Bill Text: MN HF1485 | 2011-2012 | 87th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: New National Football League stadium provided for in Minnesota; Minnesota Stadium Authority established; and Metropolitan Sports Facilities Commission abolished; local tax revenue use, electronic pull-tab games, electronic linked bingo games, and sports-themed tipboard games provided for; conditional imposition of taxes and revenue collection provided for; lawful gambling tax rates modified; bonds issued; and money appropriated.
Spectrum: Slight Partisan Bill (Republican 9-3)
Status: (Engrossed - Dead) 2012-05-08 - Laid on table [HF1485 Detail]
Download: Minnesota-2011-HF1485-Introduced.html
Bill Title: New National Football League stadium provided for in Minnesota; Minnesota Stadium Authority established; and Metropolitan Sports Facilities Commission abolished; local tax revenue use, electronic pull-tab games, electronic linked bingo games, and sports-themed tipboard games provided for; conditional imposition of taxes and revenue collection provided for; lawful gambling tax rates modified; bonds issued; and money appropriated.
Spectrum: Slight Partisan Bill (Republican 9-3)
Status: (Engrossed - Dead) 2012-05-08 - Laid on table [HF1485 Detail]
Download: Minnesota-2011-HF1485-Introduced.html
1.2relating to gambling; modifying certain rates of tax on lawful gambling;
1.3providing for linked bingo and electronic pull-tabs; making clarifying,
1.4conforming, and technical changes;amending Minnesota Statutes 2010, sections
1.5297E.02, subdivisions 1, 4, 6; 349.12, subdivisions 5, 9, 12a, 25b, 25c, 25d, 29,
1.632, 32a; 349.13; 349.151, subdivisions 4b, 4c, by adding a subdivision; 349.161,
1.7subdivision 1; 349.163, subdivisions 1, 9; 349.1635, subdivision 2; 349.17,
1.8subdivisions 6, 7, 8; 349.1721, by adding a subdivision; 349.18, subdivision 1;
1.9349.211, subdivision 1a; proposing coding for new law in Minnesota Statutes,
1.10chapter 349.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. Minnesota Statutes 2010, section 297E.02, subdivision 1, is amended to read:
1.13 Subdivision 1. Imposition. A tax is imposed on all lawful gambling other than
1.14(1) pull-tab deals or games; (2) tipboard deals or games; and (3) items listed in section
1.15297E.01, subdivision 8
, clauses (4) and (5), at the rate of 8.5 5.0 percent on the gross
1.16receipts as defined in section297E.01, subdivision 8 , less prizes actually paid. The tax
1.17imposed by this subdivision is in lieu of the tax imposed by section297A.62 and all
1.18local taxes and license fees except a fee authorized under section349.16, subdivision 8 ,
1.19or a tax authorized under subdivision 5.
1.20The tax imposed under this subdivision is payable by the organization or party
1.21conducting, directly or indirectly, the gambling.
1.22 Sec. 2. Minnesota Statutes 2010, section 297E.02, subdivision 4, is amended to read:
1.23 Subd. 4. Pull-tab and tipboard tax. (a) A tax is imposed on the sale of each deal of
1.24pull-tabs and tipboards sold by a distributor. The rate of the tax is1.7 1.0 percent of the
1.25ideal gross of the pull-tab or tipboard deal. The sales tax imposed by chapter 297A on the
1.26sale of the pull-tabs and tipboards by the distributor is imposed on the retail sales price
2.1less the tax imposed by this subdivision. The retail sale of pull-tabs or tipboards by the
2.2organization is exempt from taxes imposed by chapter 297A and is exempt from all local
2.3taxes and license fees except a fee authorized under section349.16, subdivision 8 .
2.4(b) The liability for the tax imposed by this section is incurred when the pull-tabs
2.5and tipboards are delivered by the distributor to the customer or to a common or contract
2.6carrier for delivery to the customer, or when received by the customer's authorized
2.7representative at the distributor's place of business, regardless of the distributor's method
2.8of accounting or the terms of the sale.
2.9The tax imposed by this subdivision is imposed on all sales of pull-tabs and
2.10tipboards, except the following:
2.11(1) sales to the governing body of an Indian tribal organization for use on an Indian
2.12reservation;
2.13(2) sales to distributors licensed under the laws of another state or of a province of
2.14Canada, as long as all statutory and regulatory requirements are met in the other state or
2.15province;
2.16(3) sales of promotional tickets as defined in section349.12 ; and
2.17(4) pull-tabs and tipboards sold to an organization that sells pull-tabs and tipboards
2.18under the exemption from licensing in section349.166, subdivision 2 . A distributor shall
2.19require an organization conducting exempt gambling to show proof of its exempt status
2.20before making a tax-exempt sale of pull-tabs or tipboards to the organization. A distributor
2.21shall identify, on all reports submitted to the commissioner, all sales of pull-tabs and
2.22tipboards that are exempt from tax under this subdivision.
2.23(c) A distributor having a liability of $10,000 or more during a fiscal year ending
2.24June 30 must remit all liabilities in the subsequent calendar year by electronic means.
2.25(d) Any customer who purchases deals of pull-tabs or tipboards from a distributor
2.26may file an annual claim for a refund or credit of taxes paid pursuant to this subdivision
2.27for unsold pull-tab and tipboard tickets. The claim must be filed with the commissioner on
2.28a form prescribed by the commissioner by March 20 of the year following the calendar
2.29year for which the refund is claimed. The refund must be filed as part of the customer's
2.30February monthly return. The refund or credit is equal to 1.7 percent of the face value
2.31of the unsold pull-tab or tipboard tickets, provided that the refund or credit will be 1.75
2.32percent of the face value of the unsold pull-tab or tipboard tickets for claims for a refund
2.33or credit of taxes filed on the February 2001 monthly return. The refund claimed will be
2.34applied as a credit against tax owing under this chapter on the February monthly return. If
2.35the refund claimed exceeds the tax owing on the February monthly return, that amount
3.1will be refunded. The amount refunded will bear interest pursuant to section270C.405
3.2from 90 days after the claim is filed.
3.3 Sec. 3. Minnesota Statutes 2010, section 297E.02, subdivision 6, is amended to read:
3.4 Subd. 6. Combined receipts tax. In addition to the taxes imposed under
3.5subdivisions 1 and 4, a tax is imposed on the combined receipts of the organization. As
3.6used in this section, "combined receipts" is the sum of the organization's gross receipts
3.7from lawful gambling less gross receipts directly derived from the conduct of bingo,
3.8raffles, and paddle wheels, as defined in section297E.01, subdivision 8 , for the fiscal year.
3.9The combined receipts of an organization are subject to a tax computed according to
3.10the following schedule:
3.26The tax imposed under this subdivision is payable by the organization or party
3.27conducting, directly or indirectly, the gambling on a site-by-site basis.
