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Minnesota Legislature

Office of the Revisor of Statutes

SF 634

2nd Engrossment - 89th Legislature (2015 - 2016) Posted on 08/21/2015 04:21pm

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

Current Version - 2nd Engrossment

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A bill for an act
relating to lawful gambling; making changes relating to games, licensing,
reporting, and other regulatory provisions; making technical, clarifying, and
conforming changes; amending Minnesota Statutes 2014, sections 349.12,
subdivisions 3c, 18; 349.16, by adding a subdivision; 349.161, by adding a
subdivision; 349.163, subdivision 9, by adding a subdivision; 349.1635, by
adding a subdivision; 349.1641; 349.165, subdivision 5; 349.166; 349.168,
subdivision 8; 349.169; 349.17, subdivisions 3, 7, 9; 349.1721, subdivision 4;
349.173; 349.181, subdivision 3; 349.19, subdivisions 2, 5; 349.211, subdivision
2; repealing Minnesota Statutes 2014, section 349.19, subdivision 9b.

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

Section 1.

Minnesota Statutes 2014, section 349.12, subdivision 3c, is amended to read:


Subd. 3c.

Bar bingo.

"Bar bingo" is a bingo occasion conducted at a permitted
premises in an area where new text beginon-salenew text end intoxicating liquor or new text beginon-sale new text end3.2 percent malt beverages
are sold and where deleted text beginthedeleted text endnew text begin anew text end licensed organization conducts another form of lawful gambling
new text beginand consents to the conduct of bar bingo on the premisesnew text end. Bar bingo does not include
bingo games linked to other permitted premises.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 2.

Minnesota Statutes 2014, 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; deleted text beginand
deleted text end

(6) promotional tickets that mimic a pull-tab or tipboarddeleted text begin.deleted text endnew text begin; and
new text end

new text begin (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.
new text end

(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; and

(7) paddlewheel tables.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 3.

Minnesota Statutes 2014, section 349.16, is amended by adding a subdivision
to read:


new text begin Subd. 2a. new text end

new text begin Merged organizations. new text end

new text begin If two or more organizations merge or otherwise
join together to form a new organization and at least one of the organizations has an active
lawful gambling license, the board shall consider the new organization to have been in
existence for the most recent three years if all other requirements of subdivision 2 are met.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 4.

Minnesota Statutes 2014, section 349.161, is amended by adding a subdivision
to read:


new text begin Subd. 9. new text end

new text begin Distributor license termination plan. new text end

new text begin (a) A licensed distributor that
surrenders, withdraws, or otherwise terminates its license must submit to the board, in
writing, a termination plan. Termination of a license may occur due to revocation or
denial of the license by the board, or by the distributor voluntarily quitting its business.
Termination plans must be approved by the executive director.
new text end

new text begin (b) The termination plan must include a certified physical inventory in a format
prescribed by the board. The certified physical inventory must also be submitted to the
commissioner of revenue. The certified physical inventory must include the following
information:
new text end

new text begin (1) an inventory of all gambling equipment as of the date the form is prepared,
including name, form number, bar code information, and quantity of all gambling
equipment in the distributor's inventory; and
new text end

new text begin (2) plans for disposal of all gambling equipment by the date of termination. After
the date on which a license is terminated, it is illegal for a distributor to possess gambling
equipment.
new text end

new text begin (c) The distributor or its designated agent must keep all invoices and other required
documentation related to the sale or disposal of equipment for 3-1/2 years after the license
has been terminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 5.

Minnesota Statutes 2014, section 349.163, subdivision 9, is amended to read:


Subd. 9.

Sales required.

No licensed manufacturer may refuse to sell gambling
equipment to a licensed distributor unless:

(1) a specific type of gambling equipment sold on an exclusive basis is at issue;

(2) the manufacturer does not sell gambling equipment to any distributor in
Minnesota;

(3) a Minnesota statute or rule prohibits the sale; or

(4) the distributor is delinquent on any payment owed to the manufacturer.

new text begin This subdivision does not apply to application software and those computer
programs used by a licensed manufacturer in the production, play, and reporting of
board-approved electronic pull-tab games or electronic bingo games.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 6.

