may have auditory or visual enhancements to promote or provide information
about the game being played, provided the component does not affect the outcome of
a game or display the results of a game;
new text end

new text begin (i) maintains, on nonresettable meters, a printable, permanent record of all
transactions involving each device and electronic pull-tab games played on the device; and
new text end

new text begin (j) is not a pull-tab dispensing device as defined under subdivision 32a.
new text end

Sec. 8.

Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
to read:


new text begin Subd. 12c. new text end

new text begin Electronic pull-tab game. new text end

new text begin "Electronic pull-tab game" means a pull-tab
game containing:
new text end

new text begin (a) facsimiles of pull-tab tickets that are played on an electronic pull-tab device;
new text end

new text begin (b) a predetermined finite number of winning and losing tickets;
new text end

new text begin (c) the same price for each ticket in the game;
new text end

new text begin (d) a price paid by the player of not less than 25 cents per ticket;
new text end

new text begin (e) tickets that are in conformance with applicable board rules for pull-tabs;
new text end

new text begin (f) winning tickets that comply with prize limits under section 349.211;
new text end

new text begin (g) a unique serial number that may not be regenerated;
new text end

new text begin (h) an electronic flare that displays the game name, form number, predetermined
finite number of tickets in the game, and prize tier; and
new text end

new text begin (i) no spinning symbols or other representations that mimic a video slot machine.
new text end

Sec. 9.

Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision
to read:


new text begin Subd. 12d. new text end

new text begin Electronic pull-tab game system. new text end

new text begin "Electronic pull-tab game system"
means the equipment leased from a licensed distributor and used by a licensed organization
to conduct, manage, and record electronic pull-tab games, and to report and transmit the
game results as prescribed by the board and the Department of Revenue. The system must
provide security and access levels sufficient so that internal control objectives are met as
prescribed by the board. The system must contain a point of sale station.
new text end

Sec. 10.

Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read:


Subd. 18.

Gambling equipment.

"Gambling equipment" meansdeleted text begin:deleted text endnew text begin gambling
equipment that is either disposable or permanent gambling equipment.
new text end

new text begin (a) Disposable gambling equipment includes the following:
new text end

new text begin (1)new text end bingo hard cards or paper sheets,new text begin includingnew text end linked bingo paper sheetsdeleted text begin, devices for
selecting bingo numbers, electronic bingo devices,
deleted text endnew text begin;
new text end

new text begin (2) paper and electronicnew text end pull-tabsdeleted text begin,deleted text endnew text begin;
new text end

new text begin (3)new text end jar ticketsdeleted text begin, paddle wheels, paddle wheel tables,deleted text endnew text begin;
new text end

new text begin (4)new text end paddle ticketsdeleted text begin,deleted text endnew text begin andnew text end paddle ticket cardsdeleted text begin,deleted text endnew text begin;
new text end

new text begin (5)new text end tipboardsdeleted text begin,deleted text endnew text begin andnew text end tipboard ticketsdeleted text begin,deleted text endnew text begin;new text end new text beginand
new text end

new text begin (6) new text endpromotional tickets that mimic a pull-tab or tipboarddeleted text begin, pull-tab dispensing devices,
and programmable electronic devices that have no effect on the outcome of a game and
are used to provide a visual or auditory enhancement of a game
deleted text end.

new text begin (b) Permanent gambling equipment includes the following:
new text end

new text begin (1) devices for selecting bingo numbers;
new text end

new text begin (2) electronic bingo devices;
new text end

new text begin (3) electronic pull-tab devices;
new text end

new text begin (4) pull-tab dispensing devices;
new text end

new text begin (5) programmable electronic devices that have no effect on the outcome of a game
and are used to provide a visual or auditory enhancement of a game;
new text end

new text begin (6) paddle wheels; and
new text end

new text begin (7) paddle wheel tables.
new text end

Sec. 11.

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 beginprizes in a linked bingo game, who
provides linked bingo paper sheets to the participating organizations
deleted text endnew text begin gamesnew text end, who provides
linked bingo prize management, and who provides the linked bingo game system.

Sec. 12.

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 begindial-up or otherdeleted text endnew text begin thenew text end capability to permit the board tonew text begin electronicallynew text end monitor
its operation remotely.new text begin For linked electronic bingo games, the system includes electronic
bingo devices.
new text end

Sec. 13.

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 endnew text begin gamenew text end to another in a progressive linked bingo game.

Sec. 14.

Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read:


Subd. 29.

Paddle wheel.

"Paddle wheel" means anew text begin verticalnew text end wheel marked off into
sections containing one or more numbers, and which, after being turned or spun, uses a
pointer or marker to indicate winning chancesnew text begin, and may only be used to determine a
winning number or numbers matching a winning paddle ticket purchased by a player. A
paddle wheel may be an electronic device that simulates a paddle wheel
new text end.

Sec. 15.

