HF 3073

2nd Engrossment - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to gambling; making technical, clarifying, 
  1.3             and conforming changes; deleting obsolete language; 
  1.4             providing for linked bingo games and electronic bingo 
  1.5             devices; providing and modifying certain definitions 
  1.6             and prize amounts relating to lawful gambling; 
  1.7             modifying procedures for pull-tab dispensing devices; 
  1.8             providing for pari-mutuel account wagering; regulating 
  1.9             sales of certain gambling equipment; amending 
  1.10            Minnesota Statutes 2000, sections 240.13, by adding a 
  1.11            subdivision; 299L.07, subdivision 2; 349.12, 
  1.12            subdivisions 4, 18, by adding subdivisions; 349.151, 
  1.13            subdivisions 4, 4b, by adding a subdivision; 349.155, 
  1.14            subdivision 3; 349.161, subdivision 4; 349.162, 
  1.15            subdivision 2; 349.163, subdivisions 1, 2, 3, 5; 
  1.16            349.164, subdivision 4; 349.165, subdivision 2; 
  1.17            349.167, subdivision 7; 349.168, subdivision 5; 
  1.18            349.17, by adding a subdivision; 349.19, subdivision 
  1.19            5; 349.191, subdivisions 1a, 1b; 349.211, subdivisions 
  1.20            1, 2, 2a; Minnesota Statutes 2001 Supplement, sections 
  1.21            349.12, subdivision 25; 349.15, subdivision 1a; 
  1.22            349.168, subdivision 1; proposing coding for new law 
  1.23            in Minnesota Statutes, chapter 349; repealing 
  1.24            Minnesota Statutes 2000, sections 349.12, subdivision 
  1.25            14; 349.163, subdivision 6a; 349.17, subdivision 2a; 
  1.26            349.174. 
  1.27  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.28                             ARTICLE 1 
  1.29                        TECHNICAL AMENDMENTS 
  1.30     Section 1.  Minnesota Statutes 2000, section 349.162, 
  1.31  subdivision 2, is amended to read: 
  1.32     Subd. 2.  [RECORDS REQUIRED.] A distributor must maintain a 
  1.33  record of all gambling equipment which it sells to organizations 
  1.34  as required by section 297E.05, subdivision 2, and provide 
  1.35  copies of the record to the board upon demand.  The record must 
  1.36  include:  
  2.1      (1) the identity of the person from whom the distributor 
  2.2   purchased the equipment; 
  2.3      (2) the registration number of the equipment; 
  2.4      (3) the name, address, and license or exempt permit number 
  2.5   of the organization to which the sale was made; 
  2.6      (4) the date of the sale; 
  2.7      (5) the name of the person who ordered the equipment; 
  2.8      (6) the name of the person who received the equipment; 
  2.9      (7) the type of equipment; 
  2.10     (8) the serial number of the equipment; 
  2.11     (9) the name, form number, or other identifying information 
  2.12  for each game; and 
  2.13     (10) in the case of bingo hard cards or paper sheets sold 
  2.14  on and after January 1, 1991, the individual number of each card 
  2.15  or sheet. 
  2.16     The invoice for each sale must be retained for at least 
  2.17  3-1/2 years after the sale is completed and a copy of each 
  2.18  invoice is to be delivered to the board in the manner and time 
  2.19  prescribed by the board.  For purposes of this section, a sale 
  2.20  is completed when the gambling equipment is physically delivered 
  2.21  to the purchaser.  
  2.22     Each distributor must report monthly to the board, in a 
  2.23  form the board prescribes, its sales of each type of gambling 
  2.24  equipment.  Employees of the board and the division of alcohol 
  2.25  and gambling enforcement may inspect the business premises, 
  2.26  books, records, and other documents of a distributor at any 
  2.27  reasonable time without notice and without a search warrant.  
  2.28     The board may require that a distributor submit the monthly 
  2.29  report and invoices required in this subdivision via magnetic 
  2.30  media or electronic data transfer. 
  2.31     Sec. 2.  Minnesota Statutes 2000, section 349.163, 
  2.32  subdivision 1, is amended to read: 
  2.33     Subdivision 1.  [LICENSE REQUIRED.] No manufacturer of 
  2.34  gambling equipment may sell any gambling equipment to any person 
  2.35  for use or resale within the state, unless the manufacturer has 
  2.36  a current and valid license issued by the board under this 
  3.1   section and has satisfied other criteria prescribed by the board 
  3.2   by rule. 
  3.3      A manufacturer licensed under this section may not also be 
  3.4   directly or indirectly licensed as a distributor under section 
  3.5   349.161 unless the manufacturer (1) does not manufacture any 
  3.6   gambling equipment other than paddlewheels, and (2) was licensed 
  3.7   as both a manufacturer and distributor on May 1, 1990. 
  3.8      Sec. 3.  Minnesota Statutes 2000, section 349.163, 
  3.9   subdivision 3, is amended to read: 
  3.10     Subd. 3.  [PROHIBITED SALES.] (a) A manufacturer may not: 
  3.11     (1) sell gambling equipment for use or resale within the 
  3.12  state to any person not licensed as a distributor unless the 
  3.13  manufacturer is also a licensed distributor; or 
  3.14     (2) sell gambling equipment to a distributor in this state 
  3.15  that has the same serial number as another item of gambling 
  3.16  equipment of the same type that is sold by that manufacturer for 
  3.17  use or resale in this state. 
  3.18     (b) A manufacturer, affiliate of a manufacturer, or person 
  3.19  acting as a representative or agent of a manufacturer may not 
  3.20  provide a lessor of gambling premises or an appointed official 
  3.21  any compensation, gift, gratuity, premium, contribution, or 
  3.22  other thing of value. 
  3.23     (c) A manufacturer may not sell or otherwise provide a 
  3.24  pull-tab or tipboard deal with the symbol required by 
  3.25  subdivision 5, paragraph (h), imprinted on the flare to any 
  3.26  person other than a licensed distributor unless the manufacturer 
  3.27  first renders the symbol permanently invisible. 
