1.1                          A bill for an act 
  1.2             relating to gambling; lawful gambling and gambling 
  1.3             devices; making technical, clarifying, and conforming 
  1.4             changes; deleting obsolete language; amending 
  1.5             Minnesota Statutes 2000, sections 349.162, subdivision 
  1.6             2; 349.163, subdivisions 1, 3, 5; 349.165, subdivision 
  1.7             2; 349.167, subdivision 7; 349.168, subdivision 5; 
  1.8             349.19, subdivision 5; 349.191, subdivisions 1a, 1b; 
  1.9             Minnesota Statutes 2001 Supplement, section 349.168, 
  1.10            subdivision 1; repealing Minnesota Statutes 2000, 
  1.11            sections 349.12, subdivision 14; 349.163, subdivision 
  1.12            6a; 349.17, subdivision 2a; 349.174. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2000, section 349.162, 
  1.15  subdivision 2, is amended to read: 
  1.16     Subd. 2.  [RECORDS REQUIRED.] A distributor must maintain a 
  1.17  record of all gambling equipment which it sells to organizations 
  1.18  as required by section 297E.05, subdivision 2, and provide 
  1.19  copies of the record to the board upon demand.  The record must 
  1.20  include:  
  1.21     (1) the identity of the person from whom the distributor 
  1.22  purchased the equipment; 
  1.23     (2) the registration number of the equipment; 
  1.24     (3) the name, address, and license or exempt permit number 
  1.25  of the organization to which the sale was made; 
  1.26     (4) the date of the sale; 
  1.27     (5) the name of the person who ordered the equipment; 
  1.28     (6) the name of the person who received the equipment; 
  1.29     (7) the type of equipment; 
  2.1      (8) the serial number of the equipment; 
  2.2      (9) the name, form number, or other identifying information 
  2.3   for each game; and 
  2.4      (10) in the case of bingo hard cards or paper sheets sold 
  2.5   on and after January 1, 1991, the individual number of each card 
  2.6   or sheet. 
  2.7      The invoice for each sale must be retained for at least 
  2.8   3-1/2 years after the sale is completed and a copy of each 
  2.9   invoice is to be delivered to the board in the manner and time 
  2.10  prescribed by the board.  For purposes of this section, a sale 
  2.11  is completed when the gambling equipment is physically delivered 
  2.12  to the purchaser.  
  2.13     Each distributor must report monthly to the board, in a 
  2.14  form the board prescribes, its sales of each type of gambling 
  2.15  equipment.  Employees of the board and the division of alcohol 
  2.16  and gambling enforcement may inspect the business premises, 
  2.17  books, records, and other documents of a distributor at any 
  2.18  reasonable time without notice and without a search warrant.  
  2.19     The board may require that a distributor submit the monthly 
  2.20  report and invoices required in this subdivision via magnetic 
  2.21  media or electronic data transfer. 
  2.22     Sec. 2.  Minnesota Statutes 2000, section 349.163, 
  2.23  subdivision 1, is amended to read: 
  2.24     Subdivision 1.  [LICENSE REQUIRED.] No manufacturer of 
  2.25  gambling equipment may sell any gambling equipment to any person 
  2.26  for use or resale within the state, unless the manufacturer has 
  2.27  a current and valid license issued by the board under this 
  2.28  section and has satisfied other criteria prescribed by the board 
  2.29  by rule. 
  2.30     A manufacturer licensed under this section may not also be 
  2.31  directly or indirectly licensed as a distributor under section 
  2.32  349.161 unless the manufacturer (1) does not manufacture any 
  2.33  gambling equipment other than paddlewheels, and (2) was licensed 
  2.34  as both a manufacturer and distributor on May 1, 1990. 
  2.35     Sec. 3.  Minnesota Statutes 2000, section 349.163, 
  2.36  subdivision 3, is amended to read: 
  3.1      Subd. 3.  [PROHIBITED SALES.] (a) A manufacturer may not: 
  3.2      (1) sell gambling equipment for use or resale within the 
  3.3   state to any person not licensed as a distributor unless the 
  3.4   manufacturer is also a licensed distributor; or 
  3.5      (2) sell gambling equipment to a distributor in this state 
  3.6   that has the same serial number as another item of gambling 
  3.7   equipment of the same type that is sold by that manufacturer for 
  3.8   use or resale in this state. 
  3.9      (b) A manufacturer, affiliate of a manufacturer, or person 
  3.10  acting as a representative or agent of a manufacturer may not 
  3.11  provide a lessor of gambling premises or an appointed official 
  3.12  any compensation, gift, gratuity, premium, contribution, or 
  3.13  other thing of value. 
