<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to lawful gambling; providing for electronic pull-tab games and <br />
         		<a id="pl.1.3"></a><var>1.3</var>electronic linked bingo games; modifying certain rates of tax on lawful <br />
         		<a id="pl.1.4"></a><var>1.4</var>gambling; making clarifying, conforming, and technical changes; appropriating <br />
         		<a id="pl.1.5"></a><var>1.5</var>money;amending Minnesota Statutes 2010, sections 297E.01, subdivisions 7, 8, <br />
         		<a id="pl.1.6"></a><var>1.6</var>9; 297E.02, subdivisions 1, 3, 6, 7, 10, 11, by adding a subdivision; 297E.13, <br />
         		<a id="pl.1.7"></a><var>1.7</var>subdivision 5; 349.12, subdivisions 3b, 3c, 5, 6a, 12a, 18, 25, 25b, 25c, 25d, 29, <br />
         		<a id="pl.1.8"></a><var>1.8</var>31, 32, by adding subdivisions; 349.13; 349.151, subdivisions 4b, 4c, by adding <br />
         		<a id="pl.1.9"></a><var>1.9</var>a subdivision; 349.155, subdivisions 3, 4; 349.161, subdivisions 1, 5; 349.162, <br />
         		<a id="pl.1.10"></a><var>1.10</var>subdivision 5; 349.163, subdivisions 1, 5, 6; 349.1635, subdivisions 2, 3, by <br />
         		<a id="pl.1.11"></a><var>1.11</var>adding a subdivision; 349.165, subdivision 2; 349.17, subdivisions 6, 7, 8, by <br />
         		<a id="pl.1.12"></a><var>1.12</var>adding a subdivision; 349.1721; 349.18, subdivision 1; 349.19, subdivisions 2, <br />
         		<a id="pl.1.13"></a><var>1.13</var>3, 5, 10; 349.211, subdivision 1a; repealing Minnesota Statutes 2010, sections <br />
         		<a id="pl.1.14"></a><var>1.14</var>297E.02, subdivision 4; 349.15, subdivision 3; 349.19, subdivision 2a.<br />
         		<a id="pl.1.15"></a><var>1.15</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.16"></a><var>1.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2010, section 297E.01, subdivision 7, is amended to read:<br />
         		<a id="pl.1.17"></a><var>1.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Gambling product.</b> "Gambling product" means bingo hard cards, bingo <br />
         		<a id="pl.1.18"></a><var>1.18</var>paper sheets, or linked bingo paper sheets, or electronic linked bingo games; pull-tabs; <br />
         		<a id="pl.1.19"></a><var>1.19</var>electronic pull-tab games; tipboards; paddle tickets and paddle ticket cards; raffle tickets; <br />
         		<a id="pl.1.20"></a><var>1.20</var>or any other ticket, card, board, placard, device, or token that represents a chance, for <br />
         		<a id="pl.1.21"></a><var>1.21</var>which consideration is paid, to win a prize.<br />
         		<a id="pl.1.22"></a><var>1.22</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.0.2.0"></a><a id="pl.1.23"></a><var>1.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2010, section 297E.01, subdivision 8, is amended to read:<br />
         		<a id="pl.1.24"></a><var>1.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Gross receipts.</b> "Gross receipts" means all receipts derived from lawful <br />
         		<a id="pl.1.25"></a><var>1.25</var>gambling activity including, but not limited to, the following items:<br />
         		<a id="pl.2.1"></a><var>2.1</var>(1) gross sales of bingo hard cards and, paper sheets, linked bingo paper sheets, and <br />
         		<a id="pl.2.2"></a><var>2.2</var>electronic linked bingo games before reduction for prizes, expenses, shortages, free plays, <br />
         		<a id="pl.2.3"></a><var>2.3</var>or any other charges or offsets;<br />
         		<a id="pl.2.4"></a><var>2.4</var>(2) the ideal gross of pull-tab, electronic pull-tab games, and tipboard deals or games <br />
         		<a id="pl.2.5"></a><var>2.5</var>less the value of unsold and defective tickets and before reduction for prizes, expenses, <br />
         		<a id="pl.2.6"></a><var>2.6</var>shortages, free plays, or any other charges or offsets;<br />
         		<a id="pl.2.7"></a><var>2.7</var>(3) gross sales of raffle tickets and paddle tickets before reduction for prizes, <br />
         		<a id="pl.2.8"></a><var>2.8</var>expenses, shortages, free plays, or any other charges or offsets;<br />
         		<a id="pl.2.9"></a><var>2.9</var>(4) admission, commission, cover, or other charges imposed on participants in <br />
         		<a id="pl.2.10"></a><var>2.10</var>lawful gambling activity as a condition for or cost of participation; and<br />
         		<a id="pl.2.11"></a><var>2.11</var>(5) interest, dividends, annuities, profit from transactions, or other income derived <br />
         		<a id="pl.2.12"></a><var>2.12</var>from the accumulation or use of gambling proceeds.<br />
         		<a id="pl.2.13"></a><var>2.13</var>Gross receipts does not include proceeds from rental under section 
         <statute_ref>349.18, <br />
            		<a id="pl.2.14"></a><var>2.14</var>subdivision 3
         </statute_ref>.<br />
         		<a id="pl.2.15"></a><var>2.15</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.0.3.0"></a><a id="pl.2.16"></a><var>2.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2010, section 297E.01, subdivision 9, is amended to read:<br />
         		<a id="pl.2.17"></a><var>2.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Ideal gross.</b> "Ideal gross" means the total amount of receipts that would be <br />
         		<a id="pl.2.18"></a><var>2.18</var>received if every individual ticket in the pull-tab, electronic pull-tab games or tipboard <br />
         		<a id="pl.2.19"></a><var>2.19</var>deal, paddle wheel game, and raffle ticket was sold at its face value. In the calculation <br />
         		<a id="pl.2.20"></a><var>2.20</var>of ideal gross and prizes, a free play ticket pull-tab or electronic pull-tab shall be valued <br />
         		<a id="pl.2.21"></a><var>2.21</var>at face value. Ideal gross also means the total amount of receipts that would be received <br />
         		<a id="pl.2.22"></a><var>2.22</var>if every bingo paper sheet, linked bingo paper sheet, and electronic linked bingo games <br />
         		<a id="pl.2.23"></a><var>2.23</var>were sold at face value.<br />
         		<a id="pl.2.24"></a><var>2.24</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.0.4.0"></a><a id="pl.2.25"></a><var>2.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2010, section 297E.02, subdivision 1, is amended to read:<br />
         		<a id="pl.2.26"></a><var>2.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Imposition.</b> A tax is imposed on all lawful gambling other than (1) <br />
         		<a id="pl.2.27"></a><var>2.27</var>paper or electronic pull-tab deals or games; (2) tipboard deals or games; and (3) electronic <br />
         		<a id="pl.2.28"></a><var>2.28</var>linked bingo; and (4) items listed in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, clauses (4) and (5), at <br />
         		<a id="pl.2.29"></a><var>2.29</var>the rate of 8.5 percent on the gross receipts as defined in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, <br />
         		<a id="pl.2.30"></a><var>2.30</var>less prizes actually paid. The tax imposed by this subdivision is in lieu of the tax imposed <br />
         		<a id="pl.2.31"></a><var>2.31</var>by section 
         <statute_ref>297A.62</statute_ref> and all local taxes and license fees except a fee authorized under <br />
         		<a id="pl.2.32"></a><var>2.32</var>section 
         <statute_ref>349.16, subdivision 8</statute_ref>, or a tax authorized under subdivision 5.<br />
         		<a id="pl.3.1"></a><var>3.1</var>The tax imposed under this subdivision is payable by the organization or party <br />
         		<a id="pl.3.2"></a><var>3.2</var>conducting, directly or indirectly, the gambling.<br />
         		<a id="pl.3.3"></a><var>3.3</var><b>EFFECTIVE DATE.</b>This section is effective for games reported as played after <br />
         		<a id="pl.3.4"></a><var>3.4</var>June 30, 2012.<br />
         		<br />
         		<a id="bill.0.5.0"></a><a id="pl.3.5"></a><var>3.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2010, section 297E.02, subdivision 3, is amended to read:<br />
         		<a id="pl.3.6"></a><var>3.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Collection; disposition.</b> (a) Taxes imposed by this section other than in <br />
         		<a id="pl.3.7"></a><var>3.7</var>subdivision 4 are due and payable to the commissioner when the gambling tax return <br />
         		<a id="pl.3.8"></a><var>3.8</var>is required to be filed. Taxes imposed by subdivision 4 are due and payable to the <br />
         		<a id="pl.3.9"></a><var>3.9</var>commissioner on or before the last business day of the month following the month in <br />
         		<a id="pl.3.10"></a><var>3.10</var>which the taxable sale was made. Distributors must file their monthly sales figures with <br />
         		<a id="pl.3.11"></a><var>3.11</var>the commissioner on a form prescribed by the commissioner. Returns covering the taxes <br />
         		<a id="pl.3.12"></a><var>3.12</var>imposed under this section must be filed with the commissioner on or before the 20th day <br />
         		<a id="pl.3.13"></a><var>3.13</var>of the month following the close of the previous calendar month. The commissioner <br />
         		<a id="pl.3.14"></a><var>3.14</var>may require that the returns be filed via magnetic media or electronic data transfer. The <br />
         		<a id="pl.3.15"></a><var>3.15</var>proceeds, along with the revenue received from all license fees and other fees under <br />
         		<a id="pl.3.16"></a><var>3.16</var>sections 
         <statute_ref>349.11</statute_ref> to 
         <statute_ref>349.191</statute_ref>, 
         <statute_ref>349.211</statute_ref>, and 
         <statute_ref>349.213</statute_ref>, must be paid to the commissioner of <br />
         		<a id="pl.3.17"></a><var>3.17</var>management and budget for deposit in the general fund.<br />
         		<a id="pl.3.18"></a><var>3.18</var>(b) The sales tax imposed by chapter 297A on the sale of pull-tabs and tipboards by <br />
         		<a id="pl.3.19"></a><var>3.19</var>the distributor is imposed on the retail sales price. The retail sale of pull-tabs or tipboards <br />
         		<a id="pl.3.20"></a><var>3.20</var>by the organization is exempt from taxes imposed by chapter 297A and is exempt from all <br />
         		<a id="pl.3.21"></a><var>3.21</var>local taxes and license fees except a fee authorized under section 349.16, subdivision 8.<br />
         		<a id="pl.3.22"></a><var>3.22</var>(c) One-half of one percent of the revenue deposited in the general fund under <br />
         		<a id="pl.3.23"></a><var>3.23</var>paragraph (a), is appropriated to the commissioner of human services for the compulsive <br />
         		<a id="pl.3.24"></a><var>3.24</var>gambling treatment program established under section 245.98. One-half of one percent <br />
         		<a id="pl.3.25"></a><var>3.25</var>of the revenue deposited in the general fund under paragraph (a), is appropriated to <br />
         		<a id="pl.3.26"></a><var>3.26</var>the commissioner of human services for a grant to the state affiliate recognized by <br />
         		<a id="pl.3.27"></a><var>3.27</var>the National Council on Problem Gambling to increase public awareness of problem <br />
         		<a id="pl.3.28"></a><var>3.28</var>gambling, education and training for individuals and organizations providing effective <br />
         		<a id="pl.3.29"></a><var>3.29</var>treatment services to problem gamblers and their families, and research relating to problem <br />
         		<a id="pl.3.30"></a><var>3.30</var>gambling. Money appropriated by this paragraph must supplement and must not replace <br />
         		<a id="pl.3.31"></a><var>3.31</var>existing state funding for these programs.<br />
         		<a id="pl.3.32"></a><var>3.32</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.0.6.0"></a><a id="pl.3.33"></a><var>3.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2010, section 297E.02, subdivision 6, is amended to read:<br />
         		<a id="pl.4.1"></a><var>4.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Combined </b><b>net </b><b>receipts tax.</b> In addition to the taxes imposed under <br />
         		<a id="pl.4.2"></a><var>4.2</var>subdivisions 1 and 4, a tax is imposed on the combined receipts of the organization. As <br />
         		<a id="pl.4.3"></a><var>4.3</var>used in this section, "combined net receipts" is the sum of the organization's gross receipts <br />
         		<a id="pl.4.4"></a><var>4.4</var>from lawful gambling less gross receipts directly derived from the conduct of paper bingo, <br />
         		<a id="pl.4.5"></a><var>4.5</var>raffles, and paddle wheels, as defined in section 
         <statute_ref>297E.01, subdivision 8</statute_ref>, and less the net <br />
         		<a id="pl.4.6"></a><var>4.6</var>prizes actually paid, other than prizes actually paid for paper bingo, raffles, and paddle <br />
         		<a id="pl.4.7"></a><var>4.7</var>wheels, for the fiscal year. The combined net receipts of an organization are subject to a <br />
         		<a id="pl.4.8"></a><var>4.8</var>tax computed according to the following schedule:<br />
         		
         <table>
            <col width="50px"></col>
            <col width="5"></col>
            <col width="20"></col>
            <col width="5"></col>
            <col width="27.5"></col>
            <col width="7.5"></col>
            <tr>
               <td><a id="pl.4.9"></a><var>4.9</var><br />
                  		<a id="pl.4.10"></a><var>4.10</var><br />
                  		<a id="pl.4.11"></a><var>4.11</var><br />
                  		
               </td>
               <td align="left"></td>
               <td align="left">If the combined net <br />
                  		receipts for the fiscal year <br />
                  		are:<br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">The tax is:<br />
                  		
               </td>
               <td align="left" valign="top"></td>
            </tr>
            <tr>
               <td><a id="pl.4.12"></a><var>4.12</var><br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">Not over $500,000$87,500<br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">zero6.89 percent<br />
                  		
               </td>
               <td align="left"></td>
            </tr>
            <tr>
               <td><a id="pl.4.13"></a><var>4.13</var><br />
                  		<a id="pl.4.14"></a><var>4.14</var><br />
                  		<a id="pl.4.15"></a><var>4.15</var><br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">Over $500,000$87,500, <br />
                  		but not over $700,000<br />
                  		$122,500<br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">1.7$6,029 plus 13.78 percent of the <br />
                  		amount over $500,000$87,500, but <br />
                  		not over $700,000$122,500<br />
                  		
               </td>
               <td align="left"></td>
            </tr>
            <tr>
               <td><a id="pl.4.16"></a><var>4.16</var><br />
                  		<a id="pl.4.17"></a><var>4.17</var><br />
                  		<a id="pl.4.18"></a><var>4.18</var><br />
                  		<a id="pl.4.19"></a><var>4.19</var><br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">Over $700,000$122,500, <br />
                  		but not over $900,000<br />
                  		$157,500<br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">$3,400$10,852 plus 3.420.67 <br />
                  		percent of the amount over $700,000<br />
                  		$122,500, but not over $900,000<br />
                  		$157,500<br />
                  		
               </td>
               <td align="left"></td>
            </tr>
            <tr>
               <td><a id="pl.4.20"></a><var>4.20</var><br />
                  		<a id="pl.4.21"></a><var>4.21</var><br />
                  		<a id="pl.4.22"></a><var>4.22</var><br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">Over $900,000$157,500<br />
                  		
               </td>
               <td align="left"></td>
               <td align="left" valign="top">$10,200$18,086 plus 5.127.56 <br />
                  		percent of the amount over $900,000<br />
                  		$157,500<br />
                  		
               </td>
               <td align="left"></td>
            </tr>
         </table><a id="pl.4.23"></a><var>4.23</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.0.7.0"></a><a id="pl.4.24"></a><var>4.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2010, section 297E.02, is amended by adding a subdivision <br />
         		<a id="pl.4.25"></a><var>4.25</var>to read:<br />
         		<a id="pl.4.26"></a><var>4.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6a. <b>Unaccounted games.</b> If a licensed distributor cannot account for a <br />
         		<a id="pl.4.27"></a><var>4.27</var>pull-tab game, an electronic pull-tab game, a tipboard deal, paddletickets, an electronic <br />
         		<a id="pl.4.28"></a><var>4.28</var>linked bingo game, bingo paper sheets, or linked bingo paper sheets, the distributor must <br />
         		<a id="pl.4.29"></a><var>4.29</var>report the sheets or games to the commissioner as lost and remit a tax of six percent <br />
         		<a id="pl.4.30"></a><var>4.30</var>on the ideal gross of the sheets or games.<br />
         		<a id="pl.4.31"></a><var>4.31</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.0.8.0"></a><a id="pl.4.32"></a><var>4.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2010, section 297E.02, subdivision 7, is amended to read:<br />
         		<a id="pl.4.33"></a><var>4.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Untaxed gambling product.</b> (a) In addition to penalties or criminal <br />
         		<a id="pl.4.34"></a><var>4.34</var>sanctions imposed by this chapter, a person, organization, or business entity possessing or <br />
         		<a id="pl.4.35"></a><var>4.35</var>selling a pull-tab, electronic pull-tab game or tipboard upon which the tax imposed by <br />
         		<a id="pl.4.36"></a><var>4.36</var>subdivision 4 this chapter has not been paid is liable for a tax of six percent of the ideal <br />
         		<a id="pl.5.1"></a><var>5.1</var>gross of each pull-tab, electronic pull-tab game,  or tipboard. The tax on a partial deal <br />
         		<a id="pl.5.2"></a><var>5.2</var>must be assessed as if it were a full deal.<br />
         		<a id="pl.5.3"></a><var>5.3</var>(b) In addition to penalties and criminal sanctions imposed by this chapter, a person <br />
         		<a id="pl.5.4"></a><var>5.4</var>not licensed by the board who conducts bingo, linked bingo, electronic linked bingo, <br />
         		<a id="pl.5.5"></a><var>5.5</var>raffles, or paddle wheel games is liable for a tax of six percent of the gross receipts <br />
         		<a id="pl.5.6"></a><var>5.6</var>from that activity.<br />
         		<a id="pl.5.7"></a><var>5.7</var>(c) The tax must be assessed by the commissioner. An assessment must be <br />
         		<a id="pl.5.8"></a><var>5.8</var>considered a jeopardy assessment or jeopardy collection as provided in section 
         <statute_ref>270C.36</statute_ref>. <br />
         		<a id="pl.5.9"></a><var>5.9</var>The commissioner shall assess the tax based on personal knowledge or information <br />
         		<a id="pl.5.10"></a><var>5.10</var>available to the commissioner. The commissioner shall mail to the taxpayer at the <br />
         		<a id="pl.5.11"></a><var>5.11</var>taxpayer's last known address, or serve in person, a written notice of the amount of tax, <br />
         		<a id="pl.5.12"></a><var>5.12</var>demand its immediate payment, and, if payment is not immediately made, collect the tax <br />
         		<a id="pl.5.13"></a><var>5.13</var>by any method described in chapter 270C, except that the commissioner need not await the <br />
         		<a id="pl.5.14"></a><var>5.14</var>expiration of the times specified in chapter 270C. The tax assessed by the commissioner <br />
         		<a id="pl.5.15"></a><var>5.15</var>is presumed to be valid and correctly determined and assessed. The burden is upon the <br />
         		<a id="pl.5.16"></a><var>5.16</var>taxpayer to show its incorrectness or invalidity. The tax imposed under this subdivision <br />
         		<a id="pl.5.17"></a><var>5.17</var>does not apply to gambling that is exempt from taxation under subdivision 2.<br />