  3.28     Sec. 4.  Minnesota Statutes 2000, section 349.163, 
  3.29  subdivision 5, is amended to read: 
  3.30     Subd. 5.  [PULL-TAB AND TIPBOARD FLARES.] (a) A 
  3.31  manufacturer may not ship or cause to be shipped into this state 
  3.32  or sell for use or resale in this state any deal of pull-tabs or 
  3.33  tipboards that does not have its own individual flare as 
  3.34  required for that deal by this subdivision and rule of the 
  3.35  board.  A person other than a manufacturer may not manufacture, 
  3.36  alter, modify, or otherwise change a flare for a deal of 
  4.1   pull-tabs or tipboards except as allowed by this chapter or 
  4.2   board rules. 
  4.3      (b) A manufacturer must comply with either paragraphs (c) 
  4.4   to (g) or (f) to (j) with respect to pull-tabs and tipboards 
  4.5   sold by the manufacturer before January 1, 1995, for use or 
  4.6   resale in Minnesota or shipped into or caused to be shipped into 
  4.7   Minnesota by the manufacturer before January 1, 1995.  A 
  4.8   manufacturer must comply with paragraphs (f) to (j) with respect 
  4.9   to pull-tabs and tipboards sold by the manufacturer on and after 
  4.10  January 1, 1995, for use or resale in Minnesota or shipped into 
  4.11  or caused to be shipped into Minnesota by the manufacturer on 
  4.12  and after January 1, 1995.  Paragraphs (c) to (e) expire January 
  4.13  1, 1995. 
  4.14     (c) The flare of each deal of pull-tabs and tipboards sold 
  4.15  by a manufacturer for use or resale in Minnesota must have the 
  4.16  Minnesota gambling stamp affixed.  The flare, with the stamp 
  4.17  affixed, must be placed inside the wrapping of the deal which 
  4.18  the flare describes. 
  4.19     (d) Each pull-tab and tipboard flare must bear the 
  4.20  following statement printed in letters large enough to be 
  4.21  clearly legible: 
  4.22     "Pull-tab (or tipboard) purchasers -- This pull-tab (or 
  4.23  tipboard) game is not legal in Minnesota unless: 
  4.24     -- a Minnesota gambling stamp is affixed to this sheet, and 
  4.25     -- the serial number handwritten on the gambling stamp is 
  4.26  the same as the serial number printed on this sheet and on the 
  4.27  pull-tab (or tipboard) ticket you have purchased." 
  4.28     (e) The flare of each pull-tab and tipboard game must bear 
  4.29  the serial number of the game, printed in numbers at least 
  4.30  one-half inch high and must be imprinted with the following: 
  4.31     (1) the name of the game; 
  4.32     (2) the name of the manufacturer; 
  4.33     (3) the number of tickets in the deal; and 
  4.34     (4) other information the board by rule requires. 
  4.35     (f) The flare of each pull-tab and tipboard game must have 
  4.36  affixed to or imprinted at the bottom a bar code that provides 
  5.1   all information required by the commissioner of revenue under 
  5.2   section 297E.04, subdivision 2. 
  5.3      The serial number included in the bar code must be the same 
  5.4   as the serial number of the tickets included in the deal.  A 
  5.5   manufacturer who manufactures a deal of pull-tabs must affix to 
  5.6   the outside of the box containing that game the same bar code 
  5.7   that is affixed to or imprinted at the bottom of a flare for 
  5.8   that deal. 
  5.9      (g) (c) No person may alter the bar code that appears on 
  5.10  the outside of a box containing a deal of pull-tabs and 
  5.11  tipboards.  Possession of a box containing a deal of pull-tabs 
  5.12  and tipboards that has a bar code different from the bar code of 
  5.13  the deal inside the box is prima facie evidence that the 
  5.14  possessor has altered the bar code on the box. 
  5.15     (h) (d) The flare of each deal of pull-tabs and tipboards 
  5.16  sold by a manufacturer for use or resale in Minnesota must have 
  5.17  imprinted on it a symbol that is at least one inch high and one 
  5.18  inch wide consisting of an outline of the geographic boundaries 
  5.19  of Minnesota with the letters "MN" inside the outline.  The 
  5.20  flare must be placed inside the wrapping of the deal which the 
  5.21  flare describes.  
  5.22     (i) (e) Each pull-tab and tipboard flare must bear the 
  5.23  following statement printed in letters large enough to be 
  5.24  clearly legible: 
  5.25     "Pull-tab (or tipboard) purchasers -- This pull-tab (or 
  5.26  tipboard) game is not legal in Minnesota unless: 
  5.27     -- an outline of Minnesota with letters "MN" inside it is 
  5.28  imprinted on this sheet, and 
  5.29     -- the serial number imprinted on the bar code at the 
  5.30  bottom of this sheet is the same as the serial number on the 
  5.31  pull-tab (or tipboard) ticket you have purchased." 
  5.32     (j) (f) The flare of each pull-tab and tipboard game must 
  5.33  have the serial number of the game imprinted on the bar code at 
  5.34  the bottom of the flare in numerals at least one-half inch high. 
  5.35     Sec. 5.  Minnesota Statutes 2000, section 349.165, 
  5.36  subdivision 2, is amended to read: 
  6.1      Subd. 2.  [CONTENTS OF APPLICATION.] An application for a 
  6.2   premises permit must contain: 
  6.3      (1) the name and address of the applying organization and 
  6.4   of the organization's gambling manager; 
  6.5      (2) a description of the site for which the permit is 
  6.6   sought, including its address and, where applicable, its 
  6.7   placement within another premises or establishment; 
  6.8      (3) if the site is leased, the name and address of the 
  6.9   lessor and information about the lease the board requires, 
  6.10  including all rents and other charges for the use of the site; 
  6.11  and 
  6.12     (4) other information the board deems necessary to carry 
  6.13  out its purposes. 
  6.14     An organization holding a premises permit must notify the 
  6.15  board in writing within ten days whenever any material change is 
  6.16  made in the above information. 
  6.17     Sec. 6.  Minnesota Statutes 2000, section 349.167, 
  6.18  subdivision 7, is amended to read: 
  6.19     Subd. 7.  [GAMBLING MANAGER EXAMINATION.] (a) By January 1, 
  6.20  1996, each gambling manager must pass an examination prepared 
  6.21  and administered by the board that tests the gambling manager's 
  6.22  knowledge of the responsibilities of gambling managers and of 
  6.23  gambling procedures, laws, and rules.  The board shall revoke 
  6.24  the license of any gambling manager who has not passed the 
  6.25  examination by January 1, 1996. 