Minnesota Statutes 2014, section 349.163, is amended by adding a subdivision
to read:


new text begin Subd. 10. new text end

new text begin Manufacturer license termination plan. new text end

new text begin (a) A manufacturer that
surrenders, withdraws, or otherwise terminates its license must submit to the board, in
writing, a termination plan. Termination of a license may occur due to revocation or
denial of the license by the board, or by the manufacturer voluntarily quitting its business.
Termination plans must be approved by the executive director.
new text end

new text begin (b) The license termination plan must include the manufacturer's agreement to
accept returned defective equipment and issue credit for defective products up to six
months after the license termination date.
new text end

new text begin (c) The manufacturer or its designated agent must keep all invoices and other
required documentation related to the sale or disposal of gambling equipment for 3-1/2
years after the license has been terminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 7.

Minnesota Statutes 2014, section 349.1635, is amended by adding a subdivision
to read:


new text begin Subd. 6. new text end

new text begin Linked bingo game provider license termination plan. new text end

new text begin (a) A linked
bingo game provider that surrenders, withdraws, or otherwise terminates its license must
submit to the board, in writing, a termination plan. Termination of a license may occur
due to revocation or denial of the license by the board, or by the linked bingo game
provider voluntarily quitting its business. Termination plans must be approved by the
executive director.
new text end

new text begin (b) The license termination plan must include the reconciliation and refund of all
unredeemed prize pool contributions to organizations and the disposal of equipment.
new text end

new text begin (c) The linked bingo game provider or its designated agent must keep all invoices
and other required documentation related to the sale or disposal of gambling equipment
for 3-1/2 years after the license has been terminated.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 8.

Minnesota Statutes 2014, section 349.1641, is amended to read:


349.1641 LICENSES; SUMMARY SUSPENSION.

(a) The board may (1) summarily suspend the license of an organization that is more
than 45 days late in filing a new text beginmonthly report required to be submitted to the board under this
chapter or board rule or a
new text endtax return or in paying a tax required under chapter 297E and
may keep the suspension in effect until all required returns are filed and required taxes are
paid; (2) summarily suspend for not more than 90 days any license issued by the board or
director for what the board determines are actions detrimental to the integrity of lawful
gambling in Minnesota; (3) summarily suspend the license of a gambling manager who
has failed to receive the training required under section 349.167, subdivision 4, clause (2),
and may keep the suspension in effect until the gambling manager passes an examination
prepared and administered by the board. The examination does not qualify as continuing
education credit for the next calendar year; and (4) summarily suspend the license of an
organization that fails to pay the fees required under section 349.16, 349.165, or 349.167,
and may keep the suspension in effect until all required fees are paid.

(b) The board must notify the licensee at least 14 days before suspending the license
under this section. If a license is summarily suspended under this section, a contested
case hearing on the merits must be held within 20 days of the issuance of the order
of suspension, unless the parties agree to a later hearing date. The administrative law
judge's report must be issued within 20 days after the close of the hearing record. In all
cases involving summary suspension, the board must issue its final decision within 30
days after receipt of the report of the administrative law judge and subsequent exceptions
and argument under section 14.61. When an organization's license is suspended under
this section, the board shall within three days notify all municipalities in which the
organization's gambling premises are located and all licensed distributors in the state.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 9.

Minnesota Statutes 2014, section 349.165, subdivision 5, is amended to read:


Subd. 5.

Off-site permits.

(a) A licensed organization may conduct lawful
gambling on a premises other than the organization's permitted premises if it has first
submitted to the board an application and new text begina new text endlease on forms provided by the board, obtained
authorization required under section 349.213, and received a permit from the board for
new text begineach event new text endup to 12 events in a calendar year deleted text beginin connection with a county fair, the State
Fair, a church festival, or a civic celebration
deleted text end, not to exceed three days per event.

(b) No lease is required for the conduct of a raffle.

(c) No fee may be assessed for an off-site permit by the board or by local authority
under section 349.213.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 10.

Minnesota Statutes 2014, section 349.166, is amended to read:


349.166 EXCLUSIONS; EXEMPTIONS.

Subdivision 1.

Exclusions.

