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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 261-H.F.No. 265 
                  An act relating to gambling; making technical 
                  amendments to eliminate references to teleracing 
                  facilities; regulating testing facilities for the 
                  testing of gambling devices; regulating bingo and 
                  lawful purpose expenditures, and credit and sales to 
                  delinquent organizations; providing for contributions 
                  to certain compulsive gambling programs; amending 
                  Minnesota Statutes 1994, sections 240.01, subdivisions 
                  18 and 23; 240.10; 240.19; 240.23; 240.27, 
                  subdivisions 2, 3, 4, and 5; 299L.01, subdivision 1; 
                  299L.03, subdivision 1; 299L.05; 299L.07, subdivisions 
                  1, 2, 4, 5, 6, and by adding a subdivision; 349.12, 
                  subdivision 25, and by adding a subdivision; 349.162, 
                  subdivision 1; 349.17, subdivision 1; 349.191, 
                  subdivision 1a; and 349.211, subdivision 1; proposing 
                  coding for new law in Minnesota Statutes, chapter 
                  299L; repealing Minnesota Statutes 1994, section 
                  240.01, subdivisions 17 and 21. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 240.01, 
        subdivision 18, is amended to read: 
           Subd. 18.  [ON-TRACK PARI-MUTUEL BETTING.] "On-track 
        pari-mutuel betting" means wagering conducted at a licensed 
        racetrack, or at a class E licensed facility whose wagering 
        system is electronically linked to a licensed racetrack. 
           Sec. 2.  Minnesota Statutes 1994, section 240.01, 
        subdivision 23, is amended to read: 
           Subd. 23.  [FULL RACING CARD.] "Full racing card" means 
        three or more races that are:  (1) part of a horse racing 
        program being conducted at a racetrack; and (2) being simulcast 
        or telerace simulcast at a licensed racetrack or teleracing 
        facility. 
           Sec. 3.  Minnesota Statutes 1994, section 240.10, is 
        amended to read: 
           240.10 [LICENSE FEES.] 
           The fee for a class A license is $10,000 per year.  The fee 
        for a class B license is $100 for each assigned racing day on 
        which racing is actually conducted, and $50 for each day on 
        which simulcasting is authorized and actually takes place.  The 
        fee for a class D license is $50 for each assigned racing day on 
        which racing is actually conducted.  The fee for a class E 
        license is $1,000 per year.  Fees imposed on class B and class D 
        licenses must be paid to the commission at a time and in a 
        manner as provided by rule of the commission.  
           The commission shall by rule establish an annual license 
        fee for each occupation it licenses under section 240.08 but no 
        annual fee for a class C license may exceed $100.  
           License fee payments received must be paid by the 
        commission to the state treasurer for deposit in the general 
        fund. 
           Sec. 4.  Minnesota Statutes 1994, section 240.19, is 
        amended to read: 
           240.19 [CONTRACTS.] 
           The commission shall by rule require that all contracts 
        entered into by a class A, class B, or class D, or class E 
        licensee for the provision of goods or services, including 
        concessions contracts, be subject to commission approval.  The 
        rules must require that the contract include an affirmative 
        action plan establishing goals and timetables consistent with 
        the Minnesota Human Rights Act, chapter 363.  The rules may also 
        establish goals to provide economic opportunity for 
        disadvantaged and emerging small businesses, racial minorities, 
        women, and disabled individuals.  The commission may require a 
        contract holder to submit to it documents and records the 
        commission deems necessary to evaluate the contract.  
           Sec. 5.  Minnesota Statutes 1994, section 240.23, is 
        amended to read: 
           240.23 [RULEMAKING AUTHORITY.] 
           The commission has the authority, in addition to all other 
        rulemaking authority granted elsewhere in this chapter to 
        promulgate rules governing:  
           (a) the conduct of horse races held at licensed racetracks 
        in Minnesota, including but not limited to the rules of racing, 
        standards of entry, operation of claiming races, filing and 
        handling of objections, carrying of weights, and declaration of 
        official results; 
           (b) wire communications between the premises of a licensed 
        racetrack and any place outside the premises; 
           (c) information on horse races which is sold on the 
        premises of a licensed racetrack; 
           (d) liability insurance which it may require of all class 
        A, class B, and class D, and class E licensees; 
           (e) the auditing of the books and records of a licensee by 
        an auditor employed or appointed by the commission; 
           (f) emergency action plans maintained by licensed 
        racetracks and their periodic review; 
           (g) safety, security, and sanitation of stabling facilities 
        at licensed racetracks; 
           (h) entry fees and other funds received by a licensee in 
        the course of conducting racing which the commission determines 
        must be placed in escrow accounts; 
           (i) affirmative action in employment and contracting by 
        class A, class B, and class D licensees; and 
           (j) the operation of teleracing facilities; and 
           (k) any other aspect of horse racing or pari-mutuel betting 
        which in its opinion affects the integrity of racing or the 
        public health, welfare, or safety.  