  6.26     (b) On and after January 1, 1996, Each applicant for a new 
  6.27  gambling manager's license must pass the an examination provided 
  6.28  for in paragraph (a) prepared and administered by the board that 
  6.29  tests the applicant's knowledge of the responsibilities of 
  6.30  gambling managers, and of gambling procedures, laws, and rules 
  6.31  before being issued the license.  In the case of the death, 
  6.32  disability, or termination of a gambling manager, a replacement 
  6.33  gambling manager must pass the examination within 90 days of 
  6.34  being issued a gambling manager's license.  The board shall 
  6.35  revoke the replacement gambling manager's license if the 
  6.36  replacement gambling manager fails to pass the examination as 
  7.1   required in this paragraph. 
  7.2      Sec. 7.  Minnesota Statutes 2001 Supplement, section 
  7.3   349.168, subdivision 1, is amended to read: 
  7.4      Subdivision 1.  [REGISTRATION OF EMPLOYEES.] A person may 
  7.5   not receive compensation for participating in the conduct of 
  7.6   lawful gambling as an employee of a licensed organization unless 
  7.7   the person has first registered with the board on a form the 
  7.8   board prescribes.  The form must require each registrant to 
  7.9   provide:  (1) the person's name, address, date of birth, and 
  7.10  social security number; (2) a current photograph; and (3) the 
  7.11  name, address, and license number of the employing organization; 
  7.12  and (3) a listing of all employment in the conduct of lawful 
  7.13  gambling within the previous three years, including the name and 
  7.14  address of each employing organization and the circumstances 
  7.15  under which the employment was terminated. 
  7.16     Sec. 8.  Minnesota Statutes 2000, section 349.168, 
  7.17  subdivision 5, is amended to read: 
  7.18     Subd. 5.  [COMPENSATION RECORDS.] An organization paying 
  7.19  compensation to persons who participate in the conduct of lawful 
  7.20  gambling must maintain a compensation record.  The record must 
  7.21  be retained for at least two years after the month in which the 
  7.22  compensation is paid.  The record must itemize each payment made 
  7.23  to each recipient of compensation and must include the amount 
  7.24  and the full name, address, and membership status of each 
  7.25  recipient. 
  7.26     Sec. 9.  Minnesota Statutes 2000, section 349.19, 
  7.27  subdivision 5, is amended to read: 
  7.28     Subd. 5.  [REPORTS.] A licensed organization must report to 
  7.29  the board the department of revenue and to its membership 
  7.30  monthly, or quarterly in the case of a class C licensee or 
  7.31  licensed organization which does not report more than $1,000 in 
  7.32  gross receipts from lawful gambling in any calendar quarter, on 
  7.33  its gross receipts, expenses, profits, and expenditure of 
  7.34  profits from lawful gambling.  The report must include a 
  7.35  reconciliation of the organization's profit carryover with its 
  7.36  cash balance on hand.  If the organization conducts both bingo 
  8.1   and other forms of lawful gambling, the figures for both must be 
  8.2   reported separately.  In addition, a licensed organization must 
  8.3   report to the board monthly on its purchases of gambling 
  8.4   equipment and must include the type, quantity, and dollar amount 
  8.5   from each supplier separately.  The reports must be on a form 
  8.6   the board prescribes.  Submission of the report required by 
  8.7   section 349.154 satisfies the requirement for reporting monthly 
  8.8   to the board on expenditure of net profits. 
  8.9      Sec. 10.  Minnesota Statutes 2000, section 349.191, 
  8.10  subdivision 1a, is amended to read: 
  8.11     Subd. 1a.  [CREDIT AND SALES TO DELINQUENT ORGANIZATIONS.] 
  8.12  (a) If a distributor does not receive payment in full from an 
  8.13  organization within 35 days of the delivery of gambling 
  8.14  equipment day immediately following the date of the invoice, the 
  8.15  distributor must notify the board in writing of the 
  8.16  delinquency on the next business day. 
  8.17     (b) If a distributor who has notified the board under 
  8.18  paragraph (a) has not received payment in full from the 
  8.19  organization within 60 days of the notification under paragraph 
  8.20  (a), the distributor must notify the board of the continuing 
  8.21  delinquency. 
  8.22     (c) On receipt of a notice under paragraph (a), the board 
  8.23  shall order all distributors that until further notice from the 
  8.24  board, they may sell gambling equipment to the delinquent 
  8.25  organizations only on a cash basis with no credit extended.  On 
  8.26  receipt of a notice under paragraph (b), the board shall order 
  8.27  all distributors not to sell any gambling equipment to the 
  8.28  delinquent organization. 
  8.29     (d) No distributor may extend credit or sell gambling 
  8.30  equipment to an organization in violation of an order under 
  8.31  paragraph (c) until the board has authorized such credit or sale.
  8.32     Sec. 11.  Minnesota Statutes 2000, section 349.191, 
  8.33  subdivision 1b, is amended to read: 
  8.34     Subd. 1b.  [CREDIT AND SALES TO DELINQUENT DISTRIBUTORS.] 
  8.35  (a) If a manufacturer does not receive payment in full from a 
  8.36  distributor within 35 days of the delivery of gambling equipment 
  9.1   day immediately following the date of invoice, the manufacturer 
  9.2   must notify the board in writing of the delinquency on the next 
  9.3   business day. 
  9.4      (b) If a manufacturer who has notified the board under 
  9.5   paragraph (a) has not received payment in full from the 
  9.6   distributor within 60 days of the notification under paragraph 
  9.7   (a), the manufacturer must notify the board of the continuing 
  9.8   delinquency. 
  9.9      (c) On receipt of a notice under paragraph (a), the board 
  9.10  shall order all manufacturers that until further notice from the 
  9.11  board, they may sell gambling equipment to the delinquent 
  9.12  distributor only on a cash basis with no credit extended.  On 
  9.13  receipt of a notice under paragraph (b), the board shall order 
  9.14  all manufacturers not to sell any gambling equipment to the 
  9.15  delinquent distributor. 
  9.16     (d) No manufacturer may extend credit or sell gambling 
  9.17  equipment to a distributor in violation of an order under 
  9.18  paragraph (c) until the board has authorized such credit or sale.
  9.19     Sec. 12.  [REPEALER.] 
  9.20     Minnesota Statutes 2000, sections 349.12, subdivision 14; 
  9.21  349.163, subdivision 6a; 349.17, subdivision 2a; and 349.174, 
  9.22  are repealed. 
