2007 Minnesota Statutes

349.161 DISTRIBUTOR LICENSES.
    Subdivision 1. Prohibited acts; licenses required. (a) 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 or a distributor salesperson 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.
(b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling
equipment for use within the state without being employed by a licensed distributor or owning
a distributor license.
    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    Subd. 3.[Repealed, 1994 c 633 art 5 s 99]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. (a) The annual fee for a distributor's license is $6,000.
(b) The annual fee for a distributor salesperson license is $100.
    Subd. 5. Prohibition. (a) No distributor, distributor salesperson, or other 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, distributor salesperson, or any representative, agent, affiliate, or other
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, distributor salesperson, or any representative, agent, affiliate, or other
employee of a distributor may provide a lessor of gambling premises any compensation, gift,
gratuity, premium, or other thing of value.
(d) No distributor, distributor salesperson, or any representative, agent, affiliate, or other
employee of a distributor may provide an employee or agent of the organization any compensation,
gift, gratuity, premium, or other thing of value greater than $25 per organization in a calendar year.
(e) No distributor, distributor salesperson, or any representative, agent, affiliate, or other
employee of a distributor may participate in any gambling activity at any gambling site or
premises where gambling equipment purchased from that distributor or distributor salesperson is
being used in the conduct of lawful gambling.
(f) No distributor, distributor salesperson, or any representative, agent, affiliate, or other
employee of a distributor may alter or modify any gambling equipment, except to add a "last
ticket sold" prize sticker.
(g) No distributor, distributor salesperson, or any representative, agent, affiliate, or other
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.
(h) No distributor or distributor salesperson 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, except for gambling equipment returned from an organization licensed under section
349.16, or exempt or excluded from licensing under section 349.166.
(i) No distributor or distributor salesperson 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.
(j) No distributor or distributor salesperson may sell or otherwise provide a pull-tab or
tipboard deal with the symbol required by section 349.163, subdivision 5, paragraph (d), 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.
History: 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; 2003 c 110 s 18; 1Sp2003 c 1 art 2 s 90-92; 2005 c 166 art 1 s 16