Minnesota Statutes 2010, section 349.12, subdivision 31, is amended to read:


Subd. 31.

Promotional ticket.

Anew text begin papernew text end pull-tabnew text begin ticketnew text end ornew text begin papernew text end tipboard ticket
created and printed by a licensed manufacturer with the words "no purchase necessary" and
"for promotional use only" and for which no consideration is given is a promotional ticket.

Sec. 16.

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 papernew text end ticket deleted text beginor adeleted text endnew text begin,new text end
multi-ply card with perforated break-open tabs,new text begin or a facsimile of a paper pull-tab ticket
used in conjunction with an electronic pull-tab device,
new text end the face of which is initially
covered to conceal one or more numbers or symbols,new text begin andnew text end where one or more of each set of
tickets deleted text beginordeleted text endnew text begin,new text end cardsnew text begin, or facsimilesnew text end has been designated in advance as a winner.

Sec. 17.

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 devicenew text begin, electronic
bingo device, and electronic pull-tab device
new text end permittednew text begin under this chapter andnew text end by board
rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter
299L.new text begin An electronic game device allowed under this chapter may not be a slot machine.
Electronic game devices, including but not limited to electronic bingo devices, electronic
paddle wheels, and electronic pull-tab devices authorized under this chapter, may only
be used in the conduct of lawful gambling permitted under this chapter and board rule
and may not display or simulate any other form of gambling or entertainment, except
as otherwise allowed under this chapter.
new text end

Sec. 18.

Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:


Subd. 4b.

Pull-tab sales from dispensing devices.

deleted text begin(a)deleted text end The board may by rule
authorize but not require the use of pull-tab dispensing devices.

deleted text begin (b) Rules adopted under paragraph (a):
deleted text end

deleted text begin (1) must limit the number of pull-tab dispensing devices on any permitted premises
to three; and
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

Sec. 19.

Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read:


Subd. 4c.

Electronic bingonew text begin devicesnew text end.

(a) The board may by rule authorize but not
require the use of electronic bingo devices.

deleted text begin (b) Rules adopted under paragraph (a):
deleted text end

deleted text begin (1) must limit the number of bingo faces that can be played using an electronic
bingo device to 36;
deleted text end

deleted text begin (2) must require that an electronic bingo device be used with corresponding bingo
paper sheets or a facsimile, printed at the point of sale, as approved by the board;
deleted text end

deleted text begin (3) must require that the electronic bingo device site system have dial-up capability
to permit the board to remotely monitor the operation of the device and the internal
accounting systems; and
deleted text end

deleted text begin (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 sold at the same occasion.
deleted text end

new text begin (b) The board, or the director if authorized by the board, may require the deactivation
of an electronic bingo device for violation of a law or rule and to implement any other
controls deemed necessary to ensure and maintain the integrity of electronic bingo devices
and the electronic bingo games played on the devices.
new text end

Sec. 20.

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 pull-tab devices and electronic pull-tab game system. new text end

new text begin (a)
The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab
devices, the electronic pull-tab games played on the devices, and the electronic pull-tab
game system necessary to operate them.
new text end

new text begin (b) The board may not require an organization to use electronic pull-tab devices.
new text end

new text begin (c) Before authorizing the lease or sale of electronic pull-tab devices and the
electronic pull-tab game system, the board shall examine electronic pull-tab devices
allowed under section 349.12, subdivision 12b. The board may contract for the
examination of the game system and electronic pull-tab devices and may require a working
model to be transported to locations the board designates for testing, examination, and
analysis. The manufacturer must pay all costs of any testing, examination, analysis, and
transportation of the model. The system must be approved by the board before its use in
the state and must have the capability to permit the board to electronically monitor its
operation and internal accounting systems.
new text end

new text begin (d) The board may require a manufacturer to submit a certificate from an independent
testing laboratory approved by the board to perform testing services, stating that the
equipment has been tested, analyzed, and meets the standards required in this chapter
and any applicable board rules.
new text end

new text begin (e) The board, or the director if authorized by the board, may require the deactivation
of an electronic pull-tab device for violation of a law or rule and to implement any other
controls deemed necessary to ensure and maintain the integrity of electronic pull-tab
devices and the electronic pull-tab games played on the devices.
new text end

Sec. 21.

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 bingonew text begin and a linked bingo game provider may provide electronic bingo devices for
linked electronic bingo games
new text end;

(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. 22.

Minnesota Statutes 2010, section 349.161, subdivision 5, is amended to read:


Subd. 5.

Prohibition.

(a) No distributor, distributor salesperson, or other employee
of a distributor, may also be a wholesale distributor of alcoholic beverages or an employee
of a wholesale distributor of alcoholic beverages.

(b) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor, may: (1) be involved in the conduct of lawful gambling
by an organization; (2) keep or assist in the keeping of an organization's financial records,
accounts, and inventories; or (3) prepare or assist in the preparation of tax forms and other
reporting forms required to be submitted to the state by an organization.