           Rules of the commission are subject to chapter 14, the 
        Administrative Procedure Act. 
           Sec. 6.  Minnesota Statutes 1994, section 240.27, 
        subdivision 2, is amended to read: 
           Subd. 2.  [HEARING; APPEAL.] An order to exclude a person 
        from any or all licensed racetracks or licensed teleracing 
        facilities in the state must be made by the commission at a 
        public hearing of which the person to be excluded must have at 
        least five days' notice.  If present at the hearing, the person 
        must be permitted to show cause why the exclusion should not be 
        ordered.  An appeal of the order may be made in the same manner 
        as other appeals under section 240.20. 
           Sec. 7.  Minnesota Statutes 1994, section 240.27, 
        subdivision 3, is amended to read: 
           Subd. 3.  [NOTICE TO RACETRACKS.] Upon issuing an order 
        excluding a person from any or all licensed racetracks or 
        licensed teleracing facilities, the commission shall send a copy 
        of the order to the excluded person and to all racetracks or 
        teleracing facilities named in it, along with other information 
        as it deems necessary to permit compliance with the order.  
           Sec. 8.  Minnesota Statutes 1994, section 240.27, 
        subdivision 4, is amended to read: 
           Subd. 4.  [PROHIBITIONS.] It is a gross misdemeanor for a 
        person named in an exclusion order to enter, attempt to enter, 
        or be on the premises of a racetrack or a teleracing facility 
        named in the order while it is in effect, and for a person 
        licensed to conduct racing or operate a racetrack or a 
        teleracing facility knowingly to permit an excluded person to 
        enter or be on the premises.  
           Sec. 9.  Minnesota Statutes 1994, section 240.27, 
        subdivision 5, is amended to read: 
           Subd. 5.  [EXCLUSIONS BY RACETRACK.] The holder of a 
        license to conduct racing or operate a teleracing facility may 
        eject and exclude from its premises any licensee or any other 
        person who is in violation of any state law or commission rule 
        or order or who is a threat to racing integrity or the public 
        safety.  A person so excluded from racetrack premises or 
        teleracing facility may appeal the exclusion to the commission 
        and must be given a public hearing on the appeal upon request.  
        At the hearing the person must be given the opportunity to show 
        cause why the exclusion should not have been ordered.  If the 
        commission after the hearing finds that the integrity of racing 
        and the public safety do not justify the exclusion, it shall 
        order the racetrack or teleracing facility making the exclusion 
        to reinstate or readmit the person.  An appeal of a commission 
        order upholding the exclusion is governed by section 240.20. 
           Sec. 10.  Minnesota Statutes 1994, section 299L.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [DEFINITIONS.] (a) For the purposes of this 
        chapter, the terms defined in this subdivision have the meanings 
        given them. 
           (b) "Division" means the division of gambling enforcement.  
           (c) "Commissioner" means the commissioner of public safety. 
           (d) "Director" means the director of gambling enforcement.  
           (e) "Manufacturer" means a person who assembles from raw 
        materials or subparts a gambling device for sale or use in 
        Minnesota. 
           (f) "Distributor" means a person who sells, offers to sell, 
        or otherwise provides a gambling device to a person in Minnesota.
           (g) "Used gambling device" means a gambling device five or 
        more years old from the date of manufacture. 
           (h) "Test" means the process of examining a gambling device 
        to determine its characteristics or compliance with the 
        established requirements of any jurisdiction. 
           (i) "Testing facility" means a person in Minnesota who is 
        engaged in the testing of gambling devices for use in any 
        jurisdiction. 
