HF 3102

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 06/02/2016 09:06am

A bill for an act
relating to lawful gambling; modifying provisions relating to gambling managers;
providing for certain raffles; increasing prize limits; prescribing local regulation;
amending Minnesota Statutes 2014, sections 349.12, subdivision 19, by adding
subdivisions; 349.13; 349.168, subdivision 1; 349.17, by adding a subdivision;
349.213, subdivision 1; Minnesota Statutes 2015 Supplement, sections 349.12,
subdivisions 18, 21a; 349.173; 349.211, subdivision 1.

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

Section 1.

Minnesota Statutes 2014, section 349.12, is amended by adding a
subdivision to read:

new text begin Subd. 12e. new text end

new text begin Electronic raffle selection system. new text end

new text begin "Electronic raffle selection system"
means a system which uses a random number generator to select winning raffle numbers
and includes raffle sales devices.
new text end

Sec. 2.

Minnesota Statutes 2015 Supplement, section 349.12, subdivision 18, is
amended to read:

Subd. 18.

Gambling equipment.

"Gambling equipment" means gambling
equipment that is either disposable or permanent gambling equipment.

(a) Disposable gambling equipment includes the following:

(1) bingo hard cards or paper sheets, including linked bingo paper sheets;

(2) paper and electronic pull-tabs;

(3) jar tickets;

(4) paddle tickets and paddle ticket cards;

(5) tipboards and tipboard tickets;

(6) promotional tickets that mimic a pull-tab or tipboard;

(7) application software and those computer programs provided by a licensed
manufacturer in the production, play, and reporting of board-approved electronic pull-tab
games or electronic bingo games;

(8) raffle boards; and

(9) a disposable sealed placard, containing all 75 randomly placed bingo letter
and number combinations, that, when opened, is used to select the bingo numbers in
a single game of bingo.

(b) Permanent gambling equipment includes the following:

(1) devices for selecting bingo numbers;

(2) electronic bingo devices;

(3) electronic pull-tab devices;

(4) pull-tab dispensing devices;

(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;

(6) paddlewheels; deleted text begin and
deleted text end

(7) paddlewheel tables deleted text begin . deleted text end new text begin ; and
new text end

new text begin (8) electronic raffle selection systems.
new text end

Sec. 3.

Minnesota Statutes 2014, section 349.12, subdivision 19, is amended to read:

Subd. 19.

Gambling manager.

"Gambling manager" means a person who has been
designated by the organization to supervise the lawful gambling conducted by it, has been
an active member of the organization for at least the most recent deleted text begin six months deleted text end new text begin 90 days new text end at the
time of the application for a gambling manager license, and meets other qualifications as
prescribed by the board by rule.

Sec. 4.

Minnesota Statutes 2015 Supplement, section 349.12, subdivision 21a, is
amended to read:

Subd. 21a.

Hot-ball bingo prize.

"Hot-ball bingo prize" is an additional prize
awarded for a winning bingo face for which the last bingo number called in the bingo game
matches a previously designated bingo number announced to all players immediately prior
to the beginning of the bingo game or the bingo occasion. deleted text begin All players participating in a
bingo game that offers a hot-ball bingo prize must be eligible to win the hot-ball bingo
prize at no additional cost to the player.
deleted text end

Sec. 5.

Minnesota Statutes 2014, section 349.12, is amended by adding a subdivision
to read:

new text begin Subd. 33b. new text end

new text begin Raffle sales device. new text end

new text begin "Raffle sales device" is an attendant-operated
cashier station used as a point of sale for raffle tickets from which a raffle participant may
purchase a raffle ticket to participate in an electronic raffle selection system.
new text end

Sec. 6.

Minnesota Statutes 2014, section 349.12, is amended by adding a subdivision
to read:

new text begin Subd. 33c. new text end

new text begin Share the pot raffle. new text end

new text begin "Share the pot raffle" means a raffle in which the
prize amount is a percentage of the raffle's gross receipts.
new text end

Sec. 7.