(c) No distributor, distributor salesperson, or any representative, agent, affiliate,
or other employee of a distributor may provide a lessor of gambling premises any
compensation, gift, gratuity, premium, or other thing of value.

(d) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may provide an employee or agent of the organization
any compensation, gift, gratuity, premium, or other thing of value greater than $25 per
organization in a calendar year.

(e) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may participate in any gambling activity at any gambling
site or premises where gambling equipment purchasednew text begin or leasednew text end from that distributor or
distributor salesperson is being used in the conduct of lawful gambling.

(f) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may alter or modify any gambling equipment, except to
add a "last ticket sold" prize stickernew text begin for a paper pull-tab gamenew text end.

(g) No distributor, distributor salesperson, or any representative, agent, affiliate, or
other employee of a distributor may: (1) recruit a person to become a gambling manager
of an organization or identify to an organization a person as a candidate to become
gambling manager for the organization; or (2) identify for an organization a potential
gambling location.

(h) No distributor or distributor salesperson may purchasenew text begin or leasenew text end gambling
equipment for resalenew text begin or leasenew text end to a person for use within the state from any person not
licensed as a manufacturer under section 349.163, except for gambling equipment
returned from an organization licensed under section 349.16, or exempt or excluded from
licensing under section 349.166.

(i) No distributor or distributor salesperson may sell gambling equipment, except
gambling equipment identified as a promotional ticket, to any person for use in Minnesota
other than (i) a licensed organization or organization excluded or exempt from licensing,
or (ii) the governing body of an Indian tribe.

(j) No distributor or distributor salesperson may sell or otherwise provide anew text begin papernew text end
pull-tab or tipboard deal with the symbol required by section 349.163, subdivision 5,
paragraph (d), visible on the flare to any person other than in Minnesota to a licensed
organization or organization exempt from licensing.

Sec. 23.

Minnesota Statutes 2010, section 349.162, subdivision 5, is amended to read:


Subd. 5.

Sales from facilities.

(a) All gambling equipment purchased or possessed
by a licensed distributor for resalenew text begin or leasenew text end to any person for use in Minnesota must, prior
to the equipment's resalenew text begin or leasenew text end, be unloaded into a storage facility located in Minnesota
which the distributor owns or leases; and which has been registered, in advance and in
writing, with the Division of Alcohol and Gambling Enforcement as a storage facility of
the distributor. All unregistered gambling equipment and all unaffixed registration stamps
owned by, or in the possession of, a licensed distributor in the state of Minnesota shall be
stored at a storage facility which has been registered with the Division of Alcohol and
Gambling Enforcement. No gambling equipment may be moved from the facility unless
the gambling equipment has been first registered with the board or the Department of
Revenue.new text begin A distributor must notify the board of the method that it will use to sell and
transfer electronic pull-tab games to licensed organizations, and must receive approval of
the board before implementing or making changes to the approved method.
new text end

(b) Notwithstanding section 349.163, subdivisions 5, 6, and 8, a licensed
manufacturer may ship into Minnesota approved or unapproved gambling equipment if the
licensed manufacturer ships the gambling equipment to a Minnesota storage facility that
is: (1) owned or leased by the licensed manufacturer; and (2) registered, in advance and
in writing, with the Division of Alcohol and Gambling Enforcement as a manufacturer's
storage facility. No gambling equipment may be shipped into Minnesota to the
manufacturer's registered storage facility unless the shipment of the gambling equipment
is reported to the Department of Revenue in a manner prescribed by the department.
No gambling equipment may be moved from the storage facility unless the gambling
equipment is sold to a licensed distributor and is otherwise in conformity with this chapter,
is shipped to an out-of-state site and the shipment is reported to the Department of
Revenue in a manner prescribed by the department, or is otherwise sold and shipped as
permitted by board rule.new text begin A manufacturer must notify the board of the method that it will
use to sell and transfer electronic pull-tab games to licensed distributors, and must receive
approval of the board before implementing or making changes to the approved method.
new text end

(c) All storage facilities owned, leased, used, or operated by a licensed distributor
or manufacturer may be entered upon and inspected by the employees of the Division of
Alcohol and Gambling Enforcement, the Division of Alcohol and Gambling Enforcement
director's authorized representatives, employees of the Gambling Control Board or its
authorized representatives, employees of the Department of Revenue, or authorized
representatives of the director of the Division of Special Taxes of the Department of
Revenue during reasonable and regular business hours. Obstruction of, or failure to
permit, entry and inspection is cause for revocation or suspension of a manufacturer's or
distributor's licenses and permits issued under this chapter.

(d) Unregistered gambling equipment found at any location in Minnesota other than
the manufacturing plant of a licensed manufacturer or a registered storage facility are
contraband under section 349.2125. This paragraph does not apply:

(1) to unregistered gambling equipment being transported in interstate commerce
between locations outside this state, if the interstate shipment is verified by a bill of lading
or other valid shipping document; and

(2) to gambling equipment registered with the Department of Revenue for
distribution to the tribal casinos.