         		<a id="pl.5.18"></a><var>5.18</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.0.9.0"></a><a id="pl.5.19"></a><var>5.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2010, section 297E.02, subdivision 10, is amended to read:<br />
         		<a id="pl.5.20"></a><var>5.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Refunds; appropriation.</b> A person who has, under this chapter, paid <br />
         		<a id="pl.5.21"></a><var>5.21</var>to the commissioner an amount of tax for a period in excess of the amount legally due <br />
         		<a id="pl.5.22"></a><var>5.22</var>for that period, may file with the commissioner a claim for a refund of the excess. The <br />
         		<a id="pl.5.23"></a><var>5.23</var>amount necessary to pay the refunds under this subdivision and subdivision 4, paragraph <br />
         		<a id="pl.5.24"></a><var>5.24</var>(d), is appropriated from the general fund to the commissioner.<br />
         		<a id="pl.5.25"></a><var>5.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.0.10.0"></a><a id="pl.5.26"></a><var>5.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2010, section 297E.02, subdivision 11, is amended to read:<br />
         		<a id="pl.5.27"></a><var>5.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Unplayed or</b><b> Defective </b><b>pull-tabs or tipboards</b><b> gambling products</b><b>.</b> If a <br />
         		<a id="pl.5.28"></a><var>5.28</var>deal of pull-tabs or tipboards registered with the board or bar coded in accordance with this <br />
         		<a id="pl.5.29"></a><var>5.29</var>chapter and chapter 349 and upon which the tax imposed by subdivision 4 has been paid is <br />
         		<a id="pl.5.30"></a><var>5.30</var>returned unplayed to the distributor, the commissioner shall allow a refund of the tax paid.<br />
         		<a id="pl.5.31"></a><var>5.31</var>If a defective deal registered with the board or bar coded in accordance with this <br />
         		<a id="pl.5.32"></a><var>5.32</var>chapter and chapter 349 and upon which the taxes have been paid is returned to the <br />
         		<a id="pl.5.33"></a><var>5.33</var>manufacturer, the distributor shall submit to the commissioner of revenue certification <br />
         		<a id="pl.6.1"></a><var>6.1</var>from the manufacturer that the deal was returned and in what respect it was defective. <br />
         		<a id="pl.6.2"></a><var>6.2</var>The certification must be on a form prescribed by the commissioner and must contain <br />
         		<a id="pl.6.3"></a><var>6.3</var>additional information the commissioner requires.<br />
         		<a id="pl.6.4"></a><var>6.4</var>The commissioner may require that no refund under this subdivision be made <br />
         		<a id="pl.6.5"></a><var>6.5</var>unless the that all defective and returned pull-tabs or, tipboards have been, paddle tickets, <br />
         		<a id="pl.6.6"></a><var>6.6</var>paper bingo sheets, and linked bingo paper sheets be set aside for inspection by the <br />
         		<a id="pl.6.7"></a><var>6.7</var>commissioner's employee.<br />
         		<a id="pl.6.8"></a><var>6.8</var>Reductions in previously paid taxes authorized by this subdivision must be made <br />
         		<a id="pl.6.9"></a><var>6.9</var>when and in the manner prescribed by the commissioner.<br />
         		<a id="pl.6.10"></a><var>6.10</var><b>EFFECTIVE DATE.</b>This section is effective for games sold by a licensed <br />
         		<a id="pl.6.11"></a><var>6.11</var>distributor after June 30, 2012.<br />
         		<br />
         		<a id="bill.0.11.0"></a><a id="pl.6.12"></a><var>6.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2010, section 297E.13, subdivision 5, is amended to read:<br />
         		<a id="pl.6.13"></a><var>6.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Untaxed gambling equipment.</b> It is a gross misdemeanor for a person to <br />
         		<a id="pl.6.14"></a><var>6.14</var>possess gambling equipment for resale in this state that has not been stamped or bar-coded <br />
         		<a id="pl.6.15"></a><var>6.15</var>in accordance with this chapter and chapter 349 and upon which the taxes imposed by <br />
         		<a id="pl.6.16"></a><var>6.16</var>chapter 297A or section 
         <statute_ref>297E.02, subdivision 4</statute_ref>, have not been paid. The director of <br />
         		<a id="pl.6.17"></a><var>6.17</var>alcohol and gambling enforcement or the commissioner or the designated inspectors <br />
         		<a id="pl.6.18"></a><var>6.18</var>and employees of the director or commissioner may seize in the name of the state of <br />
         		<a id="pl.6.19"></a><var>6.19</var>Minnesota any unregistered or untaxed gambling equipment.<br />
         		<a id="pl.6.20"></a><var>6.20</var><b>EFFECTIVE DATE.</b>This section is effective for actions occurring after June <br />
         		<a id="pl.6.21"></a><var>6.21</var>30, 2012.<br />
         		<br />
         		<a id="bill.0.12.0"></a><a id="pl.6.22"></a><var>6.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2010, section 349.12, subdivision 3b, is amended to read:<br />
         		<a id="pl.6.23"></a><var>6.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3b. <b>Bar operation.</b> "Bar operation" means a method of selling and redeeming <br />
         		<a id="pl.6.24"></a><var>6.24</var>disposable gambling equipment by an employee of the lessor within a leased premises <br />
         		<a id="pl.6.25"></a><var>6.25</var>which is licensed for the on-sale of alcoholic beverages where such sales and redemptions <br />
         		<a id="pl.6.26"></a><var>6.26</var>are made by an employee of the lessor from a common area where food and beverages <br />
         		<a id="pl.6.27"></a><var>6.27</var>are also sold.<br />
         		<br />
         		<a id="bill.0.13.0"></a><a id="pl.6.28"></a><var>6.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2010, section 349.12, subdivision 3c, is amended to read:<br />
         		<a id="pl.6.29"></a><var>6.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3c. <b>Bar bingo.</b> "Bar bingo" is a bingo occasion conducted at a permitted <br />
         		<a id="pl.6.30"></a><var>6.30</var>premises in an area where intoxicating liquor or 3.2 percent malt beverages are sold and <br />
         		<a id="pl.6.31"></a><var>6.31</var>where the licensed organization conducts another form of lawful gambling. Bar bingo <br />
         		<a id="pl.6.32"></a><var>6.32</var>does not include bingo games linked to other permitted premises.<br />
         		<br />
         		<a id="bill.0.14.0"></a><a id="pl.7.1"></a><var>7.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read:<br />
         		<a id="pl.7.2"></a><var>7.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Bingo occasion.</b> "Bingo occasion" means a single gathering or session at <br />
         		<a id="pl.7.3"></a><var>7.3</var>which a series of one or more successive bingo games is played. There is no limit on the <br />
         		<a id="pl.7.4"></a><var>7.4</var>number of games conducted during a bingo occasion but. A bingo occasion must not last <br />
         		<a id="pl.7.5"></a><var>7.5</var>longer than eight consecutive hours., except that linked bingo games played on electronic <br />
         		<a id="pl.7.6"></a><var>7.6</var>bingo devices may be played during regular business hours of the permitted premises, <br />
         		<a id="pl.7.7"></a><var>7.7</var>and all play during this period is considered a bingo occasion for reporting purposes. For <br />
         		<a id="pl.7.8"></a><var>7.8</var>permitted premises where the primary business is bingo, regular business hours shall be <br />
         		<a id="pl.7.9"></a><var>7.9</var>defined as the hours between 8:00 a.m. and 2:00 a.m.<br />
         		<br />
         		<a id="bill.0.15.0"></a><a id="pl.7.10"></a><var>7.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2010, section 349.12, subdivision 6a, is amended to read:<br />
         		<a id="pl.7.11"></a><var>7.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6a. <b>Booth operation.</b> "Booth operation" means a method of selling and <br />
         		<a id="pl.7.12"></a><var>7.12</var>redeeming disposable gambling equipment by an employee of a licensed organization in <br />
         		<a id="pl.7.13"></a><var>7.13</var>a premises the organization leases or owns where such sales and redemptions are made <br />
         		<a id="pl.7.14"></a><var>7.14</var>within a separate enclosure that is distinct from areas where food and beverages are sold.<br />
         		<br />
         		<a id="bill.0.16.0"></a><a id="pl.7.15"></a><var>7.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:<br />
         		<a id="pl.7.16"></a><var>7.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12a. <b>Electronic bingo device.</b> "Electronic bingo device" means an a <br />
         		<a id="pl.7.17"></a><var>7.17</var>handheld and portable electronic device that:<br />
         		<a id="pl.7.18"></a><var>7.18</var>(a) is used by a bingo player to:<br />
         		<a id="pl.7.19"></a><var>7.19</var>(1) monitor bingo paper sheets or a facsimile of a bingo paper sheet when purchased <br />
         		<a id="pl.7.20"></a><var>7.20</var>and played at the time and place of an organization's bingo occasion and which (1) <br />
         		<a id="pl.7.21"></a><var>7.21</var>provides a means for bingo players to, or to play an electronic bingo game that is linked <br />
         		<a id="pl.7.22"></a><var>7.22</var>with other permitted premises;<br />
         		<a id="pl.7.23"></a><var>7.23</var>(2) activate numbers announced by a bingo caller; (2) compares or displayed, and <br />
         		<a id="pl.7.24"></a><var>7.24</var>to compare the numbers entered by the player to the bingo faces previously stored in <br />
         		<a id="pl.7.25"></a><var>7.25</var>the memory of the device; and <br />
         		<a id="pl.7.26"></a><var>7.26</var>(3) identifies identify a winning bingo pattern. or game requirement; and<br />
         		<a id="pl.7.27"></a><var>7.27</var>(4) play against other bingo players;<br />
         		<a id="pl.7.28"></a><var>7.28</var>(b) limits the play of bingo faces to 36 faces per game;<br />
         		<a id="pl.7.29"></a><var>7.29</var>(c) requires coded entry to activate play but does not allow the use of a coin, <br />
         		<a id="pl.7.30"></a><var>7.30</var>currency, or tokens to be inserted to activate play;<br />
         		<a id="pl.7.31"></a><var>7.31</var>(d) may only be used for play against other bingo players in a bingo game;<br />
         		<a id="pl.7.32"></a><var>7.32</var>(e) has no additional function as an amusement or gambling device other than as an <br />
         		<a id="pl.7.33"></a><var>7.33</var>electronic pull-tab game defined under section 349.12, subdivision 12c;<br />
         		<a id="pl.7.34"></a><var>7.34</var>(f) has the capability to ensure adequate levels of security internal controls;<br />
         		<a id="pl.8.1"></a><var>8.1</var>(g) has the capability to permit the board to electronically monitor the operation of <br />
         		<a id="pl.8.2"></a><var>8.2</var>the device and the internal accounting systems; and<br />
         		<a id="pl.8.3"></a><var>8.3</var>(h) has the capability to allow use by a player who is visually impaired.<br />
         		<a id="pl.8.4"></a><var>8.4</var>Electronic bingo device does not mean any device into which coin, currency, or tokens are <br />
         		<a id="pl.8.5"></a><var>8.5</var>inserted to activate play.<br />
         		<br />
         		<a id="bill.0.17.0"></a><a id="pl.8.6"></a><var>8.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision <br />
         		<a id="pl.8.7"></a><var>8.7</var>to read:<br />
         		<a id="pl.8.8"></a><var>8.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12b. <b>Electronic pull-tab device.</b> "Electronic pull-tab device" means a <br />
         		<a id="pl.8.9"></a><var>8.9</var>handheld and portable electronic device that:<br />
         		<a id="pl.8.10"></a><var>8.10</var>(a) is used to play one or more electronic pull-tab games;<br />
         		<a id="pl.8.11"></a><var>8.11</var>(b) requires coded entry to activate play but does not allow the use of coin, currency, <br />
         		<a id="pl.8.12"></a><var>8.12</var>or tokens to be inserted to activate play; <br />
         		<a id="pl.8.13"></a><var>8.13</var>(c) requires that a player must activate or open each electronic pull-tab ticket and <br />
         		<a id="pl.8.14"></a><var>8.14</var>each individual line, row, or column of each electronic pull-tab ticket; <br />
         		<a id="pl.8.15"></a><var>8.15</var>(d) maintains information pertaining to accumulated win credits that may be applied <br />
         		<a id="pl.8.16"></a><var>8.16</var>to games in play or redeemed upon termination of play;<br />
         		<a id="pl.8.17"></a><var>8.17</var>(e) has no spinning symbols or other representations that mimic a video slot machine;<br />
         		<a id="pl.8.18"></a><var>8.18</var>(f) has no additional function as a gambling device other than as an electronic linked <br />
         		<a id="pl.8.19"></a><var>8.19</var>bingo game played on a device defined under section 349.12, subdivision 12a;<br />
         		<a id="pl.8.20"></a><var>8.20</var>(g) may incorporate an amusement game feature as part of the pull-tab game but <br />
         		<a id="pl.8.21"></a><var>8.21</var>may not require additional consideration for that feature or award any prize, or other <br />
         		<a id="pl.8.22"></a><var>8.22</var>benefit for that feature;<br />
         		<a id="pl.8.23"></a><var>8.23</var>(h) may have auditory or visual enhancements to promote or provide information <br />
         		<a id="pl.8.24"></a><var>8.24</var>about the game being played, provided the component does not affect the outcome of <br />
         		<a id="pl.8.25"></a><var>8.25</var>a game or display the results of a game;<br />
         		<a id="pl.8.26"></a><var>8.26</var>(i) maintains, on nonresettable meters, a printable, permanent record of all <br />
         		<a id="pl.8.27"></a><var>8.27</var>transactions involving each device electronic pull-tab games played on the device;<br />
         		<a id="pl.8.28"></a><var>8.28</var>(j) is not a pull-tab dispensing device as defined under subdivision 32a; and<br />
         		<a id="pl.8.29"></a><var>8.29</var>(k) has the capability to allow use by a player who is visually impaired.<br />
         		<br />
         		<a id="bill.0.18.0"></a><a id="pl.8.30"></a><var>8.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision <br />
         		<a id="pl.8.31"></a><var>8.31</var>to read:<br />
         		<a id="pl.8.32"></a><var>8.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12c. <b>Electronic pull-tab game.</b> "Electronic pull-tab game" means a pull-tab <br />
         		<a id="pl.8.33"></a><var>8.33</var>game containing:<br />
         		<a id="pl.8.34"></a><var>8.34</var>(a) facsimiles of pull-tab tickets that are played on an electronic pull-tab device;<br />
         		<a id="pl.9.1"></a><var>9.1</var>(b) a predetermined, finite number of winning and losing tickets, not to exceed <br />
         		<a id="pl.9.2"></a><var>9.2</var>7,500 tickets;<br />
         		<a id="pl.9.3"></a><var>9.3</var>(c) the same price for each ticket in the game;<br />
         		<a id="pl.9.4"></a><var>9.4</var>(d) a price paid by the player of not less than 25 cents per ticket;<br />
         		<a id="pl.9.5"></a><var>9.5</var>(e) tickets that are in conformance with applicable board rules for pull-tabs;<br />
         		<a id="pl.9.6"></a><var>9.6</var>(f) winning tickets that comply with prize limits under section 349.211;<br />
         		<a id="pl.9.7"></a><var>9.7</var>(g) a unique serial number that may not be regenerated;<br />
         		<a id="pl.9.8"></a><var>9.8</var>(h) an electronic flare that displays the game name, form number, predetermined, <br />
         		<a id="pl.9.9"></a><var>9.9</var>finite number of tickets in the game, and prize tier; and<br />
         		<a id="pl.9.10"></a><var>9.10</var>(i) no spinning symbols or other representations that mimic a video slot machine.<br />
         		<br />
         		<a id="bill.0.19.0"></a><a id="pl.9.11"></a><var>9.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. Minnesota Statutes 2010, section 349.12, is amended by adding a subdivision <br />
         		<a id="pl.9.12"></a><var>9.12</var>to read:<br />
         		<a id="pl.9.13"></a><var>9.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12d. <b>Electronic pull-tab game system.</b> "Electronic pull-tab game system" <br />
         		<a id="pl.9.14"></a><var>9.14</var>means the equipment leased from a licensed distributor and used by a licensed organization <br />
         		<a id="pl.9.15"></a><var>9.15</var>to conduct, manage, and record electronic pull-tab games, and to report and transmit the <br />
         		<a id="pl.9.16"></a><var>9.16</var>game results as prescribed by the board and the Department of Revenue. The system must <br />
         		<a id="pl.9.17"></a><var>9.17</var>provide security and access levels sufficient so that internal control objectives are met as <br />
         		<a id="pl.9.18"></a><var>9.18</var>prescribed by the board. The system must contain a point of sale station.<br />
         		<br />
         		<a id="bill.0.20.0"></a><a id="pl.9.19"></a><var>9.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 20. Minnesota Statutes 2010, section 349.12, subdivision 18, is amended to read:<br />
         		<a id="pl.9.20"></a><var>9.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 18. <b>Gambling equipment.</b> "Gambling equipment" means: gambling <br />
         		<a id="pl.9.21"></a><var>9.21</var>equipment that is either disposable or permanent gambling equipment. <br />
         		<a id="pl.9.22"></a><var>9.22</var>(a) Disposable gambling equipment includes the following:<br />
         		<a id="pl.9.23"></a><var>9.23</var>(1) bingo hard cards or paper sheets, including linked bingo paper sheets, devices for <br />
         		<a id="pl.9.24"></a><var>9.24</var>selecting bingo numbers, electronic bingo devices,;<br />
         		<a id="pl.9.25"></a><var>9.25</var>(2) paper and electronic pull-tabs,;<br />
         		<a id="pl.9.26"></a><var>9.26</var>(3) jar tickets, paddle wheels, paddle wheel tables,;<br />
         		<a id="pl.9.27"></a><var>9.27</var>(4) paddle tickets, and paddle ticket cards,;<br />
         		<a id="pl.9.28"></a><var>9.28</var>(5) tipboards, and tipboard tickets,; and <br />
         		<a id="pl.9.29"></a><var>9.29</var>(6) promotional tickets that mimic a pull-tab or tipboard, pull-tab dispensing devices, <br />
         		<a id="pl.9.30"></a><var>9.30</var>and programmable electronic devices that have no effect on the outcome of a game and <br />
         		<a id="pl.9.31"></a><var>9.31</var>are used to provide a visual or auditory enhancement of a game.<br />
         		<a id="pl.9.32"></a><var>9.32</var>(b) Permanent gambling equipment includes the following:<br />
         		<a id="pl.9.33"></a><var>9.33</var>(1) devices for selecting bingo numbers;<br />
         		<a id="pl.9.34"></a><var>9.34</var>(2) electronic bingo devices;<br />
         		<a id="pl.10.1"></a><var>10.1</var>(3) electronic pull-tab devices;<br />
         		<a id="pl.10.2"></a><var>10.2</var>(4) pull-tab dispensing devices;<br />
         		<a id="pl.10.3"></a><var>10.3</var>(5) programmable electronic devices that have no effect on the outcome of a game <br />
         		<a id="pl.10.4"></a><var>10.4</var>and are used to provide a visual or auditory enhancement of a game;<br />
         		<a id="pl.10.5"></a><var>10.5</var>(6) paddle wheels; and<br />
         		<a id="pl.10.6"></a><var>10.6</var>(7) paddle wheel tables.<br />
         		<br />
         		<a id="bill.0.21.0"></a><a id="pl.10.7"></a><var>10.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 21. Minnesota Statutes 2010, section 349.12, subdivision 25, is amended to read:<br />
         		<a id="pl.10.8"></a><var>10.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 25. <b>Lawful purpose.</b> (a) "Lawful purpose" means one or more of the <br />
         		<a id="pl.10.9"></a><var>10.9</var>following:<br />
         		<a id="pl.10.10"></a><var>10.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) any expenditure by or contribution to a 501(c)(3) or festival organization, as <br />
         		<a id="pl.10.11"></a><var>10.11</var>defined in subdivision 15a, provided that the organization and expenditure or contribution <br />
