1.1                          A bill for an act 
  1.2             relating to gambling; providing for linked bingo games 
  1.3             and electronic bingo devices; providing and modifying 
  1.4             certain definitions and prize amounts relating to 
  1.5             lawful gambling; modifying procedures for pull-tab 
  1.6             dispensing devices; amending Minnesota Statutes 2000, 
  1.7             sections 349.12, subdivisions 4, 18, by adding 
  1.8             subdivisions; 349.151, subdivisions 4, 4b, by adding a 
  1.9             subdivision; 349.155, subdivision 3; 349.17, by adding 
  1.10            a subdivision; 349.211, subdivisions 1, 2, 2a; 
  1.11            Minnesota Statutes 2001 Supplement, section 349.15, 
  1.12            subdivision 1a; proposing coding for new law in 
  1.13            Minnesota Statutes, chapter 349. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 2000, section 349.12, 
  1.16  subdivision 4, is amended to read: 
  1.17     Subd. 4.  [BINGO.] "Bingo" means a game where each player 
  1.18  has a bingo hard card or bingo paper sheet, for which a 
  1.19  consideration has been paid, and played in accordance with this 
  1.20  chapter and with rules of the board for the conduct of 
  1.21  bingo.  Bingo also includes a linked bingo game. 
  1.22     Sec. 2.  Minnesota Statutes 2000, section 349.12, is 
  1.23  amended by adding a subdivision to read: 
  1.24     Subd. 12a.  [ELECTRONIC BINGO DEVICE.] "Electronic bingo 
  1.25  device" means an electronic device used by a bingo player to 
  1.26  monitor bingo paper sheets purchased at the time and place of an 
  1.27  organization's bingo occasion and which (1) provides a means for 
  1.28  bingo players to input numbers announced by a bingo caller; (2) 
  1.29  compares the numbers entered by the player to the bingo faces 
  2.1   previously stored in the memory of the device; and (3) 
  2.2   identifies a winning bingo pattern.  
  2.3   Electronic bingo device does not mean any device into which 
  2.4   coin, currency, or tokens are inserted to activate play. 
  2.5      Sec. 3.  Minnesota Statutes 2000, section 349.12, 
  2.6   subdivision 18, is amended to read: 
  2.7      Subd. 18.  [GAMBLING EQUIPMENT.] "Gambling equipment" 
  2.8   means:  bingo hard cards or paper sheets, devices for selecting 
  2.9   bingo numbers, electronic bingo devices, linked bingo paper, 
  2.10  pull-tabs, jar tickets, paddlewheels, paddlewheel tables, 
  2.11  paddletickets, paddleticket cards, tipboards, tipboard tickets, 
  2.12  and pull-tab dispensing devices.  
  2.13     Sec. 4.  Minnesota Statutes 2000, section 349.12, is 
  2.14  amended by adding a subdivision to read: 
  2.15     Subd. 25a.  [LINKED BINGO PAPER.] "Linked bingo paper" 
  2.16  means a bingo paper sheet that is sealed by the manufacturer so 
  2.17  that the bingo faces are concealed until opened by the player.  
  2.18  Linked bingo paper must bear a serial number and a bar code 
  2.19  containing information prescribed by the board by rule. 
  2.20     Sec. 5.  Minnesota Statutes 2000, section 349.12, is 
  2.21  amended by adding a subdivision to read: 
  2.22     Subd. 25b.  [LINKED BINGO GAME.] "Linked bingo game" means 
  2.23  a single bingo game played using linked bingo paper in which 
  2.24  players participate simultaneously at two or more locations 
  2.25  where the organizations have premises permits to conduct bingo 
  2.26  and for which there is a common prize pool and a common 
  2.27  selection of numbers or symbols conducted at one location, with 
  2.28  the results of the selection transmitted electronically to all 
  2.29  participating organizations by satellite, telephone, or other 
  2.30  means. 