Sec. 24.

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. 25.

Minnesota Statutes 2010, section 349.163, subdivision 5, is amended to read:


Subd. 5.

new text beginPaper new text endpull-tab and tipboard flares.

(a) A manufacturer may not ship or
cause to be shipped into this state or sell for use or resale in this state any deal ofnew text begin papernew text end
pull-tabs or tipboards that does not have its own individual flare as required for that deal
by this subdivision and rule of the board. A person other than a manufacturer may not
manufacture, alter, modify, or otherwise change a flare for a deal ofnew text begin papernew text end pull-tabs or
tipboards except as allowed by this chapter or board rules.

(b) The flare of eachnew text begin papernew text end pull-tab and tipboard game must have affixed to
or imprinted at the bottom a bar code that provides all information required by the
commissioner of revenue under section 297E.04, subdivision 2.

The serial number included in the bar code must be the same as the serial number
of the tickets included in the deal. A manufacturer who manufactures a deal ofnew text begin papernew text end
pull-tabs must affix to the outside of the box containing that game the same bar code that
is affixed to or imprinted at the bottom of a flare for that deal.

(c) No person may alter the bar code that appears on the outside of a box containing
a deal ofnew text begin papernew text end pull-tabs and tipboards. Possession of a box containing a deal ofnew text begin papernew text end
pull-tabs and tipboards that has a bar code different from the bar code of the deal inside
the box is prima facie evidence that the possessor has altered the bar code on the box.

(d) The flare of each deal ofnew text begin papernew text end pull-tabs and tipboards sold by a manufacturer for
use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high
and one inch wide consisting of an outline of the geographic boundaries of Minnesota
with the letters "MN" inside the outline. The flare must be placed inside the wrapping of
the deal which the flare describes.

(e) Eachnew text begin papernew text end pull-tab and tipboard flare must bear the following statement printed
in letters large enough to be clearly legible:

"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in
Minnesota unless:

-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and

-- the serial number imprinted on the bar code at the bottom of this sheet is the same
as the serial number on the pull-tab (or tipboard) ticket you have purchased."

(f) The flare of eachnew text begin papernew text end pull-tab and tipboard game must have the serial number
of the game imprinted on the bar code at the bottom of the flare in numerals at least
one-half inch high.

Sec. 26.

Minnesota Statutes 2010, section 349.163, subdivision 6, is amended to read:


Subd. 6.

Samples of gambling equipment.

new text begin(a) new text endThe board shall require each
licensed manufacturer to submit to the board one or more samples of each item of gambling
equipment deleted text beginthe manufacturer manufacturesdeleted text endnew text begin manufacturednew text end for use or resale in this state.new text begin
For purposes of this subdivision, a manufacturer is also required to submit the applicable
version of any software necessary to operate electronic devices and related systems.
new text end

new text begin (b)new text end The board shall inspect and test all the equipmentnew text begin, including software and
software upgrades,
new text end it deems necessary to determine the equipment's compliance with
law and board rules. Samples required under this subdivision must be approved by the
board before the equipment being sampled is shipped into or sold for use or resale in this
state. The board shall impose a fee of $25 for each item of gambling equipment that the
manufacturer submits for approval or for which the manufacturer requests approval. The
board shall impose a fee of $100 for each sample of gambling equipment that it tests.

new text begin (c)new text end The board may require samples of gambling equipment to be tested by an
independent testing laboratory prior to submission to the board for approval. All costs
of testing by an independent testing laboratory must be borne by the manufacturer. An
independent testing laboratory used by a manufacturer to test samples of gambling
equipment must be approved by the board before the equipment is submitted to the
laboratory for testing.

new text begin (d)new text end The board may request the assistance of the commissioner of public safety and
the director of the State Lottery in performing the tests.

Sec. 27.

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
providernew text begin or to a manufacturer licensed under section 349.163new 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. 28.

Minnesota Statutes 2010, section 349.1635, subdivision 3, is amended to read:


Subd. 3.

Attachments to application.

An applicant for a linked bingo game
provider license must attach to its application:

(1) evidence of a bond in the principal amount of $100,000 payable to the state of
Minnesota conditioned on the payment of all linked bingo prizes and any other money due
and payable under this chapter;

(2) detailed plans and specifications for the operation of the linked bingo game and
the linked bingo system, along with a proposed fee schedule for the cost of providing
services and equipment to licensed organizationsnew text begin which may not exceed ... percent of
gross profits. The fee schedule must incorporate costs paid to distributors for services
provided under subdivision 5
new text end; and

(3) any other information required by the board by rule.

Sec. 29.

