Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 705-H.F.No. 1941 
           An act relating to gambling; increasing the time 
          period allowed for cities and counties to review 
          license applications; providing that promotions 
          conducted in connection with payroll deduction 
          campaigns are not lotteries; amending Minnesota 
          Statutes 1986, sections 349.213, subdivision 2; and 
          609.75, subdivision 1.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 349.213, 
subdivision 2, is amended to read:  
    Subd. 2.  [LOCAL APPROVAL.] Before issuing or renewing an 
organization license, the board must notify the city council of 
the statutory or home rule city in which the organization's 
premises are located or, if the premises are located outside a 
city, by the county board of the county and the town board of 
the town where the premises are located.  If the city council or 
county board adopts a resolution disapproving the license and so 
informs the board within 30 60 days of receiving notice of the 
license, the license may not be issued or renewed. 
    Sec. 2.  Minnesota Statutes 1986, 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.  
    (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 who have made a contribution through a payroll or 
pension deduction campaign to a registered combined charitable 
organization, within the meaning of section 309.501, as a 
precondition to the chance of being selected, is not a lottery 
if: 
    (1) all of the persons eligible to be selected are employed 
by or retirees of the employer; 
    (2) the cost of the property or other reward or benefit 
distributed and all costs associated with the distribution are 
borne by the employer; and 
    (3) the total amount actually expended by the employer to 
obtain the property or other rewards or benefits distributed by 
the employer during the calendar year does not exceed $500. 
    Approved May 4, 1988