3.28 Sec. 4. Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read:
3.29 Subd. 5. Bingo occasion. "Bingo occasion" means a single gathering or session at
3.30which a series of one or more successive bingo games is played. There is no limit on the
3.31number of games conducted during a bingo occasionbut. A bingo occasion must not last
3.32longer than eight consecutive hours, except that linked bingo games played on electronic
3.33bingo devices may be played during regular business hours of the permitted premises and
3.34all play during this period is considered a bingo occasion for reporting purposes.
3.35 Sec. 5. Minnesota Statutes 2010, section 349.12, subdivision 9, is amended to read:
4.1 Subd. 9. Deal. "Deal" means each separate package, or series of packages in
4.2paper or electronic format, consisting of one game of pull-tabs or tipboards with the
4.3same serial number.
4.4 Sec. 6. Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:
4.5 Subd. 12a. Electronic bingo device. "Electronic bingo device" means an electronic
4.6bingo device used by a bingo player to (1) monitor bingo paper sheets or a facsimile of
4.7a bingo paper sheet when purchased at the time and place of an organization's bingo
4.8occasionand which (1) provides a means for bingo players to, (2) activate numbers
4.9announcedby a bingo caller; (2) compares or displayed and compare the numbers entered
4.10by the player to the bingo faces previously stored in the memory of the device;, and (3)
4.11identifies identify a winning bingo pattern.
4.12Electronic bingo device does not mean any device into which coin, currency, or tokens are
4.13inserted to activate play but does allow for activation by coded data entry.
4.14 Sec. 7. Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read:
4.15 Subd. 25b. Linked bingo game provider. "Linked bingo game provider" means
4.16any person who provides the means to link bingoprizes in a linked bingo game, who
4.17provides linked bingo paper sheets to the participating organizations games, who provides
4.18linked bingo prize management, and who provides the linked bingo game system.
4.19 Sec. 8. Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read:
4.20 Subd. 25c. Linked bingo game system. "Linked bingo game system" means the
4.21equipment used by the linked bingo provider to conduct, transmit, and track a linked
4.22bingo game. The system must be approved by the board before its use in this state and it
4.23must havedial-up or other the capability to permit the board to electronically monitor its
4.24operation remotely.
4.25 Sec. 9. Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read:
4.26 Subd. 25d. Linked bingo prize pool. "Linked bingo prize pool" means the total
4.27of all prize money that each participating organization has contributed to a linked bingo
4.28game prize and includes any portion of the prize pool that is carried over from one
4.29occasion game to another in a progressive linked bingo game.
4.30 Sec. 10. Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read:
5.1 Subd. 29. Paddle wheel. "Paddle wheel" means a wheel marked off into sections
5.2containing one or more numbers, and which, after being turned or spun manually or
5.3electronically, uses a pointer or marker to indicate winning chances.
5.4 Sec. 11. Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read:
5.5 Subd. 32. Pull-tab. "Pull-tab" means a single folded or banded paper ticketor , a
5.6multi-ply card with perforated break-open tabs, or a facsimile of a paper pull-tab when
5.7used in conjunction with a pull-tab dispensing device, the face of which is initially covered
5.8to conceal one or more numbers or symbols, where one or more of each set of tickets,or
5.9cards, or facsimiles has been designated in advance as a winner.
5.10 Sec. 12. Minnesota Statutes 2010, section 349.12, subdivision 32a, is amended to read:
5.11 Subd. 32a. Pull-tab dispensing device. "Pull-tab dispensing device" means a
5.12mechanical or electronic device that dispenses paper pull-tabsand has no additional
5.13function as an amusement or gambling device or displays facsimiles of paper pull-tabs. A
5.14pull-tab dispensing device may have as a component an auditory or visual enhancement to
5.15promote or provide information about a game being dispensed or displayed, provided the
5.16component does not affect the outcome of a game or display the results of a gameor an
5.17individual ticket. A pull-tab dispensing device that displays facsimiles of paper pull-tabs
5.18is not allowed to accept any coin, currency, or tokens, but does allow for activation by
5.19a coded data entry.
5.20 Sec. 13. Minnesota Statutes 2010, section 349.13, is amended to read:
5.21349.13 LAWFUL GAMBLING.
5.22Lawful gambling is not a lottery or gambling within the meaning of sections609.75
5.23to609.76 if it is conducted under this chapter. A pull-tab dispensing device permitted by
5.24board rule is not a gambling device within the meaning of sections609.75 to
609.76 and
5.25chapter 299L. Electronic game devices authorized under this chapter may be used only
5.26in the conduct of lawful gambling permitted under this chapter and may not display or
5.27simulate any other form of gambling or entertainment.
5.28 Sec. 14. Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:
5.29 Subd. 4b. Pull-tab sales from dispensing devices. (a) The board may by rule
5.30authorize but not require the use of pull-tab dispensing devices.
5.31(b) Rules adopted under paragraph (a):
6.1(1) must limit the number of paper pull-tab dispensing devices on any permitted
6.2premises to three; and for deals with facsimiles of paper pull-tabs, no more than six
6.3devices in play may be located at a permitted premises with 200 seats or less, and no
6.4more than 12 devices in play may be located at a permitted premises with 201 seats or
6.5more. For premises where the primary business is bingo, the number of devices that may
6.6be in play will be determined by the board. Seating capacity is determined as specified
6.7under local fire code; and
6.8(2) must limit the use of pull-tab dispensing devices to a permitted premises which is
6.9(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages;
6.10or (ii) a premises where bingo is conducted and admission is restricted to persons 18
6.11years or older.
6.12(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices
6.13may be used in establishments licensed for the off-sale of intoxicating liquor, other than
6.14drugstores and general food stores licensed under section340A.405, subdivision 1 .
6.15 Sec. 15. Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read:
6.16 Subd. 4c. Electronic bingo. (a) The board may by rule authorize but not require the
6.17use of electronic bingo devices.
6.18(b) Rules adopted under paragraph (a):
6.19(1) must limit the number of bingo faces that can be played using an electronic
6.20bingo device to 36;
6.21(2) must require that an electronic bingo device be used with corresponding bingo
6.22paper sheets or a facsimile, printed at the point of sale, of a bingo paper sheet as approved
6.23by the board;
6.24(3) must require that the electronic bingo device site system havedial-up the
6.25capability to permit the board to remotely monitor the operation of the device and the
6.26internal accounting systems; and
6.27(4) must prohibit the price of a face played on an electronic bingo device from
6.28being less than the price of a face on a bingo paper sheet sold for the same game at the
6.29same occasion.
6.30 Sec. 16. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision
6.31to read:
6.32 Subd. 4d. Electronic game devices. Notwithstanding other rulemaking
6.33requirements under chapter 349, the adoption of rules by the board for manufacturing
7.1standards and game procedures for games played on electronic devices is exempt from
7.2chapter 14 and exempt from section 14.386.