  9.23                             ARTICLE 2 
  9.24                          BINGO; PULL-TABS 
  9.25     Section 1.  Minnesota Statutes 2000, section 349.12, 
  9.26  subdivision 4, is amended to read: 
  9.27     Subd. 4.  [BINGO.] "Bingo" means a game where each player 
  9.28  has a bingo hard card or bingo paper sheet, for which a 
  9.29  consideration has been paid, and played in accordance with this 
  9.30  chapter and with rules of the board for the conduct of 
  9.31  bingo.  Bingo also includes a linked bingo game. 
  9.32     Sec. 2.  Minnesota Statutes 2000, section 349.12, is 
  9.33  amended by adding a subdivision to read: 
  9.34     Subd. 12a.  [ELECTRONIC BINGO DEVICE.] "Electronic bingo 
  9.35  device" means an electronic device used by a bingo player to 
  9.36  monitor bingo paper sheets purchased at the time and place of an 
 10.1   organization's bingo occasion and which (1) provides a means for 
 10.2   bingo players to input numbers announced by a bingo caller; (2) 
 10.3   compares the numbers entered by the player to the bingo faces 
 10.4   previously stored in the memory of the device; and (3) 
 10.5   identifies a winning bingo pattern.  
 10.6   Electronic bingo device does not mean any device into which 
 10.7   coin, currency, or tokens are inserted to activate play. 
 10.8      Sec. 3.  Minnesota Statutes 2000, section 349.12, 
 10.9   subdivision 18, is amended to read: 
 10.10     Subd. 18.  [GAMBLING EQUIPMENT.] "Gambling equipment" 
 10.11  means:  bingo hard cards or paper sheets, devices for selecting 
 10.12  bingo numbers, electronic bingo devices, linked bingo paper, 
 10.13  pull-tabs, jar tickets, paddlewheels, paddlewheel tables, 
 10.14  paddletickets, paddleticket cards, tipboards, tipboard tickets, 
 10.15  and pull-tab dispensing devices.  
 10.16     Sec. 4.  Minnesota Statutes 2000, section 349.12, is 
 10.17  amended by adding a subdivision to read: 
 10.18     Subd. 25a.  [LINKED BINGO PAPER.] "Linked bingo paper" 
 10.19  means a bingo paper sheet that is sealed by the manufacturer so 
 10.20  that the bingo faces are concealed until opened by the player.  
 10.21  Linked bingo paper must bear a serial number and a bar code 
 10.22  containing information prescribed by the board by rule. 
 10.23     Sec. 5.  Minnesota Statutes 2000, section 349.12, is 
 10.24  amended by adding a subdivision to read: 
 10.25     Subd. 25b.  [LINKED BINGO GAME.] "Linked bingo game" means 
 10.26  a single bingo game conducted during a bingo occasion, and 
 10.27  played using linked bingo paper in which players participate 
 10.28  simultaneously at two or more locations within Minnesota where 
 10.29  the organizations have premises permits to conduct bingo and for 
 10.30  which there is a common prize pool and a common selection of 
 10.31  numbers or symbols conducted at one location, with the results 
 10.32  of the selection transmitted electronically to all participating 
 10.33  organizations by satellite, telephone, or other means. 
 10.34     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
 10.35  349.15, subdivision 1a, is amended to read: 
 10.36     Subd. 1a.  [NATURAL DISASTER RELIEF.] An organization may 
 11.1   expend net profits from lawful gambling to relieve the effects 
 11.2   of a natural disaster as defined in section 12.03, subdivision 
 11.3   2, without the prior approval of its membership if: 
 11.4      (1) the contribution is a lawful purpose under section 
 11.5   349.12, subdivision 25; 
 11.6      (2) the contribution is authorized by the organization's 
 11.7   chief executive officer and gambling manager; and 
 11.8      (3) the contribution is approved by the membership of the 
 11.9   organization at its next regularly scheduled monthly meeting. 
 11.10  If the contribution is not approved by the membership of the 
 11.11  organization at its next regularly scheduled monthly meeting, 
 11.12  the organization shall reimburse its gambling account in the 
 11.13  amount of the contribution. 
 11.14     Sec. 7.  Minnesota Statutes 2000, section 349.151, 
 11.15  subdivision 4, is amended to read: 
 11.16     Subd. 4.  [POWERS AND DUTIES.] (a) The board has the 
 11.17  following powers and duties:  
 11.18     (1) to regulate lawful gambling to ensure it is conducted 
 11.19  in the public interest; 
 11.20     (2) to issue licenses to organizations, distributors, bingo 
 11.21  halls, linked bingo game prize providers, manufacturers, and 
 11.22  gambling managers; 
 11.23     (3) to collect and deposit license, permit, and 
 11.24  registration fees due under this chapter; 
 11.25     (4) to receive reports required by this chapter and inspect 
 11.26  all premises, records, books, and other documents of 
 11.27  organizations, distributors, manufacturers, and bingo halls, and 
 11.28  linked bingo game prize providers to insure compliance with all 
 11.29  applicable laws and rules; 
 11.30     (5) to make rules authorized by this chapter; 
 11.31     (6) to register gambling equipment and issue registration 
 11.32  stamps; 
 11.33     (7) to provide by rule for the mandatory posting by 
 11.34  organizations conducting lawful gambling of rules of play and 
 11.35  the odds and/or house percentage on each form of lawful 
 11.36  gambling; 
 12.1      (8) to report annually to the governor and legislature on 
 12.2   its activities and on recommended changes in the laws governing 
 12.3   gambling; 
 12.4      (9) to impose civil penalties of not more than $500 per 
 12.5   violation on organizations, distributors, employees eligible to 
 12.6   make sales on behalf of a distributor, manufacturers, bingo 
 12.7   halls, linked bingo game prize providers, and gambling managers 
 12.8   for failure to comply with any provision of this chapter or any 
 12.9   rule or order of the board; 
 12.10     (10) to issue premises permits to organizations licensed to 
 12.11  conduct lawful gambling; 
 12.12     (11) to delegate to the director the authority to issue or 
 12.13  deny license and premises permit applications and renewals under 
 12.14  criteria established by the board; 
 12.15     (12) to suspend or revoke licenses and premises permits of 
 12.16  organizations, distributors, manufacturers, bingo halls, linked 
 12.17  bingo game prize providers, or gambling managers as provided in 
 12.18  this chapter; 
 12.19     (13) to register employees of organizations licensed to 
 12.20  conduct lawful gambling; 
 12.21     (14) to require fingerprints from persons determined by 
 12.22  board rule to be subject to fingerprinting; 
 12.23     (15) to delegate to a compliance review group of the board 
 12.24  the authority to investigate alleged violations, issue consent 
 12.25  orders, and initiate contested cases on behalf of the board; 
 12.26     (16) to order organizations, distributors, manufacturers, 
 12.27  bingo halls, linked bingo game prize providers, and gambling 
 12.28  managers to take corrective actions; and 
 12.29     (17) to take all necessary steps to ensure the integrity of 
 12.30  and public confidence in lawful gambling.  
