2002 Minnesota Statutes

     349.161 Distributor licenses. 

    Subdivision 1.    Prohibited acts; licenses required.  
 No person may:  

    (1) sell, offer for sale, or furnish gambling equipment for 
 use within the state other than for lawful gambling exempt or 
 excluded from licensing, except to an organization licensed for 
 lawful gambling; 

    (2) sell, offer for sale, or furnish gambling equipment for 
 use within the state without having obtained a distributor 
 license under this section; 

    (3) sell, offer for sale, or furnish gambling equipment for 
 use within the state that is not purchased or obtained from a 
 manufacturer or distributor licensed under this chapter; or 

    (4) sell, offer for sale, or furnish gambling equipment for 
 use within the state that has the same serial number as another 
 item of gambling equipment of the same type sold or offered for 
 sale or furnished for use in the state by that distributor.  

    Subd. 2.    License application.  The board may issue 
 licenses for the sale of gambling equipment to persons who meet 
 the qualifications of this section if the board determines that 
 a license is consistent with the purpose of sections 349.11 to 
 349.22.  Applications must be on a form the board prescribes. 

    Subd. 3. Repealed, 1994 c 633 art 5 s 99 

    Subd. 4.    Fees.  The initial fee for a distributor's 
 license is $3,500.  The initial term of a distributor's license 
 is one year.  Renewal licenses under this section are valid for 
 two years and the fee for the renewal license is $7,000. 

    Subd. 5.    Prohibition.  (a) No distributor, or 
 employee of a distributor, may also be a wholesale distributor 
 of alcoholic beverages or an employee of a wholesale distributor 
 of alcoholic beverages. 

    (b) No distributor, or any representative, agent, 
 affiliate, or employee of a distributor, may: (1) be involved in 
 the conduct of lawful gambling by an organization; (2) keep or 
 assist in the keeping of an organization's financial records, 
 accounts, and inventories; or (3) prepare or assist in the 
 preparation of tax forms and other reporting forms required to 
 be submitted to the state by an organization. 

    (c) No distributor or any representative, agent, affiliate, 
 or employee of a distributor may provide a lessor of gambling 
 premises any compensation, gift, gratuity, premium, or other 
 thing of value. 

    (d) No distributor or any representative, agent, affiliate, 
 or employee of a distributor may participate in any gambling 
 activity at any gambling site or premises where gambling 
 equipment purchased from that distributor is being used in the 
 conduct of lawful gambling. 

    (e) No distributor or any representative, agent, affiliate, 
 or employee of a distributor may alter or modify any gambling 
 equipment, except to add a "last ticket sold" prize sticker. 

    (f) No distributor or any representative, agent, affiliate, 
 or employee of a distributor may:  (1) recruit a person to 
 become a gambling manager of an organization or identify to an 
 organization a person as a candidate to become gambling manager 
 for the organization; or (2) identify for an organization a 
 potential gambling location. 

    (g) No distributor may purchase gambling equipment for 
 resale to a person for use within the state from any person not 
 licensed as a manufacturer under section 349.163. 

    (h) No distributor may sell gambling equipment to any 
 person for use in Minnesota other than (i) a licensed 
 organization or organization excluded or exempt from licensing, 
 or (ii) the governing body of an Indian tribe. 

    (i) No distributor may sell or otherwise provide a pull-tab 
 or tipboard deal with the symbol required by section 349.163, 
 subdivision 5, paragraph (h), visible on the flare to any person 
 other than in Minnesota to a licensed organization or 
 organization exempt from licensing. 

    Subd. 6. Repealed, 1994 c 633 art 5 s 99 

    Subd. 7. Repealed, 1994 c 633 art 5 s 99 

    Subd. 8.    Employees of distributors.  Licensed 
 distributors shall provide the board upon request with the names 
 and home addresses of all employees.  Each distributor and 
 employee of a distributor must have in their possession a 
 picture identification card approved by the board.  No person 
 other than an employee of a licensed distributor shall make any 
 sales on behalf of a licensed distributor. 

    HIST: 1984 c 502 art 12 s 9; 1986 c 467 s 12,13; 1987 c 327 s 
 10-12; 1989 c 334 art 2 s 22; 1Sp1989 c 1 art 13 s 9; 1990 c 590 
 art 1 s 18; 1992 c 513 art 4 s 36; 1994 c 633 art 5 s 42,43; 
 2002 c 386 art 2 s 3