Minnesota Statutes 2014, section 349.13, is amended to read:

349.13 LAWFUL GAMBLING.

Lawful gambling is not a lottery or gambling within the meaning of sections 609.75
to 609.76 if it is conducted under this chapter. A pull-tab dispensing device, electronic
bingo device, and electronic pull-tab device permitted under this chapter and by board
rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter
299L. 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
paddlewheels, deleted text begin and deleted text end electronic pull-tab devices new text begin , and electronic raffle selection systems
new text end 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.

Sec. 8.

Minnesota Statutes 2014, section 349.168, subdivision 1, is amended to read:

Subdivision 1.

Registration of employees.

A person may not receive compensation
for participating in the conduct of lawful gambling as an employee of a licensed
organization unless the person has first registered with the deleted text begin board deleted text end new text begin licensed organization new text end on
a new text begin United States government-required new text end form deleted text begin the board prescribes deleted text end new text begin documenting the person's
identity and employment authorization new text end . The form must require each registrant to provide
the person's name, address, and date of birth, and the name, address, and license number
of the employing organization.

Sec. 9.

Minnesota Statutes 2014, section 349.17, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Hot-ball bingo prize. new text end

new text begin A hot-ball bingo prize may be funded by an
organization or by players. If funded by an organization, all players participating in a
bingo game that offers a hot-ball bingo prize must be eligible to win the hot-ball bingo
prize at no additional cost to the player. If a hot-ball bingo prize is funded by players,
players that have paid to be eligible to win the hot-ball bingo prize must be provided a
bingo paper sheet that is a different color than players participating in the bingo game that
are not eligible to win the hot-ball bingo prize.
new text end

Sec. 10.

Minnesota Statutes 2015 Supplement, section 349.173, is amended to read:

349.173 CONDUCT OF RAFFLES.

(a) Raffle tickets or certificates of participation at a minimum must list the three most
expensive prizes to be awarded and include the location, date, and time of the selection
of the winning entries. If additional prizes will be awarded, a complete list of additional
prizes must be publicly posted or visibly on display at the event and copies of the complete
prize list made available upon request. Raffles conducted under the exemptions in section
349.166 may use tickets that contain only the sequential number of the raffle ticket and no
other information if the organization makes a list of prizes, or visibly displays the prizes
at the event, and a statement of other relevant information required by rule available to
persons purchasing tickets and if tickets are only sold at the event and on the date when
the tickets are drawn.

(b) Raffles must be conducted in a manner that ensures:

(1) all entries in the raffle have an equal chance of selection;

(2) entry in the raffle is not conditioned upon any other purchase, except that a
certificate of participation may be a button with a nominal value of less than $5, or as
provided under paragraph (c) or (d);

(3) the method of selection is conducted in a public forum;

(4) the method of selection cannot be manipulated or based on the outcome of an
event not under the control of the organization;

(5) physical presence at the raffle is not a requirement to win; and

(6) all sold and unsold tickets or certificates of participation are accounted for.

(c) An organization that is permitted under chapters 97A to 97C and authorized by the
Gambling Control Board to conduct raffles may conduct a raffle in conjunction with a wild
game or fish taking event. The wild game or fish must be legally taken under chapters 97A
to 97C, and rules adopted pursuant to those chapters. The organization may sell a combined
ticket for a single price for the event and raffle, provided that the combined ticket states
the amount of the price that applies to the wild game or fish event, and the amount that
applies to the raffle. All other provisions of sections 349.11 to 349.23 apply to the raffle.

(d) An organization that is permitted under this section and authorized by the
Gambling Control Board to conduct raffles may, once each calendar year, conduct a raffle
in conjunction with an organization membership event. The organization may sell a
combined ticket for a single price for the membership event and raffle, provided that the
combined ticket states the amount of the price that applies to the membership event, and
the amount that applies to the raffle. All other provisions of sections 349.11 to 349.23
apply to the raffle.

(e) Methods of selecting winning entries from a raffle other than prescribed in rule
may be used with the prior written approval of the board.

new text begin (f) For raffles conducted by a licensed organization, the entries may be selected
by use of a random number generator if, at the time of sale, the number contained on
the raffle ticket is captured by the electronic raffle selection system and electronically
recorded as an entry in the raffle.
new text end

new text begin (g) The board may by rule authorize but not require the use of electronic raffle
selection systems.
new text end

new text begin (h) The board may by rule adopt minimum technical standards for electronic raffle
selection systems.
new text end

Sec. 11.