  3.14     (c) A manufacturer may not sell or otherwise provide a 
  3.15  pull-tab or tipboard deal with the symbol required by 
  3.16  subdivision 5, paragraph (h), imprinted on the flare to any 
  3.17  person other than a licensed distributor unless the manufacturer 
  3.18  first renders the symbol permanently invisible. 
  3.19     Sec. 4.  Minnesota Statutes 2000, section 349.163, 
  3.20  subdivision 5, is amended to read: 
  3.21     Subd. 5.  [PULL-TAB AND TIPBOARD FLARES.] (a) A 
  3.22  manufacturer may not ship or cause to be shipped into this state 
  3.23  or sell for use or resale in this state any deal of pull-tabs or 
  3.24  tipboards that does not have its own individual flare as 
  3.25  required for that deal by this subdivision and rule of the 
  3.26  board.  A person other than a manufacturer may not manufacture, 
  3.27  alter, modify, or otherwise change a flare for a deal of 
  3.28  pull-tabs or tipboards except as allowed by this chapter or 
  3.29  board rules. 
  3.30     (b) A manufacturer must comply with either paragraphs (c) 
  3.31  to (g) or (f) to (j) with respect to pull-tabs and tipboards 
  3.32  sold by the manufacturer before January 1, 1995, for use or 
  3.33  resale in Minnesota or shipped into or caused to be shipped into 
  3.34  Minnesota by the manufacturer before January 1, 1995.  A 
  3.35  manufacturer must comply with paragraphs (f) to (j) with respect 
  3.36  to pull-tabs and tipboards sold by the manufacturer on and after 
  4.1   January 1, 1995, for use or resale in Minnesota or shipped into 
  4.2   or caused to be shipped into Minnesota by the manufacturer on 
  4.3   and after January 1, 1995.  Paragraphs (c) to (e) expire January 
  4.4   1, 1995. 
  4.5      (c) The flare of each deal of pull-tabs and tipboards sold 
  4.6   by a manufacturer for use or resale in Minnesota must have the 
  4.7   Minnesota gambling stamp affixed.  The flare, with the stamp 
  4.8   affixed, must be placed inside the wrapping of the deal which 
  4.9   the flare describes. 
  4.10     (d) Each pull-tab and tipboard flare must bear the 
  4.11  following statement printed in letters large enough to be 
  4.12  clearly legible: 
  4.13     "Pull-tab (or tipboard) purchasers -- This pull-tab (or 
  4.14  tipboard) game is not legal in Minnesota unless: 
  4.15     -- a Minnesota gambling stamp is affixed to this sheet, and 
  4.16     -- the serial number handwritten on the gambling stamp is 
  4.17  the same as the serial number printed on this sheet and on the 
  4.18  pull-tab (or tipboard) ticket you have purchased." 
  4.19     (e) The flare of each pull-tab and tipboard game must bear 
  4.20  the serial number of the game, printed in numbers at least 
  4.21  one-half inch high and must be imprinted with the following: 
  4.22     (1) the name of the game; 
  4.23     (2) the name of the manufacturer; 
  4.24     (3) the number of tickets in the deal; and 
  4.25     (4) other information the board by rule requires. 
  4.26     (f) The flare of each pull-tab and tipboard game must have 
  4.27  affixed to or imprinted at the bottom a bar code that provides 
  4.28  all information required by the commissioner of revenue under 
  4.29  section 297E.04, subdivision 2. 
  4.30     The serial number included in the bar code must be the same 
  4.31  as the serial number of the tickets included in the deal.  A 
  4.32  manufacturer who manufactures a deal of pull-tabs must affix to 
  4.33  the outside of the box containing that game the same bar code 
  4.34  that is affixed to or imprinted at the bottom of a flare for 
  4.35  that deal. 
  4.36     (g) (c) No person may alter the bar code that appears on 
  5.1   the outside of a box containing a deal of pull-tabs and 
  5.2   tipboards.  Possession of a box containing a deal of pull-tabs 
  5.3   and tipboards that has a bar code different from the bar code of 
  5.4   the deal inside the box is prima facie evidence that the 
  5.5   possessor has altered the bar code on the box. 
  5.6      (h) (d) The flare of each deal of pull-tabs and tipboards 
  5.7   sold by a manufacturer for use or resale in Minnesota must have 
  5.8   imprinted on it a symbol that is at least one inch high and one 
  5.9   inch wide consisting of an outline of the geographic boundaries 
  5.10  of Minnesota with the letters "MN" inside the outline.  The 
  5.11  flare must be placed inside the wrapping of the deal which the 
  5.12  flare describes.  
