2002 Minnesota Statutes

     349.151 Gambling control board. 

    Subdivision 1.    Board created.  The gambling control 
 board is created with the powers and duties established by 
 subdivision 4.  

    Subd. 2.    Membership.  (a) On and after July 1, 1991, 
 the board consists of seven members, as follows:  (1) those 
 members appointed by the governor before July 1, 1991, whose 
 terms expire June 30, 1992, June 30, 1993, and June 30, 1994; 
 (2) one member appointed by the governor for a term expiring 
 June 30, 1994; (3) one member appointed by the commissioner of 
 public safety for a term expiring June 30, 1995; and (4) one 
 member appointed by the attorney general for a term expiring 
 June 30, 1995. 

    (b) All appointments under this subdivision are with the 
 advice and consent of the senate. 

    (c) After expiration of the initial terms, appointments are 
 for four years. 

    (d) The board shall select one of its members to serve as 
 chair.  No more than three members appointed by the governor 
 under this subdivision may belong to the same political party. 

    Subd. 3. Repealed, 1989 c 334 art 2 s 52 

    Subd. 3a.    Compensation.  The compensation of board 
 members is as provided in section 15.0575, subdivision 3. 

    Subd. 4.    Powers and duties.  (a) The board has the 
 following powers and duties:  

    (1) to regulate lawful gambling to ensure it is conducted 
 in the public interest; 

    (2) to issue licenses to organizations, distributors, bingo 
 halls, manufacturers, and gambling managers; 

    (3) to collect and deposit license, permit, and 
 registration fees due under this chapter; 

    (4) to receive reports required by this chapter and inspect 
 all premises, records, books, and other documents of 
 organizations, distributors, manufacturers, and bingo halls to 
 insure compliance with all applicable laws and rules; 

    (5) to make rules authorized by this chapter; 

    (6) to register gambling equipment and issue registration 
 stamps; 

    (7) to provide by rule for the mandatory posting by 
 organizations conducting lawful gambling of rules of play and 
 the odds and/or house percentage on each form of lawful 
 gambling; 

    (8) to report annually to the governor and legislature on 
 its activities and on recommended changes in the laws governing 
 gambling; 

    (9) to impose civil penalties of not more than $500 per 
 violation on organizations, distributors, employees eligible to 
 make sales on behalf of a distributor, manufacturers, bingo 
 halls, and gambling managers for failure to comply with any 
 provision of this chapter or any rule or order of the board; 

    (10) to issue premises permits to organizations licensed to 
 conduct lawful gambling; 

    (11) to delegate to the director the authority to issue or 
 deny license and premises permit applications and renewals under 
 criteria established by the board; 

    (12) to suspend or revoke licenses and premises permits of 
 organizations, distributors, manufacturers, bingo halls, or 
 gambling managers as provided in this chapter; 

    (13) to register employees of organizations licensed to 
 conduct lawful gambling; 

    (14) to require fingerprints from persons determined by 
 board rule to be subject to fingerprinting; 

    (15) to delegate to a compliance review group of the board 
 the authority to investigate alleged violations, issue consent 
 orders, and initiate contested cases on behalf of the board; 

    (16) to order organizations, distributors, manufacturers, 
 bingo halls, and gambling managers to take corrective actions; 
 and 

    (17) to take all necessary steps to ensure the integrity of 
 and public confidence in lawful gambling.  

    (b) The board, or director if authorized to act on behalf 
 of the board, may by citation assess any organization, 
 distributor, employee eligible to make sales on behalf of a 
 distributor, manufacturer, bingo hall licensee, or gambling 
 manager a civil penalty of not more than $500 per violation for 
 a failure to comply with any provision of this chapter or any 
 rule adopted or order issued by the board.  Any organization, 
 distributor, bingo hall licensee, gambling manager, or 
 manufacturer assessed a civil penalty under this paragraph may 
 request a hearing before the board.  Appeals of citations 
 imposing a civil penalty are not subject to the provisions of 
 the Administrative Procedure Act.  

    (c) All fees and penalties received by the board must be 
 deposited in the general fund. 

    Subd. 4a. MS 1989 Supp Repealed, 1990 c 590 art 1 s 55 

    Subd. 4a.    Paddlewheel rules.  The board shall 
 promulgate rules governing paddlewheels before July 1, 1992.  
 The rules must provide for operation procedures, internal 
 control standards, posted information, records, and reports. 

    Subd. 4b.    Pull-tab sales from dispensing devices.  (a)
 The board may by rule authorize but not require the use of 
 pull-tab dispensing devices. 