Minnesota Statutes 2015 Supplement, section 349.211, subdivision 1, is
amended to read:

Subdivision 1.

Bingo.

Except as provided in subdivisions 1a, 1b, and 2, prizes for a
single bingo game may not exceed deleted text begin $200 deleted text end new text begin $500 new text end except prizes for a cover-all or cover-none
game, which may exceed deleted text begin $200 deleted text end new text begin $500 new text end if the aggregate value of all cover-all or cover-none
prizes in a bingo occasion does not exceed deleted text begin $1,000 deleted text end new text begin $2,000 new text end . deleted text begin Total prizes awarded at a
bingo occasion may not exceed $2,800, unless a cover-all and cover-none game is played
in which case the limit is $4,800. deleted text end A prize may be determined based on the value of the
bingo packet sold to the player. For purposes of this subdivision, a cover-all game is one
in which a player must cover all spaces except a single free space to win and includes a
game in which all odd or all even numbers are designated by the organization as covered
prior to the start of the game and a cover-none game is one in which a player does not
cover any numbered spaces to win.

Sec. 12.

Minnesota Statutes 2014, section 349.213, subdivision 1, is amended to read:

Subdivision 1.

Local regulation.

(a) A statutory or home rule city or county has the
authority to adopt more stringent regulation of lawful gambling within its jurisdiction,
including the prohibition of lawful gambling.

(b) A statutory or home rule city or county may require a permit for the conduct
of gambling exempt from licensing under section 349.166. The fee for a permit issued
under section 349.166 may not exceed $100.

(c) The authority granted by this subdivision does not include the authority to require
a license or fee for a license or permit to conduct gambling by organizations, gambling
managers, gambling employees, or sales by distributors or linked bingo game providers
licensed by or registered with the board.

(d) The authority granted by this subdivision does not include the authority to require
an organization to make specific expenditures of more than ten percent per year from its
net profits derived from lawful gambling.

(e) For the purposes of this subdivision, net profits are gross profits less amounts
expended for allowable expenses and paid in taxes assessed on lawful gambling.

(f) A statutory or home rule charter city or a county may not require an organization
conducting lawful gambling within its jurisdiction to make an expenditure to the city or
county as a condition to operate within that city or county, except:

(1) as authorized under section 349.16, subdivision 8, or 297E.02; or

(2) by an ordinance requirement that such organizations must contribute ten percent
per year of their net profits derived from lawful gambling conducted at premises within
the city's or county's jurisdiction to a fund administered and regulated by the responsible
local unit of government without cost to such fund. The funds must be disbursed by the
local unit of government for (i) charitable contributions as defined in section 349.12,
subdivision 7a, or (ii) police, fire, and other emergency or public safety-related services,
equipment, and training, excluding pension obligations. A contribution made by an
organization is not considered an expenditure to the city or county nor a tax under section
297E.02, and is valid and lawful. A city or county receiving and making expenditures
authorized under this clause must by March 15 of each year file a report with the board, on
a form the board prescribes, that lists all such revenues collected, interest received on fund
balances, and expenditures for the previous calendar year. new text begin A home rule or statutory city or
county making charitable contributions authorized under this clause must acknowledge
financial contributions of organizations conducting lawful gambling to the community
and to the recipients of the funds. This may occur in communications about the funds as
well as in the distribution of funds.
new text end

(g) A statutory or home rule city or county may by ordinance require that a licensed
organization conducting lawful gambling within its jurisdiction expend all or a portion
of its expenditures for lawful purposes on lawful purposes conducted or located within
the city's or county's trade area. Such an ordinance must be limited to lawful purpose
expenditures of gross profits derived from lawful gambling conducted at premises within
the city's or county's jurisdiction, must define the city's or county's trade area, and must
specify the percentage of lawful purpose expenditures which must be expended within the
trade area. A trade area defined by a city under this subdivision must include each city and
township contiguous to the defining city.

(h) A more stringent regulation or prohibition of lawful gambling adopted by a
political subdivision under this subdivision must apply equally to all forms of lawful
gambling within the jurisdiction of the political subdivision, except a political subdivision
may prohibit the use of paddlewheels.

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective July 1, 2016.
new text end