 12.31     (b) The board, or director if authorized to act on behalf 
 12.32  of the board, may by citation assess any organization, 
 12.33  distributor, employee eligible to make sales on behalf of a 
 12.34  distributor, manufacturer, bingo hall licensee, linked bingo 
 12.35  game prize provider, or gambling manager a civil penalty of not 
 12.36  more than $500 per violation for a failure to comply with any 
 13.1   provision of this chapter or any rule adopted or order issued by 
 13.2   the board.  Any organization, distributor, bingo hall licensee, 
 13.3   gambling manager, linked bingo game prize provider, or 
 13.4   manufacturer assessed a civil penalty under this paragraph may 
 13.5   request a hearing before the board.  Appeals of citations 
 13.6   imposing a civil penalty are not subject to the provisions of 
 13.7   the Administrative Procedure Act.  
 13.8      (c) All fees and penalties received by the board must be 
 13.9   deposited in the general fund. 
 13.10     Sec. 8.  Minnesota Statutes 2000, section 349.151, 
 13.11  subdivision 4b, is amended to read: 
 13.12     Subd. 4b.  [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 
 13.13  The board may by rule authorize but not require the use of 
 13.14  pull-tab dispensing devices. 
 13.15     (b) Rules adopted under paragraph (a): 
 13.16     (1) must limit the number of pull-tab dispensing devices on 
 13.17  any permitted premises to three; and 
 13.18     (2) must limit the use of pull-tab dispensing devices to a 
 13.19  permitted premises which is (i) a licensed premises for on-sales 
 13.20  of intoxicating liquor or 3.2 percent malt beverages; or (ii) a 
 13.21  licensed bingo hall that allows gambling only by persons 18 
 13.22  years or older; and 
 13.23     (3) must prohibit the use of pull-tab dispensing devices at 
 13.24  any licensed premises where pull-tabs are sold other than 
 13.25  through a pull-tab dispensing device by an employee of the 
 13.26  organization who is also the lessor or an employee of the lessor.
 13.27     (c) Notwithstanding rules adopted under paragraph (b), 
 13.28  pull-tab dispensing devices may be used in establishments 
 13.29  licensed for the off-sale of intoxicating liquor, other than 
 13.30  drugstores and general food stores licensed under section 
 13.31  340A.405, subdivision 1. 
 13.32     (d) The director may charge a manufacturer a fee of up to 
 13.33  $5,000 per pull-tab dispensing device to cover the costs of 
 13.34  services provided by an independent testing laboratory to 
 13.35  perform testing and analysis of pull-tab dispensing devices.  
 13.36  The director shall deposit in a separate account in the state 
 14.1   treasury all money the director receives as reimbursement for 
 14.2   the costs of services provided by independent testing 
 14.3   laboratories that have entered into contracts with the state to 
 14.4   perform testing and analysis of pull-tab dispensing devices.  
 14.5   Money in the account is appropriated to the director to pay the 
 14.6   costs of services under those contracts. 
 14.7      Sec. 9.  Minnesota Statutes 2000, section 349.151, is 
 14.8   amended by adding a subdivision to read: 
 14.9      Subd. 4c.  [ELECTRONIC BINGO.] (a) The board may by rule 
 14.10  authorize but not require the use of electronic bingo devices. 
 14.11     (b) Rules adopted under paragraph (a): 
 14.12     (1) must limit the number of bingo faces that can be played 
 14.13  using an electronic bingo device to 72; 
 14.14     (2) must require that an electronic bingo device be used 
 14.15  with corresponding bingo paper sheets; 
 14.16     (3) must require that the electronic bingo device site 
 14.17  system have dial-up capability to permit the board to remotely 
 14.18  monitor the operation of the device and the internal accounting 
 14.19  systems; and 
 14.20     (4) must prohibit the price of a face played on an 
 14.21  electronic bingo device from being less than the price of a face 
 14.22  on a bingo paper sheet sold at the same occasion. 
 14.23     Sec. 10.  Minnesota Statutes 2000, section 349.155, 
 14.24  subdivision 3, is amended to read: 
 14.25     Subd. 3.  [MANDATORY DISQUALIFICATIONS.] (a) In the case of 
 14.26  licenses for manufacturers, distributors, bingo halls, linked 
 14.27  bingo game prize providers, and gambling managers, the board may 
 14.28  not issue or renew a license under this chapter, and shall 
 14.29  revoke a license under this chapter, if the applicant or 
 14.30  licensee, or a director, officer, partner, governor, person in a 
 14.31  supervisory or management position of the applicant or licensee, 
 14.32  or an employee eligible to make sales on behalf of the applicant 
 14.33  or licensee: 
 14.34     (1) has ever been convicted of a felony or a crime 
 14.35  involving gambling; 
 14.36     (2) has ever been convicted of (i) assault, (ii) a criminal 
 15.1   violation involving the use of a firearm, or (iii) making 
 15.2   terroristic threats; 
 15.3      (3) is or has ever been connected with or engaged in an 
 15.4   illegal business; 
 15.5      (4) owes $500 or more in delinquent taxes as defined in 
 15.6   section 270.72; 
 15.7      (5) had a sales and use tax permit revoked by the 
 15.8   commissioner of revenue within the past two years; or 
 15.9      (6) after demand, has not filed tax returns required by the 
 15.10  commissioner of revenue.  The board may deny or refuse to renew 
 15.11  a license under this chapter, and may revoke a license under 
 15.12  this chapter, if any of the conditions in this paragraph are 
 15.13  applicable to an affiliate or direct or indirect holder of more 
 15.14  than a five percent financial interest in the applicant or 
 15.15  licensee.  