           Sec. 11.  Minnesota Statutes 1994, section 299L.03, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [INSPECTIONS; ACCESS.] In conducting any 
        inspection authorized under this chapter or chapter 240, 349, or 
        349A, the employees of the division of gambling enforcement have 
        free and open access to all parts of the regulated business 
        premises, and may conduct the inspection at any reasonable time 
        without notice and without a search warrant.  For purposes of 
        this subdivision, "regulated business premises" means premises 
        where: 
           (1) lawful gambling is conducted by an organization 
        licensed under chapter 349 or by an organization exempt from 
        licensing under section 349.166; 
           (2) gambling equipment is manufactured, sold, distributed, 
        or serviced by a manufacturer or distributor licensed under 
        chapter 349; 
           (3) records required to be maintained under chapter 240, 
        297E, 349, or 349A are prepared or retained; 
           (4) lottery tickets are sold by a lottery retailer under 
        chapter 340A; 
           (5) races are conducted by a person licensed under chapter 
        240; or 
           (6) gambling devices are manufactured or, distributed, or 
        tested, including places of storage under section 299L.07. 
           Sec. 12.  Minnesota Statutes 1994, section 299L.05, is 
        amended to read: 
           299L.05 [GAMBLING VIOLATIONS; RESTRICTIONS ON FURTHER 
        ACTIVITY.] 
           An owner of an establishment is prohibited from having 
        lawful gambling under chapter 349 conducted on the premises, or 
        selling any lottery tickets under chapter 349A, or having a 
        video game of chance as defined under section 349.50 located on 
        the premises, if a person was convicted of violating section 
        609.76, subdivision 1, clause (7), or 609.76, subdivision (2), 
        for an activity occurring on the owner's premises. 
           Sec. 13.  Minnesota Statutes 1994, section 299L.07, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [LICENSE REQUIRED.] Except as provided in 
        subdivision 2, a person may not (1) manufacture, sell, offer to 
        sell, lease, rent, or otherwise provide, in whole or in part, a 
        gambling device as defined in sections 349.30, subdivision 2, 
        and 609.75, subdivision 4, or (2) operate a testing facility, 
        without first obtaining a license under this section.  
           Sec. 14.  Minnesota Statutes 1994, section 299L.07, 
        subdivision 2, is amended to read: 
           Subd. 2.  [EXCLUSIONS.] Notwithstanding subdivision 1, a 
        gambling device: 
           (1) may be manufactured without a license as provided in 
        section 349.40; and 
           (2) may be sold by a person who is not licensed under this 
        section, if the person (i) is not engaged in the trade or 
        business of selling gambling devices, and (ii) does not sell 
        more than one gambling device in any calendar year; 
           (2) may be possessed by a person not licensed under this 
        section if the person holds a permit issued under section 
        299L.08; and 
           (3) may be possessed by a state agency, with the written 
        authorization of the director, for display or evaluation 
        purposes only and not for the conduct of gambling.  
           Sec. 15.  Minnesota Statutes 1994, section 299L.07, is 
        amended by adding a subdivision to read: 
           Subd. 2b.  [TESTING FACILITIES.] (a) A person holding a 
        license to operate a testing facility may possess a gambling 
        device only for the purpose of performing tests on the gambling 
        device. 
           (b) No person may hold a license to operate a testing 
        facility under this section who is licensed as a manufacturer or 
        distributor of gambling devices under this section or as a 
        manufacturer or distributor of gambling equipment under chapter 
        349. 
           Sec. 16.  Minnesota Statutes 1994, section 299L.07, 
        subdivision 4, is amended to read: 
           Subd. 4.  [APPLICATION.] An application for a 
        manufacturer's or distributor's license under this section must 
        be on a form prescribed by the commissioner and must, at a 
        minimum, contain: 
           (1) the name and address of the applicant and, if it is a 
        corporation, the names of all officers, directors, and 
        shareholders with a financial interest of five percent or more; 
           (2) the names and addresses of any holding corporation, 
        subsidiary, or affiliate of the applicant, without regard to 
        whether the holding corporation, subsidiary, or affiliate does 
        business in Minnesota; and 
           (3) if the applicant does not maintain a Minnesota office, 
        an irrevocable consent statement signed by the applicant, 
        stating that suits and actions relating to the subject matter of 
        the application or acts of omissions arising from it may be 
        commenced against the applicant in a court of competent 
        jurisdiction in this state by service on the secretary of state 
        of any summons, process, or pleadings authorized by the laws of 
        this state.  If any summons, process, or pleading is served upon 
        the secretary of state, it must be by duplicate copies.  One 
        copy must be retained in the office of the secretary of state 
        and the other copy must be forwarded immediately by certified 
        mail to the address of the applicant, as shown on the 
        application.  