  5.13     (i) (e) Each pull-tab and tipboard flare must bear the 
  5.14  following statement printed in letters large enough to be 
  5.15  clearly legible: 
  5.16     "Pull-tab (or tipboard) purchasers -- This pull-tab (or 
  5.17  tipboard) game is not legal in Minnesota unless: 
  5.18     -- an outline of Minnesota with letters "MN" inside it is 
  5.19  imprinted on this sheet, and 
  5.20     -- the serial number imprinted on the bar code at the 
  5.21  bottom of this sheet is the same as the serial number on the 
  5.22  pull-tab (or tipboard) ticket you have purchased." 
  5.23     (j) (f) The flare of each pull-tab and tipboard game must 
  5.24  have the serial number of the game imprinted on the bar code at 
  5.25  the bottom of the flare in numerals at least one-half inch high. 
  5.26     Sec. 5.  Minnesota Statutes 2000, section 349.165, 
  5.27  subdivision 2, is amended to read: 
  5.28     Subd. 2.  [CONTENTS OF APPLICATION.] An application for a 
  5.29  premises permit must contain: 
  5.30     (1) the name and address of the applying organization and 
  5.31  of the organization's gambling manager; 
  5.32     (2) a description of the site for which the permit is 
  5.33  sought, including its address and, where applicable, its 
  5.34  placement within another premises or establishment; 
  5.35     (3) if the site is leased, the name and address of the 
  5.36  lessor and information about the lease the board requires, 
  6.1   including all rents and other charges for the use of the site; 
  6.2   and 
  6.3      (4) other information the board deems necessary to carry 
  6.4   out its purposes. 
  6.5      An organization holding a premises permit must notify the 
  6.6   board in writing within ten days whenever any material change is 
  6.7   made in the above information. 
  6.8      Sec. 6.  Minnesota Statutes 2000, section 349.167, 
  6.9   subdivision 7, is amended to read: 
  6.10     Subd. 7.  [GAMBLING MANAGER EXAMINATION.] (a) By January 1, 
  6.11  1996, each gambling manager must pass an examination prepared 
  6.12  and administered by the board that tests the gambling manager's 
  6.13  knowledge of the responsibilities of gambling managers and of 
  6.14  gambling procedures, laws, and rules.  The board shall revoke 
  6.15  the license of any gambling manager who has not passed the 
  6.16  examination by January 1, 1996. 
  6.17     (b) On and after January 1, 1996, Each applicant for a new 
  6.18  gambling manager's license must pass the an examination provided 
  6.19  for in paragraph (a) prepared and administered by the board that 
  6.20  tests the applicant's knowledge of the responsibilities of 
  6.21  gambling managers, and of gambling procedures, laws, and rules 
  6.22  before being issued the license.  In the case of the death, 
  6.23  disability, or termination of a gambling manager, a replacement 
  6.24  gambling manager must pass the examination within 90 days of 
  6.25  being issued a gambling manager's license.  The board shall 
  6.26  revoke the replacement gambling manager's license if the 
  6.27  replacement gambling manager fails to pass the examination as 
  6.28  required in this paragraph. 
  6.29     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
  6.30  349.168, subdivision 1, is amended to read: 
  6.31     Subdivision 1.  [REGISTRATION OF EMPLOYEES.] A person may 
  6.32  not receive compensation for participating in the conduct of 
  6.33  lawful gambling as an employee of a licensed organization unless 
  6.34  the person has first registered with the board on a form the 
  6.35  board prescribes.  The form must require each registrant to 
  6.36  provide:  (1) the person's name, address, date of birth, and 
  7.1   social security number; (2) a current photograph; and (3) the 
  7.2   name, address, and license number of the employing organization; 
  7.3   and (3) a listing of all employment in the conduct of lawful 
  7.4   gambling within the previous three years, including the name and 
  7.5   address of each employing organization and the circumstances 
  7.6   under which the employment was terminated. 
  7.7      Sec. 8.  Minnesota Statutes 2000, section 349.168, 
  7.8   subdivision 5, is amended to read: 
  7.9      Subd. 5.  [COMPENSATION RECORDS.] An organization paying 
  7.10  compensation to persons who participate in the conduct of lawful 
  7.11  gambling must maintain a compensation record.  The record must 
  7.12  be retained for at least two years after the month in which the 
  7.13  compensation is paid.  The record must itemize each payment made 
  7.14  to each recipient of compensation and must include the amount 
  7.15  and the full name, address, and membership status of each 
  7.16  recipient. 