         		<a id="pl.10.12"></a><var>10.12</var>are in conformity with standards prescribed by the board under section 
         <statute_ref>349.154</statute_ref>, which <br />
         		<a id="pl.10.13"></a><var>10.13</var>standards must apply to both types of organizations in the same manner and to the same <br />
         		<a id="pl.10.14"></a><var>10.14</var>extent;<br />
         		<a id="pl.10.15"></a><var>10.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) a contribution to or expenditure for goods and services for an individual or <br />
         		<a id="pl.10.16"></a><var>10.16</var>family suffering from poverty, homelessness, or disability, which is used to relieve the <br />
         		<a id="pl.10.17"></a><var>10.17</var>effects of that suffering;<br />
         		<a id="pl.10.18"></a><var>10.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a contribution to a program recognized by the Minnesota Department of Human <br />
         		<a id="pl.10.19"></a><var>10.19</var>Services for the education, prevention, or treatment of problem gambling;<br />
         		<a id="pl.10.20"></a><var>10.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) a contribution to or expenditure on a public or private nonprofit educational <br />
         		<a id="pl.10.21"></a><var>10.21</var>institution registered with or accredited by this state or any other state;<br />
         		<a id="pl.10.22"></a><var>10.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) a contribution to an individual, public or private nonprofit educational institution <br />
         		<a id="pl.10.23"></a><var>10.23</var>registered with or accredited by this state or any other state, or to a scholarship fund of a <br />
         		<a id="pl.10.24"></a><var>10.24</var>nonprofit organization whose primary mission is to award scholarships, for defraying the <br />
         		<a id="pl.10.25"></a><var>10.25</var>cost of education to individuals where the funds are awarded through an open and fair <br />
         		<a id="pl.10.26"></a><var>10.26</var>selection process;<br />
         		<a id="pl.10.27"></a><var>10.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) activities by an organization or a government entity which recognize military <br />
         		<a id="pl.10.28"></a><var>10.28</var>service to the United States, the state of Minnesota, or a community, subject to rules <br />
         		<a id="pl.10.29"></a><var>10.29</var>of the board, provided that the rules must not include mileage reimbursements in the <br />
         		<a id="pl.10.30"></a><var>10.30</var>computation of the per diem reimbursement limit and must impose no aggregate annual <br />
         		<a id="pl.10.31"></a><var>10.31</var>limit on the amount of reasonable and necessary expenditures made to support:<br />
         		<a id="pl.10.32"></a><var>10.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) members of a military marching or color guard unit for activities conducted <br />
         		<a id="pl.10.33"></a><var>10.33</var>within the state;<br />
         		<a id="pl.10.34"></a><var>10.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) members of an organization solely for services performed by the members at <br />
         		<a id="pl.10.35"></a><var>10.35</var>funeral services;<br />
         		<a id="pl.11.1"></a><var>11.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) members of military marching, color guard, or honor guard units may be <br />
         		<a id="pl.11.2"></a><var>11.2</var>reimbursed for participating in color guard, honor guard, or marching unit events within <br />
         		<a id="pl.11.3"></a><var>11.3</var>the state or states contiguous to Minnesota at a per participant rate of up to $35 per diem; or<br />
         		<a id="pl.11.4"></a><var>11.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(iv) active military personnel and their immediate family members in need of <br />
         		<a id="pl.11.5"></a><var>11.5</var>support services;<br />
         		<a id="pl.11.6"></a><var>11.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) recreational, community, and athletic facilities and activities intended primarily <br />
         		<a id="pl.11.7"></a><var>11.7</var>for persons under age 21, provided that such facilities and activities do not discriminate on <br />
         		<a id="pl.11.8"></a><var>11.8</var>the basis of gender and the organization complies with section 
         <statute_ref>349.154, subdivision 3a</statute_ref>;<br />
         		<a id="pl.11.9"></a><var>11.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) payment of local taxes authorized under this chapter, taxes imposed by the <br />
         		<a id="pl.11.10"></a><var>11.10</var>United States on receipts from lawful gambling, the taxes imposed by section 
         <statute_ref>297E.02</statute_ref>, <br />
         		<a id="pl.11.11"></a><var>11.11</var>subdivisions 1, 4, 5, and 6, and the tax imposed on unrelated business income by section <br />
         		
         <statute_ref><a id="pl.11.12"></a><var>11.12</var>290.05, subdivision 3
         </statute_ref>;<br />
         		<a id="pl.11.13"></a><var>11.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) payment of real estate taxes and assessments on permitted gambling premises <br />
         		<a id="pl.11.14"></a><var>11.14</var>owned by the licensed organization paying the taxes, or wholly leased by a licensed <br />
         		<a id="pl.11.15"></a><var>11.15</var>veterans organization under a national charter recognized under section 501(c)(19) of the <br />
         		<a id="pl.11.16"></a><var>11.16</var>Internal Revenue Code;<br />
         		<a id="pl.11.17"></a><var>11.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(10) a contribution to the United States, this state or any of its political subdivisions, <br />
         		<a id="pl.11.18"></a><var>11.18</var>or any agency or instrumentality thereof other than a direct contribution to a law <br />
         		<a id="pl.11.19"></a><var>11.19</var>enforcement or prosecutorial agency;<br />
         		<a id="pl.11.20"></a><var>11.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(11) a contribution to or expenditure by a nonprofit organization which is a church <br />
         		<a id="pl.11.21"></a><var>11.21</var>or body of communicants gathered in common membership for mutual support and <br />
         		<a id="pl.11.22"></a><var>11.22</var>edification in piety, worship, or religious observances;<br />
         		<a id="pl.11.23"></a><var>11.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(12) an expenditure for citizen monitoring of surface water quality by individuals <br />
         		<a id="pl.11.24"></a><var>11.24</var>or nongovernmental organizations that is consistent with section 
         <statute_ref>115.06, subdivision 4</statute_ref>, <br />
         		<a id="pl.11.25"></a><var>11.25</var>and Minnesota Pollution Control Agency guidance on monitoring procedures, quality <br />
         		<a id="pl.11.26"></a><var>11.26</var>assurance protocols, and data management, provided that the resulting data is submitted <br />
         		<a id="pl.11.27"></a><var>11.27</var>to the Minnesota Pollution Control Agency for review and inclusion in the state water <br />
         		<a id="pl.11.28"></a><var>11.28</var>quality database;<br />
         		<a id="pl.11.29"></a><var>11.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(13) a contribution to or expenditure on projects or activities approved by the <br />
         		<a id="pl.11.30"></a><var>11.30</var>commissioner of natural resources for:<br />
         		<a id="pl.11.31"></a><var>11.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) wildlife management projects that benefit the public at large;<br />
         		<a id="pl.11.32"></a><var>11.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) grant-in-aid trail maintenance and grooming established under sections 
         <statute_ref>84.83 <br />
            		
         </statute_ref><a id="pl.11.33"></a><var>11.33</var>and 
         <statute_ref>84.927</statute_ref>, and other trails open to public use, including purchase or lease of equipment <br />
         		<a id="pl.11.34"></a><var>11.34</var>for this purpose; and<br />
         		<a id="pl.11.35"></a><var>11.35</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) supplies and materials for safety training and educational programs coordinated <br />
         		<a id="pl.11.36"></a><var>11.36</var>by the Department of Natural Resources, including the Enforcement Division;<br />
         		<a id="pl.12.1"></a><var>12.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(14) conducting nutritional programs, food shelves, and congregate dining programs <br />
         		<a id="pl.12.2"></a><var>12.2</var>primarily for persons who are age 62 or older or disabled;<br />
         		<a id="pl.12.3"></a><var>12.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(15) a contribution to a community arts organization, or an expenditure to sponsor <br />
         		<a id="pl.12.4"></a><var>12.4</var>arts programs in the community, including but not limited to visual, literary, performing, <br />
         		<a id="pl.12.5"></a><var>12.5</var>or musical arts;<br />
         		<a id="pl.12.6"></a><var>12.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(16) an expenditure by a licensed fraternal organization or a licensed veterans <br />
         		<a id="pl.12.7"></a><var>12.7</var>organization for payment of water, fuel for heating, electricity, and sewer costs for:<br />
         		<a id="pl.12.8"></a><var>12.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) up to 100 percent for a building wholly owned or wholly leased by and used as <br />
         		<a id="pl.12.9"></a><var>12.9</var>the primary headquarters of the licensed veteran or fraternal organization; or<br />
         		<a id="pl.12.10"></a><var>12.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) a proportional amount subject to approval by the director and based on the <br />
         		<a id="pl.12.11"></a><var>12.11</var>portion of a building used as the primary headquarters of the licensed veteran or fraternal <br />
         		<a id="pl.12.12"></a><var>12.12</var>organization;<br />
         		<a id="pl.12.13"></a><var>12.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(17) expenditure by a licensed veterans organization of up to $5,000 in a calendar <br />
         		<a id="pl.12.14"></a><var>12.14</var>year in net costs to the organization for meals and other membership events, limited to <br />
         		<a id="pl.12.15"></a><var>12.15</var>members and spouses, held in recognition of military service. No more than $5,000 can be <br />
         		<a id="pl.12.16"></a><var>12.16</var>expended in total per calendar year under this clause by all licensed veterans organizations <br />
         		<a id="pl.12.17"></a><var>12.17</var>sharing the same veterans post home;<br />
         		<a id="pl.12.18"></a><var>12.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(18) payment of fees authorized under this chapter imposed by the state of Minnesota <br />
         		<a id="pl.12.19"></a><var>12.19</var>to conduct lawful gambling in Minnesota;<br />
         		<a id="pl.12.20"></a><var>12.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(19) a contribution or expenditure to honor an individual's humanitarian service <br />
         		<a id="pl.12.21"></a><var>12.21</var>as demonstrated through philanthropy or volunteerism to the United States, this state, <br />
         		<a id="pl.12.22"></a><var>12.22</var>or local community;<br />
         		<a id="pl.12.23"></a><var>12.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(20) a contribution by a licensed organization to another licensed organization with <br />
         		<a id="pl.12.24"></a><var>12.24</var>prior board approval, with the contribution designated to be used for one or more of the <br />
         		<a id="pl.12.25"></a><var>12.25</var>following lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25);<br />
         		<a id="pl.12.26"></a><var>12.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(21) an expenditure that is a contribution to a parent organization, if the parent <br />
         		<a id="pl.12.27"></a><var>12.27</var>organization: (i) has not provided to the contributing organization within one year of the <br />
         		<a id="pl.12.28"></a><var>12.28</var>contribution any money, grants, property, or other thing of value, and (ii) has received <br />
         		<a id="pl.12.29"></a><var>12.29</var>prior board approval for the contribution that will be used for a program that meets one or <br />
         		<a id="pl.12.30"></a><var>12.30</var>more of the lawful purposes under subdivision 7a;<br />
         		<a id="pl.12.31"></a><var>12.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(22) an expenditure for the repair, maintenance, or improvement of real property <br />
         		<a id="pl.12.32"></a><var>12.32</var>and capital assets owned by an organization, or for the replacement of a capital asset that <br />
         		<a id="pl.12.33"></a><var>12.33</var>can no longer be repaired, with a fiscal year limit of five percent of gross profits from <br />
         		<a id="pl.12.34"></a><var>12.34</var>the previous fiscal year, with no carryforward of unused allowances. The fiscal year is <br />
         		<a id="pl.12.35"></a><var>12.35</var>July 1 through June 30. Total expenditures for the fiscal year may not exceed the limit <br />
         		<a id="pl.12.36"></a><var>12.36</var>unless the board has specifically approved the expenditures that exceed the limit due to <br />
         		<a id="pl.13.1"></a><var>13.1</var>extenuating circumstances beyond the organization's control. An expansion of a building <br />
         		<a id="pl.13.2"></a><var>13.2</var>or bar-related expenditures are not allowed under this provision.<br />
         		<a id="pl.13.3"></a><var>13.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) The expenditure must be related to the portion of the real property or capital asset <br />
         		<a id="pl.13.4"></a><var>13.4</var>that must be made available for use free of any charge to other nonprofit organizations, <br />
         		<a id="pl.13.5"></a><var>13.5</var>community groups, or service groups, or is used for the organization's primary mission or <br />
         		<a id="pl.13.6"></a><var>13.6</var>headquarters.<br />
         		<a id="pl.13.7"></a><var>13.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) An expenditure may be made to bring an existing building that the organization <br />
         		<a id="pl.13.8"></a><var>13.8</var>owns into compliance with the Americans with Disabilities Act.<br />
         		<a id="pl.13.9"></a><var>13.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(iii) An organization may apply the amount that is allowed under item (ii) to the <br />
         		<a id="pl.13.10"></a><var>13.10</var>erection or acquisition of a replacement building that is in compliance with the Americans <br />
         		<a id="pl.13.11"></a><var>13.11</var>with Disabilities Act if the board has specifically approved the amount. The cost of <br />
         		<a id="pl.13.12"></a><var>13.12</var>the erection or acquisition of a replacement building may not be made from gambling <br />
         		<a id="pl.13.13"></a><var>13.13</var>proceeds, except for the portion allowed under this item;<br />
         		<a id="pl.13.14"></a><var>13.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(23) an expenditure for the acquisition or improvement of a capital asset with a cost <br />
         		<a id="pl.13.15"></a><var>13.15</var>greater than $2,000, excluding real property, that will be used exclusively for lawful <br />
         		<a id="pl.13.16"></a><var>13.16</var>purposes under this section if the board has specifically approved the amount;<br />
         		<a id="pl.13.17"></a><var>13.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(24) an expenditure for the acquisition, erection, improvement, or expansion of real <br />
         		<a id="pl.13.18"></a><var>13.18</var>property, if the board has first specifically authorized the expenditure after finding that the <br />
         		<a id="pl.13.19"></a><var>13.19</var>real property will be used exclusively for lawful purpose under this section; or<br />
         		<a id="pl.13.20"></a><var>13.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(25) an expenditure, including a mortgage payment or other debt service payment, <br />
         		<a id="pl.13.21"></a><var>13.21</var>for the erection or acquisition of a comparable building to replace an organization-owned <br />
         		<a id="pl.13.22"></a><var>13.22</var>building that was destroyed or made uninhabitable by fire or catastrophe or to replace an <br />
         		<a id="pl.13.23"></a><var>13.23</var>organization-owned building that was taken or sold under an eminent domain proceeding. <br />
         		<a id="pl.13.24"></a><var>13.24</var>The expenditure may be only for that part of the replacement cost not reimbursed by <br />
         		<a id="pl.13.25"></a><var>13.25</var>insurance for the fire or catastrophe or compensation not received from a governmental <br />
         		<a id="pl.13.26"></a><var>13.26</var>unit under the eminent domain proceeding, if the board has first specifically authorized <br />
         		<a id="pl.13.27"></a><var>13.27</var>the expenditure.<br />
         		<a id="pl.13.28"></a><var>13.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Expenditures authorized by the board under clauses (24) and (25) must be <br />
         		<a id="pl.13.29"></a><var>13.29</var>51 percent completed within two years of the date of board approval; otherwise the <br />
         		<a id="pl.13.30"></a><var>13.30</var>organization must reapply to the board for approval of the project. "Fifty-one percent <br />
         		<a id="pl.13.31"></a><var>13.31</var>completed" means that the work completed must represent at least 51 percent of the value <br />
         		<a id="pl.13.32"></a><var>13.32</var>of the project as documented by the contractor or vendor.<br />
         		<a id="pl.13.33"></a><var>13.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding paragraph (a), "lawful purpose" does not include:<br />
         		<a id="pl.13.34"></a><var>13.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) any expenditure made or incurred for the purpose of influencing the nomination <br />
         		<a id="pl.13.35"></a><var>13.35</var>or election of a candidate for public office or for the purpose of promoting or defeating a <br />
         		<a id="pl.13.36"></a><var>13.36</var>ballot question;<br />
         		<a id="pl.14.1"></a><var>14.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) any activity intended to influence an election or a governmental decision-making <br />
         		<a id="pl.14.2"></a><var>14.2</var>process;<br />
         		<a id="pl.14.3"></a><var>14.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a contribution to a statutory or home rule charter city, county, or town by a <br />
         		<a id="pl.14.4"></a><var>14.4</var>licensed organization with the knowledge that the governmental unit intends to use the <br />
         		<a id="pl.14.5"></a><var>14.5</var>contribution for a pension or retirement fund; or<br />
         		<a id="pl.14.6"></a><var>14.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) a contribution to a 501(c)(3) organization or other entity with the intent or effect <br />
         		<a id="pl.14.7"></a><var>14.7</var>of not complying with lawful purpose restrictions or requirements.<br />
         		<a id="pl.14.8"></a><var>14.8</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.0.22.0"></a><a id="pl.14.9"></a><var>14.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 22. Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read:<br />
         		<a id="pl.14.10"></a><var>14.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 25b. <b>Linked bingo game provider.</b> "Linked bingo game provider" means <br />
         		<a id="pl.14.11"></a><var>14.11</var>any person who provides the means to link bingo prizes in a linked bingo game, who <br />
         		<a id="pl.14.12"></a><var>14.12</var>provides linked bingo paper sheets to the participating organizations games, who provides <br />
         		<a id="pl.14.13"></a><var>14.13</var>linked bingo prize management, and who provides the linked bingo game system.<br />
         		<br />