(a) Bingo, with the exception of linked bingo games, may
be conducted without a license and without complying with sections 349.168, subdivisions
1 and 2; 349.17, subdivisions 4 and 5; 349.18, subdivision 1; and 349.19, if it is conducted:

(1) by an organization in connection with a county fair, the state fair, or a civic
celebration and is not conducted for more than 12 consecutive days and is limited to no more
than four separate applications for activities applied for and approved in a calendar year; or

(2) by an organization that conducts bingo on four or fewer days in a calendar year.

An organization that holds a license to conduct lawful gambling under this chapter
may not conduct bingo under this subdivision.

(b) Bingo may be conducted within a nursing home or a senior citizen housing project
or by a senior citizen organization if the prizes for a single bingo game do not exceed $10,
total prizes awarded at a single bingo occasion do not exceed $200, deleted text beginno more than two
bingo occasions are held by the organization or at the facility each week,
deleted text end only members of
the organization or residents new text beginand their guests new text endof the nursing home or housing project are
allowed to play in a bingo game, no compensation is paid for any persons who conduct the
bingo, and a manager is appointed to supervise the bingo. Bingo conducted under this
paragraph is exempt from sections 349.11 to 349.23, and the board may not require an
organization that conducts bingo under this paragraph, or the manager who supervises the
bingo, to register or file a report with the board. The gross receipts from bingo conducted
under the limitations of this subdivision are exempt from taxation under chapter 297A.

(c) Raffles may be conducted by an organization without registering with the board
if the value of all raffle prizes awarded by the organization in a calendar year does not
exceed $1,500 or, if the organization is a 501(c)(3) organization, if the value of all raffle
prizes awarded by the organization at one event in a calendar year does not exceed $5,000.

(d) Except as provided in paragraph (b), the organization must maintain all required
records of excluded gambling activity for 3-1/2 years.

Subd. 2.

Exemptions.

(a) Lawful gambling, with the exception of linked bingo
games, may be conducted by an organization without a license and without complying
with sections 349.168, subdivisions 1 and 2; 349.17, subdivision 4; 349.18, subdivision 1;
and 349.19 if:

(1) the organization conducts lawful gambling on five or fewer days in a calendar year;

(2) the organization does not award more than $50,000 in prizes for lawful gambling
in a calendar year;

(3) the organization submits a board-prescribed application and pays a fee of $50 to
the board for each gambling occasion, and receives an exempt permit number from the
board. If the application is postmarked or received less than 30 days before the gambling
occasion, the fee is $100 for that application. The application must include the date and
location of the occasion, the types of lawful gambling to be conducted, and the prizes
to be awarded;

(4) the organization notifies the local government unit 30 days before the lawful
gambling occasion, or 60 days for an occasion held in a city of the first class;

(5) the organization purchases all gambling equipment and supplies from a licensed
distributor; and

(6) the organization reports to the board, on a single-page form prescribed by the
board, within 30 days of each gambling occasion, the gross receipts, prizes, expenses,
expenditures of net profits from the occasion, and the identification of the licensed
distributor from whom all gambling equipment was purchased.

new text begin (b) No more than one organization exempted or excluded from licensing
requirements may conduct an individual raffle.
new text end

new text begin (1) Exempted or excluded organizations may not combine the use of raffle tickets.
new text end

new text begin (2) Raffle tickets must not be attached to or combined with other exempted or
excluded organizations' raffle tickets and must be sold separately from other exempted
or excluded organizations' raffle tickets.
new text end

deleted text begin (b)deleted text endnew text begin (c)new text end If the organization fails to file a timely report as required by paragraph (a),
clause (6), the board shall not issue any authorization, license, or permit to the organization
to conduct lawful gambling on an exempt, excluded, or licensed basis until the report has
been filed and the organization may be subject to penalty as determined by the board. The
board may refuse to issue any authorization, license, or permit if a report or application is
determined to be incomplete or knowingly contains false or inaccurate information.

deleted text begin (c)deleted text endnew text begin (d)new text end Merchandise prizes must be valued at their fair market value.

deleted text begin (d)deleted text endnew text begin (e)new text end Organizations that qualify to conduct exempt raffles under paragraph (a)deleted text begin,
deleted text end are exempt from section 349.173, paragraph (b), clause (2), if the raffle tickets are sold
only in combination with an organization's membership or a ticket for an organization's
membership dinner and are not included with any other raffle conducted under the exempt
permit.

deleted text begin (e)deleted text endnew text begin (f)new text end Unused pull-tab and tipboard deals must be returned to the distributor within
seven working days after the end of the lawful gambling occasion. The distributor must
accept and pay a refund for all returns of unopened and undamaged deals returned under
this paragraph.

deleted text begin (f)deleted text endnew text begin (g)new text end The organization must maintain all required records of exempt gambling
activity for 3-1/2 years.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day after final enactment for all
permits with an effective date of July 1, 2015, or later.
new text end

Sec. 11.