           Sec. 17.  Minnesota Statutes 1994, section 299L.07, 
        subdivision 5, is amended to read: 
           Subd. 5.  [INVESTIGATION.] Before a manufacturer's or 
        distributor's license under this section is granted, the 
        director may conduct a background and financial investigation of 
        the applicant, including the applicant's sources of financing.  
        The director may, or shall when required by law, require that 
        fingerprints be taken and the director may forward the 
        fingerprints to the Federal Bureau of Investigation for a 
        national criminal history check.  The director may charge an 
        investigation fee to cover the cost of the investigation. 
           Sec. 18.  Minnesota Statutes 1994, section 299L.07, 
        subdivision 6, is amended to read: 
           Subd. 6.  [LICENSE FEES.] (a) A license issued under this 
        section is valid for one year. 
           (b) For a person who distributes 100 or fewer used gambling 
        devices per year, the fee is $1,500.  For a person who 
        distributes more than 100 used gambling devices per year, the 
        fee is $2,000.  
           (c) For a person who manufactures or distributes 100 or 
        fewer new, or new and used gambling devices in a year, the fee 
        is $5,000.  For a person who manufactures or distributes more 
        than 100 new, or new and used gambling devices in a year, the 
        fee is $7,500. 
           (d) For a testing facility the fee is $5,000. 
           Sec. 19.  [299L.08] [TEMPORARY POSSESSION; PERMIT.] 
           Subdivision 1.  [PERMIT AUTHORIZED.] The director may issue 
        a temporary permit for a person to possess a gambling device for 
        the purpose of displaying the gambling device at a trade show, 
        convention, or other event where gambling devices are displayed. 
           Subd. 2.  [APPLICATION; FEE.] An application for a 
        temporary permit under this section must contain: 
           (1) the applicant's name, address, and telephone number; 
           (2) the name, date, and location of the event where the 
        gambling device will be displayed; 
           (3) the method or methods by which the gambling device will 
        be transported to the event, including the name of all carriers 
        performing the transportation and the date of expected shipment; 
           (4) the individual or individuals who will be responsible 
        for the gambling device while it is in Minnesota; 
           (5) the type, make, model, and serial number of the device; 
           (6) the location where the device will be stored in 
        Minnesota while not at the event location; 
           (7) the date on which the device will be transported 
        outside Minnesota; 
           (8) evidence satisfactory to the director that the 
        applicant is registered and in compliance with United States 
        Code, title 15, sections 1171 to 1178; and 
           (9) other information the director deems necessary. 
           The fee for a permit under this section is $100. 
           Subd. 3.  [TERMS.] A permit under this section authorizes 
        possession of a gambling device only during the period and for 
        the event named in the permit.  The permit authorizes the 
        possession of a gambling device for display, educational, and 
        information purposes only, and does not authorize the conduct of 
        any gambling.  The permit may not extend for more than 72 hours 
        beyond the end of the event named in the permit. 
           Subd. 4.  [INSPECTION.] The director may conduct 
        inspections of events where gambling devices are displayed to 
        ensure compliance with this section and other laws relating to 
        gambling. 
           Sec. 20.  Minnesota Statutes 1994, section 349.12, is 
        amended by adding a subdivision to read: 
           Subd. 15a.  [FESTIVAL ORGANIZATION.] "Festival 
        organization" is an organization conducting a community festival 
        that is exempt from the payment of federal income taxes under 
        section 501(c)(4) of the Internal Revenue Code. 