         		<a id="bill.0.23.0"></a><a id="pl.14.14"></a><var>14.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 23. Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read:<br />
         		<a id="pl.14.15"></a><var>14.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 25c. <b>Linked bingo game system.</b> "Linked bingo game system" means the <br />
         		<a id="pl.14.16"></a><var>14.16</var>equipment used by the linked bingo provider to conduct, transmit, and track a linked <br />
         		<a id="pl.14.17"></a><var>14.17</var>bingo game. The system must be approved by the board before its use in this state and <br />
         		<a id="pl.14.18"></a><var>14.18</var>it must have dial-up or other the capability to permit the board to electronically monitor <br />
         		<a id="pl.14.19"></a><var>14.19</var>its operation remotely. For linked electronic bingo games, the system includes electronic <br />
         		<a id="pl.14.20"></a><var>14.20</var>bingo devices.<br />
         		<br />
         		<a id="bill.0.24.0"></a><a id="pl.14.21"></a><var>14.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 24. Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read:<br />
         		<a id="pl.14.22"></a><var>14.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 25d. <b>Linked bingo prize pool.</b> "Linked bingo prize pool" means the total <br />
         		<a id="pl.14.23"></a><var>14.23</var>of all prize money that each participating organization has contributed to a linked bingo <br />
         		<a id="pl.14.24"></a><var>14.24</var>game prize and includes any portion of the prize pool that is carried over from one <br />
         		<a id="pl.14.25"></a><var>14.25</var>occasion game to another in a progressive linked bingo game.<br />
         		<br />
         		<a id="bill.0.25.0"></a><a id="pl.14.26"></a><var>14.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 25. Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read:<br />
         		<a id="pl.14.27"></a><var>14.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 29. <b>Paddle wheel.</b> "Paddle wheel" means a vertical wheel marked off into <br />
         		<a id="pl.14.28"></a><var>14.28</var>sections containing one or more numbers, and which, after being turned or spun, uses a <br />
         		<a id="pl.14.29"></a><var>14.29</var>pointer or marker to indicate winning chances, and may only be used to determine a <br />
         		<a id="pl.14.30"></a><var>14.30</var>winning number or numbers matching a winning paddle ticket purchased by a player. A <br />
         		<a id="pl.14.31"></a><var>14.31</var>paddle wheel may be an electronic device that simulates a paddle wheel.<br />
         		<br />
         		<a id="bill.0.26.0"></a><a id="pl.15.1"></a><var>15.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 26. Minnesota Statutes 2010, section 349.12, subdivision 31, is amended to read:<br />
         		<a id="pl.15.2"></a><var>15.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 31. <b>Promotional ticket.</b> A paper pull-tab ticket or paper tipboard ticket <br />
         		<a id="pl.15.3"></a><var>15.3</var>created and printed by a licensed manufacturer with the words "no purchase necessary" and <br />
         		<a id="pl.15.4"></a><var>15.4</var>"for promotional use only" and for which no consideration is given is a promotional ticket.<br />
         		<br />
         		<a id="bill.0.27.0"></a><a id="pl.15.5"></a><var>15.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 27. Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read:<br />
         		<a id="pl.15.6"></a><var>15.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 32. <b>Pull-tab.</b> "Pull-tab" means a single folded or banded paper ticket or a, <br />
         		<a id="pl.15.7"></a><var>15.7</var>multi-ply card with perforated break-open tabs, or a facsimile of a paper pull-tab ticket <br />
         		<a id="pl.15.8"></a><var>15.8</var>used in conjunction with an electronic pull-tab device, the face of which is initially <br />
         		<a id="pl.15.9"></a><var>15.9</var>covered to conceal one or more numbers or symbols, and where one or more of each set of <br />
         		<a id="pl.15.10"></a><var>15.10</var>tickets or, cards, or facsimiles has been designated in advance as a winner.<br />
         		<br />
         		<a id="bill.0.28.0"></a><a id="pl.15.11"></a><var>15.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 28. Minnesota Statutes 2010, section 349.13, is amended to read:<br />
         		<a id="pl.15.12"></a><var>15.12</var><b>349.13 LAWFUL GAMBLING.</b><br />
         		<a id="pl.15.13"></a><var>15.13</var>Lawful gambling is not a lottery or gambling within the meaning of sections 
         <statute_ref>609.75</statute_ref> <br />
         		<a id="pl.15.14"></a><var>15.14</var>to 
         <statute_ref>609.76</statute_ref> if it is conducted under this chapter. A pull-tab dispensing device, electronic <br />
         		<a id="pl.15.15"></a><var>15.15</var>bingo device, and electronic pull-tab device permitted under this chapter and by board <br />
         		<a id="pl.15.16"></a><var>15.16</var>rule is not a gambling device within the meaning of sections 
         <statute_ref>609.75</statute_ref> to 
         <statute_ref>609.76</statute_ref> and chapter <br />
         		<a id="pl.15.17"></a><var>15.17</var>299L. An electronic game device allowed under this chapter may not be a slot machine. <br />
         		<a id="pl.15.18"></a><var>15.18</var>Electronic game devices, including but not limited to electronic bingo devices, electronic <br />
         		<a id="pl.15.19"></a><var>15.19</var>paddle wheels, and electronic pull-tab devices authorized under this chapter, may only <br />
         		<a id="pl.15.20"></a><var>15.20</var>be used in the conduct of lawful gambling permitted under this chapter and board rule <br />
         		<a id="pl.15.21"></a><var>15.21</var>and may not display or simulate any other form of gambling or entertainment, except <br />
         		<a id="pl.15.22"></a><var>15.22</var>as otherwise allowed under this chapter. <br />
         		<br />
         		<a id="bill.0.29.0"></a><a id="pl.15.23"></a><var>15.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 29. Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:<br />
         		<a id="pl.15.24"></a><var>15.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4b. <b>Pull-tab sales from dispensing devices.</b> (a) The board may by rule <br />
         		<a id="pl.15.25"></a><var>15.25</var>authorize but not require the use of pull-tab dispensing devices.<br />
         		<a id="pl.15.26"></a><var>15.26</var>(b) Rules adopted under paragraph (a):<br />
         		<a id="pl.15.27"></a><var>15.27</var>(1) must limit the number of pull-tab dispensing devices on any permitted premises <br />
         		<a id="pl.15.28"></a><var>15.28</var>to three; and<br />
         		<a id="pl.15.29"></a><var>15.29</var>(2) must limit the use of pull-tab dispensing devices to a permitted premises which is <br />
         		<a id="pl.15.30"></a><var>15.30</var>(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages; <br />
         		<a id="pl.15.31"></a><var>15.31</var>or (ii) a premises where bingo is conducted and admission is restricted to persons 18 <br />
         		<a id="pl.15.32"></a><var>15.32</var>years or older.<br />
         		<a id="pl.16.1"></a><var>16.1</var>(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices <br />
         		<a id="pl.16.2"></a><var>16.2</var>may be used in establishments licensed for the off-sale of intoxicating liquor, other than <br />
         		<a id="pl.16.3"></a><var>16.3</var>drugstores and general food stores licensed under section 
         <statute_ref>340A.405, subdivision 1</statute_ref>.<br />
         		<br />
         		<a id="bill.0.30.0"></a><a id="pl.16.4"></a><var>16.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 30. Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read:<br />
         		<a id="pl.16.5"></a><var>16.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4c. <b>Electronic bingo</b><b> devices</b><b>.</b> (a) The board may by rule authorize but not <br />
         		<a id="pl.16.6"></a><var>16.6</var>require the use of electronic bingo devices.<br />
         		<a id="pl.16.7"></a><var>16.7</var>(b) Rules adopted under paragraph (a):<br />
         		<a id="pl.16.8"></a><var>16.8</var>(1) must limit the number of bingo faces that can be played using an electronic <br />
         		<a id="pl.16.9"></a><var>16.9</var>bingo device to 36;<br />
         		<a id="pl.16.10"></a><var>16.10</var>(2) must require that an electronic bingo device be used with corresponding bingo <br />
         		<a id="pl.16.11"></a><var>16.11</var>paper sheets or a facsimile, printed at the point of sale, as approved by the board;<br />
         		<a id="pl.16.12"></a><var>16.12</var>(3) must require that the electronic bingo device site system have dial-up capability <br />
         		<a id="pl.16.13"></a><var>16.13</var>to permit the board to remotely monitor the operation of the device and the internal <br />
         		<a id="pl.16.14"></a><var>16.14</var>accounting systems; and<br />
         		<a id="pl.16.15"></a><var>16.15</var>(4) must prohibit the price of a face played on an electronic bingo device from being <br />
         		<a id="pl.16.16"></a><var>16.16</var>less than the price of a face on a bingo paper sheet sold at the same occasion.<br />
         		<a id="pl.16.17"></a><var>16.17</var>(b) The board, or the director if authorized by the board, may require the deactivation <br />
         		<a id="pl.16.18"></a><var>16.18</var>of an electronic bingo device for violation of a law or rule and to implement any other <br />
         		<a id="pl.16.19"></a><var>16.19</var>controls deemed necessary to ensure and maintain the integrity of electronic bingo devices <br />
         		<a id="pl.16.20"></a><var>16.20</var>and the electronic bingo games played on the devices.<br />
         		<br />
         		<a id="bill.0.31.0"></a><a id="pl.16.21"></a><var>16.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 31. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision <br />
         		<a id="pl.16.22"></a><var>16.22</var>to read:<br />
         		<a id="pl.16.23"></a><var>16.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4d. <b>Electronic pull-tab devices and electronic pull-tab game system.</b> (a) <br />
         		<a id="pl.16.24"></a><var>16.24</var>The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab <br />
         		<a id="pl.16.25"></a><var>16.25</var>devices, the electronic pull-tab games played on the devices, and the electronic pull-tab <br />
         		<a id="pl.16.26"></a><var>16.26</var>game system necessary to operate them.<br />
         		<a id="pl.16.27"></a><var>16.27</var>(b) The board may not require an organization to use electronic pull-tab devices.<br />
         		<a id="pl.16.28"></a><var>16.28</var>(c) Before authorizing the lease or sale of electronic pull-tab devices and the <br />
         		<a id="pl.16.29"></a><var>16.29</var>electronic pull-tab game system, the board shall examine electronic pull-tab devices <br />
         		<a id="pl.16.30"></a><var>16.30</var>allowed under section 349.12, subdivision 12b. The board may contract for the <br />
         		<a id="pl.16.31"></a><var>16.31</var>examination of the game system and electronic pull-tab devices and may require a working <br />
         		<a id="pl.16.32"></a><var>16.32</var>model to be transported to locations the board designates for testing, examination, and <br />
         		<a id="pl.16.33"></a><var>16.33</var>analysis. The manufacturer must pay all costs of any testing, examination, analysis, and <br />
         		<a id="pl.16.34"></a><var>16.34</var>transportation of the model. The system must be approved by the board before its use in <br />
         		<a id="pl.17.1"></a><var>17.1</var>the state and must have the capability to permit the board to electronically monitor its <br />
         		<a id="pl.17.2"></a><var>17.2</var>operation and internal accounting systems. <br />
         		<a id="pl.17.3"></a><var>17.3</var>(d) The board may require a manufacturer to submit a certificate from an independent <br />
         		<a id="pl.17.4"></a><var>17.4</var>testing laboratory approved by the board to perform testing services, stating that the <br />
         		<a id="pl.17.5"></a><var>17.5</var>equipment has been tested, analyzed, and meets the standards required in this chapter <br />
         		<a id="pl.17.6"></a><var>17.6</var>and any applicable board rules.<br />
         		<a id="pl.17.7"></a><var>17.7</var>(e) The board, or the director if authorized by the board, may require the deactivation <br />
         		<a id="pl.17.8"></a><var>17.8</var>of an electronic pull-tab device for violation of a law or rule and to implement any other <br />
         		<a id="pl.17.9"></a><var>17.9</var>controls deemed necessary to ensure and maintain the integrity of electronic pull-tab <br />
         		<a id="pl.17.10"></a><var>17.10</var>devices and the electronic pull-tab games played on the devices.<br />
         		<br />
         		<a id="bill.0.32.0"></a><a id="pl.17.11"></a><var>17.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 32. Minnesota Statutes 2010, section 349.155, subdivision 3, is amended to read:<br />
         		<a id="pl.17.12"></a><var>17.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Mandatory disqualifications.</b> (a) In the case of licenses for manufacturers, <br />
         		<a id="pl.17.13"></a><var>17.13</var>distributors, distributor salespersons, linked bingo game providers, and gambling <br />
         		<a id="pl.17.14"></a><var>17.14</var>managers, the board may not issue or renew a license under this chapter, and shall revoke <br />
         		<a id="pl.17.15"></a><var>17.15</var>a license under this chapter, if the applicant or licensee, or a director, officer, partner, <br />
         		<a id="pl.17.16"></a><var>17.16</var>governor, or person in a supervisory or management position of the applicant or licensee:<br />
         		<a id="pl.17.17"></a><var>17.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) has ever been convicted of a felony or a crime involving gambling;<br />
         		<a id="pl.17.18"></a><var>17.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) has ever been convicted of (i) assault, (ii) a criminal violation involving the use <br />
         		<a id="pl.17.19"></a><var>17.19</var>of a firearm, or (iii) making terroristic threats;<br />
         		<a id="pl.17.20"></a><var>17.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) is or has ever been connected with or engaged in an illegal business;<br />
         		<a id="pl.17.21"></a><var>17.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) owes $500 or more in delinquent taxes as defined in section 
         <statute_ref>270C.72</statute_ref>;<br />
         		<a id="pl.17.22"></a><var>17.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) had a sales and use tax permit revoked by the commissioner of revenue within <br />
         		<a id="pl.17.23"></a><var>17.23</var>the past two years; or<br />
         		<a id="pl.17.24"></a><var>17.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) after demand, has not filed tax returns required by the commissioner of revenue. <br />
         		<a id="pl.17.25"></a><var>17.25</var>The board may deny or refuse to renew a license under this chapter, and may revoke a <br />
         		<a id="pl.17.26"></a><var>17.26</var>license under this chapter, if any of the conditions in this paragraph are applicable to <br />
         		<a id="pl.17.27"></a><var>17.27</var>an affiliate or direct or indirect holder of more than a five percent financial interest in <br />
         		<a id="pl.17.28"></a><var>17.28</var>the applicant or licensee.<br />
         		<a id="pl.17.29"></a><var>17.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of licenses for organizations, the board may not issue a license under <br />
         		<a id="pl.17.30"></a><var>17.30</var>this chapter, and shall revoke a license under this chapter, if the organization, or an officer <br />
         		<a id="pl.17.31"></a><var>17.31</var>or member of the governing body of the organization:<br />
         		<a id="pl.17.32"></a><var>17.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) has been convicted of a felony or gross misdemeanor involving theft or fraud; or<br />
         		<a id="pl.17.33"></a><var>17.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) has ever been convicted of a crime involving gambling; or.<br />
         		<a id="pl.17.34"></a><var>17.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) has had a license issued by the board or director permanently revoked for <br />
         		<a id="pl.17.35"></a><var>17.35</var>violation of law or board rule.<br />
         		<br />
         		<a id="bill.0.33.0"></a><a id="pl.18.1"></a><var>18.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 33. Minnesota Statutes 2010, section 349.155, subdivision 4, is amended to read:<br />
         		<a id="pl.18.2"></a><var>18.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>License revocation, suspension, denial; censure.</b> (a) The board may by <br />
         		<a id="pl.18.3"></a><var>18.3</var>order (i) deny, suspend, revoke, or refuse to renew a license or premises permit, or (ii) <br />
         		<a id="pl.18.4"></a><var>18.4</var>censure a licensee or applicant, if it finds that the order is in the public interest and that the <br />
         		<a id="pl.18.5"></a><var>18.5</var>applicant or licensee, or a director, officer, partner, governor, person in a supervisory or <br />
         		<a id="pl.18.6"></a><var>18.6</var>management position of the applicant or licensee, an employee eligible to make sales on <br />
         		<a id="pl.18.7"></a><var>18.7</var>behalf of the applicant or licensee, or direct or indirect holder of more than a five percent <br />
         		<a id="pl.18.8"></a><var>18.8</var>financial interest in the applicant or licensee:<br />
         		<a id="pl.18.9"></a><var>18.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) has violated or failed to comply with any provision of this chapter or chapter <br />
         		<a id="pl.18.10"></a><var>18.10</var>297E or 299L, or any rule adopted or order issued thereunder;<br />
         		<a id="pl.18.11"></a><var>18.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) has filed an application for a license that is incomplete in any material respect, or <br />
         		<a id="pl.18.12"></a><var>18.12</var>contains a statement that, in light of the circumstances under which it was made, is false, <br />
         		<a id="pl.18.13"></a><var>18.13</var>misleading, fraudulent, or a misrepresentation;<br />
         		<a id="pl.18.14"></a><var>18.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) has made a false statement in a document or report required to be submitted to <br />
         		<a id="pl.18.15"></a><var>18.15</var>the board or the commissioner of revenue, or has made a false statement to the board, the <br />
         		<a id="pl.18.16"></a><var>18.16</var>compliance review group, or the director;<br />
         		<a id="pl.18.17"></a><var>18.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) has been convicted of a crime in another jurisdiction that would be a felony if <br />
         		<a id="pl.18.18"></a><var>18.18</var>committed in Minnesota;<br />
         		<a id="pl.18.19"></a><var>18.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) is permanently or temporarily enjoined by any gambling regulatory agency from <br />
         		<a id="pl.18.20"></a><var>18.20</var>engaging in or continuing any conduct or practice involving any aspect of gambling;<br />
         		<a id="pl.18.21"></a><var>18.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(6) has had a gambling-related license revoked or suspended, or has paid or been <br />
         		<a id="pl.18.22"></a><var>18.22</var>required to pay a monetary penalty of $2,500 or more, by a gambling regulator in another <br />
         		<a id="pl.18.23"></a><var>18.23</var>state or jurisdiction;<br />
         		<a id="pl.18.24"></a><var>18.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(7) has been the subject of any of the following actions by the director of alcohol <br />
         		<a id="pl.18.25"></a><var>18.25</var>and gambling enforcement or commissioner of public safety: (i) had a license under <br />