Minnesota Statutes 2014, section 349.168, subdivision 8, is amended to read:


Subd. 8.

Compensation paid.

(a) A licensed organization may pay a percentage of
the gross profit from raffle ticket sales to a nonprofit organization that sells raffle tickets
for the licensed organization.

(b) A licensed organization may compensate an employee of the organization for
the sale of gambling equipment at a bar operation if the frequency of the activity is one
day or less per week and the games are limited to 32 chances or less per game. For
purposes of this paragraph, an employee must not be a lessor, employee of the lessor, or an
immediate family member of the lessor.

(c) An organization that leases a premises may not pay compensation to the lessor,
a member of the lessor's immediate family, or the lessor's employees, other than as a
seller of pull-tabs and tipboards within a booth operation on the premises.new text begin An employee
of the lessor or
new text end a member of the lessor's immediate family may be compensated by an
organization for the conduct of gambling at other sites not owned by the lessor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 12.

Minnesota Statutes 2014, section 349.169, is amended to read:


349.169 FILING OF deleted text beginPRICESdeleted text endnew text begin INVENTORY AND DISCOUNTSnew text end.

Subdivision 1.

Filing required.

deleted text beginWhen required by the board,deleted text end Manufacturers,
distributors, and linked bingo game providers must filenew text begin, by the 20th of each month,new text end with
the director new text begina list of all gambling equipment thatnew text end the deleted text beginprices at which thedeleted text end manufacturer,
distributor, or linked bingo game provider deleted text beginwill sell all gambling equipment currently
offered for sale by that manufacturer, distributor, or linked bingo game provider
deleted text endnew text begin sold or
leased in the preceding month
new text end. The filing must be in a format the director prescribes.

Subd. 2.

Copies.

The director shall provide copies of deleted text beginpricedeleted text end filings to any person
requesting them and may charge a reasonable fee for the copies. Any person may examine
deleted text beginpricedeleted text end filings in the board office at no cost, and the director shall make the filings available
for that purpose.

Subd. 3.

Sales at deleted text beginfiled pricesdeleted text endnew text begin discountnew text end.

When required to report under subdivision
1, deleted text beginno manufacturer may sell to a distributor or linked bingo game provider, and no
distributor or linked bingo game provider may sell to an organization, any gambling
equipment for any price other than a price the manufacturer, distributor, or linked bingo
game provider has filed with the director under subdivision 1, including volume discounts,
and exclusive of transportation costs
deleted text endnew text begin all manufacturers, distributors, and linked bingo
game providers must notify the board of any volume discounts or other discounts available
for gambling equipment sales
new text end.

Sec. 13.

Minnesota Statutes 2014, section 349.17, subdivision 3, is amended to read:


Subd. 3.

Winners.

Each bingo winner must be determined and every prize shall be
awarded and delivered the same day on which the bingo occasion is conducted, except that
payment for a deleted text beginprogressive prize or a linkeddeleted text end bingo prizenew text begin of $200 or morenew text end must be delivered
within three business days of the day on which the occasion was conducted.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 14.

Minnesota Statutes 2014, section 349.17, subdivision 7, is amended to read:


Subd. 7.

Bar bingo.

An organization may conduct bar bingo subject to the
following restrictions:

(1) the bingo is conducted at a site the organization owns or leases and which has a
license for the deleted text beginsaledeleted text endnew text begin on-salenew text end of intoxicating beverages on the premises under chapter 340A
new text beginor where on-sale 3.2 percent malt beverages are soldnew text end; and

(2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper
sheets purchased from a licensed distributor or licensed linked bingo game provider.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 15.

