1999 Minnesota Statutes

     349.162 Equipment registered. 

    Subdivision 1.    Stamp required.  (a) A distributor may 
 not sell, transfer, furnish, or otherwise provide to a person, 
 and no person may purchase, borrow, accept, or acquire from a 
 distributor gambling equipment for use within the state unless 
 the equipment has been registered with the board and has a 
 registration stamp affixed, except for gambling equipment not 
 stamped by the manufacturer pursuant to section 349.163, 
 subdivision 5 or 8.  The board shall charge a fee of five cents 
 for each stamp.  Each stamp must bear a registration number 
 assigned by the board.  A distributor or manufacturer is 
 entitled to a refund for unused registration stamps and 
 replacement for registration stamps which are defective or 
 canceled by the distributor or manufacturer. 

    (b) A manufacturer must return all unused registration 
 stamps in its possession to the board by February 1, 1995.  No 
 manufacturer may possess unaffixed registration stamps after 
 February 1, 1995. 

    (c) After February 1, 1996, no person may possess any 
 unplayed pull-tab or tipboard deals with a registration stamp 
 affixed to the flare or any unplayed paddleticket cards with a 
 registration stamp affixed to the master flare.  This paragraph 
 does not apply to unplayed pull-tab or tipboard deals with a 
 registration stamp affixed to the flare, or to unplayed 
 paddleticket cards with a registration stamp affixed to the 
 master flare, if the deals or cards are identified on a list of 
 existing inventory submitted by a licensed organization or a 
 licensed distributor, in a format prescribed by the commissioner 
 of revenue, to the commissioner of revenue on or before February 
 1, 1996.  Gambling equipment kept in violation of this paragraph 
 is contraband under section 349.2125. 

    Subd. 2.    Records required.  A distributor must 
 maintain a record of all gambling equipment which it sells to 
 organizations.  The record must include:  

    (1) the identity of the person from whom the distributor 
 purchased the equipment; 

    (2) the registration number of the equipment; 

    (3) the name, address, and license or exempt permit number 
 of the organization to which the sale was made; 

    (4) the date of the sale; 

    (5) the name of the person who ordered the equipment; 

    (6) the name of the person who received the equipment; 

    (7) the type of equipment; 

    (8) the serial number of the equipment; 

    (9) the name, form number, or other identifying information 
 for each game; and 

    (10) in the case of bingo hard cards or paper sheets sold 
 on and after January 1, 1991, the individual number of each card 
 or sheet. 

    The invoice for each sale must be retained for at least 
 3-1/2 years after the sale is completed and a copy of each 
 invoice is to be delivered to the board in the manner and time 
 prescribed by the board.  For purposes of this section, a sale 
 is completed when the gambling equipment is physically delivered 
 to the purchaser.  

    Each distributor must report monthly to the board, in a 
 form the board prescribes, its sales of each type of gambling 
 equipment.  Employees of the board and the division of alcohol 
 and gambling enforcement may inspect the business premises, 
 books, records, and other documents of a distributor at any 
 reasonable time without notice and without a search warrant.  

    The board may require that a distributor submit the monthly 
 report and invoices required in this subdivision via magnetic 
 media or electronic data transfer. 

    Subd. 3.    Exemption.  For purposes of this section, 
 bingo cards or sheets need not be stamped.  

    Subd. 4.    Prohibition.  (a) No person other than a 
 licensed distributor or licensed manufacturer may possess 
 unaffixed registration stamps. 

    (b) Unless otherwise provided in this chapter, no person 
 may possess gambling equipment that has not been stamped and 
 registered.  

    (c) On and after January 1, 1991, no distributor may: 

    (1) sell a bingo hard card or paper sheet that does not 
 bear an individual number; or 

    (2) sell a package of bingo paper sheets that does not 
 contain bingo paper sheets in numerical order. 