         		<a id="pl.18.26"></a><var>18.26</var>chapter 299L denied, suspended, or revoked, (ii) been censured, reprimanded, has paid or <br />
         		<a id="pl.18.27"></a><var>18.27</var>been required to pay a monetary penalty or fine, or (iii) has been the subject of any other <br />
         		<a id="pl.18.28"></a><var>18.28</var>discipline by the director or commissioner;<br />
         		<a id="pl.18.29"></a><var>18.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(8) has engaged in conduct that is contrary to the public health, welfare, or safety, or <br />
         		<a id="pl.18.30"></a><var>18.30</var>to the integrity of gambling; or<br />
         		<a id="pl.18.31"></a><var>18.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(9) based on past activities or criminal record poses a threat to the public interest or <br />
         		<a id="pl.18.32"></a><var>18.32</var>to the effective regulation and control of gambling, or creates or enhances the dangers of <br />
         		<a id="pl.18.33"></a><var>18.33</var>unsuitable, unfair, or illegal practices, methods, and activities in the conduct of gambling <br />
         		<a id="pl.18.34"></a><var>18.34</var>or the carrying on of the business and financial arrangements incidental to the conduct of <br />
         		<a id="pl.18.35"></a><var>18.35</var>gambling.<br />
         		<a id="pl.19.1"></a><var>19.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The revocation or suspension of an organization's license may not exceed a <br />
         		<a id="pl.19.2"></a><var>19.2</var>period of ten years, including any revocation or suspension imposed by the board prior to <br />
         		<a id="pl.19.3"></a><var>19.3</var>the effective date of this paragraph, except that:<br />
         		<a id="pl.19.4"></a><var>19.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) any prohibition placed by the board on who may be involved in the conduct, <br />
         		<a id="pl.19.5"></a><var>19.5</var>oversight, or management of the revoked organization's lawful gambling activity is <br />
         		<a id="pl.19.6"></a><var>19.6</var>permanent; and<br />
         		<a id="pl.19.7"></a><var>19.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) a revocation or suspension will remain in effect until any taxes, fees, and fines <br />
         		<a id="pl.19.8"></a><var>19.8</var>that are delinquent have been paid by the organization to the satisfaction of the board.<br />
         		<br />
         		<a id="bill.0.34.0"></a><a id="pl.19.9"></a><var>19.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 34. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read:<br />
         		<a id="pl.19.10"></a><var>19.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Prohibited acts; licenses required.</b> (a) No person may:<br />
         		<a id="pl.19.11"></a><var>19.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) sell, offer for sale, or furnish gambling equipment for use within the state other <br />
         		<a id="pl.19.12"></a><var>19.12</var>than for lawful gambling exempt or excluded from licensing, except to an organization <br />
         		<a id="pl.19.13"></a><var>19.13</var>licensed for lawful gambling;<br />
         		<a id="pl.19.14"></a><var>19.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) sell, offer for sale, or furnish gambling equipment for use within the state without <br />
         		<a id="pl.19.15"></a><var>19.15</var>having obtained a distributor license or a distributor salesperson license under this section <br />
         		<a id="pl.19.16"></a><var>19.16</var>except that an organization authorized to conduct bingo by the board may loan bingo <br />
         		<a id="pl.19.17"></a><var>19.17</var>hard cards and devices for selecting bingo numbers to another organization authorized to <br />
         		<a id="pl.19.18"></a><var>19.18</var>conduct bingo and a linked bingo game provider may provide electronic bingo devices for <br />
         		<a id="pl.19.19"></a><var>19.19</var>linked electronic bingo games;<br />
         		<a id="pl.19.20"></a><var>19.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) sell, offer for sale, or furnish gambling equipment for use within the state that is <br />
         		<a id="pl.19.21"></a><var>19.21</var>not purchased or obtained from a manufacturer or distributor licensed under this chapter; or<br />
         		<a id="pl.19.22"></a><var>19.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) sell, offer for sale, or furnish gambling equipment for use within the state that <br />
         		<a id="pl.19.23"></a><var>19.23</var>has the same serial number as another item of gambling equipment of the same type sold <br />
         		<a id="pl.19.24"></a><var>19.24</var>or offered for sale or furnished for use in the state by that distributor.<br />
         		<a id="pl.19.25"></a><var>19.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling <br />
         		<a id="pl.19.26"></a><var>19.26</var>equipment for use within the state without being employed by a licensed distributor or <br />
         		<a id="pl.19.27"></a><var>19.27</var>owning a distributor license.<br />
         		<a id="pl.19.28"></a><var>19.28</var>(c) No distributor or distributor salesperson may also be licensed as a linked bingo <br />
         		<a id="pl.19.29"></a><var>19.29</var>game provider under section 349.1635.<br />
         		<br />
         		<a id="bill.0.35.0"></a><a id="pl.19.30"></a><var>19.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 35. Minnesota Statutes 2010, section 349.161, subdivision 5, is amended to read:<br />
         		<a id="pl.19.31"></a><var>19.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Prohibition.</b> (a) No distributor, distributor salesperson, or other employee <br />
         		<a id="pl.19.32"></a><var>19.32</var>of a distributor, may also be a wholesale distributor of alcoholic beverages or an employee <br />
         		<a id="pl.19.33"></a><var>19.33</var>of a wholesale distributor of alcoholic beverages.<br />
         		<a id="pl.20.1"></a><var>20.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) No distributor, distributor salesperson, or any representative, agent, affiliate, or <br />
         		<a id="pl.20.2"></a><var>20.2</var>other employee of a distributor, may: (1) be involved in the conduct of lawful gambling <br />
         		<a id="pl.20.3"></a><var>20.3</var>by an organization; (2) keep or assist in the keeping of an organization's financial records, <br />
         		<a id="pl.20.4"></a><var>20.4</var>accounts, and inventories; or (3) prepare or assist in the preparation of tax forms and other <br />
         		<a id="pl.20.5"></a><var>20.5</var>reporting forms required to be submitted to the state by an organization.<br />
         		<a id="pl.20.6"></a><var>20.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) No distributor, distributor salesperson, or any representative, agent, affiliate, <br />
         		<a id="pl.20.7"></a><var>20.7</var>or other employee of a distributor may provide a lessor of gambling premises any <br />
         		<a id="pl.20.8"></a><var>20.8</var>compensation, gift, gratuity, premium, or other thing of value.<br />
         		<a id="pl.20.9"></a><var>20.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) No distributor, distributor salesperson, or any representative, agent, affiliate, or <br />
         		<a id="pl.20.10"></a><var>20.10</var>other employee of a distributor may provide an employee or agent of the organization <br />
         		<a id="pl.20.11"></a><var>20.11</var>any compensation, gift, gratuity, premium, or other thing of value greater than $25 per <br />
         		<a id="pl.20.12"></a><var>20.12</var>organization in a calendar year.<br />
         		<a id="pl.20.13"></a><var>20.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) No distributor, distributor salesperson, or any representative, agent, affiliate, or <br />
         		<a id="pl.20.14"></a><var>20.14</var>other employee of a distributor may participate in any gambling activity at any gambling <br />
         		<a id="pl.20.15"></a><var>20.15</var>site or premises where gambling equipment purchased or leased from that distributor or <br />
         		<a id="pl.20.16"></a><var>20.16</var>distributor salesperson is being used in the conduct of lawful gambling.<br />
         		<a id="pl.20.17"></a><var>20.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) No distributor, distributor salesperson, or any representative, agent, affiliate, or <br />
         		<a id="pl.20.18"></a><var>20.18</var>other employee of a distributor may alter or modify any gambling equipment, except to <br />
         		<a id="pl.20.19"></a><var>20.19</var>add a "last ticket sold" prize sticker for a paper pull-tab game.<br />
         		<a id="pl.20.20"></a><var>20.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(g) No distributor, distributor salesperson, or any representative, agent, affiliate, or <br />
         		<a id="pl.20.21"></a><var>20.21</var>other employee of a distributor may: (1) recruit a person to become a gambling manager <br />
         		<a id="pl.20.22"></a><var>20.22</var>of an organization or identify to an organization a person as a candidate to become <br />
         		<a id="pl.20.23"></a><var>20.23</var>gambling manager for the organization; or (2) identify for an organization a potential <br />
         		<a id="pl.20.24"></a><var>20.24</var>gambling location.<br />
         		<a id="pl.20.25"></a><var>20.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(h) No distributor or distributor salesperson may purchase or lease gambling <br />
         		<a id="pl.20.26"></a><var>20.26</var>equipment for resale or lease to a person for use within the state from any person not <br />
         		<a id="pl.20.27"></a><var>20.27</var>licensed as a manufacturer under section 
         <statute_ref>349.163</statute_ref>, except for gambling equipment <br />
         		<a id="pl.20.28"></a><var>20.28</var>returned from an organization licensed under section 
         <statute_ref>349.16</statute_ref>, or exempt or excluded from <br />
         		<a id="pl.20.29"></a><var>20.29</var>licensing under section 
         <statute_ref>349.166</statute_ref>.<br />
         		<a id="pl.20.30"></a><var>20.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) No distributor or distributor salesperson may sell gambling equipment, except <br />
         		<a id="pl.20.31"></a><var>20.31</var>gambling equipment identified as a promotional ticket, to any person for use in Minnesota <br />
         		<a id="pl.20.32"></a><var>20.32</var>other than (i) a licensed organization or organization excluded or exempt from licensing, <br />
         		<a id="pl.20.33"></a><var>20.33</var>or (ii) the governing body of an Indian tribe.<br />
         		<a id="pl.20.34"></a><var>20.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(j) No distributor or distributor salesperson may sell or otherwise provide a paper <br />
         		<a id="pl.20.35"></a><var>20.35</var>pull-tab or tipboard deal with the symbol required by section 
         <statute_ref>349.163, subdivision 5</statute_ref>, <br />
         		<a id="pl.21.1"></a><var>21.1</var>paragraph (d), visible on the flare to any person other than in Minnesota to a licensed <br />
         		<a id="pl.21.2"></a><var>21.2</var>organization or organization exempt from licensing.<br />
         		<br />
         		<a id="bill.0.36.0"></a><a id="pl.21.3"></a><var>21.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 36. Minnesota Statutes 2010, section 349.162, subdivision 5, is amended to read:<br />
         		<a id="pl.21.4"></a><var>21.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Sales from facilities.</b> (a) All gambling equipment purchased or possessed <br />
         		<a id="pl.21.5"></a><var>21.5</var>by a licensed distributor for resale or lease to any person for use in Minnesota must, prior <br />
         		<a id="pl.21.6"></a><var>21.6</var>to the equipment's resale or lease, be unloaded into a storage facility located in Minnesota <br />
         		<a id="pl.21.7"></a><var>21.7</var>which the distributor owns or leases; and which has been registered, in advance and in <br />
         		<a id="pl.21.8"></a><var>21.8</var>writing, with the Division of Alcohol and Gambling Enforcement as a storage facility of <br />
         		<a id="pl.21.9"></a><var>21.9</var>the distributor. All unregistered gambling equipment and all unaffixed registration stamps <br />
         		<a id="pl.21.10"></a><var>21.10</var>owned by, or in the possession of, a licensed distributor in the state of Minnesota shall be <br />
         		<a id="pl.21.11"></a><var>21.11</var>stored at a storage facility which has been registered with the Division of Alcohol and <br />
         		<a id="pl.21.12"></a><var>21.12</var>Gambling Enforcement. No gambling equipment may be moved from the facility unless <br />
         		<a id="pl.21.13"></a><var>21.13</var>the gambling equipment has been first registered with the board or the Department of <br />
         		<a id="pl.21.14"></a><var>21.14</var>Revenue. A distributor must notify the board of the method that it will use to sell and <br />
         		<a id="pl.21.15"></a><var>21.15</var>transfer electronic pull-tab games to licensed organizations, and must receive approval of <br />
         		<a id="pl.21.16"></a><var>21.16</var>the board before implementing or making changes to the approved method.<br />
         		<a id="pl.21.17"></a><var>21.17</var>(b) Notwithstanding section 
         <statute_ref>349.163, subdivisions 5, 6, and 8</statute_ref>, a licensed <br />
         		<a id="pl.21.18"></a><var>21.18</var>manufacturer may ship into Minnesota approved or unapproved gambling equipment if the <br />
         		<a id="pl.21.19"></a><var>21.19</var>licensed manufacturer ships the gambling equipment to a Minnesota storage facility that <br />
         		<a id="pl.21.20"></a><var>21.20</var>is: (1) owned or leased by the licensed manufacturer; and (2) registered, in advance and <br />
         		<a id="pl.21.21"></a><var>21.21</var>in writing, with the Division of Alcohol and Gambling Enforcement as a manufacturer's <br />
         		<a id="pl.21.22"></a><var>21.22</var>storage facility. No gambling equipment may be shipped into Minnesota to the <br />
         		<a id="pl.21.23"></a><var>21.23</var>manufacturer's registered storage facility unless the shipment of the gambling equipment <br />
         		<a id="pl.21.24"></a><var>21.24</var>is reported to the Department of Revenue in a manner prescribed by the department. <br />
         		<a id="pl.21.25"></a><var>21.25</var>No gambling equipment may be moved from the storage facility unless the gambling <br />
         		<a id="pl.21.26"></a><var>21.26</var>equipment is sold to a licensed distributor and is otherwise in conformity with this chapter, <br />
         		<a id="pl.21.27"></a><var>21.27</var>is shipped to an out-of-state site and the shipment is reported to the Department of <br />
         		<a id="pl.21.28"></a><var>21.28</var>Revenue in a manner prescribed by the department, or is otherwise sold and shipped as <br />
         		<a id="pl.21.29"></a><var>21.29</var>permitted by board rule. A manufacturer must notify the board of the method that it will <br />
         		<a id="pl.21.30"></a><var>21.30</var>use to sell and transfer electronic pull-tab games to licensed distributors, and must receive <br />
         		<a id="pl.21.31"></a><var>21.31</var>approval of the board before implementing or making changes to the approved method.<br />
         		<a id="pl.21.32"></a><var>21.32</var>(c) All storage facilities owned, leased, used, or operated by a licensed distributor <br />
         		<a id="pl.21.33"></a><var>21.33</var>or manufacturer may be entered upon and inspected by the employees of the Division of <br />
         		<a id="pl.21.34"></a><var>21.34</var>Alcohol and Gambling Enforcement, the Division of Alcohol and Gambling Enforcement <br />
         		<a id="pl.21.35"></a><var>21.35</var>director's authorized representatives, employees of the Gambling Control Board or its <br />
         		<a id="pl.22.1"></a><var>22.1</var>authorized representatives, employees of the Department of Revenue, or authorized <br />
         		<a id="pl.22.2"></a><var>22.2</var>representatives of the director of the Division of Special Taxes of the Department of <br />
         		<a id="pl.22.3"></a><var>22.3</var>Revenue during reasonable and regular business hours. Obstruction of, or failure to <br />
         		<a id="pl.22.4"></a><var>22.4</var>permit, entry and inspection is cause for revocation or suspension of a manufacturer's or <br />
         		<a id="pl.22.5"></a><var>22.5</var>distributor's licenses and permits issued under this chapter.<br />
         		<a id="pl.22.6"></a><var>22.6</var>(d) Unregistered gambling equipment found at any location in Minnesota other than <br />
         		<a id="pl.22.7"></a><var>22.7</var>the manufacturing plant of a licensed manufacturer or a registered storage facility are <br />
         		<a id="pl.22.8"></a><var>22.8</var>contraband under section 
         <statute_ref>349.2125</statute_ref>. This paragraph does not apply:<br />
         		<a id="pl.22.9"></a><var>22.9</var>(1) to unregistered gambling equipment being transported in interstate commerce <br />
         		<a id="pl.22.10"></a><var>22.10</var>between locations outside this state, if the interstate shipment is verified by a bill of lading <br />
         		<a id="pl.22.11"></a><var>22.11</var>or other valid shipping document; and<br />
         		<a id="pl.22.12"></a><var>22.12</var>(2) to gambling equipment registered with the Department of Revenue for <br />
         		<a id="pl.22.13"></a><var>22.13</var>distribution to the tribal casinos.<br />
         		<br />
         		<a id="bill.0.37.0"></a><a id="pl.22.14"></a><var>22.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 37. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read:<br />
         		<a id="pl.22.15"></a><var>22.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>License required.</b> No manufacturer of gambling equipment may <br />
         		<a id="pl.22.16"></a><var>22.16</var>sell any gambling equipment to any person for use or resale within the state, unless the <br />
         		<a id="pl.22.17"></a><var>22.17</var>manufacturer has a current and valid license issued by the board under this section and has <br />
         		<a id="pl.22.18"></a><var>22.18</var>satisfied other criteria prescribed by the board by rule. A manufacturer licensed under this <br />
         		<a id="pl.22.19"></a><var>22.19</var>section may also be licensed as a linked bingo game provider under section 349.1635. <br />
         		<a id="pl.22.20"></a><var>22.20</var>A manufacturer licensed under this section may not also be directly or indirectly <br />
         		<a id="pl.22.21"></a><var>22.21</var>licensed as a distributor under section 
         <statute_ref>349.161</statute_ref>.<br />
         		<br />
         		<a id="bill.0.38.0"></a><a id="pl.22.22"></a><var>22.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 38. Minnesota Statutes 2010, section 349.163, subdivision 5, is amended to read:<br />
         		<a id="pl.22.23"></a><var>22.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Paper </b><b>pull-tab and tipboard flares.</b> (a) A manufacturer may not ship or <br />
         		<a id="pl.22.24"></a><var>22.24</var>cause to be shipped into this state or sell for use or resale in this state any deal of paper <br />
         		<a id="pl.22.25"></a><var>22.25</var>pull-tabs or tipboards that does not have its own individual flare as required for that deal <br />
         		<a id="pl.22.26"></a><var>22.26</var>by this subdivision and rule of the board. A person other than a manufacturer may not <br />
         		<a id="pl.22.27"></a><var>22.27</var>manufacture, alter, modify, or otherwise change a flare for a deal of paper pull-tabs or <br />
         		<a id="pl.22.28"></a><var>22.28</var>tipboards except as allowed by this chapter or board rules.<br />
         		<a id="pl.22.29"></a><var>22.29</var>(b) The flare of each paper pull-tab and tipboard game must have affixed to <br />
         		<a id="pl.22.30"></a><var>22.30</var>or imprinted at the bottom a bar code that provides all information required by the <br />
         		<a id="pl.22.31"></a><var>22.31</var>commissioner of revenue under section 