 15.16     (b) In the case of licenses for organizations, the board 
 15.17  may not issue or renew a license under this chapter, and shall 
 15.18  revoke a license under this chapter, if the organization, or an 
 15.19  officer or member of the governing body of the organization:  
 15.20     (1) has been convicted of a felony or gross misdemeanor 
 15.21  within the five years before the issuance or renewal of the 
 15.22  license; 
 15.23     (2) has ever been convicted of a crime involving gambling; 
 15.24  or 
 15.25     (3) has had a license issued by the board or director 
 15.26  permanently revoked for violation of law or board rule. 
 15.27     Sec. 11.  Minnesota Statutes 2000, section 349.161, 
 15.28  subdivision 4, is amended to read: 
 15.29     Subd. 4.  [FEES.] The annual initial fee for a 
 15.30  distributor's license is $3,500.  The initial term of a 
 15.31  distributor's license is one year.  Renewal licenses under this 
 15.32  section are valid for two years and the fee for the renewal 
 15.33  license is $7,000. 
 15.34     Sec. 12.  Minnesota Statutes 2000, section 349.163, 
 15.35  subdivision 2, is amended to read: 
 15.36     Subd. 2.  [LICENSE; FEE.] A The initial license under this 
 16.1   section is valid for one year.  The annual fee for the initial 
 16.2   license is $5,000.  Renewal licenses under this section are 
 16.3   valid for two years and the fee for the renewal license is 
 16.4   $10,000. 
 16.5      Sec. 13.  [349.1635] [LINKED BINGO LICENSES.] 
 16.6      Subdivision 1.  [LICENSE REQUIRED.] No person may do any of 
 16.7   the following without having first obtained a license from the 
 16.8   board: 
 16.9      (1) provide the means to link prizes in a linked bingo 
 16.10  game; 
 16.11     (2) provide linked bingo game prize management; or 
 16.12     (3) unless the person is licensed as a distributor, provide 
 16.13  gambling equipment used exclusively in a linked bingo game. 
 16.14     Subd. 2.  [APPLICATION.] The board may issue a license to a 
 16.15  linked bingo game prize provider who meets the qualifications of 
 16.16  this chapter.  The application shall be on a form prescribed by 
 16.17  the board.  Attached to the application must be evidence of bond 
 16.18  of sufficient size to cover all linked bingo game prize jackpots 
 16.19  and any linked bingo prizes guaranteed by the linked bingo game 
 16.20  provider.  The initial fee for a linked bingo game prize 
 16.21  provider license is $3,500.  The term of an initial license is 
 16.22  one year.  Renewal licenses under this section are valid for two 
 16.23  years and the fee for a renewal license is $7,000. 
 16.24     Subd. 3.  [PROHIBITION.] (a) Except for services associated 
 16.25  exclusively with a linked bingo game, a linked bingo game prize 
 16.26  provider may not participate or assist in any way in the conduct 
 16.27  of lawful gambling by an organization. 
 16.28     (b) No linked bingo game prize provider may also be 
 16.29  licensed as a bingo hall or hold any financial or managerial 
 16.30  interest in a bingo hall.  
 16.31     (c) No linked bingo game prize provider may also be 
 16.32  licensed as a distributor, hold any financial or managerial 
 16.33  interest in a distributor, or be employed by a distributor. 
 16.34     Sec. 14.  Minnesota Statutes 2000, section 349.164, 
 16.35  subdivision 4, is amended to read: 
 16.36     Subd. 4.  [FEES; TERM OF LICENSE.] The annual initial fee 
 17.1   for a bingo hall license is $2,500.  An initial license under 
 17.2   this section is valid for one year.  Renewal licenses under this 
 17.3   section are valid for two years and the fee for the renewal 
 17.4   license is $5,000. 
 17.5      Sec. 15.  Minnesota Statutes 2000, section 349.17, is 
 17.6   amended by adding a subdivision to read: 
 17.7      Subd. 8.  [LINKED BINGO GAMES.] (a) A licensed organization 
 17.8   may conduct or participate in a linked bingo game in association 
 17.9   with one or more other licensed organizations. 
 17.10     (b) Each participating organization shall contribute to 
 17.11  each prize awarded in a linked bingo game in proportion to the 
 17.12  organization's gross receipts derived from the conduct of the 
 17.13  linked bingo game at each location where the organization has a 
 17.14  premises permit to conduct bingo and is participating in the 
 17.15  linked bingo game as compared with the total gross receipts 
 17.16  derived from all locations participating in the game, except 
 17.17  that in no instance may the minimum contribution be less than 
 17.18  $250 and the maximum contribution more than $1,000. 
 17.19     (c) The board may adopt rules to: 
 17.20     (1) specify the manner in which a linked bingo game must be 
 17.21  played and how the linked bingo prizes must be paid; 
 17.22     (2) specify the records to be maintained by a linked bingo 
 17.23  game prize provider and each participating organization; 
 17.24     (3) require the submission of reports by the linked bingo 
 17.25  game prize provider and specify the content of the reports; 
 17.26     (4) prohibit linked bingo games from being progressive 
 17.27  games; and 
 17.28     (5) prescribe any other matter involving the operation of a 
 17.29  linked bingo game. 
 17.30     Sec. 16.  Minnesota Statutes 2000, section 349.211, 
 17.31  subdivision 1, is amended to read: 
 17.32     Subdivision 1.  [BINGO.] (a) Except as provided in 
 17.33  subdivision 2, prizes for a single bingo game may not exceed 
 17.34  $200 except prizes for a cover-all game, which may exceed $200 
 17.35  if the aggregate value of all cover-all prizes in a bingo 
 17.36  occasion does not exceed $1,000.  
 18.1      (b) Total prizes awarded at a bingo occasion may not exceed 
 18.2   $2,500, unless a cover-all game is played in which case the 
 18.3   limit is $3,500.  
 18.4      (c) A prize may be determined based on the value of the 
 18.5   bingo packet sold to the player.  For purposes of this 
 18.6   subdivision, a cover-all game is one in which a player must 
 18.7   cover all spaces except a single free space to win.  
 18.8      (d) Paragraphs (a), (b), and (c) do not apply to a linked 
 18.9   bingo game. 