           Sec. 21.  Minnesota Statutes 1994, section 349.12, 
        subdivision 25, is amended to read: 
           Subd. 25.  [LAWFUL PURPOSE.] (a) "Lawful purpose" means one 
        or more of the following:  
           (1) any expenditure by or contribution to a 501(c)(3) or 
        festival organization, as defined in subdivision 15a, provided 
        that the organization and expenditure or contribution are in 
        conformity with standards prescribed by the board under section 
        349.154, which standards must apply to both types of 
        organizations in the same manner and to the same extent; 
           (2) a contribution to an individual or family suffering 
        from poverty, homelessness, or physical or mental disability, 
        which is used to relieve the effects of that poverty, 
        homelessness, or disability; 
           (3) a contribution to an individual for treatment for 
        delayed posttraumatic stress syndrome or a contribution to a 
        recognized program recognized by the Minnesota department of 
        human services for the education, prevention, or treatment of 
        compulsive gambling on behalf of an individual who is a 
        compulsive gambler; 
           (4) a contribution to or expenditure on a public or private 
        nonprofit educational institution registered with or accredited 
        by this state or any other state; 
           (5) a contribution to a scholarship fund for defraying the 
        cost of education to individuals where the funds are awarded 
        through an open and fair selection process; 
           (6) activities by an organization or a government entity 
        which recognize humanitarian or military service to the United 
        States, the state of Minnesota, or a community, subject to rules 
        of the board, provided that the rules must not include mileage 
        reimbursements in the computation of the per occasion 
        reimbursement limit and must impose no aggregate annual limit on 
        the amount of reasonable and necessary expenditures made to 
        support: 
           (i) members of a military marching or colorguard unit for 
        activities conducted within the state; or 
           (ii) members of an organization solely for services 
        performed by the members at funeral services; 
           (7) recreational, community, and athletic facilities and 
        activities intended primarily for persons under age 21, provided 
        that such facilities and activities do not discriminate on the 
        basis of gender and the organization complies with section 
        349.154; 
           (8) payment of local taxes authorized under this chapter, 
        taxes imposed by the United States on receipts from lawful 
        gambling, the taxes imposed by section 297E.02, subdivisions 1, 
        4, 5, and 6, and the tax imposed on unrelated business income by 
        section 290.05, subdivision 3; 
           (9) payment of real estate taxes and assessments on 
        permitted gambling premises wholly owned by the licensed 
        organization paying the taxes, not to exceed: 
           (i) the amount which an organization may expend under board 
        rule on rent for premises used for bingo, the amount that an 
        organization may expend under board rules on rent for bingo; or 
        and 
           (ii) $15,000 $35,000 per year for premises used for other 
        forms of lawful gambling; 
           (10) a contribution to the United States, this state or any 
        of its political subdivisions, or any agency or instrumentality 
        thereof other than a direct contribution to a law enforcement or 
        prosecutorial agency; 
           (11) a contribution to or expenditure by a nonprofit 
        organization which is a church or body of communicants gathered 
        in common membership for mutual support and edification in 
        piety, worship, or religious observances; 
           (12) payment of one-half of the reasonable costs of an 
        audit required in section 297E.06, subdivision 4; 
           (13) a contribution to or expenditure on a wildlife 
        management project that benefits the public at-large, provided 
        that the state agency with authority over that wildlife 
        management project approves the project before the contribution 
        or expenditure is made; or 
           (14) expenditures, approved by the commissioner of natural 
        resources, by an organization for grooming and maintaining 
        snowmobile trails that are (1) grant-in-aid trails established 
        under section 116J.406, or (2) other trails open to public use, 
        including purchase or lease of equipment for this purpose. 
           (b) Notwithstanding paragraph (a), "lawful purpose" does 
        not include: 
           (1) any expenditure made or incurred for the purpose of 
        influencing the nomination or election of a candidate for public 
        office or for the purpose of promoting or defeating a ballot 
        question; 
           (2) any activity intended to influence an election or a 
        governmental decision-making process; 
           (3) the erection, acquisition, improvement, expansion, 
        repair, or maintenance of real property or capital assets owned 
        or leased by an organization, unless the board has first 
        specifically authorized the expenditures after finding that (i) 
        the real property or capital assets will be used exclusively for 
        one or more of the purposes in paragraph (a); (ii) with respect 
        to expenditures for repair or maintenance only, that the 
        property is or will be used extensively as a meeting place or 
        event location by other nonprofit organizations or community or 
        service groups and that no rental fee is charged for the use; 
        (iii) with respect to expenditures, including a mortgage payment 
        or other debt service payment, for erection or acquisition only, 
        that the erection or acquisition is necessary to replace with a 
        comparable building, a building owned by the organization and 
        destroyed or made uninhabitable by fire or natural disaster, 
        provided that the expenditure may be only for that part of the 
        replacement cost not reimbursed by insurance; or (iv) with 
        respect to expenditures, including a mortgage payment or other 
        debt service payment, for erection or acquisition only, that the 
        erection or acquisition is necessary to replace with a 
        comparable building a building owned by the organization that 
        was acquired from the organization by eminent domain or sold by 
        the organization to a purchaser that the organization reasonably 
        believed would otherwise have acquired the building by eminent 
        domain, provided that the expenditure may be only for that part 
        of the replacement cost that exceeds the compensation received 
        by the organization for the building being replaced; 
           (4) an expenditure by an organization which is a 
        contribution to a parent organization, foundation, or affiliate 
        of the contributing organization, if the parent organization, 
        foundation, or affiliate has provided to the contributing 
        organization within one year of the contribution any money, 
        grants, property, or other thing of value; 
           (5) a contribution by a licensed organization to another 
        licensed organization unless the board has specifically 
        authorized the contribution.  The board must authorize such a 
        contribution when requested to do so by the contributing 
        organization unless it makes an affirmative finding that the 
        contribution will not be used by the recipient organization for 
        one or more of the purposes in paragraph (a); or 
           (6) a contribution to a statutory or home rule charter 
        city, county, or town by a licensed organization with the 
        knowledge that the governmental unit intends to use the 
        contribution for a pension or retirement fund. 