Minnesota Statutes 2010, section 349.1635, is amended by adding a
subdivision to read:


new text begin Subd. 5. new text end

new text begin Linked bingo game services requirements. new text end

new text begin (a) A linked bingo game
provider must contract with licensed distributors for linked bingo game services including,
but not limited to, the solicitation of agreements with licensed organizations, and
installation, repair, or maintenance of the linked bingo game system.
new text end

new text begin (b) A distributor may not charge a fee to licensed organizations for services
authorized and rendered under paragraph (a).
new text end

new text begin (c) A linked bingo game provider may not contract with any distributor on an
exclusive basis.
new text end

new text begin (d) A linked bingo game provider may refuse to contract with a licensed distributor
if the linked bingo game provider demonstrates that the licensed distributor is not capable
of performing the services under the contract.
new text end

Sec. 30.

Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:


Subd. 6.

Conduct of bingo.

new text beginThe price of a face played on an electronic bingo
device may not be less than the price of a face on a bingo paper sheet sold for the same
game at the same occasion.
new text end A game of bingo begins with the first letter and number callednew text begin
or displayed
new text end. Each player must cover, mark, or activate the numbers when bingo numbers
are randomly selecteddeleted text begin,deleted text endnew text begin andnew text end announceddeleted text begin, anddeleted text endnew text begin ornew text end displayed to the playersdeleted text begin, either manually
or with a flashboard and monitor
deleted 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. 31.

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;new text begin and
new text end

(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 providerdeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (3) no rent may be paid for a bar bingo occasion.
deleted text end

Sec. 32.

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 beginnot more than twodeleted text end linked bingo games deleted text beginper occasion, one of which may bedeleted text endnew text begin,
including
new text end a progressive game in which a portion of the prize is carried over from one
deleted text begin occasiondeleted text endnew text begin gamenew text end to another until won by a player achieving a bingo within a predetermined
amount of bingo numbers called.

(b) deleted text beginEach participating licensed organization shall contribute to each prize awarded in
a linked bingo game in an amount not to exceed $300.
deleted text endnew text begin Linked bingo games may only be
conducted by licensed organizations who have a valid agreement with the linked bingo
game provider.
new text end

(c) An electronic bingo device as defined in section 349.12, subdivision 12a, may
be used for a linked bingo game.

(d) 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. 33.

Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Linked bingo games played exclusively on electronic bingo devices. new text end

new text begin In
addition to the requirements of subdivision 8, the following requirements and restrictions
apply when linked bingo games are played exclusively on electronic bingo devices:
new text end

new text begin (a) The permitted premises must be:
new text end

new text begin (1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
malt beverages, except for a general food store or drug store permitted to sell alcoholic
beverages under section 340A.405, subdivision 1; or
new text end

new text begin (2) a premises where bingo is conducted as the primary business and has a seating
capacity of at least 100.
new text end

new text begin (b) The number of electronic bingo devices is limited to:
new text end

new text begin (1) no more than six devices in play for permitted premises with 200 seats or less;
new text end

new text begin (2) no more than 12 devices in play for permitted premises with 201 seats or more;
and
new text end

new text begin (3) no more than 50 devices in play for permitted premises where bingo is the
primary business.
new text end

new text begin Seating capacity is determined as specified under the local fire code.
new text end

new text begin (c) Prior to a bingo occasion, 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

new text begin (d) Before participating in the play of a linked bingo game, a player must present
and register a valid picture identification card that includes the player's address and
date of birth.
new text end

new text begin (e) An organization may remove from play a device that a player has not maintained
in an activated mode for a specified period of time determined by the organization. The
organization must provide the notice in its house rules.
new text end

Sec. 34.

Minnesota Statutes 2010, section 349.1721, is amended to read:


349.1721 CONDUCT OF PULL-TABS.

Subdivision 1.

Cumulative or carryover games.

The board shall by rule permit
pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games with
cumulative or carryover prizes.new text begin The rules shall also apply to electronic pull-tab games.
new text end

Subd. 2.

Event games.

The board shall by rule permit pull-tab games in which
certain winners are determined by the random selection of one or more bingo numbers
or by another method approved by the board.new text begin The rules shall also apply to electronic
pull-tab games.
new text end

new text begin Subd. 3. new text end

new text begin Pull-tab dispensing device location restrictions and requirements.
new text end

new text begin The following pertain to pull-tab dispensing devices as defined under section 349.12,
subdivision 32a.
new text end

new text begin (a) The use of any pull-tab dispensing device must be at a permitted premises
which is:
new text end

new text begin (1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt
beverages;
new text end

new text begin (2) a premises where bingo is conducted as the primary business; or
new text end

new text begin (3) an establishment licensed for the off-sale of intoxicating liquor, other than drug
stores and general food stores licensed under section 340A.405, subdivision 1.
new text end

new text begin (b) The number of pull-tab dispensing devices located at any permitted premises
is limited to three.
new text end

new text begin Subd. 4. new text end

new text begin Electronic pull-tab device requirements and restrictions. new text end