7.3 Sec. 17. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read:
7.4 Subdivision 1. Prohibited acts; licenses required. (a) No person may:
7.5 (1) sell, offer for sale, or furnish gambling equipment for use within the state other
7.6than for lawful gambling exempt or excluded from licensing, except to an organization
7.7licensed for lawful gambling;
7.8 (2) sell, offer for sale, or furnish gambling equipment for use within the state
7.9without having obtained a distributor license or a distributor salesperson license under
7.10this section except that an organization authorized to conduct bingo by the board may
7.11loan bingo hard cards and devices for selecting bingo numbers to another organization
7.12authorized to conduct bingo;
7.13 (3) sell, offer for sale, or furnish gambling equipment for use within the state that is
7.14not purchased or obtained from a manufacturer or distributor licensed under this chapter; or
7.15 (4) sell, offer for sale, or furnish gambling equipment for use within the state that
7.16has the same serial number as another item of gambling equipment of the same type sold
7.17or offered for sale or furnished for use in the state by that distributor.
7.18 (b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling
7.19equipment for use within the state without being employed by a licensed distributor or
7.20owning a distributor license.
7.21(c) No distributor or distributor salesperson may also be licensed as a linked bingo
7.22game provider under section 349.1635.
7.23 Sec. 18. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read:
7.24 Subdivision 1. License required. No manufacturer of gambling equipment may
7.25sell any gambling equipment to any person for use or resale within the state, unless the
7.26manufacturer has a current and valid license issued by the board under this section and has
7.27satisfied other criteria prescribed by the board by rule. A manufacturer licensed under this
7.28section may also be licensed as a linked bingo game provider under section 349.1635.
7.29A manufacturer licensed under this section may not also be directly or indirectly
7.30licensed as a distributor under section349.161 .
7.31 Sec. 19. Minnesota Statutes 2010, section 349.163, subdivision 9, is amended to read:
7.32 Subd. 9. Sales required. No licensed manufacturer may refuse to sell gambling
7.33equipment to a licensed distributor unless:
8.1(1) a specific type of gambling equipment sold or leased on an exclusive basis is at
8.2issue, except that electronic bingo devices used to conduct linked bingo games or pull-tab
8.3dispensing devices may not be sold or leased on an exclusive basis;
8.4(2) the manufacturer does not sell gambling equipment to any distributor in
8.5Minnesota;
8.6(3) a Minnesota statute or rule prohibits the sale; or
8.7(4) the distributor is delinquent on any payment owed to the manufacturer.
8.8 Sec. 20. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read:
8.9 Subd. 2. License application. The board may issue a license to a linked bingo game
8.10provider or to a manufacturer licensed under section 349.163 who meets the qualifications
8.11of this chapter and the rules promulgated by the board. The application shall be on a form
8.12prescribed by the board. The license is valid for two years and the fee for a linked bingo
8.13game provider license is $5,000 per year.
8.14 Sec. 21. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:
8.15 Subd. 6. Conduct of bingo. A game of bingo begins with the first letter and number
8.16called or displayed. Each player must cover, mark, or activate the numbers when bingo
8.17numbers are randomly selected, and announced, and or displayed to the players, either
8.18manually or with a flashboard and monitor. The game is won when a player, using
8.19bingo paper, bingo hard card, or a facsimile of a bingo paper sheet, has completed, as
8.20described in the bingo program, a previously designated pattern or previously determined
8.21requirements of the game and declared bingo. The game is completed when a winning
8.22card, sheet, or facsimile is verified and a prize awarded pursuant to subdivision 3.
8.23 Sec. 22. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read:
8.24 Subd. 7. Bar bingo. An organization may conduct bar bingo subject to the
8.25following restrictions:
8.26 (1) the bingo is conducted at a site the organization owns or leases and which has a
8.27license for the sale of intoxicating beverages on the premises under chapter 340A;
8.28 (2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper
8.29sheets purchased from a licensed distributor or licensed linked bingo game provider; and
8.30 (3) except as allowed in section 349.185, no rent may be paid for a bar bingo
8.31occasion.
8.32 Sec. 23. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:
9.1 Subd. 8. Linked bingo games. (a) A licensed organization may conduct or
9.2participate innot more than two linked bingo games per occasion, one of which may be a
9.3including progressivegame games in which a portion of the prize is carried over from
9.4one occasion to another until won by a player achieving a bingo within a predetermined
9.5amount of bingo numbers called.
9.6 (b)Each participating licensed organization shall contribute to each prize awarded
9.7in a linked bingo game in an amount not to exceed $300 Linked bingo games may only
9.8be conducted by licensed organizations who have a valid contract with the linked bingo
9.9game provider.
9.10 (c) An electronic bingo device as defined in section349.12, subdivision 12a , may
9.11be used for a linked bingo game.
9.12 (d) Linked bingo games played on an electronic bingo device may be located only
9.13at a permitted premises where the organization conducts another form of gambling and
9.14the premises is:
9.15 (1) a licensed premises for the on-sale or off-sale of intoxicating liquor or 3.2 percent
9.16malt beverages, except for a general foods store or drug store permitted to sell alcoholic
9.17beverages under section 340A.405, subdivision 1; and
9.18 (2) where bingo is conducted as the primary business, the premises has a seating
9.19capacity of at least 100, and admission is restricted to persons 18 years or older.
9.20 (e) For linked bingo games played on an electronic bingo device, no more than six
9.21electronic bingo devices may be in play at a permitted premises with 200 seats or less, and
9.22no more than 12 electronic bingo devices may be in play at a permitted premises with 201
9.23seats or more. For premises where the primary business is bingo, the number of electronic
9.24bingo devices that may be in play will be determined by the board. Seating capacity is
9.25determined as specified under local fire code.
9.26 (f) Prior to a bingo occasion for linked bingo games played on an electronic bingo
9.27device, the linked bingo game provider, on behalf of the participating organizations, must
9.28provide to the board a bingo program in a format prescribed by the board.
9.29(d) (g) The board may adopt rules to:
9.30 (1) specify the manner in which a linked bingo game must be played and how the
9.31linked bingo prizes must be awarded;
9.32 (2) specify the records to be maintained by a linked bingo game provider;
9.33 (3) require the submission of periodic reports by the linked bingo game provider and
9.34specify the content of the reports;
9.35 (4) establish the qualifications required to be licensed as a linked bingo game
9.36provider; and
10.1 (5) any other matter involving the operation of a linked bingo game.
10.2 Sec. 24. Minnesota Statutes 2010, section 349.1721, is amended by adding a
10.3subdivision to read:
10.4 Subd. 3. Electronic pull-tabs. (a) Tickets and deals must be in conformance with
10.5board rules for pull-tabs.
10.6(b) Deals must contain:
10.7(1) a finite number of tickets in each electronic deal;
10.8(2) a predetermined number of winning and losing tickets;
10.9(3) serialized tracking for each deal;
10.10(4) no regeneration of a serialized deal; and
10.11(5) no spinning symbols which mimic a video slot machine.
10.12(c) All deals in play must be played on site at a permitted premises and cannot be
10.13transferred electronically or otherwise to any other location by the licensed organization.
10.14(d) Deals cannot be shared or co-mingled with any other deals or locations.