         <statute_ref>297E.04, subdivision 2</statute_ref>.<br />
         		<a id="pl.22.32"></a><var>22.32</var>The serial number included in the bar code must be the same as the serial number <br />
         		<a id="pl.22.33"></a><var>22.33</var>of the tickets included in the deal. A manufacturer who manufactures a deal of paper <br />
         		<a id="pl.23.1"></a><var>23.1</var>pull-tabs must affix to the outside of the box containing that game the same bar code that <br />
         		<a id="pl.23.2"></a><var>23.2</var>is affixed to or imprinted at the bottom of a flare for that deal.<br />
         		<a id="pl.23.3"></a><var>23.3</var>(c) No person may alter the bar code that appears on the outside of a box containing <br />
         		<a id="pl.23.4"></a><var>23.4</var>a deal of paper pull-tabs and tipboards. Possession of a box containing a deal of paper <br />
         		<a id="pl.23.5"></a><var>23.5</var>pull-tabs and tipboards that has a bar code different from the bar code of the deal inside <br />
         		<a id="pl.23.6"></a><var>23.6</var>the box is prima facie evidence that the possessor has altered the bar code on the box.<br />
         		<a id="pl.23.7"></a><var>23.7</var>(d) The flare of each deal of paper pull-tabs and tipboards sold by a manufacturer for <br />
         		<a id="pl.23.8"></a><var>23.8</var>use or resale in Minnesota must have imprinted on it a symbol that is at least one inch high <br />
         		<a id="pl.23.9"></a><var>23.9</var>and one inch wide consisting of an outline of the geographic boundaries of Minnesota <br />
         		<a id="pl.23.10"></a><var>23.10</var>with the letters "MN" inside the outline. The flare must be placed inside the wrapping of <br />
         		<a id="pl.23.11"></a><var>23.11</var>the deal which the flare describes.<br />
         		<a id="pl.23.12"></a><var>23.12</var>(e) Each paper pull-tab and tipboard flare must bear the following statement printed <br />
         		<a id="pl.23.13"></a><var>23.13</var>in letters large enough to be clearly legible:<br />
         		<a id="pl.23.14"></a><var>23.14</var>"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in <br />
         		<a id="pl.23.15"></a><var>23.15</var>Minnesota unless:<br />
         		<a id="pl.23.16"></a><var>23.16</var>-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and<br />
         		<a id="pl.23.17"></a><var>23.17</var>-- the serial number imprinted on the bar code at the bottom of this sheet is the same <br />
         		<a id="pl.23.18"></a><var>23.18</var>as the serial number on the pull-tab (or tipboard) ticket you have purchased."<br />
         		<a id="pl.23.19"></a><var>23.19</var>(f) The flare of each paper pull-tab and tipboard game must have the serial number <br />
         		<a id="pl.23.20"></a><var>23.20</var>of the game imprinted on the bar code at the bottom of the flare in numerals at least <br />
         		<a id="pl.23.21"></a><var>23.21</var>one-half inch high.<br />
         		<br />
         		<a id="bill.0.39.0"></a><a id="pl.23.22"></a><var>23.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 39. Minnesota Statutes 2010, section 349.163, subdivision 6, is amended to read:<br />
         		<a id="pl.23.23"></a><var>23.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Samples of gambling equipment.</b> (a) The board shall require each <br />
         		<a id="pl.23.24"></a><var>23.24</var>licensed manufacturer to submit to the board one or more samples of each item of gambling <br />
         		<a id="pl.23.25"></a><var>23.25</var>equipment the manufacturer manufactures manufactured for use or resale in this state. <br />
         		<a id="pl.23.26"></a><var>23.26</var>For purposes of this subdivision, a manufacturer is also required to submit the applicable <br />
         		<a id="pl.23.27"></a><var>23.27</var>version of any software necessary to operate electronic devices and related systems.<br />
         		<a id="pl.23.28"></a><var>23.28</var>(b) The board shall inspect and test all the equipment, including software and <br />
         		<a id="pl.23.29"></a><var>23.29</var>software upgrades, it deems necessary to determine the equipment's compliance with <br />
         		<a id="pl.23.30"></a><var>23.30</var>law and board rules. Samples required under this subdivision must be approved by the <br />
         		<a id="pl.23.31"></a><var>23.31</var>board before the equipment being sampled is shipped into or sold for use or resale in this <br />
         		<a id="pl.23.32"></a><var>23.32</var>state. The board shall impose a fee of $25 for each item of gambling equipment that the <br />
         		<a id="pl.23.33"></a><var>23.33</var>manufacturer submits for approval or for which the manufacturer requests approval. The <br />
         		<a id="pl.23.34"></a><var>23.34</var>board shall impose a fee of $100 for each sample of gambling equipment that it tests.<br />
         		<a id="pl.24.1"></a><var>24.1</var>(c) The board may require samples of gambling equipment to be tested by an <br />
         		<a id="pl.24.2"></a><var>24.2</var>independent testing laboratory prior to submission to the board for approval. All costs <br />
         		<a id="pl.24.3"></a><var>24.3</var>of testing by an independent testing laboratory must be borne by the manufacturer. An <br />
         		<a id="pl.24.4"></a><var>24.4</var>independent testing laboratory used by a manufacturer to test samples of gambling <br />
         		<a id="pl.24.5"></a><var>24.5</var>equipment must be approved by the board before the equipment is submitted to the <br />
         		<a id="pl.24.6"></a><var>24.6</var>laboratory for testing.<br />
         		<a id="pl.24.7"></a><var>24.7</var>(d) The board may request the assistance of the commissioner of public safety and <br />
         		<a id="pl.24.8"></a><var>24.8</var>the director of the State Lottery in performing the tests.<br />
         		<br />
         		<a id="bill.0.40.0"></a><a id="pl.24.9"></a><var>24.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 40. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read:<br />
         		<a id="pl.24.10"></a><var>24.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>License application.</b> The board may issue a license to a linked bingo game <br />
         		<a id="pl.24.11"></a><var>24.11</var>provider or to a manufacturer licensed under section 349.163 who meets the qualifications <br />
         		<a id="pl.24.12"></a><var>24.12</var>of this chapter and the rules promulgated by the board. The application shall be on a form <br />
         		<a id="pl.24.13"></a><var>24.13</var>prescribed by the board. The license is valid for two years and the fee for a linked bingo <br />
         		<a id="pl.24.14"></a><var>24.14</var>game provider license is $5,000 per year.<br />
         		<br />
         		<a id="bill.0.41.0"></a><a id="pl.24.15"></a><var>24.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 41. Minnesota Statutes 2010, section 349.1635, subdivision 3, is amended to read:<br />
         		<a id="pl.24.16"></a><var>24.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Attachments to application.</b> An applicant for a linked bingo game <br />
         		<a id="pl.24.17"></a><var>24.17</var>provider license must attach to its application:<br />
         		<a id="pl.24.18"></a><var>24.18</var>(1) evidence of a bond in the principal amount of $100,000 payable to the state of <br />
         		<a id="pl.24.19"></a><var>24.19</var>Minnesota conditioned on the payment of all linked bingo prizes and any other money due <br />
         		<a id="pl.24.20"></a><var>24.20</var>and payable under this chapter;<br />
         		<a id="pl.24.21"></a><var>24.21</var>(2) detailed plans and specifications for the operation of the linked bingo game and <br />
         		<a id="pl.24.22"></a><var>24.22</var>the linked bingo system, along with a proposed fee schedule for the cost of providing <br />
         		<a id="pl.24.23"></a><var>24.23</var>services and equipment to licensed organizations which may not exceed 15 percent of <br />
         		<a id="pl.24.24"></a><var>24.24</var>gross profits, unless a higher percentage, not to exceed 20 percent, is authorized by the <br />
         		<a id="pl.24.25"></a><var>24.25</var>board. The fee schedule must incorporate costs paid to distributors for services provided <br />
         		<a id="pl.24.26"></a><var>24.26</var>under subdivision 5; and<br />
         		<a id="pl.24.27"></a><var>24.27</var>(3) any other information required by the board by rule.<br />
         		<br />
         		<a id="bill.0.42.0"></a><a id="pl.24.28"></a><var>24.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 42. Minnesota Statutes 2010, section 349.1635, is amended by adding a <br />
         		<a id="pl.24.29"></a><var>24.29</var>subdivision to read:<br />
         		<a id="pl.24.30"></a><var>24.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Linked bingo game services requirements.</b> (a) A linked bingo game <br />
         		<a id="pl.24.31"></a><var>24.31</var>provider must contract with licensed distributors for linked bingo game services including, <br />
         		<a id="pl.24.32"></a><var>24.32</var>but not limited to, the solicitation of agreements with licensed organizations, and <br />
         		<a id="pl.24.33"></a><var>24.33</var>installation, repair, or maintenance of the linked bingo game system.<br />
         		<a id="pl.25.1"></a><var>25.1</var>(b) A distributor may not charge a fee to licensed organizations for services <br />
         		<a id="pl.25.2"></a><var>25.2</var>authorized and rendered under paragraph (a).<br />
         		<a id="pl.25.3"></a><var>25.3</var>(c) A linked bingo game provider may not contract with any distributor on an <br />
         		<a id="pl.25.4"></a><var>25.4</var>exclusive basis.<br />
         		<a id="pl.25.5"></a><var>25.5</var>(d) A linked bingo game provider may refuse to contract with a licensed distributor <br />
         		<a id="pl.25.6"></a><var>25.6</var>if the linked bingo game provider demonstrates that the licensed distributor is not capable <br />
         		<a id="pl.25.7"></a><var>25.7</var>of performing the services under the contract.<br />
         		<br />
         		<a id="bill.0.43.0"></a><a id="pl.25.8"></a><var>25.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 43. Minnesota Statutes 2010, section 349.165, subdivision 2, is amended to read:<br />
         		<a id="pl.25.9"></a><var>25.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Contents of application.</b> An application for a premises permit must <br />
         		<a id="pl.25.10"></a><var>25.10</var>contain:<br />
         		<a id="pl.25.11"></a><var>25.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the name and address of the applying organization;<br />
         		<a id="pl.25.12"></a><var>25.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) a description of the site for which the permit is sought, including its address and, <br />
         		<a id="pl.25.13"></a><var>25.13</var>where applicable, its placement within another premises or establishment;<br />
         		<a id="pl.25.14"></a><var>25.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) if the site is leased, the name and address of the lessor and information about the <br />
         		<a id="pl.25.15"></a><var>25.15</var>lease the board requires, including all rents and other charges for the use of the site. The <br />
         		<a id="pl.25.16"></a><var>25.16</var>lease term is concurrent with the term of the premises permit. The lease must contain a <br />
         		<a id="pl.25.17"></a><var>25.17</var>30-day termination clause. No lease is required for the conduct of a raffle; and<br />
         		<a id="pl.25.18"></a><var>25.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) other information the board deems necessary to carry out its purposes.<br />
         		<a id="pl.25.19"></a><var>25.19</var>&nbsp;&nbsp;&nbsp;&nbsp;An organization holding a premises permit must notify the board in writing within <br />
         		<a id="pl.25.20"></a><var>25.20</var>ten days whenever any material change is made in the above information.<br />
         		<br />
         		<a id="bill.0.44.0"></a><a id="pl.25.21"></a><var>25.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 44. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:<br />
         		<a id="pl.25.22"></a><var>25.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Conduct of bingo.</b> The price of a face played on an electronic bingo <br />
         		<a id="pl.25.23"></a><var>25.23</var>device may not be less than the price of a face on a bingo paper sheet sold for the same <br />
         		<a id="pl.25.24"></a><var>25.24</var>game at the same occasion. A game of bingo begins with the first letter and number called <br />
         		<a id="pl.25.25"></a><var>25.25</var>or displayed. Each player must cover, mark, or activate the numbers when bingo numbers <br />
         		<a id="pl.25.26"></a><var>25.26</var>are randomly selected, and announced, and or displayed to the players, either manually <br />
         		<a id="pl.25.27"></a><var>25.27</var>or with a flashboard and monitor. The game is won when a player, using bingo paper, <br />
         		<a id="pl.25.28"></a><var>25.28</var>bingo hard card, or a facsimile of a bingo paper sheet, has completed, as described in the <br />
         		<a id="pl.25.29"></a><var>25.29</var>bingo program, a previously designated pattern or previously determined requirements <br />
         		<a id="pl.25.30"></a><var>25.30</var>of the game and declared bingo. The game is completed when a winning card, sheet, or <br />
         		<a id="pl.25.31"></a><var>25.31</var>facsimile is verified and a prize awarded pursuant to subdivision 3.<br />
         		<br />
         		<a id="bill.0.45.0"></a><a id="pl.25.32"></a><var>25.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 45. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read:<br />
         		<a id="pl.26.1"></a><var>26.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Bar bingo.</b> An organization may conduct bar bingo subject to the <br />
         		<a id="pl.26.2"></a><var>26.2</var>following restrictions:<br />
         		<a id="pl.26.3"></a><var>26.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the bingo is conducted at a site the organization owns or leases and which has a <br />
         		<a id="pl.26.4"></a><var>26.4</var>license for the sale of intoxicating beverages on the premises under chapter 340A; and<br />
         		<a id="pl.26.5"></a><var>26.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper <br />
         		<a id="pl.26.6"></a><var>26.6</var>sheets purchased from a licensed distributor or licensed linked bingo game provider; and.<br />
         		<a id="pl.26.7"></a><var>26.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) no rent may be paid for a bar bingo occasion.<br />
         		<br />
         		<a id="bill.0.46.0"></a><a id="pl.26.8"></a><var>26.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 46. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:<br />
         		<a id="pl.26.9"></a><var>26.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Linked bingo games.</b> (a) A licensed organization may conduct or <br />
         		<a id="pl.26.10"></a><var>26.10</var>participate in not more than two linked bingo games per occasion, one of which may be a, <br />
         		<a id="pl.26.11"></a><var>26.11</var>including progressive game games in which a portion of the prize is carried over from <br />
         		<a id="pl.26.12"></a><var>26.12</var>one occasion game to another until won by a player achieving a valid bingo within a <br />
         		<a id="pl.26.13"></a><var>26.13</var>predetermined amount of bingo numbers called based upon a predetermined and posted <br />
         		<a id="pl.26.14"></a><var>26.14</var>win determination.<br />
         		<a id="pl.26.15"></a><var>26.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Each participating licensed organization shall contribute to each prize awarded in <br />
         		<a id="pl.26.16"></a><var>26.16</var>a linked bingo game in an amount not to exceed $300. Linked bingo games may only be <br />
         		<a id="pl.26.17"></a><var>26.17</var>conducted by licensed organizations who have a valid agreement with the linked bingo <br />
         		<a id="pl.26.18"></a><var>26.18</var>game provider.<br />
         		<a id="pl.26.19"></a><var>26.19</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) An electronic bingo device as defined in section 
         <statute_ref>349.12, subdivision 12a</statute_ref>, may <br />
         		<a id="pl.26.20"></a><var>26.20</var>be used for a linked bingo game.<br />
         		<a id="pl.26.21"></a><var>26.21</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) The board may adopt rules to:<br />
         		<a id="pl.26.22"></a><var>26.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) specify the manner in which a linked bingo game must be played and how the <br />
         		<a id="pl.26.23"></a><var>26.23</var>linked bingo prizes must be awarded;<br />
         		<a id="pl.26.24"></a><var>26.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) specify the records to be maintained by a linked bingo game provider;<br />
         		<a id="pl.26.25"></a><var>26.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) require the submission of periodic reports by the linked bingo game provider and <br />
         		<a id="pl.26.26"></a><var>26.26</var>specify the content of the reports;<br />
         		<a id="pl.26.27"></a><var>26.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) establish the qualifications required to be licensed as a linked bingo game <br />
         		<a id="pl.26.28"></a><var>26.28</var>provider; and<br />
         		<a id="pl.26.29"></a><var>26.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) any other matter involving the operation of a linked bingo game.<br />
         		<br />
         		<a id="bill.0.47.0"></a><a id="pl.26.30"></a><var>26.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 47. Minnesota Statutes 2010, section 349.17, is amended by adding a subdivision <br />
         		<a id="pl.26.31"></a><var>26.31</var>to read:<br />
         		<a id="pl.26.32"></a><var>26.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Linked bingo games played exclusively on electronic bingo devices.</b> In <br />
         		<a id="pl.26.33"></a><var>26.33</var>addition to the requirements of subdivision 8, the following requirements and restrictions <br />
         		<a id="pl.26.34"></a><var>26.34</var>apply when linked bingo games are played exclusively on electronic bingo devices.<br />
         		<a id="pl.27.1"></a><var>27.1</var>(a) The permitted premises must be:<br />
         		<a id="pl.27.2"></a><var>27.2</var>(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent <br />
         		<a id="pl.27.3"></a><var>27.3</var>malt beverages, except for a general food store or drug store permitted to sell alcoholic <br />
         		<a id="pl.27.4"></a><var>27.4</var>beverages under section 340A.405, subdivision 1; or<br />
         		<a id="pl.27.5"></a><var>27.5</var>(2) a premises where bingo is conducted as the primary business and has a seating <br />
         		<a id="pl.27.6"></a><var>27.6</var>capacity of at least 100.<br />
         		<a id="pl.27.7"></a><var>27.7</var>(b) The number of electronic bingo devices is limited to:<br />
         		<a id="pl.27.8"></a><var>27.8</var>(1) no more than six devices in play for permitted premises with 200 seats or less;<br />
         		<a id="pl.27.9"></a><var>27.9</var>(2) no more than 12 devices in play for permitted premises with 201 seats or more; <br />
         		<a id="pl.27.10"></a><var>27.10</var>and<br />
         		<a id="pl.27.11"></a><var>27.11</var>(3) no more than 50 devices in play for permitted premises where bingo is the <br />
         		<a id="pl.27.12"></a><var>27.12</var>primary business.<br />
         		<a id="pl.27.13"></a><var>27.13</var>Seating capacity is determined as specified under the local fire code.<br />
         		<a id="pl.27.14"></a><var>27.14</var>(c) Prior to a bingo occasion, the linked bingo game provider, on behalf of the <br />
         		<a id="pl.27.15"></a><var>27.15</var>participating organizations, must provide to the board a bingo program in a format <br />
         		<a id="pl.27.16"></a><var>27.16</var>prescribed by the board.<br />
         		<a id="pl.27.17"></a><var>27.17</var>(d) Before participating in the play of a linked bingo game, a player must present <br />
         		<a id="pl.27.18"></a><var>27.18</var>and register a valid picture identification card that includes the player's address and <br />
         		<a id="pl.27.19"></a><var>27.19</var>date of birth.<br />
         		<a id="pl.27.20"></a><var>27.20</var>(e) An organization may remove from play a device that a player has not maintained <br />
         		<a id="pl.27.21"></a><var>27.21</var>in an activated mode for a specified period of time determined by the organization. The <br />
         		<a id="pl.27.22"></a><var>27.22</var>organization must provide the notice in its house rules.<br />
         		<br />
         		<a id="bill.0.48.0"></a><a id="pl.27.23"></a><var>27.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 48. Minnesota Statutes 2010, section 349.1721, is amended to read:<br />
         		<a id="pl.27.24"></a><var>27.24</var><b>349.1721 CONDUCT OF PULL-TABS.</b><br />
         		<a id="pl.27.25"></a><var>27.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Cumulative or carryover games.</b> The board shall by rule permit <br />
         		<a id="pl.27.26"></a><var>27.26</var>pull-tab games with multiple seals. The board shall also adopt rules for pull-tab games with <br />
         		<a id="pl.27.27"></a><var>27.27</var>cumulative or carryover prizes. The rules shall also apply to electronic pull-tab games.<br />
         		<a id="pl.27.28"></a><var>27.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Event games.</b> The board shall by rule permit pull-tab games in which <br />
         		<a id="pl.27.29"></a><var>27.29</var>certain winners are determined by the random selection of one or more bingo numbers <br />
         		<a id="pl.27.30"></a><var>27.30</var>or by another method approved by the board. The rules shall also apply to electronic <br />
         		<a id="pl.27.31"></a><var>27.31</var>pull-tab games. <br />
         		<a id="pl.27.32"></a><var>27.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Pull-tab dispensing device location restrictions and requirements.</b><br />
         		 <a id="pl.27.33"></a><var>27.33</var>The following pertain to pull-tab dispensing devices as defined under section 349.12, <br />
         		<a id="pl.27.34"></a><var>27.34</var>subdivision 32a.<br />
         		<a id="pl.28.1"></a><var>28.1</var>(a) The use of any pull-tab dispensing device must be at a permitted premises <br />
         		<a id="pl.28.2"></a><var>28.2</var>which is:<br />
         		<a id="pl.28.3"></a><var>28.3</var>(1) a licensed premises for on-sale of intoxicating liquor or 3.2 percent malt <br />
         		<a id="pl.28.4"></a><var>28.4</var>beverages;<br />
         		<a id="pl.28.5"></a><var>28.5</var>(2) a premises where bingo is conducted as the primary business; or<br />
         		<a id="pl.28.6"></a><var>28.6</var>(3) an establishment licensed for the off-sale of intoxicating liquor, other than drug <br />
         		<a id="pl.28.7"></a><var>28.7</var>stores and general food stores licensed under section 340A.405, subdivision 1.<br />
         		<a id="pl.28.8"></a><var>28.8</var>(b) The number of pull-tab dispensing devices located at any permitted premises <br />
         		<a id="pl.28.9"></a><var>28.9</var>is limited to three.<br />
         		<a id="pl.28.10"></a><var>28.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Electronic pull-tab device requirements and restrictions.</b> The following <br />
         		<a id="pl.28.11"></a><var>28.11</var>pertain to the use of electronic pull-tab devices as defined under section 349.12, <br />
         		<a id="pl.28.12"></a><var>28.12</var>subdivision 12b.<br />
         		<a id="pl.28.13"></a><var>28.13</var>(a) The use of any electronic pull-tab device may only be at a permitted premises <br />
         		<a id="pl.28.14"></a><var>28.14</var>that is:<br />
         		<a id="pl.28.15"></a><var>28.15</var>(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent <br />
         		<a id="pl.28.16"></a><var>28.16</var>malt beverages, except for a general food store or drug store permitted to sell alcoholic <br />
         		<a id="pl.28.17"></a><var>28.17</var>beverages under section 340A.405, subdivision 1; or<br />
         		<a id="pl.28.18"></a><var>28.18</var>(2) a premises where bingo is conducted as the primary business and has a seating <br />
         		<a id="pl.28.19"></a><var>28.19</var>capacity of at least 100; and<br />
         		<a id="pl.28.20"></a><var>28.20</var>(3) where the licensed organization sells paper pull-tabs. <br />
         		<a id="pl.28.21"></a><var>28.21</var>(b) The number of electronic pull-tab devices is limited to:<br />
         		<a id="pl.28.22"></a><var>28.22</var>(1) no more than six devices in play at any permitted premises with 200 seats or less;<br />
         		<a id="pl.28.23"></a><var>28.23</var>(2) no more than 12 devices in play at any permitted premises with 201 seats <br />
         		<a id="pl.28.24"></a><var>28.24</var>or more; and<br />
         		<a id="pl.28.25"></a><var>28.25</var>(3) no more than 50 devices in play at any permitted premises where the primary <br />
         		<a id="pl.28.26"></a><var>28.26</var>business is bingo.<br />
         		<a id="pl.28.27"></a><var>28.27</var>Seating capacity is determined as specified under the local fire code.<br />
         		<a id="pl.28.28"></a><var>28.28</var>(c) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.<br />
         		<a id="pl.28.29"></a><var>28.29</var>(d) All electronic pull-tab games must be sold and played on the permitted premises <br />
         		<a id="pl.28.30"></a><var>28.30</var>and may not be linked to other permitted premises.<br />
         		<a id="pl.28.31"></a><var>28.31</var>(e) Electronic pull-tab games may not be transferred electronically or otherwise to <br />
         		<a id="pl.28.32"></a><var>28.32</var>any other location by the licensed organization.<br />
         		<a id="pl.28.33"></a><var>28.33</var>(f) Electronic pull-tab games may be commingled if the games are from the same <br />
         		<a id="pl.28.34"></a><var>28.34</var>family of games and manufacturer and contain the same game name, form number, type <br />
         		<a id="pl.28.35"></a><var>28.35</var>of game, ticket count, prize amounts, and prize denominations. Each commingled game <br />
         		<a id="pl.28.36"></a><var>28.36</var>must have a unique serial number.<br />
         		<a id="pl.29.1"></a><var>29.1</var>(g) An organization may remove from play a device that a player has not maintained <br />
         		<a id="pl.29.2"></a><var>29.2</var>in an activated mode for a specified period of time determined by the organization. The <br />
         		<a id="pl.29.3"></a><var>29.3</var>organization must provide the notice in its house rules. <br />
         		<a id="pl.29.4"></a><var>29.4</var>(h) Before participating in the play of an electronic pull-tab game, a player must <br />
         		<a id="pl.29.5"></a><var>29.5</var>present and register a valid picture identification card that includes the player's address <br />
         		<a id="pl.29.6"></a><var>29.6</var>and date of birth.<br />
         		<a id="pl.29.7"></a><var>29.7</var>(i) Each player is limited to the use of one device at a time.<br />
         		<a id="pl.29.8"></a><var>29.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Multiple chance games.</b> The board may permit pull-tab games in which <br />
         		<a id="pl.29.9"></a><var>29.9</var>the holders of certain predesignated winning tickets, with a prize value not to exceed $75 <br />
         		<a id="pl.29.10"></a><var>29.10</var>each, have the option of turning in the winning tickets for the chance to win a prize of <br />
         		<a id="pl.29.11"></a><var>29.11</var>greater value.<br />
         		<br />
         		<a id="bill.0.49.0"></a><a id="pl.29.12"></a><var>29.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 49. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read:<br />
         		<a id="pl.29.13"></a><var>29.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Lease or ownership required; rent limitations.</b> (a) An organization <br />
         		<a id="pl.29.14"></a><var>29.14</var>may conduct lawful gambling only on premises it owns or leases. Leases must be on a <br />
         		<a id="pl.29.15"></a><var>29.15</var>form prescribed by the board. The term of the lease is concurrent with the premises permit. <br />
         		<a id="pl.29.16"></a><var>29.16</var>Leases approved by the board must specify that the board may authorize an organization <br />
         		<a id="pl.29.17"></a><var>29.17</var>to withhold rent from a lessor for a period of up to 90 days if the board determines that <br />
         		<a id="pl.29.18"></a><var>29.18</var>illegal gambling occurred on the premises or that the lessor or its employees participated <br />
         		<a id="pl.29.19"></a><var>29.19</var>in the illegal gambling or knew of the gambling and did not take prompt action to stop the <br />
         		<a id="pl.29.20"></a><var>29.20</var>gambling. The lease must authorize the continued tenancy of the organization without <br />
         		<a id="pl.29.21"></a><var>29.21</var>the payment of rent during the time period determined by the board under this paragraph. <br />
         		<a id="pl.29.22"></a><var>29.22</var>Copies of all leases must be made available to employees of the board and the Division of <br />
         		<a id="pl.29.23"></a><var>29.23</var>Alcohol and Gambling Enforcement on request.<br />
         		<a id="pl.29.24"></a><var>29.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Rent paid by an organization for leased premises for the conduct of pull-tabs, <br />
         		<a id="pl.29.25"></a><var>29.25</var>tipboards, and paddle wheels lawful gambling is subject to the following limits and <br />
         		<a id="pl.29.26"></a><var>29.26</var>restrictions:<br />
         		<a id="pl.29.27"></a><var>29.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) For booth operations, including booth operations where a pull-tab dispensing <br />
         		<a id="pl.29.28"></a><var>29.28</var>device is located, booth operations where a bar operation is also conducted, and booth <br />
         		<a id="pl.29.29"></a><var>29.29</var>operations where both a pull-tab dispensing device is located and a bar operation is also <br />
         		<a id="pl.29.30"></a><var>29.30</var>conducted, the maximum rent is: monthly rent may not exceed ten percent of gross profits <br />
         		<a id="pl.29.31"></a><var>29.31</var>for that month. Total rent paid to a lessor from all organizations from leases governed by <br />
         		<a id="pl.29.32"></a><var>29.32</var>this clause may not exceed $1,750 per month.<br />
         		<a id="pl.29.33"></a><var>29.33</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) in any month where the organization's gross profit at those premises does not <br />
         		<a id="pl.29.34"></a><var>29.34</var>exceed $4,000, up to $400; and<br />
         		<a id="pl.30.1"></a><var>30.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any month where the organization's gross profit at those premises exceeds <br />
         		<a id="pl.30.2"></a><var>30.2</var>$4,000, up to $400 plus not more than ten percent of the gross profit for that month in <br />
         		<a id="pl.30.3"></a><var>30.3</var>excess of $4,000;<br />
         		<a id="pl.30.4"></a><var>30.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) For bar operations, including bar operations where a pull-tab dispensing device <br />
         		<a id="pl.30.5"></a><var>30.5</var>is located but not including bar operations subject to clause (1), and for locations where <br />
         		<a id="pl.30.6"></a><var>30.6</var>only a pull-tab dispensing device is located: monthly rent may not exceed:<br />
         		<a id="pl.30.7"></a><var>30.7</var>(i) 15 percent of the gross profits for that month from pull-tabs sold from a pull-tab <br />
         		<a id="pl.30.8"></a><var>30.8</var>dispensing device, electronic pull-tab games, and electronic linked bingo games; and<br />
         		<a id="pl.30.9"></a><var>30.9</var>(ii) more than 20 percent of gross profits from all other forms of lawful gambling.<br />
         		<a id="pl.30.10"></a><var>30.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) in any month where the organization's gross profit at those premises does not <br />
         		<a id="pl.30.11"></a><var>30.11</var>exceed $1,000, up to $200; and<br />
         		<a id="pl.30.12"></a><var>30.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any month where the organization's gross profit at those premises exceeds <br />
         		<a id="pl.30.13"></a><var>30.13</var>$1,000, up to $200 plus not more than 20 percent of the gross profit for that month <br />
         		<a id="pl.30.14"></a><var>30.14</var>in excess of $1,000;<br />
         		<a id="pl.30.15"></a><var>30.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a lease not governed by clauses (1) and (2) must be approved by the board before <br />
         		<a id="pl.30.16"></a><var>30.16</var>becoming effective; For electronic linked bingo games and electronic pull-tab games that <br />
         		<a id="pl.30.17"></a><var>30.17</var>are operated for separate time periods within a business day by an organization and the <br />
         		<a id="pl.30.18"></a><var>30.18</var>lessor, monthly rent may not be more than:<br />
         		<a id="pl.30.19"></a><var>30.19</var>(i) 15 percent of the gross profits for that month for the time periods operated by <br />
         		<a id="pl.30.20"></a><var>30.20</var>the lessor. The lessor is responsible for cash shortages that occur during the time periods <br />
         		<a id="pl.30.21"></a><var>30.21</var>the games are operated by the lessor; and<br />
         		<a id="pl.30.22"></a><var>30.22</var>(ii) ten percent of gross profits for that month for the time periods operated by the <br />
         		<a id="pl.30.23"></a><var>30.23</var>organization. The organization is responsible for cash shortages that occur during the time <br />
         		<a id="pl.30.24"></a><var>30.24</var>periods the games are operated by the organization.<br />
         		<a id="pl.30.25"></a><var>30.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) total rent paid to a lessor from all organizations from leases governed by clause <br />
         		<a id="pl.30.26"></a><var>30.26</var>(1) may not exceed $1,750 per month.<br />
         		<a id="pl.30.27"></a><var>30.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Rent paid by an organization for leased premises for the conduct of bingo is <br />
         		<a id="pl.30.28"></a><var>30.28</var>subject to either of the following limits at the option of the parties to the lease:<br />
         		<a id="pl.30.29"></a><var>30.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) (4) For bingo conducted at a leased premises where the primary business is <br />
         		<a id="pl.30.30"></a><var>30.30</var>bingo, rent is limited to either not more than ten percent of the monthly gross profit from <br />
         		<a id="pl.30.31"></a><var>30.31</var>all lawful gambling activities held during bingo occasions, excluding bar bingo or at a <br />
         		<a id="pl.30.32"></a><var>30.32</var>rate based on a cost per square foot not to exceed 110 percent of a comparable cost per <br />
         		<a id="pl.30.33"></a><var>30.33</var>square foot for leased space as approved by the director; and.<br />
         		<a id="pl.30.34"></a><var>30.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) (5) No rent may be paid for bar bingo as defined in section 349.12, subdivision 3c.<br />
         		<a id="pl.30.35"></a><var>30.35</var>(6) A lease not governed by clauses (1) to (5) must be approved by the director <br />
         		<a id="pl.30.36"></a><var>30.36</var>before becoming effective.<br />
         		<a id="pl.31.1"></a><var>31.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) (c) Amounts paid as rent under leases are all-inclusive. No other services or <br />
         		<a id="pl.31.2"></a><var>31.2</var>expenses provided or contracted by the lessor may be paid by the organization, including, <br />
         		<a id="pl.31.3"></a><var>31.3</var>but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn <br />
         		<a id="pl.31.4"></a><var>31.4</var>services, electricity, heat, security, security monitoring, storage, and other utilities or <br />
         		<a id="pl.31.5"></a><var>31.5</var>services, and, in the case of bar operations, cash shortages, unless approved by the <br />
         		<a id="pl.31.6"></a><var>31.6</var>director. The lessor shall be responsible for the cost of any communications network or <br />
         		<a id="pl.31.7"></a><var>31.7</var>service required to conduct electronic pull-tab games or electronic bingo games. Any <br />
         		<a id="pl.31.8"></a><var>31.8</var>other expenditure made by an organization that is related to a leased premises must be <br />
         		<a id="pl.31.9"></a><var>31.9</var>approved by the director. For bar operations, the lessor is responsible for cash shortages. <br />
         		<a id="pl.31.10"></a><var>31.10</var>An organization may not provide any compensation or thing of value to a lessor or the <br />
         		<a id="pl.31.11"></a><var>31.11</var>lessor's employees from any fund source other than its gambling account. Rent payments <br />
         		<a id="pl.31.12"></a><var>31.12</var>may not be made to an individual.<br />
         		<a id="pl.31.13"></a><var>31.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) (d) Notwithstanding paragraph (b), an organization may pay a lessor for food <br />
         		<a id="pl.31.14"></a><var>31.14</var>or beverages or meeting room rental if the charge made is comparable to similar charges <br />
         		<a id="pl.31.15"></a><var>31.15</var>made to other individuals or groups.<br />
         		<a id="pl.31.16"></a><var>31.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) No entity other than the (e) A licensed organization may not conduct any activity <br />
         		<a id="pl.31.17"></a><var>31.17</var>within a booth operation on behalf of the lessor on a leased premises.<br />
         		<br />
         		<a id="bill.0.50.0"></a><a id="pl.31.18"></a><var>31.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 50. Minnesota Statutes 2010, section 349.19, subdivision 2, is amended to read:<br />
         		<a id="pl.31.19"></a><var>31.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Accounts.</b> (a) Gross receipts from lawful gambling by each organization <br />
         		<a id="pl.31.20"></a><var>31.20</var>must be segregated from all other revenues of the conducting organization and placed in a <br />
         		<a id="pl.31.21"></a><var>31.21</var>separate gambling bank account.<br />
         		<a id="pl.31.22"></a><var>31.22</var>(b) All expenditures for allowable expenses, taxes, and lawful purposes must be <br />
         		<a id="pl.31.23"></a><var>31.23</var>made from the separate account except (1) in the case of expenditures previously approved <br />
         		<a id="pl.31.24"></a><var>31.24</var>by the organization's membership for emergencies as defined by board rule, (2) as provided <br />
         		<a id="pl.31.25"></a><var>31.25</var>in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment <br />
         		<a id="pl.31.26"></a><var>31.26</var>of taxes for the organization as a whole, the organization may transfer the amount of taxes <br />
         		<a id="pl.31.27"></a><var>31.27</var>related to the conduct of gambling to the general account at the time when due and payable.<br />
         		<a id="pl.31.28"></a><var>31.28</var>(c) The name and address of the bank, the account number for the separate account, <br />
         		<a id="pl.31.29"></a><var>31.29</var>and the names of organization members authorized as signatories on the separate account <br />
         		<a id="pl.31.30"></a><var>31.30</var>must be provided to the board when the application is submitted. Changes in the <br />
         		<a id="pl.31.31"></a><var>31.31</var>information must be submitted to the board at least ten days before the change is made.<br />
         		<a id="pl.31.32"></a><var>31.32</var>(d) Except for gambling receipts from electronic pull-tab games and linked <br />
         		<a id="pl.31.33"></a><var>31.33</var>electronic bingo games, gambling receipts must be deposited into the gambling bank <br />
         		<a id="pl.31.34"></a><var>31.34</var>account within four business days of completion of the bingo occasion, deal, or game from <br />
         		<a id="pl.31.35"></a><var>31.35</var>which they are received.<br />
         		<a id="pl.32.1"></a><var>32.1</var>(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of <br />
         		<a id="pl.32.2"></a><var>32.2</var>the deal is sold or the organization does not continue the play of the deal during the next <br />
         		<a id="pl.32.3"></a><var>32.3</var>scheduled period of time in which the organization will conduct pull-tabs.<br />
         		<a id="pl.32.4"></a><var>32.4</var>(2) A tipboard game is considered complete when the seal on the game flare is <br />
         		<a id="pl.32.5"></a><var>32.5</var>uncovered or the organization does not continue the play of the deal during the next <br />
         		<a id="pl.32.6"></a><var>32.6</var>scheduled period of time in which the organization will conduct tipboards.<br />
         		<a id="pl.32.7"></a><var>32.7</var>(e) Gambling receipts from all electronic pull-tab games and all linked electronic <br />
         		<a id="pl.32.8"></a><var>32.8</var>bingo games must be recorded on a daily basis and deposited into the gambling bank <br />
         		<a id="pl.32.9"></a><var>32.9</var>account within two business days.<br />
         		<a id="pl.32.10"></a><var>32.10</var>(e) (f) Deposit records must be sufficient to allow determination of deposits made <br />
         		<a id="pl.32.11"></a><var>32.11</var>from each bingo occasion, deal, or game at each permitted premises.<br />
         		<a id="pl.32.12"></a><var>32.12</var>(f) (g) The person who accounts for gambling gross receipts and profits may not be <br />
         		<a id="pl.32.13"></a><var>32.13</var>the same person who accounts for other revenues of the organization.<br />
         		<br />
         		<a id="bill.0.51.0"></a><a id="pl.32.14"></a><var>32.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 51. Minnesota Statutes 2010, section 349.19, subdivision 3, is amended to read:<br />
         		<a id="pl.32.15"></a><var>32.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Expenditures.</b> (a) All expenditures of gross profits from lawful gambling <br />
         		<a id="pl.32.16"></a><var>32.16</var>must be itemized as to payee, purpose, amount, and date of payment.<br />
         		<a id="pl.32.17"></a><var>32.17</var>(b) Each licensed organization must report monthly to the board on a form in an <br />
         		<a id="pl.32.18"></a><var>32.18</var>electronic format prescribed by the board each expenditure or contribution of net profits <br />
         		<a id="pl.32.19"></a><var>32.19</var>from lawful gambling. The reports must provide for each expenditure or contribution:<br />
         		<a id="pl.32.20"></a><var>32.20</var>(1) the name of the recipient of the expenditure or contribution;<br />
         		<a id="pl.32.21"></a><var>32.21</var>(2) the date the expenditure or contribution was approved by the organization;<br />
         		<a id="pl.32.22"></a><var>32.22</var>(3) the date, amount, and check number or electronic transfer confirmation number <br />
         		<a id="pl.32.23"></a><var>32.23</var>of the expenditure or contribution;<br />
         		<a id="pl.32.24"></a><var>32.24</var>(4) a brief description of how the expenditure or contribution meets one or more of <br />
         		<a id="pl.32.25"></a><var>32.25</var>the purposes in section 
         <statute_ref>349.12, subdivision 25</statute_ref>; and<br />
         		<a id="pl.32.26"></a><var>32.26</var>(5) in the case of expenditures authorized under section 
         <statute_ref>349.12, subdivision 25</statute_ref>, <br />
         		<a id="pl.32.27"></a><var>32.27</var>paragraph (a), clause (7), whether the expenditure is for a facility or activity that primarily <br />
         		<a id="pl.32.28"></a><var>32.28</var>benefits male or female participants.<br />
         		<a id="pl.32.29"></a><var>32.29</var>(c) Authorization of the expenditures must be recorded in the monthly meeting <br />
         		<a id="pl.32.30"></a><var>32.30</var>minutes of the licensed organization.<br />
         		<a id="pl.32.31"></a><var>32.31</var>(d) Checks or authorizations for electronic fund transfers for expenditures of gross <br />
         		<a id="pl.32.32"></a><var>32.32</var>profits must be signed by at least two persons authorized by board rules to sign the <br />
         		<a id="pl.32.33"></a><var>32.33</var>checks or authorizations.<br />
         		<a id="pl.32.34"></a><var>32.34</var>(e) Expenditures of gross profits from lawful gambling for local, state, and federal <br />
         		<a id="pl.32.35"></a><var>32.35</var>taxes as identified in section 
         <statute_ref>349.12, subdivision 25</statute_ref>, paragraph (a), clause (8), may be <br />
         		<a id="pl.33.1"></a><var>33.1</var>transferred electronically from the organization's gambling account directly to bank <br />
         		<a id="pl.33.2"></a><var>33.2</var>accounts identified by local, state, or federal agencies if the organization's gambling <br />
         		<a id="pl.33.3"></a><var>33.3</var>account monthly bank statement specifically identifies the payee by name, the amount <br />
         		<a id="pl.33.4"></a><var>33.4</var>transferred, and the date of the transaction.<br />
         		<a id="pl.33.5"></a><var>33.5</var>(f) Expenditures of gross profits from lawful gambling for payments for lawful <br />
         		<a id="pl.33.6"></a><var>33.6</var>purpose expenditures and allowable expenses may be transferred electronically from the <br />
         		<a id="pl.33.7"></a><var>33.7</var>organization's gambling account directly to bank accounts identified by the vendor if the <br />
         		<a id="pl.33.8"></a><var>33.8</var>organization's gambling account monthly bank statement specifically identifies the payee <br />
         		<a id="pl.33.9"></a><var>33.9</var>by name, the amount transferred, the account number of the account into which the funds <br />
         		<a id="pl.33.10"></a><var>33.10</var>were transferred, and the date of the transaction.<br />
         		<a id="pl.33.11"></a><var>33.11</var>(g) Expenditures of gross profits from lawful gambling for payroll compensation <br />
         		<a id="pl.33.12"></a><var>33.12</var>to an employee's account and for the payment of local, state, and federal withholding <br />
         		<a id="pl.33.13"></a><var>33.13</var>taxes may be transferred electronically to and from the account of a payroll processing <br />
         		<a id="pl.33.14"></a><var>33.14</var>firm provided that the firm:<br />
         		<a id="pl.33.15"></a><var>33.15</var>(1) is currently registered with and meets the criteria of the Department of Revenue <br />
         		<a id="pl.33.16"></a><var>33.16</var>as a third-party bulk filer under section 
         <statute_ref>290.92, subdivision 30</statute_ref>;<br />
         		<a id="pl.33.17"></a><var>33.17</var>(2) is able to provide proof of a third-party audit and an annual report and statement <br />
         		<a id="pl.33.18"></a><var>33.18</var>of financial condition;<br />
         		<a id="pl.33.19"></a><var>33.19</var>(3) is able to provide evidence of a fidelity bond; and<br />
         		<a id="pl.33.20"></a><var>33.20</var>(4) can provide proof of having been in business as a third-party bulk filer for the <br />
         		<a id="pl.33.21"></a><var>33.21</var>most recent three years.<br />
         		<a id="pl.33.22"></a><var>33.22</var>(h) Electronic payments of taxes, lawful purpose expenditures, and allowable <br />
         		<a id="pl.33.23"></a><var>33.23</var>expenses are permitted only if they have been authorized by the membership, the <br />
         		<a id="pl.33.24"></a><var>33.24</var>organization maintains supporting documentation, and the expenditures can be verified.<br />
         		<a id="pl.33.25"></a><var>33.25</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.0.52.0"></a><a id="pl.33.26"></a><var>33.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 52. Minnesota Statutes 2010, section 349.19, subdivision 5, is amended to read:<br />
         		<a id="pl.33.27"></a><var>33.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Reports.</b> (a) A licensed organization must report monthly to the <br />
         		<a id="pl.33.28"></a><var>33.28</var>Department of Revenue board in an electronic format prescribed by the board and to its <br />
         		<a id="pl.33.29"></a><var>33.29</var>membership monthly, or quarterly in the case of a licensed organization which does not <br />
         		<a id="pl.33.30"></a><var>33.30</var>report more than $1,000 in gross receipts from lawful gambling in any calendar quarter, <br />
         		<a id="pl.33.31"></a><var>33.31</var>on its gross receipts, expenses, profits, and expenditure of profits from lawful gambling <br />
         		<a id="pl.33.32"></a><var>33.32</var>for each permitted premises. The organization must account for and report on each form <br />
         		<a id="pl.33.33"></a><var>33.33</var>of lawful gambling conducted. The report organization must include a reconciliation of <br />
         		<a id="pl.33.34"></a><var>33.34</var>the organization's profit carryover with its cash balance on hand. If the organization <br />
         		<a id="pl.34.1"></a><var>34.1</var>conducts both bingo and other forms of lawful gambling, the figures for both must be <br />
         		<a id="pl.34.2"></a><var>34.2</var>reported separately.<br />
         		<a id="pl.34.3"></a><var>34.3</var>(b) The organization must report annually to its membership and annually file with <br />
         		<a id="pl.34.4"></a><var>34.4</var>the board a financial summary report in a format prescribed by the board that identifies the <br />
         		<a id="pl.34.5"></a><var>34.5</var>organization's receipts and use of lawful gambling proceeds, including: monthly to the <br />
         		<a id="pl.34.6"></a><var>34.6</var>commissioner of revenue as required under section 297E.06.<br />
         		<a id="pl.34.7"></a><var>34.7</var>(1) gross receipts;<br />
         		<a id="pl.34.8"></a><var>34.8</var>(2) prizes paid;<br />
         		<a id="pl.34.9"></a><var>34.9</var>(3) allowable expenses;<br />
         		<a id="pl.34.10"></a><var>34.10</var>(4) lawful purpose expenditures, including annual totals for types of charitable <br />
         		<a id="pl.34.11"></a><var>34.11</var>contributions and all taxes and fees as per section 
         <statute_ref>349.12, subdivision 25</statute_ref>, paragraph <br />
         		<a id="pl.34.12"></a><var>34.12</var>(a), clauses (8) and (18);<br />
         		<a id="pl.34.13"></a><var>34.13</var>(5) the percentage of annual gross profits used for charitable contributions; and<br />
         		<a id="pl.34.14"></a><var>34.14</var>(6) the percentage of annual gross profits used for all taxes and fees as per section <br />
         		<a id="pl.34.15"></a><var>34.15</var><statute_ref>349.12, subdivision 25</statute_ref>, paragraph (a), clauses (8) and (18).<br />
         		<a id="pl.34.16"></a><var>34.16</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2012.<br />
         		<br />
         		<a id="bill.0.53.0"></a><a id="pl.34.17"></a><var>34.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 53. Minnesota Statutes 2010, section 349.19, subdivision 10, is amended to read:<br />
         		<a id="pl.34.18"></a><var>34.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Pull-tab records.</b> (a) The board shall by rule require a licensed <br />
         		<a id="pl.34.19"></a><var>34.19</var>organization to require each winner of a paper pull-tab prize of $50 or more to present <br />
         		<a id="pl.34.20"></a><var>34.20</var>identification in the form of a driver's license, Minnesota identification card, or other <br />
         		<a id="pl.34.21"></a><var>34.21</var>identification the board deems sufficient to allow the identification and tracking of the <br />
         		<a id="pl.34.22"></a><var>34.22</var>winner. The rule must require the organization to retain winning paper pull-tabs of $50 or <br />
         		<a id="pl.34.23"></a><var>34.23</var>more, and the identification of the winner of the pull-tab, for 3-1/2 years.<br />
         		<a id="pl.34.24"></a><var>34.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) An organization must maintain separate cash banks for each deal of paper <br />
         		<a id="pl.34.25"></a><var>34.25</var>pull-tabs unless (1) the licensed organization uses a pull-tab dispensing device, or (2) the <br />
         		<a id="pl.34.26"></a><var>34.26</var>organization uses a cash register, of a type approved by the board, which records all <br />
         		<a id="pl.34.27"></a><var>34.27</var>sales of paper pull-tabs by separate deals.<br />
         		<a id="pl.34.28"></a><var>34.28</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The board shall:<br />
         		<a id="pl.34.29"></a><var>34.29</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) by rule adopt minimum technical standards for cash registers that may be used <br />
         		<a id="pl.34.30"></a><var>34.30</var>by organizations, and shall approve for use by organizations any cash register that meets <br />
         		<a id="pl.34.31"></a><var>34.31</var>the standards; and<br />
         		<a id="pl.34.32"></a><var>34.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) before allowing an organization to use a cash register that commingles receipts <br />
         		<a id="pl.34.33"></a><var>34.33</var>from several different paper pull-tab games in play, adopt rules that define how cash <br />
         		<a id="pl.34.34"></a><var>34.34</var>registers may be used and that establish a procedure for organizations to reconcile all <br />
         		<a id="pl.34.35"></a><var>34.35</var>pull-tab games in play at the end of each month.<br />
         		<br />
         		<a id="bill.0.54.0"></a><a id="pl.35.1"></a><var>35.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 54. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read:<br />
         		<a id="pl.35.2"></a><var>35.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1a. <b>Linked bingo prizes.</b> Prizes for a linked bingo game shall be limited <br />
         		<a id="pl.35.3"></a><var>35.3</var>as follows:<br />
         		<a id="pl.35.4"></a><var>35.4</var>(1) no organization may contribute more than $300 per linked bingo game to a <br />
         		<a id="pl.35.5"></a><var>35.5</var>linked bingo prize pool for linked bingo games played without electronic bingo devices, <br />
         		<a id="pl.35.6"></a><var>35.6</var>an organization may not contribute to a linked bingo game prize pool more than $300 <br />
         		<a id="pl.35.7"></a><var>35.7</var>per linked bingo game per site;<br />
         		<a id="pl.35.8"></a><var>35.8</var>(2) for linked bingo games played exclusively with electronic bingo devices, an <br />
         		<a id="pl.35.9"></a><var>35.9</var>organization may not contribute more than 85 percent of the gross receipts per permitted <br />
         		<a id="pl.35.10"></a><var>35.10</var>premises to a linked bingo game prize pool;<br />
         		<a id="pl.35.11"></a><var>35.11</var>(2) (3) no organization may award more than $200 for a linked bingo game <br />
         		<a id="pl.35.12"></a><var>35.12</var>consolation prize. For purposes of this subdivision, a linked bingo game consolation <br />
         		<a id="pl.35.13"></a><var>35.13</var>prize is a prize awarded by an organization after a prize from the linked bingo prize pool <br />
         		<a id="pl.35.14"></a><var>35.14</var>has been won; and<br />
         		<a id="pl.35.15"></a><var>35.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) (4) for a progressive linked bingo game, if no player declares a valid bingo <br />
         		<a id="pl.35.16"></a><var>35.16</var>within the for a progressive prize or prizes based on a predetermined amount of bingo <br />
         		<a id="pl.35.17"></a><var>35.17</var>numbers called and posted win determination, a portion of the prize is gross receipts <br />
         		<a id="pl.35.18"></a><var>35.18</var>may be carried over to another occasion game until the accumulated progressive prize <br />
         		<a id="pl.35.19"></a><var>35.19</var>is won. The portion of the prize that is not carried over must be awarded to the first <br />
         		<a id="pl.35.20"></a><var>35.20</var>player or players who declares a valid bingo as additional numbers are called. If a valid <br />
         		<a id="pl.35.21"></a><var>35.21</var>bingo is declared within the predetermined amount of bingo numbers called, the entire <br />
         		<a id="pl.35.22"></a><var>35.22</var>prize pool for that game is awarded to the winner. The annual limit for progressive bingo <br />
         		<a id="pl.35.23"></a><var>35.23</var>game prizes contained in subdivision 2 must be reduced by the amount an organization <br />
         		<a id="pl.35.24"></a><var>35.24</var>contributes to progressive linked bingo games during the same calendar year.; and<br />
         		<a id="pl.35.25"></a><var>35.25</var>(5) for linked bingo games played exclusively with electronic bingo devices, linked <br />
         		<a id="pl.35.26"></a><var>35.26</var>bingo prizes in excess of $599 shall be paid by the linked bingo game provider to the <br />
         		<a id="pl.35.27"></a><var>35.27</var>player within three business days. Winners of linked bingo prizes in excess of $599 will <br />
         		<a id="pl.35.28"></a><var>35.28</var>be given a receipt or claim voucher as proof of a win.<br />
         		<br />
         		<a id="bill.0.55.0"></a><a id="pl.35.29"></a><var>35.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 55. <b>SEVERABILITY.</b><br />
         		<a id="pl.35.30"></a><var>35.30</var>If any provision of this act is found to be invalid because it is in conflict with a <br />
         		<a id="pl.35.31"></a><var>35.31</var>provision of the Minnesota Constitution or the Constitution of the United States, or for any <br />
         		<a id="pl.35.32"></a><var>35.32</var>other reason, all other provisions of this act shall remain valid and any rights, remedies, <br />
         		<a id="pl.35.33"></a><var>35.33</var>and privileges that have been otherwise accrued by this act, shall remain in effect and may <br />
         		<a id="pl.35.34"></a><var>35.34</var>be proceeded with and concluded under this act.<br />
         		<br />
         		<a id="bill.0.56.0"></a><a id="pl.36.1"></a><var>36.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 56. <b>APPROPRIATION.</b><br />
         		<a id="pl.36.2"></a><var>36.2</var>$1,219,000 in fiscal year 2013 is appropriated from the lawful gambling regulation <br />
         		<a id="pl.36.3"></a><var>36.3</var>account in the special revenue fund to the Gambling Control Board for operating expenses <br />
         		<a id="pl.36.4"></a><var>36.4</var>related to the regulatory oversight of lawful gambling for electronic pull-tabs and <br />
         		<a id="pl.36.5"></a><var>36.5</var>electronic linked bingo.<br />
         		<br />
         		<a id="bill.0.57.0"></a><a id="pl.36.6"></a><var>36.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 57. <b> REPEALER.</b><br />
         		<a id="pl.36.7"></a><var>36.7</var>Minnesota Statutes 2010, sections 297E.02, subdivision 4; 349.15, subdivision 3; <br />
         		<a id="pl.36.8"></a><var>36.8</var>and 349.19, subdivision 2a, are repealed.<br />
         		<a id="pl.36.9"></a><var>36.9</var><b>EFFECTIVE DATE.</b>This section is effective for games sold by a licensed <br />
         		<a id="pl.36.10"></a><var>36.10</var>distributor after June 30, 2012, and the commissioner of revenue retains the authority to <br />
         		<a id="pl.36.11"></a><var>36.11</var>issue refunds under Minnesota Statutes 2010, section 297E.02, subdivision 4, paragraph <br />
         		<a id="pl.36.12"></a><var>36.12</var>(d), for games sold before July 1, 2012.<br />
         		<br />
         		<a id="bill.0.58.0"></a><a id="pl.36.13"></a><var>36.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 58. <b>EFFECTIVE DATE.</b><br />
         		<a id="pl.36.14"></a><var>36.14</var>Unless otherwise specifically provided, this act is effective the day following final <br />
         		<a id="pl.36.15"></a><var>36.15</var>enactment.<br />
         		
      </div>