SF 759

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to lawful gambling; modifying the definition
of "raffle"; amending Minnesota Statutes 2004,
sections 349.12, subdivision 33; 349.173; 609.75,
subdivision 1.

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

Section 1.

Minnesota Statutes 2004, section 349.12,
subdivision 33, is amended to read:

Subd. 33.

Raffle.

"Raffle" means a game in which a
participant buys a ticket deleted text begin for a chance at a prize with the
winner determined by a random drawing to take place at a
location and date printed upon the ticket deleted text end new text begin or other certificate
of participation in an event where the prize determination is
based on a method of random selection and all entries have an
equal chance of selection. The ticket or certificate of
participation must include the location, date, and time of the
selection of the winning entries new text end .

Sec. 2.

Minnesota Statutes 2004, section 349.173, is
amended to read:

349.173 CONDUCT OF RAFFLES.

new text begin (a) new text end Raffle tickets new text begin or certificates of participation new text end at a
minimum must list the three most expensive prizes to be
awarded. If additional prizes will be awarded deleted text begin that are not
contained on the raffle ticket, the raffle ticket must contain
the statement "A complete list of additional prizes is available
upon request." deleted text end new text begin , a complete list of additional prizes must be
publicly posted at the event and copies of the complete prize
list made available upon request. new text end Notwithstanding section
349.12, subdivision 33, 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 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.

new text begin (b) Raffles must be conducted in a manner that ensures:
new text end

new text begin (1) all entries in the raffle have an equal chance of
selection;
new text end

new text begin (2) entry is not conditional upon any purchase other than
the ticket or certificate of participation in the event;
new text end

new text begin (3) the method of selection is conducted in a public forum;
new text end

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

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

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

new text begin (c) 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 end

Sec. 3.

Minnesota Statutes 2004, section 609.75,
subdivision 1, is amended to read:

Subdivision 1.

Lottery.

(a) A lottery is a plan which
provides for the distribution of money, property or other reward
or benefit to persons selected by chance from among participants
some or all of whom have given a consideration for the chance of
being selected. A participant's payment for use of a 900
telephone number or another means of communication that results
in payment to the sponsor of the plan constitutes consideration
under this paragraph.

(b) An in-package chance promotion is not a lottery if all
of the following are met:

(1) participation is available, free and without purchase
of the package, from the retailer or by mail or toll-free
telephone request to the sponsor for entry or for a game piece;

(2) the label of the promotional package and any related
advertising clearly states any method of participation and the
scheduled termination date of the promotion;

(3) the sponsor on request provides a retailer with a
supply of entry forms or game pieces adequate to permit free
participation in the promotion by the retailer's customers;

(4) the sponsor does not misrepresent a participant's
chances of winning any prize;

(5) the sponsor randomly distributes all game pieces and
maintains records of random distribution for at least one year
after the termination date of the promotion;

(6) all prizes are randomly awarded if game pieces are not
used in the promotion; and

(7) the sponsor provides on request of a state agency a
record of the names and addresses of all winners of prizes
valued at $100 or more, if the request is made within one year
after the termination date of the promotion.

(c) Except as provided by section 349.40, acts in this
state in furtherance of a lottery conducted outside of this
state are included notwithstanding its validity where conducted.

(d) The distribution of property, or other reward or
benefit by an employer to persons selected by chance from among
participants deleted text begin who deleted text end new text begin , all of whom:
new text end

new text begin (1) new text end have made a contribution through a payroll or pension
deduction campaign to a registered combined charitable
organization, within the meaning of section 309.501 new text begin ; or
new text end

new text begin (2) have paid other consideration to the employer entirely
for the benefit of such a registered combined charitable
organization new text end , as a precondition to the chance of being selected,
is not a lottery if:

deleted text begin (1) deleted text end new text begin (i) new text end all of the persons eligible to be selected are
employed by or retirees of the employer; and

deleted text begin (2) deleted text end new text begin (ii) new text end the cost of the property or other reward or
benefit distributed and all costs associated with the
distribution are borne by the employer.

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective the day following final enactment.
new text end