10.15(e) The electronic pull-tab dispensing device must have the capability to:
10.16(1) allow the board to electronically monitor the operation of the electronic pull-tab
10.17devices and the internal accounting systems;
10.18(2) maintain a printable, permanent record of all transactions involving the device;
10.19and
10.20(3) allow the board to deactivate a device without notice for violation of a law or
10.21rule and to implement any other controls deemed by the board necessary to ensure and
10.22maintain the integrity of games operated under this subdivision.
10.23(f) The board shall examine prototypes of pull-tab devices that display facsimiles
10.24of paper pull-tabs. The board may contract for the examination of the devices and may
10.25require working models of the devices to be transported to locations the board designates
10.26for testing, examination, and analysis. The manufacturer shall pay all costs of any testing,
10.27examination, analysis, and transportation of the model.
10.28(g) The board may adopt rules necessary or proper to ensure the integrity of games
10.29played with facsimiles of paper pull-tabs in conjunction with an electronic pull-tab
10.30dispensing device.
10.31 Sec. 25. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read:
10.32 Subdivision 1. Lease or ownership required; rent limitations. (a) An organization
10.33may conduct lawful gambling only on premises it owns or leases. Leases must be on a
10.34form prescribed by the board. The term of the lease is concurrent with the premises permit.
11.1Leases approved by the board must specify that the board may authorize an organization
11.2to withhold rent from a lessor for a period of up to 90 days if the board determines that
11.3illegal gambling occurred on the premises or that the lessor or its employees participated
11.4in the illegal gambling or knew of the gambling and did not take prompt action to stop the
11.5gambling. The lease must authorize the continued tenancy of the organization without
11.6the payment of rent during the time period determined by the board under this paragraph.
11.7Copies of all leases must be made available to employees of the board and the Division of
11.8Alcohol and Gambling Enforcement on request.
11.9 (b) Rent paid by an organization for leased premises for the conduct of pull-tabs,
11.10tipboards, and paddle wheels is subject to the following limits:
11.11 (1) for booth operations, including booth operations where a pull-tab dispensing
11.12device is located, booth operations where a bar operation is also conducted, and booth
11.13operations where both a pull-tab dispensing device is located and a bar operation is also
11.14conducted, the maximum rent is:
11.15 (i) in any month where the organization's gross profit at those premises does not
11.16exceed $4,000, up to $400; and
11.17 (ii) in any month where the organization's gross profit at those premises exceeds
11.18$4,000, up to $400 plus not more than ten percent of the gross profit for that month in
11.19excess of $4,000;
11.20 (2) for bar operations, including bar operations where a pull-tab dispensing device
11.21is located but not including bar operations subject to clause (1), and for locations where
11.22only a pull-tab dispensing device is located:
11.23 (i) in any month where the organization's gross profit at those premises does not
11.24exceed $1,000, up to $200; and
11.25 (ii) in any month where the organization's gross profit at those premises exceeds
11.26$1,000, up to $200 plus not more than 20 percent of the gross profit for that month
11.27in excess of $1,000;
11.28 (3) a lease not governed by clauses (1) and (2) must be approved by the board
11.29before becoming effective;
11.30 (4) total rent paid to a lessor from all organizations from leases governed by clause
11.31(1) may not exceed $1,750 per month.
11.32 (c) Rent paid by an organization for leased premises for the conduct of bingo is
11.33subject to either of the following limits at the option of the parties to the lease:
11.34 (1) not more than ten percent of the monthly gross profit from all lawful gambling
11.35activities held during bingo occasions excluding bar bingo or at a rate based on a cost per
12.1square foot not to exceed 110 percent of a comparable cost per square foot for leased space
12.2as approved by the director; and
12.3 (2) no rent may be paid for bar bingo or linked bingo except as allowed under
12.4section 349.185.
12.5 (d) Amounts paid as rent under leases are all-inclusive. No other services or
12.6expenses provided or contracted by the lessor may be paid by the organization, including,
12.7but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn
12.8services, electricity, heat, security, security monitoring, storage, other utilities or services,
12.9and, in the case of bar operations, cash shortages, unless approved by the director. Any
12.10other expenditure made by an organization that is related to a leased premises must be
12.11approved by the director. An organization may not provide any compensation or thing of
12.12value to a lessor or the lessor's employees from any fund source other than its gambling
12.13account. Rent payments may not be made to an individual.
12.14 (e) Notwithstanding paragraph (b), an organization may pay a lessor for food or
12.15beverages or meeting room rental if the charge made is comparable to similar charges
12.16made to other individuals or groups.
12.17 (f) No entity other than the licensed organization may conduct any activity within
12.18a booth operation on a leased premises.
12.19 Sec. 26. [349.185] GROSS PROFIT ALLOCATION; LINKED BINGO ON AN
12.20ELECTRONIC BINGO DEVICE.
12.21 Subdivision 1. Definition. For the purposes of this section, a "year" is determined to
12.22start on the first date of operation of a linked bingo game played on an electronic bingo
12.23device at a permitted premises.
12.24 Subd. 2. Gross profit allocation. The allocation of gross profits from the operation
12.25of linked bingo on an electronic bingo device is as follows.
12.26(a) The licensed organization shall receive:
12.27(1) a minimum of 50 percent of gross profits to be used exclusively for lawful
12.28purpose expenditures as defined under section 349.12, subdivision 25; and
12.29(2) no more than 15 percent each year for allowable expenses as defined under
12.30section 349.12, subdivision 3a.
12.31(b) A linked bingo game provider shall receive:
12.32(1) no more than 25 percent of gross profits in the first year;
12.33(2) no more than 19 percent in the second year; and
12.34(3) no more than 15 percent thereafter.
13.1(c) The lessor shall receive, when linked bingo using an electronic bingo device is
13.2played in a location where the primary business is not bingo:
13.3(1) no more than ten percent of the gross profits in the first year;
13.4(2) no more than 16 percent in the second year; and
13.5(3) no more than 20 percent thereafter.
13.6The licensed organization shall be responsible for the overall conduct of linked
13.7bingo games but the lessor shall provide staffing to operate the linked bingo games at the
13.8premises in order to receive the percentage of profit allocation and the lessor is responsible
13.9for cash shortages.
13.10(d) Where the primary business is bingo and the use of electronic bingo devices are
13.11used, the lessor is subject to the rent limitations under section 349.18, subdivision 1,
13.12paragraph (c), clause (1), and the licensed organization will receive the value identified
13.13under section 349.185, subdivision 2, paragraph (c).
13.14 Sec. 27. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read:
13.15 Subd. 1a. Linked bingo prizes. Prizes for a linked bingo game shall be limited
13.16as follows:
13.17(1)no organization may contribute more than $300 per linked bingo game to a
13.18linked bingo prize pool for linked bingo games played without electronic bingo devices,
13.19an organization may not contribute to a linked bingo game prize pool more than $300
13.20per linked bingo game per site;
13.21(2) for linked bingo games played with electronic bingo devices, an organization
13.22may not contribute more than 85 percent of the gross receipts per permitted premises to
13.23a linked bingo game prize pool;
13.24(2) (3) no organization may award more than $200 for a linked bingo game
13.25consolation prize. For purposes of this subdivision, a linked bingo game consolation
13.26prize is a prize awarded by an organization after a prize from the linked bingo prize pool
13.27has been won;and
13.28(3) (4) for a progressive linked bingo game, if no player declares a valid bingo
13.29within the for a progressive prize or prizes based on a predetermined amount of bingo
13.30numbers called and posted win determination, a portion of the prize is gross receipts may
13.31be carried over to anotheroccasion game until the accumulated progressive prize is won.