  2.31     Sec. 6.  Minnesota Statutes 2000, section 349.12, is 
  2.32  amended by adding a subdivision to read: 
  2.33     Subd. 25c.  [LINKED BINGO GAME PRIZE PROVIDER.] "Linked 
  2.34  bingo game prize provider" means any person who provides the 
  2.35  means to link bingo prizes in a linked bingo game, who provides 
  2.36  linked bingo prize management, or provides the gambling 
  3.1   equipment to be used exclusively in a linked bingo game. 
  3.2      Sec. 7.  Minnesota Statutes 2001 Supplement, section 
  3.3   349.15, subdivision 1a, is amended to read: 
  3.4      Subd. 1a.  [NATURAL DISASTER RELIEF.] An organization may 
  3.5   expend net profits from lawful gambling to relieve the effects 
  3.6   of a natural disaster as defined in section 12.03, subdivision 
  3.7   2, without the prior approval of its membership if: 
  3.8      (1) the contribution is a lawful purpose under section 
  3.9   349.12, subdivision 25; 
  3.10     (2) the contribution is authorized by the organization's 
  3.11  chief executive officer and gambling manager; and 
  3.12     (3) the contribution is approved by the membership of the 
  3.13  organization at its next regularly scheduled monthly meeting. 
  3.14  If the contribution is not approved by the membership of the 
  3.15  organization at its next regularly scheduled monthly meeting, 
  3.16  the organization shall reimburse its gambling account in the 
  3.17  amount of the contribution. 
  3.18     Sec. 8.  Minnesota Statutes 2000, section 349.151, 
  3.19  subdivision 4, is amended to read: 
  3.20     Subd. 4.  [POWERS AND DUTIES.] (a) The board has the 
  3.21  following powers and duties:  
  3.22     (1) to regulate lawful gambling to ensure it is conducted 
  3.23  in the public interest; 
  3.24     (2) to issue licenses to organizations, distributors, bingo 
  3.25  halls, linked bingo game prize providers, manufacturers, and 
  3.26  gambling managers; 
  3.27     (3) to collect and deposit license, permit, and 
  3.28  registration fees due under this chapter; 
  3.29     (4) to receive reports required by this chapter and inspect 
  3.30  all premises, records, books, and other documents of 
  3.31  organizations, distributors, manufacturers, and bingo halls, and 
  3.32  linked bingo game prize providers to insure compliance with all 
  3.33  applicable laws and rules; 
  3.34     (5) to make rules authorized by this chapter; 
  3.35     (6) to register gambling equipment and issue registration 
  3.36  stamps; 
  4.1      (7) to provide by rule for the mandatory posting by 
  4.2   organizations conducting lawful gambling of rules of play and 
  4.3   the odds and/or house percentage on each form of lawful 
  4.4   gambling; 
  4.5      (8) to report annually to the governor and legislature on 
  4.6   its activities and on recommended changes in the laws governing 
  4.7   gambling; 
  4.8      (9) to impose civil penalties of not more than $500 per 
  4.9   violation on organizations, distributors, employees eligible to 
  4.10  make sales on behalf of a distributor, manufacturers, bingo 
  4.11  halls, linked bingo game prize providers, and gambling managers 
  4.12  for failure to comply with any provision of this chapter or any 
  4.13  rule or order of the board; 
  4.14     (10) to issue premises permits to organizations licensed to 
  4.15  conduct lawful gambling; 
  4.16     (11) to delegate to the director the authority to issue or 
  4.17  deny license and premises permit applications and renewals under 
  4.18  criteria established by the board; 
  4.19     (12) to suspend or revoke licenses and premises permits of 
  4.20  organizations, distributors, manufacturers, bingo halls, linked 
  4.21  bingo game prize providers, or gambling managers as provided in 
  4.22  this chapter; 
  4.23     (13) to register employees of organizations licensed to 
  4.24  conduct lawful gambling; 
  4.25     (14) to require fingerprints from persons determined by 
  4.26  board rule to be subject to fingerprinting; 
  4.27     (15) to delegate to a compliance review group of the board 
  4.28  the authority to investigate alleged violations, issue consent 
  4.29  orders, and initiate contested cases on behalf of the board; 
  4.30     (16) to order organizations, distributors, manufacturers, 
  4.31  bingo halls, linked bingo game prize providers, and gambling 
  4.32  managers to take corrective actions; and 
  4.33     (17) to take all necessary steps to ensure the integrity of 
  4.34  and public confidence in lawful gambling.  