Minnesota Statutes 2014, section 349.17, subdivision 9, is amended to read:


Subd. 9.

Linked bingo games played exclusively on electronic bingo devices.

In
addition to the requirements of subdivision 8, the following requirements and restrictions
apply when linked bingo games are played exclusively on electronic bingo devices.

(a) The permitted premises must be:

(1) a premises licensed for the on-sale deleted text beginor off-saledeleted text end of intoxicating liquor or new text beginon-sale
new text end3.2 percent malt beveragesdeleted text begin, except for a general food store or drug store permitted to sell
alcoholic beverages under section 340A.405, subdivision 1
deleted text end; or

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

(b) The number of electronic bingo devices is limited to:

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

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

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

Seating capacity is determined as specified under the local fire code.

(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the
participating organizations, must provide to the board a bingo program in a format
prescribed by the board.

(d) Before participating in the play of a linked bingo game, a player must present deleted text beginand
register
deleted text end a valid picture identification card that includes the player's deleted text beginaddress anddeleted text end date of birth.

new text begin (e) A licensed organization must require each person cashing out an electronic
linked bingo device with $600 or more in credits to present identification in the form of
a driver's license, Minnesota identification card, or other identification the board deems
sufficient to allow the identification and tracking of the winner. The organization must
retain the winner's identification in the form of a prize receipt for 3-1/2 years. A prize
receipt for electronic linked bingo must include the same information as is required in
board rules for a paper pull-tab game prize receipt.
new text end

new text begin (f) Except for prize receipts required by paragraph (e), an organization is not required
to register or retain any information contained on the player's picture identification card.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 16.

Minnesota Statutes 2014, section 349.1721, subdivision 4, is amended to read:


Subd. 4.

Electronic pull-tab device requirements and restrictions.

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

(a) The use of any electronic pull-tab device may only be at a permitted premises
that is:

(1) a premises licensed for the on-sale deleted text beginor off-saledeleted text end of intoxicating liquor or new text beginon-sale
new text end3.2 percent malt beveragesdeleted text begin, except for a general food store or drug store permitted to sell
alcoholic beverages under section 340A.405, subdivision 1
deleted text end; or

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

(3) where deleted text beginthedeleted text endnew text begin anew text end licensed organization sells paper pull-tabs new text beginand consents to the
conduct of electronic pull-tab devices on the premises
new text end.

(b) The number of electronic pull-tab devices is limited to:

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

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

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

Seating capacity is determined as specified under the local fire code.

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

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

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

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

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

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

new text begin (i) A licensed organization must require each person cashing out an electronic
pull-tab device with $600 or more in credits to present identification in the form of a
driver's license, Minnesota identification card, or other identification the board deems
sufficient to allow the identification and tracking of the winner. The organization must
retain the winner's identification in the form of a prize receipt for 3-1/2 years. A prize
receipt for electronic pull-tabs must include the same information as is required in board
rules for a paper pull-tab game prize receipt.
new text end

new text begin (j) Except for prize receipts required by paragraph (i), an organization is not required
to register or retain any information contained on the player's picture identification card.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 17.

Minnesota Statutes 2014, 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 new text beginor visibly on display new text endat 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 prizesnew text begin, or visibly displays the prizes
at the event,
new text end 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 $5new text begin, or as
provided under paragraph (c) or (d)
new text end;

(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 deleted text beginthis sectiondeleted text endnew text begin chapters 97A to 97Cnew text end 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.

new text begin (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.
new text end

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

new text begin This section is effective July 1, 2015.
new text end

Sec. 18.

Minnesota Statutes 2014, section 349.181, subdivision 3, is amended to read:


Subd. 3.

Organization and lessor employees and volunteers.

(a) For purposes of
this section, "volunteer" means a person who is not compensated by an organization but
who performs activities in the conduct of lawful gambling for that organization.

(b) For purposes of this section, "conduct of pull-tabs, tipboards, and paddlewheels"
includes selling tickets, redeeming tickets, auditing games, making deposits, spinning the
paddlewheel, and conducting inventory.