13.32The portion of the prize that is not carried over must be awarded to the first player or
13.33players who declares a valid bingo as additional numbers are called. If a valid bingo is
13.34declared within the predetermined amount of bingo numbers called, the entire prize pool
13.35for that game is awarded to the winner.The annual limit for progressive bingo game prizes
14.1contained in subdivision 2 must be reduced by the amount an organization contributes to
14.2progressive linked bingo games during the same calendar year.; and
14.3(5) for linked bingo games played on an electronic device, linked bingo prizes in
14.4excess of $599 shall be paid by the linked bingo game provider to the player within three
14.5business days. Winners of linked bingo prizes in excess of $599 will be given a receipt or
14.6claim voucher as proof of a win.
1.3providing for linked bingo and electronic pull-tabs; making clarifying,
1.4conforming, and technical changes;amending Minnesota Statutes 2010, sections
1.5297E.02, subdivisions 1, 4, 6; 349.12, subdivisions 5, 9, 12a, 25b, 25c, 25d, 29,
1.632, 32a; 349.13; 349.151, subdivisions 4b, 4c, by adding a subdivision; 349.161,
1.7subdivision 1; 349.163, subdivisions 1, 9; 349.1635, subdivision 2; 349.17,
1.8subdivisions 6, 7, 8; 349.1721, by adding a subdivision; 349.18, subdivision 1;
1.9349.211, subdivision 1a; proposing coding for new law in Minnesota Statutes,
1.10chapter 349.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. Minnesota Statutes 2010, section 297E.02, subdivision 1, is amended to read:
1.13 Subdivision 1. Imposition. A tax is imposed on all lawful gambling other than
1.14(1) pull-tab deals or games; (2) tipboard deals or games; and (3) items listed in section
1.16receipts as defined in section
1.17imposed by this subdivision is in lieu of the tax imposed by section
1.18local taxes and license fees except a fee authorized under section
1.19or a tax authorized under subdivision 5.
1.20The tax imposed under this subdivision is payable by the organization or party
1.21conducting, directly or indirectly, the gambling.
1.22 Sec. 2. Minnesota Statutes 2010, section 297E.02, subdivision 4, is amended to read:
1.23 Subd. 4. Pull-tab and tipboard tax. (a) A tax is imposed on the sale of each deal of
1.24pull-tabs and tipboards sold by a distributor. The rate of the tax is
1.25ideal gross of the pull-tab or tipboard deal. The sales tax imposed by chapter 297A on the
1.26sale of the pull-tabs and tipboards by the distributor is imposed on the retail sales price
2.1less the tax imposed by this subdivision. The retail sale of pull-tabs or tipboards by the
2.2organization is exempt from taxes imposed by chapter 297A and is exempt from all local
2.3taxes and license fees except a fee authorized under section
2.4(b) The liability for the tax imposed by this section is incurred when the pull-tabs
2.5and tipboards are delivered by the distributor to the customer or to a common or contract
2.6carrier for delivery to the customer, or when received by the customer's authorized
2.7representative at the distributor's place of business, regardless of the distributor's method
2.8of accounting or the terms of the sale.
2.9The tax imposed by this subdivision is imposed on all sales of pull-tabs and
2.10tipboards, except the following:
2.11(1) sales to the governing body of an Indian tribal organization for use on an Indian
2.12reservation;
2.13(2) sales to distributors licensed under the laws of another state or of a province of
2.14Canada, as long as all statutory and regulatory requirements are met in the other state or
2.15province;
2.16(3) sales of promotional tickets as defined in section
2.17(4) pull-tabs and tipboards sold to an organization that sells pull-tabs and tipboards
2.18under the exemption from licensing in section
2.19require an organization conducting exempt gambling to show proof of its exempt status
2.20before making a tax-exempt sale of pull-tabs or tipboards to the organization. A distributor
2.21shall identify, on all reports submitted to the commissioner, all sales of pull-tabs and
2.22tipboards that are exempt from tax under this subdivision.
2.23(c) A distributor having a liability of $10,000 or more during a fiscal year ending
2.24June 30 must remit all liabilities in the subsequent calendar year by electronic means.
2.25(d) Any customer who purchases deals of pull-tabs or tipboards from a distributor
2.26may file an annual claim for a refund or credit of taxes paid pursuant to this subdivision
2.27for unsold pull-tab and tipboard tickets. The claim must be filed with the commissioner on
2.28a form prescribed by the commissioner by March 20 of the year following the calendar
2.29year for which the refund is claimed. The refund must be filed as part of the customer's
2.30February monthly return. The refund or credit is equal to 1.7 percent of the face value
2.31of the unsold pull-tab or tipboard tickets, provided that the refund or credit will be 1.75
2.32percent of the face value of the unsold pull-tab or tipboard tickets for claims for a refund
2.33or credit of taxes filed on the February 2001 monthly return. The refund claimed will be
2.34applied as a credit against tax owing under this chapter on the February monthly return. If
2.35the refund claimed exceeds the tax owing on the February monthly return, that amount
3.1will be refunded. The amount refunded will bear interest pursuant to section
3.3 Sec. 3. Minnesota Statutes 2010, section 297E.02, subdivision 6, is amended to read:
3.4 Subd. 6. Combined receipts tax. In addition to the taxes imposed under
3.5subdivisions 1 and 4, a tax is imposed on the combined receipts of the organization. As
3.6used in this section, "combined receipts" is the sum of the organization's gross receipts
3.7from lawful gambling less gross receipts directly derived from the conduct of bingo,
3.8raffles, and paddle wheels, as defined in section
3.9The combined receipts of an organization are subject to a tax computed according to
3.10the following schedule:
3.26The tax imposed under this subdivision is payable by the organization or party
3.27conducting, directly or indirectly, the gambling on a site-by-site basis.
3.28 Sec. 4. Minnesota Statutes 2010, section 349.12, subdivision 5, is amended to read:
3.29 Subd. 5. Bingo occasion. "Bingo occasion" means a single gathering or session at
3.30which a series of one or more successive bingo games is played. There is no limit on the
3.31number of games conducted during a bingo occasion
3.32longer than eight consecutive hours, except that linked bingo games played on electronic
3.33bingo devices may be played during regular business hours of the permitted premises and
3.34all play during this period is considered a bingo occasion for reporting purposes.
3.35 Sec. 5. Minnesota Statutes 2010, section 349.12, subdivision 9, is amended to read:
4.1 Subd. 9. Deal. "Deal" means each separate package, or series of packages in
4.2paper or electronic format, consisting of one game of pull-tabs or tipboards with the
4.3same serial number.
