2002 Minnesota Statutes

     349.16 Organization licenses. 

    Subdivision 1.    License required.  An organization may 
 conduct lawful gambling if it has a license to conduct lawful 
 gambling and complies with this chapter. 

    Subd. 1a. Repealed by amendment, 1990 c 590 art 1 s 17 

    Subd. 2.    Issuance of gambling licenses.  (a) Licenses 
 authorizing organizations to conduct lawful gambling may be 
 issued by the board to organizations meeting the qualifications 
 in paragraphs (b) to (h) if the board determines that the 
 license is consistent with the purpose of sections 349.11 to 
 349.22.  

    (b) The organization must have been in existence for the 
 most recent three years preceding the license application as a 
 registered Minnesota nonprofit corporation or as an organization 
 designated as exempt from the payment of income taxes by the 
 Internal Revenue Code. 

    (c) The organization at the time of licensing must have at 
 least 15 active members. 

    (d) The organization must not be in existence solely for 
 the purpose of conducting gambling. 

    (e) The organization has identified in its license 
 application the lawful purposes on which it proposes to expend 
 net profits from lawful gambling. 

    (f) The organization has identified on its license 
 application a gambling manager and certifies that the manager is 
 qualified under this chapter. 

    (g) The organization must not, in the opinion of the board 
 after consultation with the commissioner of revenue, be seeking 
 licensing primarily for the purpose of evading or reducing the 
 tax imposed by section 297E.02, subdivision 6. 

    Subd. 3.    Term of license.  Licenses issued under this 
 section are valid for two years.  

    Subd. 4. Repealed, 1994 c 633 art 5 s 99 

    Subd. 5. Repealed, 1994 c 633 art 5 s 99 

    Subd. 6.    License classifications.  The board may 
 issue four classes of organization licenses:  a class A license 
 authorizing all forms of lawful gambling; a class B license 
 authorizing all forms of lawful gambling except bingo; a class C 
 license authorizing bingo only, or bingo and pull-tabs if the 
 gross receipts for any combination of bingo and pull-tabs does 
 not exceed $50,000 per year; and a class D license authorizing 
 raffles only.  The board shall not charge a fee for an 
 organization license. 

    Subd. 7.    Purchase of gambling equipment.  An 
 organization may purchase gambling equipment only from a person 
 licensed as a distributor. 

    Subd. 8.    Local investigation fee.  A statutory or 
 home rule charter city or county notified under section 349.213, 
 subdivision 2, may assess an investigation fee on organizations 
 or bingo halls applying for or renewing a premises permit or a 
 bingo hall license.  An investigation fee may not exceed the 
 following limits: 

    (1) for cities of the first class, $500; 

    (2) for cities of the second class, $250; 

    (3) for all other cities, $100; and 

    (4) for counties, $375. 

    Subd. 9.    License renewals; notice.  The board may not 
 deny or delay the renewal of a license under this section, a 
 premises permit, or a gambling manager's license under section 
 349.167 because of the licensee's failure to submit a complete 
 application by a specified date before the expiration of the 
 license or permit, unless the board has first (1) sent the 
 applicant by registered mail a written notice of the incomplete 
 application, and (2) given the applicant at least five business 
 days from the date of receipt of the notice to submit a complete 
 application, or the information necessary to complete the 
 application. 

    Subd. 10.    License renewal to merged fire relief 
 associations.  A new relief association formed from the merger 
 of the relief associations of two separate city fire 
 departments, mandated under Laws 1995, chapter 262, article 11, 
 may apply for a license renewal under this section.  The board 
 shall consider the application as a license renewal of one of 
 the relief associations that is a licensed organization and was 
 merged to form the new relief association. 

    HIST: 1976 c 261 s 6; 1984 c 502 art 12 s 8; 1986 c 467 s 
 10,11; 1989 c 334 art 2 s 20,21; 1Sp1989 c 1 art 13 s 8; 1990 c 
 590 art 1 s 17; 1991 c 336 art 2 s 17; 1994 c 633 art 2 s 19; 
 art 5 s 37-41; 1997 c 155 s 6