  4.35     (b) The board, or director if authorized to act on behalf 
  4.36  of the board, may by citation assess any organization, 
  5.1   distributor, employee eligible to make sales on behalf of a 
  5.2   distributor, manufacturer, bingo hall licensee, linked bingo 
  5.3   game prize provider, or gambling manager a civil penalty of not 
  5.4   more than $500 per violation for a failure to comply with any 
  5.5   provision of this chapter or any rule adopted or order issued by 
  5.6   the board.  Any organization, distributor, bingo hall licensee, 
  5.7   gambling manager, linked bingo game prize provider, or 
  5.8   manufacturer assessed a civil penalty under this paragraph may 
  5.9   request a hearing before the board.  Appeals of citations 
  5.10  imposing a civil penalty are not subject to the provisions of 
  5.11  the Administrative Procedure Act.  
  5.12     (c) All fees and penalties received by the board must be 
  5.13  deposited in the general fund. 
  5.14     Sec. 9.  Minnesota Statutes 2000, section 349.151, 
  5.15  subdivision 4b, is amended to read: 
  5.16     Subd. 4b.  [PULL-TAB SALES FROM DISPENSING DEVICES.] (a) 
  5.17  The board may by rule authorize but not require the use of 
  5.18  pull-tab dispensing devices. 
  5.19     (b) Rules adopted under paragraph (a): 
  5.20     (1) must limit the number of pull-tab dispensing devices on 
  5.21  any permitted premises to three; and 
  5.22     (2) must limit the use of pull-tab dispensing devices to a 
  5.23  permitted premises which is (i) a licensed premises for on-sales 
  5.24  of intoxicating liquor or 3.2 percent malt beverages; or (ii) a 
  5.25  licensed bingo hall that allows gambling only by persons 18 
  5.26  years or older; and 
  5.27     (3) must prohibit the use of pull-tab dispensing devices at 
  5.28  any licensed premises where pull-tabs are sold other than 
  5.29  through a pull-tab dispensing device by an employee of the 
  5.30  organization who is also the lessor or an employee of the lessor.
  5.31     (c) Notwithstanding rules adopted under paragraph (b), 
  5.32  pull-tab dispensing devices may be used in establishments 
  5.33  licensed for the off-sale of intoxicating liquor, other than 
  5.34  drugstores and general food stores licensed under section 
  5.35  340A.405, subdivision 1. 
  5.36     (d) The director may charge a manufacturer a fee of up to 
  6.1   $5,000 per pull-tab dispensing device to cover the costs of 
  6.2   services provided by an independent testing laboratory to 
  6.3   perform testing and analysis of pull-tab dispensing devices.  
  6.4   The director shall deposit in a separate account in the state 
  6.5   treasury all money the director receives as reimbursement for 
  6.6   the costs of services provided by independent testing 
  6.7   laboratories that have entered into contracts with the state to 
  6.8   perform testing and analysis of pull-tab dispensing devices.  
  6.9   Money in the account is appropriated to the director to pay the 
  6.10  costs of services under those contracts. 
  6.11     Sec. 10.  Minnesota Statutes 2000, section 349.151, is 
  6.12  amended by adding a subdivision to read: 
  6.13     Subd. 4c.  [ELECTRONIC BINGO.] (a) The board may by rule 
  6.14  authorize but not require the use of electronic bingo devices. 