4.4 Sec. 6. Minnesota Statutes 2010, section 349.12, subdivision 12a, is amended to read:
4.5 Subd. 12a. Electronic bingo device. "Electronic bingo device" means an electronic
4.6bingo device used by a bingo player to (1) monitor bingo paper sheets or a facsimile of
4.7a bingo paper sheet when purchased at the time and place of an organization's bingo
4.8occasion
4.9announced
4.10
4.11
4.12Electronic bingo device does not mean any device into which coin, currency, or tokens are
4.13inserted to activate play but does allow for activation by coded data entry.
4.14 Sec. 7. Minnesota Statutes 2010, section 349.12, subdivision 25b, is amended to read:
4.15 Subd. 25b. Linked bingo game provider. "Linked bingo game provider" means
4.16any person who provides the means to link bingo
4.17
4.18linked bingo prize management, and who provides the linked bingo game system.
4.19 Sec. 8. Minnesota Statutes 2010, section 349.12, subdivision 25c, is amended to read:
4.20 Subd. 25c. Linked bingo game system. "Linked bingo game system" means the
4.21equipment used by the linked bingo provider to conduct, transmit, and track a linked
4.22bingo game. The system must be approved by the board before its use in this state and it
4.23must have
4.24operation remotely.
4.25 Sec. 9. Minnesota Statutes 2010, section 349.12, subdivision 25d, is amended to read:
4.26 Subd. 25d. Linked bingo prize pool. "Linked bingo prize pool" means the total
4.27of all prize money that each participating organization has contributed to a linked bingo
4.28game prize and includes any portion of the prize pool that is carried over from one
4.29
4.30 Sec. 10. Minnesota Statutes 2010, section 349.12, subdivision 29, is amended to read:
5.1 Subd. 29. Paddle wheel. "Paddle wheel" means a wheel marked off into sections
5.2containing one or more numbers, and which, after being turned or spun manually or
5.3electronically, uses a pointer or marker to indicate winning chances.
5.4 Sec. 11. Minnesota Statutes 2010, section 349.12, subdivision 32, is amended to read:
5.5 Subd. 32. Pull-tab. "Pull-tab" means a single folded or banded paper ticket
5.6multi-ply card with perforated break-open tabs, or a facsimile of a paper pull-tab when
5.7used in conjunction with a pull-tab dispensing device, the face of which is initially covered
5.8to conceal one or more numbers or symbols, where one or more of each set of tickets,
5.9cards, or facsimiles has been designated in advance as a winner.
5.10 Sec. 12. Minnesota Statutes 2010, section 349.12, subdivision 32a, is amended to read:
5.11 Subd. 32a. Pull-tab dispensing device. "Pull-tab dispensing device" means a
5.12mechanical or electronic device that dispenses paper pull-tabs
5.13
5.14pull-tab dispensing device may have as a component an auditory or visual enhancement to
5.15promote or provide information about a game being dispensed or displayed, provided the
5.16component does not affect the outcome of a game or display the results of a game
5.17
5.18is not allowed to accept any coin, currency, or tokens, but does allow for activation by
5.19a coded data entry.
5.20 Sec. 13. Minnesota Statutes 2010, section 349.13, is amended to read:
5.21349.13 LAWFUL GAMBLING.
5.22Lawful gambling is not a lottery or gambling within the meaning of sections
5.23to
5.24board rule is not a gambling device within the meaning of sections
5.25chapter 299L. Electronic game devices authorized under this chapter may be used only
5.26in the conduct of lawful gambling permitted under this chapter and may not display or
5.27simulate any other form of gambling or entertainment.
5.28 Sec. 14. Minnesota Statutes 2010, section 349.151, subdivision 4b, is amended to read:
5.29 Subd. 4b. Pull-tab sales from dispensing devices. (a) The board may by rule
5.30authorize but not require the use of pull-tab dispensing devices.
5.31(b) Rules adopted under paragraph (a):
6.1(1) must limit the number of paper pull-tab dispensing devices on any permitted
6.2premises to three; and for deals with facsimiles of paper pull-tabs, no more than six
6.3devices in play may be located at a permitted premises with 200 seats or less, and no
6.4more than 12 devices in play may be located at a permitted premises with 201 seats or
6.5more. For premises where the primary business is bingo, the number of devices that may
6.6be in play will be determined by the board. Seating capacity is determined as specified
6.7under local fire code; and
6.8(2) must limit the use of pull-tab dispensing devices to a permitted premises which is
6.9(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages;
6.10or (ii) a premises where bingo is conducted and admission is restricted to persons 18
6.11years or older.
6.12(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices
6.13may be used in establishments licensed for the off-sale of intoxicating liquor, other than
6.14drugstores and general food stores licensed under section
6.15 Sec. 15. Minnesota Statutes 2010, section 349.151, subdivision 4c, is amended to read:
6.16 Subd. 4c. Electronic bingo. (a) The board may by rule authorize but not require the
6.17use of electronic bingo devices.
6.18(b) Rules adopted under paragraph (a):
6.19(1) must limit the number of bingo faces that can be played using an electronic
6.20bingo device to 36;
6.21(2) must require that an electronic bingo device be used with corresponding bingo
6.22paper sheets or a facsimile
6.23by the board;
6.24(3) must require that the electronic bingo device site system have
6.25capability to permit the board to remotely monitor the operation of the device and the
6.26internal accounting systems; and
6.27(4) must prohibit the price of a face played on an electronic bingo device from
6.28being less than the price of a face on a bingo paper sheet sold for the same game at the
6.29same occasion.
6.30 Sec. 16. Minnesota Statutes 2010, section 349.151, is amended by adding a subdivision
6.31to read:
6.32 Subd. 4d. Electronic game devices. Notwithstanding other rulemaking
6.33requirements under chapter 349, the adoption of rules by the board for manufacturing
7.1standards and game procedures for games played on electronic devices is exempt from
7.2chapter 14 and exempt from section 14.386.
7.3 Sec. 17. Minnesota Statutes 2010, section 349.161, subdivision 1, is amended to read:
7.4 Subdivision 1. Prohibited acts; licenses required. (a) No person may:
7.5 (1) sell, offer for sale, or furnish gambling equipment for use within the state other
7.6than for lawful gambling exempt or excluded from licensing, except to an organization
7.7licensed for lawful gambling;
7.8 (2) sell, offer for sale, or furnish gambling equipment for use within the state
7.9without having obtained a distributor license or a distributor salesperson license under
7.10this section except that an organization authorized to conduct bingo by the board may
7.11loan bingo hard cards and devices for selecting bingo numbers to another organization
7.12authorized to conduct bingo;
7.13 (3) sell, offer for sale, or furnish gambling equipment for use within the state that is
7.14not purchased or obtained from a manufacturer or distributor licensed under this chapter; or
7.15 (4) sell, offer for sale, or furnish gambling equipment for use within the state that
7.16has the same serial number as another item of gambling equipment of the same type sold
7.17or offered for sale or furnished for use in the state by that distributor.
7.18 (b) No licensed distributor salesperson may sell, offer for sale, or furnish gambling
7.19equipment for use within the state without being employed by a licensed distributor or
7.20owning a distributor license.