new text begin The following
pertain to the use of electronic pull-tab devices as defined under section 349.12,
subdivision 12b.
new text end

new text begin (a) The use of any electronic pull-tab device must be at a permitted premises that is:
new text end

new text begin (1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
malt beverages, except for a general food store or drug store permitted to sell alcoholic
beverages under section 340A.405, subdivision 1; or
new text end

new text begin (2) a premises where bingo is conducted as the primary business and has a seating
capacity of at least 100; and
new text end

new text begin (3) where the sale of paper pull-tabs is conducted by the licensed organization.
new text end

new text begin (b) The number of electronic pull-tab devices is limited to:
new text end

new text begin (1) no more than six devices in play at any permitted premises with 200 seats or less;
new text end

new text begin (2) no more than 12 devices in play at any permitted premises with 201 seats
or more; and
new text end

new text begin (3) no more than 50 devices in play at any permitted premises where the primary
business is bingo.
new text end

new text begin Seating capacity is determined as specified under the local fire code.
new text end

new text begin (c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.
new text end

new text begin (d) All electronic pull-tab games must be sold and played on the permitted premises
and may not be linked to other permitted premises.
new text end

new text begin (e) Electronic pull-tab games may not be transferred electronically or otherwise to
any other location by the licensed organization.
new text end

new text begin (f) Electronic pull-tab games may be commingled if the games are from the same
family of games and manufacturer and contain the same game name, form number, type
of game, ticket count, prize amounts, and prize denominations. Each commingled game
must have a unique serial number.
new text end

new text begin (g) An organization may remove from play a device that a player has not maintained
in an activated mode for a specified period of time determined by the organization. The
organization must provide the notice in its house rules.
new text end

new text begin (h) Before participating in the play of an electronic pull-tab game, a player must
present and register a valid picture identification card that includes the player's address
and date of birth.
new text end

new text begin (i) Each player is limited to the use of one device at a time.
new text end

Sec. 35.

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 deleted text beginpull-tabs,
tipboards, and paddle wheels
deleted text endnew text begin lawful gamblingnew text end is subject to the following limitsnew text begin and
restrictions
new text end:

(1) For booth operations, deleted text beginincluding 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:
deleted text endnew text begin monthly rent may not exceed ten percent of gross profits
for that month.
new text end

deleted text begin (i) in any month where the organization's gross profit at those premises does not
exceed $4,000, up to $400; and
deleted text end

deleted text begin (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;
deleted text end

(2) For bar operations, deleted text beginincluding 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:
deleted text endnew text begin monthly rent may not exceed 15 percent of
the gross profits for that month.
new text end

deleted text begin (i) in any month where the organization's gross profit at those premises does not
exceed $1,000, up to $200; and
deleted text end

deleted text begin (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;
deleted text end

(3) deleted text begina lease not governed by clauses (1) and (2) must be approved by the board before
becoming effective;
deleted text endnew text begin For electronic linked bingo games and electronic pull-tab games that
are operated for separate time periods within a business day by an organization and the
lessor, monthly rent may not be more than:
new text end

new text begin (i) 15 percent of the gross profits for that month for the time periods operated by
the lessor. The lessor is responsible for cash shortages that occur during the time periods
the games are operated by the lessor; and
new text end

new text begin (ii) ten percent of gross profits for that month for the time periods operated by the
organization. The organization is responsible for cash shortages that occur during the time
periods the games are operated by the organization.
new text end

deleted text begin (4) total rent paid to a lessor from all organizations from leases governed by clause
(1) may not exceed $1,750 per month.
deleted text end

deleted text begin (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:
deleted text end

deleted text begin (1)deleted text endnew text begin (4) For bingo conducted at a leased premises where the primary business is
bingo, rent is limited to either
new text end not more than ten percent of the monthly gross profit from
all lawful gambling activities held during bingo occasionsnew text begin,new text end 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 directordeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (2)deleted text endnew text begin (5)new text end No rent may be paid for bar bingonew text begin as defined in section 349.12, subdivision 3cnew text end.

new text begin (6) A lease not governed by clauses (1) to (5) must be approved by the director
before becoming effective.
new text end

deleted text begin (d)deleted text endnew text begin (c)new text end 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,new text begin andnew text end other utilities or
services, deleted text beginand, in the case of bar operations, cash shortages,deleted text end unless approved by the
director.new text begin The lessor shall be responsible for the cost of any communications network or
service required to conduct electronic pull-tab games or electronic bingo games.
new text end Any
other expenditure made by an organization that is related to a leased premises must be
approved by the director.new text begin For bar operations, the lessor is responsible for cash shortages.new text end
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.

deleted text begin (e)deleted text endnew text begin (d)new text end 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.

deleted text begin (f) No entity other than thedeleted text endnew text begin (e) Anew text end licensed organization maynew text begin notnew text end conduct any activity
deleted text begin within a booth operationdeleted text endnew text begin on behalf of the lessornew text end on a leased premises.