 18.10     Sec. 17.  Minnesota Statutes 2000, section 349.211, 
 18.11  subdivision 2, is amended to read: 
 18.12     Subd. 2.  [PROGRESSIVE BINGO GAMES.] A prize of up to 
 18.13  $2,000 may be awarded for a progressive bingo game, including a 
 18.14  cover-all game.  The prize for a progressive bingo game may 
 18.15  start at $300 $500 and be increased by up to $100 for each 
 18.16  occasion during which the progressive bingo game is played.  A 
 18.17  consolation prize of up to $200 for a progressive bingo game may 
 18.18  be awarded in each occasion during which the progressive bingo 
 18.19  game is played and the accumulated prize is not won.  The total 
 18.20  amount awarded in progressive bingo game prizes in any calendar 
 18.21  year may not exceed $36,000 $48,000. 
 18.22     Sec. 18.  Minnesota Statutes 2000, section 349.211, 
 18.23  subdivision 2a, is amended to read: 
 18.24     Subd. 2a.  [PULL-TAB PRIZES.] The maximum prize which may 
 18.25  be awarded for any single pull-tab is $500 $599.  An 
 18.26  organization may not sell any pull-tab for more than $2. 
 18.27                             ARTICLE 3 
 18.28               LAWFUL PURPOSE; VETERANS ORGANIZATIONS 
 18.29     Section 1.  Minnesota Statutes 2001 Supplement, section 
 18.30  349.12, subdivision 25, is amended to read: 
 18.31     Subd. 25.  [LAWFUL PURPOSE.] (a) "Lawful purpose" means one 
 18.32  or more of the following:  
 18.33     (1) any expenditure by or contribution to a 501(c)(3) or 
 18.34  festival organization, as defined in subdivision 15a, provided 
 18.35  that the organization and expenditure or contribution are in 
 18.36  conformity with standards prescribed by the board under section 
 19.1   349.154, which standards must apply to both types of 
 19.2   organizations in the same manner and to the same extent; 
 19.3      (2) a contribution to an individual or family suffering 
 19.4   from poverty, homelessness, or physical or mental disability, 
 19.5   which is used to relieve the effects of that poverty, 
 19.6   homelessness, or disability; 
 19.7      (3) a contribution to an individual for treatment for 
 19.8   delayed posttraumatic stress syndrome or a contribution to a 
 19.9   program recognized by the Minnesota department of human services 
 19.10  for the education, prevention, or treatment of compulsive 
 19.11  gambling; 
 19.12     (4) a contribution to or expenditure on a public or private 
 19.13  nonprofit educational institution registered with or accredited 
 19.14  by this state or any other state; 
 19.15     (5) a contribution to a scholarship fund for defraying the 
 19.16  cost of education to individuals where the funds are awarded 
 19.17  through an open and fair selection process; 
 19.18     (6) activities by an organization or a government entity 
 19.19  which recognize humanitarian or military service to the United 
 19.20  States, the state of Minnesota, or a community, subject to rules 
 19.21  of the board, provided that the rules must not include mileage 
 19.22  reimbursements in the computation of the per occasion 
 19.23  reimbursement limit and must impose no aggregate annual limit on 
 19.24  the amount of reasonable and necessary expenditures made to 
 19.25  support: 
 19.26     (i) members of a military marching or color guard unit for 
 19.27  activities conducted within the state; 
 19.28     (ii) members of an organization solely for services 
 19.29  performed by the members at funeral services; or 
 19.30     (iii) members of military marching, color guard, or honor 
 19.31  guard units may be reimbursed for participating in color guard, 
 19.32  honor guard, or marching unit events within the state or states 
 19.33  contiguous to Minnesota at a per participant rate of up to $35 
 19.34  per occasion; 
 19.35     (7) recreational, community, and athletic facilities and 
 19.36  activities intended primarily for persons under age 21, provided 
 20.1   that such facilities and activities do not discriminate on the 
 20.2   basis of gender and the organization complies with section 
 20.3   349.154; 
 20.4      (8) payment of local taxes authorized under this chapter, 
 20.5   taxes imposed by the United States on receipts from lawful 
 20.6   gambling, the taxes imposed by section 297E.02, subdivisions 1, 
 20.7   4, 5, and 6, and the tax imposed on unrelated business income by 
 20.8   section 290.05, subdivision 3; 
 20.9      (9) payment of real estate taxes and assessments on 
 20.10  permitted gambling premises wholly owned by the licensed 
 20.11  organization paying the taxes, or wholly leased by a licensed 
 20.12  veterans organization under a national charter recognized under 
 20.13  section 501(c)(19) of the Internal Revenue Code, not to exceed: 
 20.14     (i) for premises used for bingo, the amount that an 
 20.15  organization may expend under board rules on rent for bingo; and 
 20.16     (ii) $35,000 per year for premises used for other forms of 
 20.17  lawful gambling; 
 20.18     (10) a contribution to the United States, this state or any 
 20.19  of its political subdivisions, or any agency or instrumentality 
 20.20  thereof other than a direct contribution to a law enforcement or 
 20.21  prosecutorial agency; 
 20.22     (11) a contribution to or expenditure by a nonprofit 
 20.23  organization which is a church or body of communicants gathered 
 20.24  in common membership for mutual support and edification in 
 20.25  piety, worship, or religious observances; 
 20.26     (12) payment of the reasonable costs of an audit required 
 20.27  in section 297E.06, subdivision 4, provided the annual audit is 
 20.28  filed in a timely manner with the department of revenue; 
 20.29     (13) a contribution to or expenditure on a wildlife 
 20.30  management project that benefits the public at-large, provided 
 20.31  that the state agency with authority over that wildlife 
 20.32  management project approves the project before the contribution 
 20.33  or expenditure is made; 
 20.34     (14) expenditures, approved by the commissioner of natural 
 20.35  resources, by an organization for grooming and maintaining 
 20.36  snowmobile trails and all-terrain vehicle trails that are (1) 
 21.1   grant-in-aid trails established under section 85.019, or (2) 
 21.2   other trails open to public use, including purchase or lease of 
 21.3   equipment for this purpose; or 
 21.4      (15) conducting nutritional programs, food shelves, and 
 21.5   congregate dining programs primarily for persons who are age 62 
 21.6   or older or disabled; or 
 21.7      (16) a contribution to a community arts organization, or an 
 21.8   expenditure to sponsor arts programs in the community, including 
 21.9   but not limited to visual, literary, performing, or musical 
 21.10  arts; 
 21.11     (17) payment of heat, water, sanitation, telephone, and 
 21.12  other utility bills for a building owned or leased by, and used 
 21.13  as the primary headquarters of, a veterans organization; or 
 21.14     (18) expenditure by a veterans organization of up to $5,000 
 21.15  in a calendar year in net costs to the organization for meals 
 21.16  and other membership events, limited to members and spouses, 
 21.17  held in recognition of military service. 