7.21(c) No distributor or distributor salesperson may also be licensed as a linked bingo
7.22game provider under section 349.1635.
7.23 Sec. 18. Minnesota Statutes 2010, section 349.163, subdivision 1, is amended to read:
7.24 Subdivision 1. License required. No manufacturer of gambling equipment may
7.25sell any gambling equipment to any person for use or resale within the state, unless the
7.26manufacturer has a current and valid license issued by the board under this section and has
7.27satisfied other criteria prescribed by the board by rule. A manufacturer licensed under this
7.28section may also be licensed as a linked bingo game provider under section 349.1635.
7.29A manufacturer licensed under this section may not also be directly or indirectly
7.30licensed as a distributor under section
7.31 Sec. 19. Minnesota Statutes 2010, section 349.163, subdivision 9, is amended to read:
7.32 Subd. 9. Sales required. No licensed manufacturer may refuse to sell gambling
7.33equipment to a licensed distributor unless:
8.1(1) a specific type of gambling equipment sold or leased on an exclusive basis is at
8.2issue, except that electronic bingo devices used to conduct linked bingo games or pull-tab
8.3dispensing devices may not be sold or leased on an exclusive basis;
8.4(2) the manufacturer does not sell gambling equipment to any distributor in
8.5Minnesota;
8.6(3) a Minnesota statute or rule prohibits the sale; or
8.7(4) the distributor is delinquent on any payment owed to the manufacturer.
8.8 Sec. 20. Minnesota Statutes 2010, section 349.1635, subdivision 2, is amended to read:
8.9 Subd. 2. License application. The board may issue a license to a linked bingo game
8.10provider or to a manufacturer licensed under section 349.163 who meets the qualifications
8.11of this chapter and the rules promulgated by the board. The application shall be on a form
8.12prescribed by the board. The license is valid for two years and the fee for a linked bingo
8.13game provider license is $5,000 per year.
8.14 Sec. 21. Minnesota Statutes 2010, section 349.17, subdivision 6, is amended to read:
8.15 Subd. 6. Conduct of bingo. A game of bingo begins with the first letter and number
8.16called or displayed. Each player must cover, mark, or activate the numbers when bingo
8.17numbers are randomly selected
8.18
8.19bingo paper, bingo hard card, or a facsimile of a bingo paper sheet, has completed, as
8.20described in the bingo program, a previously designated pattern or previously determined
8.21requirements of the game and declared bingo. The game is completed when a winning
8.22card, sheet, or facsimile is verified and a prize awarded pursuant to subdivision 3.
8.23 Sec. 22. Minnesota Statutes 2010, section 349.17, subdivision 7, is amended to read:
8.24 Subd. 7. Bar bingo. An organization may conduct bar bingo subject to the
8.25following restrictions:
8.26 (1) the bingo is conducted at a site the organization owns or leases and which has a
8.27license for the sale of intoxicating beverages on the premises under chapter 340A;
8.28 (2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper
8.29sheets purchased from a licensed distributor or licensed linked bingo game provider; and
8.30 (3) except as allowed in section 349.185, no rent may be paid for a bar bingo
8.31occasion.
8.32 Sec. 23. Minnesota Statutes 2010, section 349.17, subdivision 8, is amended to read:
9.1 Subd. 8. Linked bingo games. (a) A licensed organization may conduct or
9.2participate in
9.3including progressive
9.4one occasion to another until won by a player achieving a bingo within a predetermined
9.5amount of bingo numbers called.
9.6 (b)
9.7
9.8be conducted by licensed organizations who have a valid contract with the linked bingo
9.9game provider.
9.10 (c) An electronic bingo device as defined in section
9.11be used for a linked bingo game.
9.12 (d) Linked bingo games played on an electronic bingo device may be located only
9.13at a permitted premises where the organization conducts another form of gambling and
9.14the premises is:
9.15 (1) a licensed premises for the on-sale or off-sale of intoxicating liquor or 3.2 percent
9.16malt beverages, except for a general foods store or drug store permitted to sell alcoholic
9.17beverages under section 340A.405, subdivision 1; and
9.18 (2) where bingo is conducted as the primary business, the premises has a seating
9.19capacity of at least 100, and admission is restricted to persons 18 years or older.
9.20 (e) For linked bingo games played on an electronic bingo device, no more than six
9.21electronic bingo devices may be in play at a permitted premises with 200 seats or less, and
9.22no more than 12 electronic bingo devices may be in play at a permitted premises with 201
9.23seats or more. For premises where the primary business is bingo, the number of electronic
9.24bingo devices that may be in play will be determined by the board. Seating capacity is
9.25determined as specified under local fire code.
9.26 (f) Prior to a bingo occasion for linked bingo games played on an electronic bingo
9.27device, the linked bingo game provider, on behalf of the participating organizations, must
9.28provide to the board a bingo program in a format prescribed by the board.
9.29
9.30 (1) specify the manner in which a linked bingo game must be played and how the
9.31linked bingo prizes must be awarded;
9.32 (2) specify the records to be maintained by a linked bingo game provider;
9.33 (3) require the submission of periodic reports by the linked bingo game provider and
9.34specify the content of the reports;
9.35 (4) establish the qualifications required to be licensed as a linked bingo game
9.36provider; and
10.1 (5) any other matter involving the operation of a linked bingo game.
10.2 Sec. 24. Minnesota Statutes 2010, section 349.1721, is amended by adding a
10.3subdivision to read:
10.4 Subd. 3. Electronic pull-tabs. (a) Tickets and deals must be in conformance with
10.5board rules for pull-tabs.
10.6(b) Deals must contain:
10.7(1) a finite number of tickets in each electronic deal;
10.8(2) a predetermined number of winning and losing tickets;
10.9(3) serialized tracking for each deal;
10.10(4) no regeneration of a serialized deal; and
10.11(5) no spinning symbols which mimic a video slot machine.
10.12(c) All deals in play must be played on site at a permitted premises and cannot be
10.13transferred electronically or otherwise to any other location by the licensed organization.
10.14(d) Deals cannot be shared or co-mingled with any other deals or locations.
10.15(e) The electronic pull-tab dispensing device must have the capability to:
10.16(1) allow the board to electronically monitor the operation of the electronic pull-tab
10.17devices and the internal accounting systems;
10.18(2) maintain a printable, permanent record of all transactions involving the device;
10.19and
10.20(3) allow the board to deactivate a device without notice for violation of a law or
10.21rule and to implement any other controls deemed by the board necessary to ensure and
10.22maintain the integrity of games operated under this subdivision.
10.23(f) The board shall examine prototypes of pull-tab devices that display facsimiles
10.24of paper pull-tabs. The board may contract for the examination of the devices and may
10.25require working models of the devices to be transported to locations the board designates
10.26for testing, examination, and analysis. The manufacturer shall pay all costs of any testing,
10.27examination, analysis, and transportation of the model.