  6.15     (b) Rules adopted under paragraph (a): 
  6.16     (1) must limit the number of bingo faces that can be played 
  6.17  using an electronic bingo device to 72; 
  6.18     (2) must require that an electronic bingo device be used 
  6.19  with corresponding bingo paper sheets; 
  6.20     (3) must require that the electronic bingo device site 
  6.21  system have dial-up capability to permit the board to remotely 
  6.22  monitor the operation of the device and the internal accounting 
  6.23  systems; and 
  6.24     (4) must prohibit the price of a face played on an 
  6.25  electronic bingo device from being less than the price of a face 
  6.26  on a bingo paper sheet sold at the same occasion. 
  6.27     Sec. 11.  Minnesota Statutes 2000, section 349.155, 
  6.28  subdivision 3, is amended to read: 
  6.29     Subd. 3.  [MANDATORY DISQUALIFICATIONS.] (a) In the case of 
  6.30  licenses for manufacturers, distributors, bingo halls, linked 
  6.31  bingo game prize providers, and gambling managers, the board may 
  6.32  not issue or renew a license under this chapter, and shall 
  6.33  revoke a license under this chapter, if the applicant or 
  6.34  licensee, or a director, officer, partner, governor, person in a 
  6.35  supervisory or management position of the applicant or licensee, 
  6.36  or an employee eligible to make sales on behalf of the applicant 
  7.1   or licensee: 
  7.2      (1) has ever been convicted of a felony or a crime 
  7.3   involving gambling; 
  7.4      (2) has ever been convicted of (i) assault, (ii) a criminal 
  7.5   violation involving the use of a firearm, or (iii) making 
  7.6   terroristic threats; 
  7.7      (3) is or has ever been connected with or engaged in an 
  7.8   illegal business; 
  7.9      (4) owes $500 or more in delinquent taxes as defined in 
  7.10  section 270.72; 
  7.11     (5) had a sales and use tax permit revoked by the 
  7.12  commissioner of revenue within the past two years; or 
  7.13     (6) after demand, has not filed tax returns required by the 
  7.14  commissioner of revenue.  The board may deny or refuse to renew 
  7.15  a license under this chapter, and may revoke a license under 
  7.16  this chapter, if any of the conditions in this paragraph are 
  7.17  applicable to an affiliate or direct or indirect holder of more 
  7.18  than a five percent financial interest in the applicant or 
  7.19  licensee.  
  7.20     (b) In the case of licenses for organizations, the board 
  7.21  may not issue or renew a license under this chapter, and shall 
  7.22  revoke a license under this chapter, if the organization, or an 
  7.23  officer or member of the governing body of the organization:  
  7.24     (1) has been convicted of a felony or gross misdemeanor 
  7.25  within the five years before the issuance or renewal of the 
  7.26  license; 
  7.27     (2) has ever been convicted of a crime involving gambling; 
  7.28  or 
  7.29     (3) has had a license issued by the board or director 
  7.30  permanently revoked for violation of law or board rule. 
  7.31     Sec. 12.  [349.1635] [LINKED BINGO LICENSES.] 
  7.32     Subdivision 1.  [LICENSE REQUIRED.] No person may do any of 
  7.33  the following without having first obtained a license from the 
  7.34  board: 
  7.35     (1) provide the means to link prizes in a linked bingo 
  7.36  game; 
  8.1      (2) provide linked bingo game prize management; or 
  8.2      (3) unless the person is licensed as a distributor, provide 
  8.3   gambling equipment used exclusively in a linked bingo game. 
  8.4      Subd. 2.  [APPLICATION.] The board may issue a license to a 
  8.5   linked bingo game prize provider who meets the qualifications of 
  8.6   this chapter.  The application shall be on a form prescribed by 
  8.7   the board.  Attached to the application must be evidence of bond 
  8.8   of sufficient size to cover all linked bingo game prize jackpots 
  8.9   and any linked bingo prizes guaranteed by the linked bingo game 
  8.10  provider.  The fee for a linked bingo game prize provider 
  8.11  license is $3,500. 
  8.12     Subd. 3.  [PROHIBITION.] (a) Except for services associated 
  8.13  exclusively with a linked bingo game, a linked bingo game prize 
  8.14  provider may not participate or assist in any way in the conduct 
  8.15  of lawful gambling by an organization. 
