1.1                          A bill for an act 
  1.2             relating to lawful gambling; authorizing nonregulated 
  1.3             lawful gambling organizations to conduct lawful 
  1.4             gambling; requiring an honesty pledge; requiring 
  1.5             posting of a consumer warning; amending Minnesota 
  1.6             Statutes 1996, section 349.16, by adding a 
  1.7             subdivision; proposing coding for new law in Minnesota 
  1.8             Statutes, chapter 349.  
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1996, section 349.16, is 
  1.11  amended by adding a subdivision to read: 
  1.12     Subd. 10.  [NONREGULATED LAWFUL GAMBLING ORGANIZATIONS.] An 
  1.13  organization licensed under this chapter may elect, upon 
  1.14  applying for renewal, to cease to be regulated by the lawful 
  1.15  gambling control board.  Application for status as a 
  1.16  nonregulated lawful gambling organization must be granted by the 
  1.17  board if the organization meets the following criteria: 
  1.18     (1) no enforcement action is pending against the 
  1.19  organization; and 
  1.20     (2) the organization has completed or agreed to complete 
  1.21  all requirements applicable under its prior status as a 
  1.22  regulated organization. 
  1.23     Sec. 2.  [349.1601] [NONREGULATED LAWFUL GAMBLING 
  1.24  ORGANIZATIONS.] 
  1.25     Subdivision 1.  [COMPLIANCE.] A nonregulated lawful 
  1.26  gambling organization must comply with section 349.16, 
  1.27  subdivisions 7, 8, and 10, and chapter 297E.  In addition, a 
  2.1   nonregulated organization must annually submit the name of the 
  2.2   organization to the board with a $10 registration fee.  
  2.3      Subd. 2.  [GAMBLING.] A nonregulated lawful gambling 
  2.4   organization may only conduct those forms of gambling permitted 
  2.5   under this chapter. 
  2.6      Subd. 3.  [PLEDGE.] The officers and gambling employees of 
  2.7   an organization conducting lawful gambling as a nonregulated 
  2.8   organization must sign a pledge and make a copy of that pledge 
  2.9   available to any person upon request.  The pledge must be 
  2.10  written as follows: 
  2.11     "I agree to conduct all gambling operations in an honest 
  2.12  fashion, to ensure payment of all taxes, and to spend all 
  2.13  profits from gambling for charitable purposes." 
  2.14     Subd. 4.  [NOTICE.] A nonregulated organization must post, 
  2.15  in a conspicuous place near any gambling site, a sign in bold 
  2.16  print at least six inches high stating the following: 
  2.17     "NOTICE:  THIS ORGANIZATION CONDUCTS GAMBLING THAT IS NOT 
  2.18  REGULATED BY THE STATE OF MINNESOTA.  GAMBLE AT YOUR OWN RISK." 
  2.19     The notice must name all organizations associated with the 
  2.20  operation of the nonregulated lawful gambling organization. 
  2.21     Sec. 3.  [REPORT.] 
  2.22     The board must report to the legislature by January 1, 
  2.23  1998, the number of organizations that have chosen to become 
  2.24  nonregulated lawful gambling organizations and the number that 
  2.25  remain under board regulation. 
  2.26     Sec. 4.  [EFFECTIVE DATE.] 
  2.27     Sections 1 to 3 are effective on July 1, 1997.