10.28(g) The board may adopt rules necessary or proper to ensure the integrity of games
10.29played with facsimiles of paper pull-tabs in conjunction with an electronic pull-tab
10.30dispensing device.
10.31 Sec. 25. Minnesota Statutes 2010, section 349.18, subdivision 1, is amended to read:
10.32 Subdivision 1. Lease or ownership required; rent limitations. (a) An organization
10.33may conduct lawful gambling only on premises it owns or leases. Leases must be on a
10.34form prescribed by the board. The term of the lease is concurrent with the premises permit.
11.1Leases approved by the board must specify that the board may authorize an organization
11.2to withhold rent from a lessor for a period of up to 90 days if the board determines that
11.3illegal gambling occurred on the premises or that the lessor or its employees participated
11.4in the illegal gambling or knew of the gambling and did not take prompt action to stop the
11.5gambling. The lease must authorize the continued tenancy of the organization without
11.6the payment of rent during the time period determined by the board under this paragraph.
11.7Copies of all leases must be made available to employees of the board and the Division of
11.8Alcohol and Gambling Enforcement on request.
11.9 (b) Rent paid by an organization for leased premises for the conduct of pull-tabs,
11.10tipboards, and paddle wheels is subject to the following limits:
11.11 (1) for booth operations, including booth operations where a pull-tab dispensing
11.12device is located, booth operations where a bar operation is also conducted, and booth
11.13operations where both a pull-tab dispensing device is located and a bar operation is also
11.14conducted, the maximum rent is:
11.15 (i) in any month where the organization's gross profit at those premises does not
11.16exceed $4,000, up to $400; and
11.17 (ii) in any month where the organization's gross profit at those premises exceeds
11.18$4,000, up to $400 plus not more than ten percent of the gross profit for that month in
11.19excess of $4,000;
11.20 (2) for bar operations, including bar operations where a pull-tab dispensing device
11.21is located but not including bar operations subject to clause (1), and for locations where
11.22only a pull-tab dispensing device is located:
11.23 (i) in any month where the organization's gross profit at those premises does not
11.24exceed $1,000, up to $200; and
11.25 (ii) in any month where the organization's gross profit at those premises exceeds
11.26$1,000, up to $200 plus not more than 20 percent of the gross profit for that month
11.27in excess of $1,000;
11.28 (3) a lease not governed by clauses (1) and (2) must be approved by the board
11.29before becoming effective;
11.30 (4) total rent paid to a lessor from all organizations from leases governed by clause
11.31(1) may not exceed $1,750 per month.
11.32 (c) Rent paid by an organization for leased premises for the conduct of bingo is
11.33subject to either of the following limits at the option of the parties to the lease:
11.34 (1) not more than ten percent of the monthly gross profit from all lawful gambling
11.35activities held during bingo occasions excluding bar bingo or at a rate based on a cost per
12.1square foot not to exceed 110 percent of a comparable cost per square foot for leased space
12.2as approved by the director; and
12.3 (2) no rent may be paid for bar bingo or linked bingo except as allowed under
12.4section 349.185.
12.5 (d) Amounts paid as rent under leases are all-inclusive. No other services or
12.6expenses provided or contracted by the lessor may be paid by the organization, including,
12.7but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn
12.8services, electricity, heat, security, security monitoring, storage, other utilities or services,
12.9and, in the case of bar operations, cash shortages, unless approved by the director. Any
12.10other expenditure made by an organization that is related to a leased premises must be
12.11approved by the director. An organization may not provide any compensation or thing of
12.12value to a lessor or the lessor's employees from any fund source other than its gambling
12.13account. Rent payments may not be made to an individual.
12.14 (e) Notwithstanding paragraph (b), an organization may pay a lessor for food or
12.15beverages or meeting room rental if the charge made is comparable to similar charges
12.16made to other individuals or groups.
12.17 (f) No entity other than the licensed organization may conduct any activity within
12.18a booth operation on a leased premises.
12.19 Sec. 26. [349.185] GROSS PROFIT ALLOCATION; LINKED BINGO ON AN
12.20ELECTRONIC BINGO DEVICE.
12.21 Subdivision 1. Definition. For the purposes of this section, a "year" is determined to
12.22start on the first date of operation of a linked bingo game played on an electronic bingo
12.23device at a permitted premises.
12.24 Subd. 2. Gross profit allocation. The allocation of gross profits from the operation
12.25of linked bingo on an electronic bingo device is as follows.
12.26(a) The licensed organization shall receive:
12.27(1) a minimum of 50 percent of gross profits to be used exclusively for lawful
12.28purpose expenditures as defined under section 349.12, subdivision 25; and
12.29(2) no more than 15 percent each year for allowable expenses as defined under
12.30section 349.12, subdivision 3a.
12.31(b) A linked bingo game provider shall receive:
12.32(1) no more than 25 percent of gross profits in the first year;
12.33(2) no more than 19 percent in the second year; and
12.34(3) no more than 15 percent thereafter.
13.1(c) The lessor shall receive, when linked bingo using an electronic bingo device is
13.2played in a location where the primary business is not bingo:
13.3(1) no more than ten percent of the gross profits in the first year;
13.4(2) no more than 16 percent in the second year; and
13.5(3) no more than 20 percent thereafter.
13.6The licensed organization shall be responsible for the overall conduct of linked
13.7bingo games but the lessor shall provide staffing to operate the linked bingo games at the
13.8premises in order to receive the percentage of profit allocation and the lessor is responsible
13.9for cash shortages.
13.10(d) Where the primary business is bingo and the use of electronic bingo devices are
13.11used, the lessor is subject to the rent limitations under section 349.18, subdivision 1,
13.12paragraph (c), clause (1), and the licensed organization will receive the value identified
13.13under section 349.185, subdivision 2, paragraph (c).
13.14 Sec. 27. Minnesota Statutes 2010, section 349.211, subdivision 1a, is amended to read:
13.15 Subd. 1a. Linked bingo prizes. Prizes for a linked bingo game shall be limited
13.16as follows:
13.17(1)
13.18
13.19an organization may not contribute to a linked bingo game prize pool more than $300
13.20per linked bingo game per site;
13.21(2) for linked bingo games played with electronic bingo devices, an organization
13.22may not contribute more than 85 percent of the gross receipts per permitted premises to
13.23a linked bingo game prize pool;
13.24
13.25consolation prize. For purposes of this subdivision, a linked bingo game consolation
13.26prize is a prize awarded by an organization after a prize from the linked bingo prize pool
13.27has been won;
13.28
13.29
13.30
13.31be carried over to another
13.32The portion of the prize that is not carried over must be awarded to the first player or
13.33players who declares a valid bingo as additional numbers are called. If a valid bingo is
13.34declared within the predetermined amount of bingo numbers called, the entire prize pool
13.35for that game is awarded to the winner.
14.1
14.2
14.3(5) for linked bingo games played on an electronic device, linked bingo prizes in
14.4excess of $599 shall be paid by the linked bingo game provider to the player within three
14.5business days. Winners of linked bingo prizes in excess of $599 will be given a receipt or
14.6claim voucher as proof of a win.