    (b) Rules adopted under paragraph (a): 

    (1) must limit the number of pull-tab dispensing devices on 
 any permitted premises to three; and 

    (2) must limit the use of pull-tab dispensing devices to a 
 permitted premises which is (i) a licensed premises for on-sales 
 of intoxicating liquor or 3.2 percent malt beverages; or (ii) a 
 licensed bingo hall that allows gambling only by persons 18 
 years or older. 

    (c) Notwithstanding rules adopted under paragraph (b), 
 pull-tab dispensing devices may be used in establishments 
 licensed for the off-sale of intoxicating liquor, other than 
 drugstores and general food stores licensed under section 
 340A.405, subdivision 1. 

    (d) The director may charge a manufacturer a fee of up to 
 $5,000 per pull-tab dispensing device to cover the costs of 
 services provided by an independent testing laboratory to 
 perform testing and analysis of pull-tab dispensing devices.  
 The director shall deposit in a separate account in the state 
 treasury all money the director receives as reimbursement for 
 the costs of services provided by independent testing 
 laboratories that have entered into contracts with the state to 
 perform testing and analysis of pull-tab dispensing devices.  
 Money in the account is appropriated to the director to pay the 
 costs of services under those contracts. 

    Subd. 5.  MS 1988 Repealed, 1989 c 334 art 2 s 52 

    Subd. 5.    Attorney general.  The attorney general is 
 the attorney for the board.  

    Subd. 6. Renumbered subd 5 

    Subd. 7.    Orders.  The board may order any person 
 subject to its jurisdiction who has violated this chapter or a 
 board rule or order to take appropriate action to correct the 
 violation. 

    Subd. 8.    Criminal history.  The board may request the 
 director of alcohol and gambling enforcement to assist in 
 investigating the background of an applicant for a license under 
 this chapter, and the director of alcohol and gambling 
 enforcement may bill the license applicant for the cost 
 thereof.  The board has access to all criminal history data 
 compiled by the division of alcohol and gambling enforcement on 
 licensees and applicants. 

    Subd. 9.    Response to requests.  An applicant, 
 licensee, or other person subject to the board's jurisdiction 
 must: 

    (1) comply with requests for information or documents, or 
 other requests, from the board or director within the time 
 specified in the request or, if no time is specified, within 30 
 days of the date the board or director mails the request; and 

    (2) appear before the board or director when requested to 
 do so, and must bring documents or materials requested by the 
 board or director. 

    Subd. 10.    Production of evidence.  For the purpose of 
 any investigation, inspection, compliance review, audit, or 
 proceeding under this chapter, the board or director may (1) 
 administer oaths and affirmations, (2) subpoena witnesses and 
 compel their attendance, (3) take evidence, and (4) require the 
 production of books, papers, correspondence, memoranda, 
 agreements, or other documents or records that the board or 
 director determines are relevant or material to the inquiry. 

    Subd. 11.    Court orders.  In the event of a refusal to 
 appear by, or refusal to obey a subpoena issued to, any person 
 under this chapter, the district court may on application of the 
 board or director issue to the person an order directing the 
 person to appear before the board or director, and to produce 
 documentary evidence if so ordered or to give evidence relating 
 to the matter under investigation or in question.  Failure to 
 obey such an order may be punished by the court as contempt of 
 court. 

    Subd. 12.    Access.  The board or director has free 
 access during normal business hours to the offices and places of 
 business of licensees or organizations conducting excluded or 
 exempt gambling, and to all books, accounts, papers, records, 
 files, safes, and vaults maintained in the places of business or 
 required to be maintained. 

    Subd. 13.    Rulemaking.  In addition to any authority 
 to adopt rules specifically authorized under this chapter, the 
 board may adopt, amend, or repeal rules under chapter 14, when 
 necessary or proper in discharging the board's powers and duties.

    HIST: 1984 c 502 art 12 s 7; 1984 c 640 s 32; 1986 c 444; 1986 
 c 467 s 8,9; 1987 c 327 s 8,9; 1989 c 334 art 2 s 17; 1990 c 590 
 art 1 s 11,12; 1991 c 233 s 101; 1991 c 336 art 2 s 14,15; 1993 
 c 13 art 1 s 3; 1994 c 465 art 3 s 33; 1994 c 633 art 5 s 23-31; 
 1995 c 233 art 2 s 56; 1995 c 254 art 1 s 78; 1996 c 467 s 3; 
 1997 c 129 art 2 s 15; 1999 c 206 s 10; 2002 c 386 art 2 s 2