  8.16     (b) No linked bingo game prize provider may also be 
  8.17  licensed as a bingo hall or hold any financial or managerial 
  8.18  interest in a bingo hall.  
  8.19     (c) No linked bingo game prize provider may also be 
  8.20  licensed as a distributor, hold any financial or managerial 
  8.21  interest in a distributor, or be employed by a distributor. 
  8.22     Sec. 13.  Minnesota Statutes 2000, section 349.17, is 
  8.23  amended by adding a subdivision to read: 
  8.24     Subd. 8.  [LINKED BINGO GAMES.] (a) A licensed organization 
  8.25  may conduct or participate in a linked bingo game in association 
  8.26  with one or more other licensed organizations. 
  8.27     (b) Each participating organization shall contribute to 
  8.28  each prize awarded in a linked bingo game in proportion to the 
  8.29  organization's gross receipts derived from the conduct of the 
  8.30  linked bingo game at each location where the organization has a 
  8.31  premises permit to conduct bingo and is participating in the 
  8.32  linked bingo game as compared with the total gross receipts 
  8.33  derived from all locations participating in the game, except 
  8.34  that in no instance may the minimum contribution be less than 
  8.35  $250 and the maximum contribution more than $1,000. 
  8.36     (c) The board may adopt rules to: 
  9.1      (1) specify the manner in which a linked bingo game must be 
  9.2   played and how the linked bingo prizes must be paid; 
  9.3      (2) specify the records to be maintained by a linked bingo 
  9.4   game prize provider and each participating organization; 
  9.5      (3) require the submission of reports by the linked bingo 
  9.6   game prize provider and specify the content of the reports; and 
  9.7      (4) prescribe any other matter involving the operation of a 
  9.8   linked bingo game. 
  9.9      Sec. 14.  Minnesota Statutes 2000, section 349.211, 
  9.10  subdivision 1, is amended to read: 
  9.11     Subdivision 1.  [BINGO.] Except as provided in subdivision 
  9.12  2, prizes for a single bingo game may not exceed $200 except 
  9.13  prizes for a cover-all game, which may exceed $200 if the 
  9.14  aggregate value of all cover-all prizes in a bingo occasion does 
  9.15  not exceed $1,000.  Total prizes awarded at a bingo occasion may 
  9.16  not exceed $2,500, unless a cover-all game is played in which 
  9.17  case the limit is $3,500.  A prize may be determined based on 
  9.18  the value of the bingo packet sold to the player.  For purposes 
  9.19  of this subdivision, a cover-all game is one in which a player 
  9.20  must cover all spaces except a single free space to win.  This 
  9.21  subdivision does not apply to a linked bingo game. 
  9.22     Sec. 15.  Minnesota Statutes 2000, section 349.211, 
  9.23  subdivision 2, is amended to read: 
  9.24     Subd. 2.  [PROGRESSIVE BINGO GAMES.] A prize of up to 
  9.25  $2,000 may be awarded for a progressive bingo game, including a 
  9.26  cover-all game.  The prize for a progressive bingo game may 
  9.27  start at $300 $500 and be increased by up to $100 for each 
  9.28  occasion during which the progressive bingo game is played.  A 
  9.29  consolation prize of up to $200 for a progressive bingo game may 
  9.30  be awarded in each occasion during which the progressive bingo 
  9.31  game is played and the accumulated prize is not won.  The total 
  9.32  amount awarded in progressive bingo game prizes in any calendar 
  9.33  year may not exceed $36,000 $48,000. 
  9.34     Sec. 16.  Minnesota Statutes 2000, section 349.211, 
  9.35  subdivision 2a, is amended to read: 
  9.36     Subd. 2a.  [PULL-TAB PRIZES.] The maximum prize which may 
 10.1   be awarded for any single pull-tab is $500 $599.  An 
 10.2   organization may not sell any pull-tab for more than $2.