Office of the Revisor of Statutes
Minnesota Session Laws - 1997, Regular Session
Key: (1) language to be deleted (2) new language
CHAPTER 155-S.F.No. 566
An act relating to lawful gambling; authorizing
certain groupings of paddleticket cards; authorizing
certain lawful purpose expenditures; increasing
percentage of lawful gambling gross profits that may
be spent for expenses; restricting authority of
gambling control board to impose sanctions against
lawful gambling premises permits for illegal gambling;
increasing maximum bingo prices; authorizing certain
social skill games; amending Minnesota Statutes 1996,
sections 297E.04, subdivision 3; 349.12, subdivisions
25 and 26a; 349.15, subdivision 1; 349.155, by adding
a subdivision; 349.16, by adding a subdivision;
349.163, subdivision 8; 349.211, subdivisions 1 and 2;
and 609.761, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 1996, section 297E.04,
subdivision 3, is amended to read:
Subd. 3. [PADDLETICKET CARD MASTER FLARES.] Each sealed
grouping of 100 or fewer paddleticket cards must have its own
individual master flare. The manufacturer of the paddleticket
cards must affix to or imprint at the bottom of each master
flare a bar code that provides:
(1) the name of the manufacturer;
(2) the first paddleticket card number in the group;
(3) the number of paddletickets attached to each
paddleticket card in the group; and
(4) all other information required by the commissioner.
This subdivision applies to paddleticket cards (i) sold by a
manufacturer after June 30, 1995, for use or resale in Minnesota
or (ii) shipped into or caused to be shipped into Minnesota by a
manufacturer after June 30, 1995. Paddleticket cards that are
subject to this subdivision may not have a registration stamp
affixed to the master flare.
Sec. 2. Minnesota Statutes 1996, 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
program recognized by the Minnesota department of human services
for the education, prevention, or treatment of compulsive
gambling;
(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) for premises used for bingo, the amount that an
organization may expend under board rules on rent for bingo; and
(ii) $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 85.019, or (2) other trails open to public use,
including purchase or lease of equipment for this purpose; or
(15) conducting nutritional programs, food shelves, and
congregate dining programs primarily for persons who are age 62
or older or disabled.
(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. 3. Minnesota Statutes 1996, section 349.12,
subdivision 26a, is amended to read:
Subd. 26a. [MASTER FLARE.] "Master flare" is the posted
display, with registration stamp affixed or bar code imprinted
or affixed, that is used in conjunction with sealed groupings of
100 or fewer sequentially numbered paddleticket cards.
Sec. 4. Minnesota Statutes 1996, section 349.15,
subdivision 1, is amended to read:
Subdivision 1. [EXPENDITURE RESTRICTIONS.] Gross profits
from lawful gambling may be expended only for lawful purposes or
allowable expenses as authorized by the membership of the
conducting organization at a monthly meeting of the
organization's membership. Provided that no more than 60 65
percent of the gross profit less the tax imposed under section
297E.02, subdivision 1, from bingo, and no more than 50 55
percent of the gross profit from other forms of lawful gambling,
may be expended for allowable expenses related to lawful
gambling.
Sec. 5. Minnesota Statutes 1996, section 349.155, is
amended by adding a subdivision to read:
Subd. 4a. [ILLEGAL GAMBLING.] The board may not deny,
suspend, revoke, or refuse to renew an organization's premises
permit because illegal gambling occurred at the site for which
the premises permit was issued, unless the board determines that:
(1) the organization knowingly participated in the illegal
gambling; or (2) the organization or any of its agents knew or
reasonably should have known of the illegal gambling and the
organization did not notify the lessor of the premises, in
writing and with specificity, that illegal gambling was being
conducted on the premises and requesting that the lessor take
appropriate action.
Sec. 6. Minnesota Statutes 1996, section 349.16, is
amended by adding a subdivision to read:
Subd. 10. [LICENSE RENEWAL TO MERGED FIRE RELIEF
ASSOCIATIONS.] A new relief association formed from the merger
of the relief associations of two separate city fire
departments, mandated under Laws 1995, chapter 262, article 11,
may apply for a license renewal under this section. The board
shall consider the application as a license renewal of one of
the relief associations that is a licensed organization and was
merged to form the new relief association.
Sec. 7. Minnesota Statutes 1996, section 349.163,
subdivision 8, is amended to read:
Subd. 8. [PADDLETICKET CARD MASTER FLARES.] Each sealed
grouping of 100 or fewer paddleticket cards must have its own
individual master flare. The manufacturer must affix to or
imprint at the bottom of the master flare a bar code that
provides all information required by the commissioner of revenue
under section 297E.04, subdivision 3.
This subdivision applies to paddleticket cards sold by a
manufacturer after June 30, 1995, for use or resale in Minnesota
or shipped into or caused to be shipped into Minnesota by a
manufacturer after June 30, 1995. Paddleticket cards which are
subject to this subdivision shall not have a registration stamp
affixed to the master flare.
Sec. 8. Minnesota Statutes 1996, 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 $200
except prizes for a cover-all game, which may exceed $100 $200
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. 9. Minnesota Statutes 1996, section 349.211,
subdivision 2, is amended to read:
Subd. 2. [PROGRESSIVE BINGO GAMES.] A prize of up to
$1,000 $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 $300 and be increased by up to $100 for each
occasion during which the progressive bingo game is played. A
consolation prize of up to $100 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. The total
amount awarded in progressive bingo game prizes in any calendar
year may not exceed $36,000.
Sec. 10. Minnesota Statutes 1996, section 609.761, is
amended by adding a subdivision to read:
Subd. 3. [SOCIAL SKILL GAME.] Sections 609.755 and 609.76
do not prohibit tournaments or contests that satisfy all of the
following requirements:
(1) the tournament or contest consists of the card games of
chance commonly known as cribbage, skat, sheephead, bridge,
euchre, pinochle, gin, 500, smear, or whist;
(2) the tournament or contest does not provide any direct
financial benefit to the promoter or organizer; and
(3) the sum of all prizes awarded for each tournament or
contest does not exceed $200.
Sec. 11. [EFFECTIVE DATE.]
Sections 1 to 10 are effective the day following final
enactment.
Presented to the governor May 14, 1997
Signed by the governor May 15, 1997, 3:35 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes