1998 Minnesota Statutes

     349.168 Gambling employees. 

    Subdivision 1.    Registration of employees.  A person 
 may not receive compensation for participating in the conduct of 
 lawful gambling as an employee of a licensed organization unless 
 the person has first registered with the board on a form the 
 board prescribes.  The form must require each registrant to 
 provide:  (1) the person's name, address, and social security 
 number; (2) a current photograph; (3) the name, address, and 
 license number of the employing organization; and (4) a listing 
 of all employment in the conduct of lawful gambling within the 
 previous three years, including the name and address of each 
 employing organization and the circumstances under which the 
 employment was terminated. 

    Subd. 2.    Identification of employees.  The board 
 shall issue to each person registering under subdivision 1 a 
 registration number and identification card which must include 
 the employee's photograph.  Each person receiving compensation 
 for the conduct of lawful gambling must wear the identification 
 card provided by the board at all times while conducting the 
 lawful gambling. 

    Subd. 3. Repealed, 1996 c 467 s 9 

    Subd. 4.    Amounts paid.  The amounts of compensation 
 that may be paid under this section may be provided for in a 
 schedule of compensation adopted by the board by rule.  In 
 adopting a schedule, the board must consider the nature of the 
 participation and the types of lawful gambling participated in. 

    Subd. 5.    Compensation records.  An organization 
 paying compensation to persons who participate in the conduct of 
 lawful gambling must maintain a compensation record.  The record 
 must be retained for at least two years after the month in which 
 the compensation is paid.  The record must itemize each payment 
 made to each recipient of compensation and must include the 
 amount and the full name, address, and membership status of each 
 recipient. 

    Subd. 6.    Compensation paid by check or electronic 
 transfer.  Compensation paid by an organization in connection 
 with lawful gambling must either be:  (1) in the form of a check 
 drawn on the organization's gambling account, as specified in 
 section 349.19, and paid directly to the person being 
 compensated; (2) transferred electronically from the 
 organization's gambling account, as specified in section 349.19, 
 subdivision 3, directly to the employee's bank account; or (3) 
 transferred electronically to and from the account of a payroll 
 processing firm for payment to the employee's account and for 
 the payment of local, state, and federal withholding taxes, 
 provided that the payroll processing firm is (i) currently 
 registered with and meets the criteria of the department of 
 revenue as a third-party bulk filer under section 290.92, 
 subdivision 30, (ii) is able to provide proof of a third-party 
 audit and an annual report and statement of financial condition, 
 (iii) is able to provide evidence of a fidelity bond, and (iv) 
 can provide proof of having been in business as a third-party 
 bulk filer for the most recent three years. 

    Subd. 7.    Penalty.  (a) An organization that makes 
 payment of compensation, or causes compensation to be made, that 
 violates subdivision 4 must be assessed a civil penalty not to 
 exceed $1,000 for each violation of subdivision 4.  A second 
 violation within 12 months of notification by the board to the 
 organization of the first violation must result in suspension of 
 the organization's gambling license for a period of three 
 months, in addition to any civil penalty assessed.  A third 
 violation within 12 months of the board's notification to the 
 organization of the second violation must result in revocation 
 of the organization's gambling license in addition to any civil 
 penalty assessed. 

    (b) Upon each violation, the director shall notify the 
 organization in writing of its violation and of the penalties 
 under this subdivision for future violations.  Notification is 
 effective upon mailing.  

    (c) For purposes of this subdivision, a violation consists 
 of a payroll period or compensation date that includes payments 
 made in violation of subdivision 4. 

    Subd. 8.    Percentage of gross profit paid.  A licensed 
 organization may pay a percentage of the gross profit from 
 raffle ticket sales to a nonprofit organization that sells 
 raffle tickets for the licensed organization. 

    Subd. 9.    Compensation report.  A licensed 
 organization must submit to the board once each year, on a form 
 the board prescribes, a compensation report that specifies for 
 the year being reported:  (1) each job category for which the 
 organization pays compensation, (2) each compensation rate paid 
 in each job category, and (3) the number of employees being paid 
 each compensation rate during the year. 

    HIST: 1990 c 590 art 1 s 26; 1994 c 633 art 5 s 64-66; 1998 c 
 322 s 3