Sec. 36.

Minnesota Statutes 2010, section 349.19, subdivision 2, is amended to read:


Subd. 2.

Accounts.

(a) Gross receipts from lawful gambling by each organization
must be segregated from all other revenues of the conducting organization and placed in a
separate gambling bank account.

(b) All expenditures for allowable expenses, taxes, and lawful purposes must be
made from the separate account except (1) in the case of expenditures previously approved
by the organization's membership for emergencies as defined by board rule, (2) as provided
in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment
of taxes for the organization as a whole, the organization may transfer the amount of taxes
related to the conduct of gambling to the general account at the time when due and payable.

(c) The name and address of the bank, the account number for the separate account,
and the names of organization members authorized as signatories on the separate account
must be provided to the board when the application is submitted. Changes in the
information must be submitted to the board at least ten days before the change is made.

(d)new text begin Except for gambling receipts from electronic pull-tab games and linked
electronic bingo games,
new text end gambling receipts must be deposited into the gambling bank
account within four business days of completion of the bingo occasion, deal, or game from
which they are received.

new text begin (1)new text end A deal ofnew text begin papernew text end pull-tabs is considered complete when either the last pull-tab of
the deal is sold or the organization does not continue the play of the deal during the next
scheduled period of time in which the organization will conduct pull-tabs.

new text begin (2)new text end A tipboard game is considered complete when the seal on the game flare is
uncovered or the organization does not continue the play of the deal during the next
scheduled period of time in which the organization will conduct tipboards.

new text begin (e) Gambling receipts from all electronic pull-tab games and all linked electronic
bingo games must be recorded on a daily basis and deposited into the gambling bank
account within two business days.
new text end

deleted text begin (e)deleted text endnew text begin (f)new text end Deposit records must be sufficient to allow determination of deposits made
from each bingo occasion, deal, or game at each permitted premises.

deleted text begin (f)deleted text endnew text begin (g)new text end The person who accounts for gambling gross receipts and profits may not be
the same person who accounts for other revenues of the organization.

Sec. 37.

Minnesota Statutes 2010, section 349.19, subdivision 3, is amended to read:


Subd. 3.

Expenditures.

(a) All expenditures of gross profits from lawful gambling
must be itemized as to payee, purpose, amount, and date of payment.

(b) Each licensed organization must report monthly to the board deleted text beginon a formdeleted text endnew text begin in an
electronic format
new text end prescribed by the board each expenditure or contribution of net profits
from lawful gambling. The reports must provide for each expenditure or contribution:

(1) the name of the recipient of the expenditure or contribution;

(2) the date the expenditure or contribution was approved by the organization;

(3) the date, amount, and check number or electronic transfer confirmation number
of the expenditure or contribution;

(4) a brief description of how the expenditure or contribution meets one or more of
the purposes in section 349.12, subdivision 25; and

(5) in the case of expenditures authorized under section 349.12, subdivision 25,
paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily
benefits male or female participants.

(c) Authorization of the expenditures must be recorded in the monthly meeting
minutes of the licensed organization.

(d) Checks or authorizations for electronic fund transfers for expenditures of gross
profits must be signed by at least two persons authorized by board rules to sign the
checks or authorizations.

(e) Expenditures of gross profits from lawful gambling for local, state, and federal
taxes as identified in section 349.12, subdivision 25, paragraph (a), clause (8), may be
transferred electronically from the organization's gambling account directly to bank
accounts identified by local, state, or federal agencies if the organization's gambling
account monthly bank statement specifically identifies the payee by name, the amount
transferred, and the date of the transaction.

(f) Expenditures of gross profits from lawful gambling for payments for lawful
purpose expenditures and allowable expenses may be transferred electronically from the
organization's gambling account directly to bank accounts identified by the vendor if the
organization's gambling account monthly bank statement specifically identifies the payee
by name, the amount transferred, the account number of the account into which the funds
were transferred, and the date of the transaction.

(g) Expenditures of gross profits from lawful gambling for payroll compensation
to an employee's account and for the payment of local, state, and federal withholding
taxes may be transferred electronically to and from the account of a payroll processing
firm provided that the firm:

(1) is currently registered with and meets the criteria of the Department of Revenue
as a third-party bulk filer under section 290.92, subdivision 30;

(2) is able to provide proof of a third-party audit and an annual report and statement
of financial condition;

(3) is able to provide evidence of a fidelity bond; and

(4) can provide proof of having been in business as a third-party bulk filer for the
most recent three years.

(h) Electronic payments of taxes, lawful purpose expenditures, and allowable
expenses are permitted only if they have been authorized by the membership, the
organization maintains supporting documentation, and the expenditures can be verified.

Sec. 38.

Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read:


Subd. 5.