 21.18     (b) Notwithstanding paragraph (a), "lawful purpose" does 
 21.19  not include: 
 21.20     (1) any expenditure made or incurred for the purpose of 
 21.21  influencing the nomination or election of a candidate for public 
 21.22  office or for the purpose of promoting or defeating a ballot 
 21.23  question; 
 21.24     (2) any activity intended to influence an election or a 
 21.25  governmental decision-making process; 
 21.26     (3) the erection, acquisition, improvement, expansion, 
 21.27  repair, or maintenance of real property or capital assets owned 
 21.28  or leased by an organization, unless the board has first 
 21.29  specifically authorized the expenditures after finding that (i) 
 21.30  the real property or capital assets will be used exclusively for 
 21.31  one or more of the purposes in paragraph (a); (ii) with respect 
 21.32  to expenditures for repair or maintenance only, that the 
 21.33  property is or will be used extensively as a meeting place or 
 21.34  event location by other nonprofit organizations or community or 
 21.35  service groups and that no rental fee is charged for the use; 
 21.36  (iii) with respect to expenditures, including a mortgage payment 
 22.1   or other debt service payment, for erection or acquisition only, 
 22.2   that the erection or acquisition is necessary to replace with a 
 22.3   comparable building, a building owned by the organization and 
 22.4   destroyed or made uninhabitable by fire or natural disaster, 
 22.5   provided that the expenditure may be only for that part of the 
 22.6   replacement cost not reimbursed by insurance; (iv) with respect 
 22.7   to expenditures, including a mortgage payment or other debt 
 22.8   service payment, for erection or acquisition only, that the 
 22.9   erection or acquisition is necessary to replace with a 
 22.10  comparable building a building owned by the organization that 
 22.11  was acquired from the organization by eminent domain or sold by 
 22.12  the organization to a purchaser that the organization reasonably 
 22.13  believed would otherwise have acquired the building by eminent 
 22.14  domain, provided that the expenditure may be only for that part 
 22.15  of the replacement cost that exceeds the compensation received 
 22.16  by the organization for the building being replaced; or (v) with 
 22.17  respect to an expenditure to bring an existing building into 
 22.18  compliance with the Americans with Disabilities Act under item 
 22.19  (ii), an organization has the option to apply the amount of the 
 22.20  board-approved expenditure to the erection or acquisition of a 
 22.21  replacement building that is in compliance with the Americans 
 22.22  with Disabilities Act; 
 22.23     (4) an expenditure by an organization which is a 
 22.24  contribution to a parent organization, foundation, or affiliate 
 22.25  of the contributing organization, if the parent organization, 
 22.26  foundation, or affiliate has provided to the contributing 
 22.27  organization within one year of the contribution any money, 
 22.28  grants, property, or other thing of value; 
 22.29     (5) a contribution by a licensed organization to another 
 22.30  licensed organization unless the board has specifically 
 22.31  authorized the contribution.  The board must authorize such a 
 22.32  contribution when requested to do so by the contributing 
 22.33  organization unless it makes an affirmative finding that the 
 22.34  contribution will not be used by the recipient organization for 
 22.35  one or more of the purposes in paragraph (a); or 
 22.36     (6) a contribution to a statutory or home rule charter 
 23.1   city, county, or town by a licensed organization with the 
 23.2   knowledge that the governmental unit intends to use the 
 23.3   contribution for a pension or retirement fund. 
 23.4                              ARTICLE 4 
 23.5                            MISCELLANEOUS 
 23.6      Section 1.  Minnesota Statutes 2000, section 240.13, is 
 23.7   amended by adding a subdivision to read: 
 23.8      Subd. 10.  [ACCOUNT WAGERING.] Pari-mutuel account wagering 
 23.9   may be conducted upon such conditions as the commission 
 23.10  determines appropriate.  Account wagering conducted in 
 23.11  accordance with this section shall not be considered a violation 
 23.12  of section 240.25, subdivision 2.  As used in this section, 
 23.13  "account wagering" means a method of pari-mutuel wagering in 
 23.14  which an individual may establish an account with an operator, 
 23.15  deposit money into an account, and then use the account balance 
 23.16  to pay for pari-mutuel wagering authorized under this section.  
 23.17  Information assisting in the placement of an account wager may 
 23.18  be communicated by the account holder in person, by telephone, 
 23.19  or by communication through other electronic media.  
 23.20     Sec. 2.  Minnesota Statutes 2000, section 299L.07, 
 23.21  subdivision 2, is amended to read: 
 23.22     Subd. 2.  [EXCLUSIONS.] Notwithstanding subdivision 1, a 
 23.23  gambling device: 
 23.24     (1) may be sold by a person who is not licensed under this 
 23.25  section, if the person (i) is not engaged in the trade or 
 23.26  business of selling gambling devices, and (ii) does not sell 
 23.27  more than one gambling device in any calendar year; 
 23.28     (2) may be sold by the governing body of a federally 
 23.29  recognized Indian tribe described in subdivision 2a, paragraph 
 23.30  (b), clause (1), which is not licensed under this section, if 
 23.31  (i) the gambling device was operated by the Indian tribe, (ii) 
 23.32  the sale is to a distributor licensed under this section, and 
 23.33  (iii) the licensed distributor notifies the commissioner of the 
 23.34  purchase, in the same manner as is required when the licensed 
 23.35  distributor ships a gambling device into Minnesota; 
 23.36     (3) may be possessed by a person not licensed under this 
 24.1   section if the person holds a permit issued under section 
 24.2   299L.08; and 
 24.3      (3) (4) may be possessed by a state agency, with the 
 24.4   written authorization of the director, for display or evaluation 
 24.5   purposes only and not for the conduct of gambling. 
 24.6      [EFFECTIVE DATE.] This section is effective the day 
 24.7   following final enactment.