SF 1966

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to gambling; modifying expenditure restrictions; clarifying certain game
requirements, prize amounts, and making other changes to lawful gambling;
amending Minnesota Statutes 2006, sections 349.15, subdivision 1; 349.163,
by adding a subdivision; 349.211; repealing Minnesota Statutes 2006, section
349.19, subdivision 2b.

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

Section 1.

Minnesota Statutes 2006, section 349.15, subdivision 1, is amended to read:

Subdivision 1.

Expenditure restrictions.

Gross profits from lawful gambling
may be expended only for lawful purposes or allowable expenses as authorized by the
membership of the conducting organization at a monthly meeting of the organization's
membership. Provided that no more than 70 percent of the gross profit deleted text begin less the tax imposed
under section 297E.02, subdivision 1, deleted text end from bingo, and no more than 60 percent of the
gross profit from other forms of lawful gambling, may be expended biennially during the
term of the license for allowable expenses related to lawful gambling. For licenses issued
after June 30, 2006, compliance with this subdivision will be measured on a biennial basis
that is concurrent with the term of the license. Compliance with this subdivision is a
condition for the renewal of any license beginning on July 1, 2008. For licenses renewed
with an effective date between July 1, 2006, and June 30, 2008, an organization shall
carry forward an amount equal to 15 percent of any positive allowable expense carryover
amount. This balance must be used to offset any future negative expense balance at the
time of license renewal.

Sec. 2.

Minnesota Statutes 2006, section 349.163, is amended by adding a subdivision
to read:

new text begin Subd. 6b. new text end

new text begin Commercial products. new text end

new text begin The board shall not deny approval of a pull-tab
or tipboard game solely because the game is similar to or bears the name or image of
a licensed commercial product.
new text end

Sec. 3.

Minnesota Statutes 2006, section 349.211, is amended to read:

349.211 PRIZE LIMITS.

Subdivision 1.

Bingo.

Except as provided in subdivisions 1a and 2, prizes for a
single bingo game may not exceed $200 except prizes for a cover-all game, which may
exceed $200 if the aggregate value of all cover-all prizes in a bingo occasion does not
exceed $1,000. Total prizes awarded at a bingo occasion may not exceed $2,800, unless a
cover-all game is played in which case the limit is $3,800. 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 new text begin 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 new text end .

Subd. 1a.

Linked bingo prizes.

Prizes for a linked bingo game shall be limited
as follows:

(1) no organization may contribute more than $300 per occasion to a linked bingo
game prize pool; and

(2) deleted text begin if an organization contributes to a linked bingo game prize pool, the organization's
aggregate value of cover-all prizes available during the bingo occasion must be reduced
by the amount contributed to the linked bingo game prize pool. deleted text end new text begin 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.
new text end

Subd. 2.

Progressive bingo games.

A prize of up to $2,000 may be awarded for a
progressive bingo game, including a cover-all game. The prize for a progressive bingo
game may start at $500 and be increased by up to $100 for each occasion during which the
progressive bingo game is played. A consolation prize of up to $200 for a progressive
bingo game may be awarded in each occasion during which the progressive bingo game is
played and the accumulated prize is not won. The total amount awarded in progressive
bingo game prizes in any calendar year may not exceed $48,000.

Subd. 2a.

Pull-tab prizes.

The maximum prize which may be awarded for any
single pull-tab is $599, not including any cumulative or carryover prizes. Cumulative or
carryover prizes in a pull-tab game shall not exceed $2,500. An organization may not sell
any pull-tab for more than deleted text begin $2 deleted text end new text begin $5 new text end .

Subd. 2b.

Paddlewheel prizes.

The maximum cash prize which may be awarded
for a paddleticket is $70. An organization may not sell any paddleticket for more than $2.

Subd. 2c.

Tipboard prizes.

The maximum prize which may be awarded for a
tipboard ticket is $599, not including any cumulative or carryover prizes. Cumulative or
carryover prizes in tipboard games shall not exceed $2,500. new text begin An organization may not
sell any tipboard ticket for more than $5.
new text end

Subd. 3.

Other gambling.

The board by rule shall establish a schedule of prize
limits for all other forms of gambling consistent with the purposes set out in section
349.11. The schedule may include daily and annual prize limits and prize limits for each
game, raffle or operation of a gambling device.

Subd. 4.

Prize value.

(a) Merchandise prizes must be valued at their fair market
value. For purposes of sections 349.11 to 349.22 "prizes" do not include free plays
awarded.

(b) Merchandise prizes for a paddlewheel consisting of 30 numbers or less or a
tipboard consisting of 30 tickets or less may be paid for by the organization up to 30 days
after the prize is received by the organization.

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 349.19, subdivision 2b, new text end new text begin is repealed.
new text end

Sec. 5. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective July 1, 2007. Sections 2 to 4 are effective the day following
final enactment.
new text end