    Subd. 5.    Sales from facilities.  (a) All gambling 
 equipment purchased or possessed by a licensed distributor for 
 resale to any person for use in Minnesota must, prior to the 
 equipment's resale, be unloaded into a storage facility located 
 in Minnesota which the distributor owns or leases; and which has 
 been registered, in advance and in writing, with the division of 
 alcohol and gambling enforcement as a storage facility of the 
 distributor.  All unregistered gambling equipment and all 
 unaffixed registration stamps owned by, or in the possession of, 
 a licensed distributor in the state of Minnesota shall be stored 
 at a storage facility which has been registered with the 
 division of alcohol and gambling enforcement.  No gambling 
 equipment may be moved from the facility unless the gambling 
 equipment has been first registered with the board, except for 
 gambling equipment not stamped by the manufacturer pursuant to 
 section 349.163, subdivision 5 or 8. 

    (b) Notwithstanding section 349.163, subdivisions 5, 6, and 
 8, a licensed manufacturer may ship into Minnesota approved or 
 unapproved gambling equipment if the licensed manufacturer ships 
 the gambling equipment to a Minnesota storage facility that is:  
 (1) owned or leased by the licensed manufacturer; and (2) 
 registered, in advance and in writing, with the division of 
 alcohol and gambling enforcement as a manufacturer's storage 
 facility.  No gambling equipment may be shipped into Minnesota 
 to the manufacturer's registered storage facility unless the 
 shipment of the gambling equipment is reported to the department 
 of revenue in a manner prescribed by the department.  No 
 gambling equipment may be moved from the storage facility unless 
 the gambling equipment is sold to a licensed distributor and is 
 otherwise in conformity with this chapter, is shipped to an 
 out-of-state site and the shipment is reported to the department 
 of revenue in a manner prescribed by the department, or is 
 otherwise sold and shipped as permitted by board rule. 

    (c) All storage facilities owned, leased, used, or operated 
 by a licensed distributor or manufacturer may be entered upon 
 and inspected by the employees of the division of alcohol and 
 gambling enforcement, the division of alcohol and gambling 
 enforcement director's authorized representatives, employees of 
 the gambling control board or its authorized representatives, 
 employees of the department of revenue, or authorized 
 representatives of the director of the division of special taxes 
 of the department of revenue during reasonable and regular 
 business hours.  Obstruction of, or failure to permit, entry and 
 inspection is cause for revocation or suspension of a 
 manufacturer's or distributor's licenses and permits issued 
 under this chapter.  

    (d) Unregistered gambling equipment and unaffixed 
 registration stamps found at any location in Minnesota other 
 than the manufacturing plant of a licensed manufacturer or a 
 registered storage facility are contraband under section 
 349.2125.  This paragraph does not apply: 

    (1) to unregistered gambling equipment being transported in 
 interstate commerce between locations outside this state, if the 
 interstate shipment is verified by a bill of lading or other 
 valid shipping document; and 

    (2) to gambling equipment not stamped by the manufacturer 
 pursuant to section 349.163, subdivision 5 or 8. 

    Subd. 6.    Removal of equipment from inventory.  
 Authorized employees of the board, the division of alcohol and 
 gambling enforcement of the department of public safety, and the 
 commissioner of revenue may remove gambling equipment from the 
 inventories of distributors and organizations and test that 
 equipment to determine its compliance with all applicable laws 
 and rules.  A distributor or organization may return to the 
 manufacturer thereof any gambling equipment which is determined 
 to be in violation of law or rule.  The cost to an organization 
 of gambling equipment removed from inventory under this 
 paragraph and found to be in compliance with all applicable law 
 and rules is an allowable expense under section 349.15. 

    HIST: 1984 c 502 art 12 s 10; 1986 c 467 s 14; 1987 c 327 s 
 13,14; 1989 c 334 art 2 s 23; 1990 c 590 art 1 s 19; 1991 c 233 
 s 109; 1994 c 633 art 5 s 44-47; 1995 c 261 s 22; 1997 c 129 art 
 2 s 15