Reports.

new text begin(a) new text endA licensed organization must reportnew text begin monthlynew text end to the
deleted text begin Department of Revenuedeleted text endnew text begin board in an electronic format prescribed by the boardnew text end and to its
membership deleted text beginmonthly, or quarterly in the case of a licensed organization which does not
report more than $1,000 in gross receipts from lawful gambling in any calendar quarter,
deleted text end
on its gross receipts, expenses, profits, and expenditure of profits from lawful gamblingnew text begin
for each permitted premises. The organization must account for and report on each form
of lawful gambling conducted
new text end. The deleted text beginreportdeleted text endnew text begin organizationnew text end must include a reconciliation of
the organization's profit carryover with its cash balance on hand. deleted text beginIf the organization
conducts both bingo and other forms of lawful gambling, the figures for both must be
reported separately.
deleted text end

new text begin (b)new text end The organization must report deleted text beginannually to its membership and annually file with
the board a financial summary report in a format prescribed by the board that identifies the
organization's receipts and use of lawful gambling proceeds, including:
deleted text endnew text begin monthly to the
commissioner of revenue as required under section 297E.06.
new text end

deleted text begin (1) gross receipts;
deleted text end

deleted text begin (2) prizes paid;
deleted text end

deleted text begin (3) allowable expenses;
deleted text end

deleted text begin (4) lawful purpose expenditures, including annual totals for types of charitable
contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph
(a), clauses (8) and (18);
deleted text end

deleted text begin (5) the percentage of annual gross profits used for charitable contributions; and
deleted text end

deleted text begin (6) the percentage of annual gross profits used for all taxes and fees as per section
349.12, subdivision 25, paragraph (a), clauses (8) and (18).
deleted text end

Sec. 39.

Minnesota Statutes 2010, section 349.19, subdivision 10, is amended to read:


Subd. 10.

Pull-tab records.

(a) The board shall by rule require a licensed
organization to require each winner of anew text begin papernew text end pull-tab prize of $50 or more to present
identification in the form of a driver's license, Minnesota identification card, or other
identification the board deems sufficient to allow the identification and tracking of the
winner. The rule must require the organization to retain winningnew text begin papernew text end pull-tabs of $50 or
more, and the identification of the winner of the pull-tab, for 3-1/2 years.

(b) An organization must maintain separate cash banks for each deal ofnew text begin papernew text end
pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the
organization uses a cash register, of a type approved by the board, which records all
sales ofnew text begin papernew text end pull-tabs by separate deals.

(c) The board shall:

(1) by rule adopt minimum technical standards for cash registers that may be used
by organizations, and shall approve for use by organizations any cash register that meets
the standards; and

(2) before allowing an organization to use a cash register that commingles receipts
from several differentnew text begin papernew text end pull-tab games in play, adopt rules that define how cash
registers may be used and that establish a procedure for organizations to reconcile all
pull-tab games in play at the end of each month.

Sec. 40.

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 beginno organization may contribute more than $300 per linked bingo game to a
linked bingo prize pool
deleted text endnew 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 site
new text end;

new text begin (2) for linked bingo games played exclusively 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 endnew 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 beginand
deleted text end

deleted text begin (3)deleted text endnew 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 endnew text begin for a progressive prize or prizes based on anew text end predetermined deleted text beginamount of bingo
numbers called
deleted text endnew text begin and posted win determinationnew text end, a portion of the deleted text beginprize isdeleted text endnew text begin gross receipts
may be
new text end carried over to another deleted text beginoccasiondeleted text endnew 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 winnerdeleted 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 endnew text begin; and
new text end

new text begin (5) for linked bingo games played exclusively with electronic bingo devices, 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

Sec. 41. new text beginAPPROPRIATION.
new text end

new text begin (a) $450,000 in fiscal year 2012 and $779,000 in fiscal year 2013 are appropriated
from the lawful gambling regulation account in the special revenue fund to the Gambling
Control Board for operating expenses related to the regulatory oversight of lawful
gambling for electronic pull-tabs and electronic linked bingo.
new text end

new text begin (b) One-half of one percent of the revenue deposited in the general fund under
Minnesota Statutes, section 16A.695, subdivision 8, paragraph (a), is appropriated to
the commissioner of human services for the compulsive gambling treatment program
established under Minnesota Statutes, section 245.98. One-half of one percent of the
revenue deposited in the general fund under Minnesota Statutes, section 16A.695,
subdivision 8, paragraph (a), is appropriated to the Gambling Control Board for a
grant to the state affiliate recognized by the National Council on Problem Gambling to
increase public awareness of problem gambling, education and training for individuals
and organizations providing effective treatment services to problem gamblers and
their families, and research relating to problem gambling. Money appropriated by this
paragraph must supplement and must not replace existing state funding for these programs.
new text end

Sec. 42. new text beginEFFECTIVE DATE.
new text end

new text begin Sections 2 to 41 are effective the day following final enactment.
new text end