  7.17     Sec. 9.  Minnesota Statutes 2000, section 349.19, 
  7.18  subdivision 5, is amended to read: 
  7.19     Subd. 5.  [REPORTS.] A licensed organization must report to 
  7.20  the board the department of revenue and to its membership 
  7.21  monthly, or quarterly in the case of a class C licensee or 
  7.22  licensed organization which does not report more than $1,000 in 
  7.23  gross receipts from lawful gambling in any calendar quarter, on 
  7.24  its gross receipts, expenses, profits, and expenditure of 
  7.25  profits from lawful gambling.  The report must include a 
  7.26  reconciliation of the organization's profit carryover with its 
  7.27  cash balance on hand.  If the organization conducts both bingo 
  7.28  and other forms of lawful gambling, the figures for both must be 
  7.29  reported separately.  In addition, a licensed organization must 
  7.30  report to the board monthly on its purchases of gambling 
  7.31  equipment and must include the type, quantity, and dollar amount 
  7.32  from each supplier separately.  The reports must be on a form 
  7.33  the board prescribes.  Submission of the report required by 
  7.34  section 349.154 satisfies the requirement for reporting monthly 
  7.35  to the board on expenditure of net profits. 
  7.36     Sec. 10.  Minnesota Statutes 2000, section 349.191, 
  8.1   subdivision 1a, is amended to read: 
  8.2      Subd. 1a.  [CREDIT AND SALES TO DELINQUENT ORGANIZATIONS.] 
  8.3   (a) If a distributor does not receive payment in full from an 
  8.4   organization within 35 days of the delivery of gambling 
  8.5   equipment day immediately following the date of the invoice, the 
  8.6   distributor must notify the board in writing of the 
  8.7   delinquency on the next business day. 
  8.8      (b) If a distributor who has notified the board under 
  8.9   paragraph (a) has not received payment in full from the 
  8.10  organization within 60 days of the notification under paragraph 
  8.11  (a), the distributor must notify the board of the continuing 
  8.12  delinquency. 
  8.13     (c) On receipt of a notice under paragraph (a), the board 
  8.14  shall order all distributors that until further notice from the 
  8.15  board, they may sell gambling equipment to the delinquent 
  8.16  organizations only on a cash basis with no credit extended.  On 
  8.17  receipt of a notice under paragraph (b), the board shall order 
  8.18  all distributors not to sell any gambling equipment to the 
  8.19  delinquent organization. 
  8.20     (d) No distributor may extend credit or sell gambling 
  8.21  equipment to an organization in violation of an order under 
  8.22  paragraph (c) until the board has authorized such credit or sale.
  8.23     Sec. 11.  Minnesota Statutes 2000, section 349.191, 
  8.24  subdivision 1b, is amended to read: 
  8.25     Subd. 1b.  [CREDIT AND SALES TO DELINQUENT DISTRIBUTORS.] 
  8.26  (a) If a manufacturer does not receive payment in full from a 
  8.27  distributor within 35 days of the delivery of gambling equipment 
  8.28  day immediately following the date of invoice, the manufacturer 
  8.29  must notify the board in writing of the delinquency on the next 
  8.30  business day. 
  8.31     (b) If a manufacturer who has notified the board under 
  8.32  paragraph (a) has not received payment in full from the 
  8.33  distributor within 60 days of the notification under paragraph 
  8.34  (a), the manufacturer must notify the board of the continuing 
  8.35  delinquency. 
  8.36     (c) On receipt of a notice under paragraph (a), the board 
  9.1   shall order all manufacturers that until further notice from the 
  9.2   board, they may sell gambling equipment to the delinquent 
  9.3   distributor only on a cash basis with no credit extended.  On 
  9.4   receipt of a notice under paragraph (b), the board shall order 
  9.5   all manufacturers not to sell any gambling equipment to the 
  9.6   delinquent distributor. 
  9.7      (d) No manufacturer may extend credit or sell gambling 
  9.8   equipment to a distributor in violation of an order under 
  9.9   paragraph (c) until the board has authorized such credit or sale.
  9.10     Sec. 12.  [REPEALER.] 
  9.11     Minnesota Statutes 2000, sections 349.12, subdivision 14; 
  9.12  349.163, subdivision 6a; 349.17, subdivision 2a; and 349.174, 
  9.13  are repealed.