(c) For purposes of this section, "conduct of bingo" includes selling bingo hard cards,
bingo paper sheets, or facsimiles of bingo paper sheets; completing bingo occasion records;
selecting or announcing bingo numbers; making deposits; and conducting inventory.

deleted text begin (d) An employee or volunteer who is involved in the conduct of pull-tabs, tipboards,
or paddlewheels at a permitted premises may not participate directly or indirectly as a
player in a pull-tab, tipboard, or paddlewheel game at that same premises. This restriction
is in effect until six weeks after the employee or volunteer is no longer involved in the
conduct of pull-tab, tipboard, or paddlewheel games at that same premises.
deleted text end

new text begin (d) A volunteer involved in the conduct of tipboards that have no more than 32
chances per game or paddlewheel games conducted without a paddlewheel table may
not participate as a player in electronic linked bingo, pull-tab, tipboard, or paddlewheel
games at the same premises on the same business day that the volunteer was involved in
the conduct of the games.
new text end

(e) An employee or new text begina new text endvolunteer who is involved in the conduct of any lawful
gambling during a bingo occasion may not participate directly or indirectly as a player in
any lawful gambling during that bingo occasion.

new text begin (f) An organization or a lessor employee or volunteer who is involved in the conduct
of electronic linked bingo, pull-tab games, tipboard games with more than 32 chances per
game, or paddlewheel games conducted with a paddlewheel table at a permitted premises
may not participate directly or indirectly as a player in electronic linked bingo, pull-tab,
tipboard, or paddlewheel games at that premises. This restriction is in effect until two
weeks after the employee or volunteer is no longer involved in the conduct of electronic
linked bingo, pull-tab games, tipboard games with more than 32 chances per game, or
paddlewheel games conducted with a paddlewheel table at that premises.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 19.

Minnesota Statutes 2014, section 349.19, subdivision 2, is amended to read:


Subd. 2.

Accounts.

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

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

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

(d) new text beginExcept as provided in paragraph (e), new text endgambling receipts must be deposited into
the gambling bank account within four business days of completion of the bingo occasion,
deal, or game from which they are received.

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

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

(e) Gambling receipts from deleted text beginalldeleted text end electronic deleted text beginpull-tab games and all linked electronic
bingo games
deleted text endnew text begin gamblingnew text end must be recorded on a daily basis and deposited into the gambling
bank account within four business daysnew text begin when the total net receipts from all electronic
games at the premises reach the sum of $2,000 or on or before the first day of the month
immediately following the month during which the receipts were generated, whichever
occurs first
new text end.

(f) Deposit records must be sufficient to allow determination of deposits made from
each bingo occasion, deal, or game at each permitted premises.

(g) The person who accounts for gambling gross receipts and profits may not be the
same person who accounts for other revenues of the organization.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 20.

Minnesota Statutes 2014, section 349.19, subdivision 5, is amended to read:


Subd. 5.

Reports.

(a) A licensed organization must report monthly to the board in
an electronic format prescribed by the board and to its membership on its gross receipts,
expenses, profits, and expenditure of profits from lawful gambling for each permitted
premises. The organization must account for and report on each form of lawful gambling
conducted. The organization must include a reconciliation of the organization's profit
carryover with its cash balance on hand.new text begin All gambling fund expenditures must be reported
to the board on the cash basis.
new text end

(b) The organization must report monthly to the commissioner of revenue as
required under section 297E.06.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 21.

Minnesota Statutes 2014, section 349.211, subdivision 2, is amended to read:


Subd. 2.

Progressive bingo games.

Except as provided in subdivision 1a, 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 new text beginup to new text end$500 and be increased by up to
$100 for each new text begingame or new text endoccasion 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.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end

Sec. 22. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin In the part referred to in column A of Minnesota Rules, the revisor of statutes shall
delete the reference in column B and insert the reference in column C.
new text end

new text begin Column A
new text end
new text begin Column B
new text end
new text begin Column C
new text end
new text begin 7861.0230, subpart 9, item A
new text end
new text begin 7861.0320, subpart 1, item F
new text end
new text begin 7861.0320, subpart 1, item D
new text end

Sec. 23. new text beginSUPERSEDING ACT.
new text end

new text begin Any repeal enacted in the 2015 session of the legislature to a section amended
in this act is void.
new text end

Sec. 24. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 349.19, subdivision 9b, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2015.
new text end