           Sec. 22.  Minnesota Statutes 1994, section 349.162, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [STAMP REQUIRED.] (a) A distributor may not 
        sell, transfer, furnish, or otherwise provide to a person, and 
        no person may purchase, borrow, accept, or acquire from a 
        distributor gambling equipment for use within the state unless 
        the equipment has been registered with the board and has a 
        registration stamp affixed, except for gambling equipment not 
        stamped by the manufacturer pursuant to section 349.163, 
        subdivision 5 or 8.  The board shall charge a fee of five cents 
        for each stamp.  Each stamp must bear a registration number 
        assigned by the board.  A distributor or manufacturer is 
        entitled to a refund for unused registration stamps and 
        replacement for registration stamps which are defective or 
        canceled by the distributor or manufacturer. 
           (b) A manufacturer must return all unused registration 
        stamps in its possession to the board by February 1, 1995.  No 
        manufacturer may possess unaffixed registration stamps after 
        February 1, 1995. 
           (c) After February 1, 1996, no person may possess any 
        unplayed pull-tab or tipboard deals with a registration stamp 
        affixed to the flare or any unplayed paddleticket cards with a 
        registration stamp affixed to the master flare.  This paragraph 
        does not apply to unplayed pull-tab or tipboard deals with a 
        registration stamp affixed to the flare, or to unplayed 
        paddleticket cards with a registration stamp affixed to the 
        master flare, if the deals or cards are identified on a list of 
        existing inventory submitted by a licensed organization or a 
        licensed distributor, in a format prescribed by the commissioner 
        of revenue, to the commissioner of revenue on or before February 
        1, 1996.  Gambling equipment kept in violation of this paragraph 
        is contraband under section 349.2125. 
           Sec. 23.  Minnesota Statutes 1994, section 349.17, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BINGO OCCASIONS.] Not more than seven ten 
        bingo occasions each week may be conducted by an organization.  
        At least 15 bingo games must be held at each occasion and a 
        bingo occasion must continue for at least 1-1/2 hours but not 
        more than four consecutive hours. 
           Sec. 24.  Minnesota Statutes 1994, section 349.191, 
        subdivision 1a, is amended to read: 
           Subd. 1a.  [CREDIT AND SALES TO DELINQUENT ORGANIZATIONS.] 
        (a) If a distributor does not receive payment in full from an 
        organization within 30 35 days of the delivery of gambling 
        equipment, the distributor must notify the board in writing of 
        the delinquency. 
           (b) If a distributor who has notified the board under 
        paragraph (a) has not received payment in full from the 
        organization within 60 days of the notification under paragraph 
        (a), the distributor must notify the board of the continuing 
        delinquency. 
           (c) On receipt of a notice under paragraph (a), the board 
        shall order all distributors that until further notice from the 
        board, they may sell gambling equipment to the delinquent 
        organizations only on a cash basis with no credit extended.  On 
        receipt of a notice under paragraph (b), the board shall order 
        all distributors not to sell any gambling equipment to the 
        delinquent organization. 
           (d) No distributor may extend credit or sell gambling 
        equipment to an organization in violation of an order under 
        paragraph (c) until the board has authorized such credit or sale.
           Sec. 25.  Minnesota Statutes 1994, section 349.211, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [BINGO.] Except as provided in subdivision 
        2, prizes for a single bingo game may not exceed $100 except 
        prizes for a cover-all game, which may exceed $100 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 $2,500, unless a cover-all game is played in which 
        case the limit is $3,500.  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. 
           Sec. 26.  [REPEALER.] 
           Minnesota Statutes 1994, section 240.01, subdivisions 17, 
        20, and 21, are repealed. 
           Sec. 27.  [EFFECTIVE DATE.] 
           Sections 1 to 26 are effective the day following final 
        enactment. 
           Presented to the governor May 30, 1995 
           Signed by the governor June 1, 1995, 11:16 a.m.