349.01 [Repealed, 1976 c 261 s 15]

349.02 [Repealed, 1976 c 261 s 15]

349.03 [Repealed, 1976 c 261 s 15]

349.11 PURPOSE.
The purpose of sections 349.11 to 349.22 is to regulate lawful gambling to prevent its
commercialization, to insure integrity of operations, and to provide for the use of net profits
only for lawful purposes.
History: 1976 c 261 s 1; 1Sp1981 c 4 art 1 s 162; 1984 c 502 art 12 s 2; 1989 c 334 art 2 s 1

349.12 DEFINITIONS.
    Subdivision 1. Scope. As used in sections 349.11 to 349.23 the terms in this section have
the meanings given them.
    Subd. 2. Active member. "Active member" means a member who has paid all dues to the
organization, who is 18 years of age or older, who has equal voting rights with all other members,
who has equal opportunity to be an elected officer, who has equal right and responsibilities of
attendance at the regularly scheduled meetings of the organization, whose name and membership
origination date appear with the member's knowledge and consent on a list of members of the
organization, and who has been a member of the organization for at least six months.
    Subd. 3. Affiliate. "Affiliate" is any person or entity directly or indirectly controlling,
controlled by, or under common control or ownership with a licensee of the board or any officer
or director of a licensee of the board.
    Subd. 3a. Allowable expense. "Allowable expense" means the percentage of the total cost
incurred by the organization in the purchase of any good, service, or other item which corresponds
to the proportion of the total actual use of the good, service, or other item that is directly related
to conduct of lawful gambling. Allowable expense includes the advertising of the conduct of
lawful gambling, provided that the amount expended does not exceed five percent of the annual
gross profits of the organization or $5,000 per year per organization, whichever is less. The
board may adopt rules to regulate the content of the advertising to ensure that the content is
consistent with the public welfare.
    Subd. 3b. Bar operation. "Bar operation" means a method of selling and redeeming
gambling equipment within a leased premises which is licensed for the on-sale of alcoholic
beverages where such sales and redemptions are made by an employee of the lessor from a
common area where food and beverages are also sold.
    Subd. 3c. Bar bingo. "Bar bingo" is a bingo occasion conducted at a permitted premises in
an area where intoxicating liquor or 3.2 percent malt beverages are sold and where the licensed
organization conducts another form of lawful gambling.
    Subd. 4. Bingo. "Bingo" means a game where each player has a bingo hard card, bingo paper
sheet, or facsimile of a bingo paper sheet when used in conjunction with an electronic bingo
device, for which a consideration has been paid, and played in accordance with this chapter and
with rules of the board for the conduct of bingo. "Bingo" also includes a linked bingo game.
    Subd. 5. Bingo occasion. "Bingo occasion" means a single gathering or session at which a
series of one or more successive bingo games is played. There is no limit on the number of
games conducted during a bingo occasion but a bingo occasion must not last longer than eight
consecutive hours.
    Subd. 6. Board. "Board" is the Gambling Control Board.
    Subd. 6a. Booth operation. "Booth operation" means a method of selling and redeeming
gambling equipment by an employee of a licensed organization in a premises the organization
leases or owns where such sales and redemptions are made within a separate enclosure that is
distinct from areas where food and beverages are sold.
    Subd. 7. Capital assets. "Capital assets" means property, real or personal, except gambling
equipment, with an expected useful life of at least one year.
    Subd. 7a. Charitable contribution. "Charitable contribution" means one or more of the
lawful purposes expenditures under section 349.12, subdivision 25, paragraph (a), clauses (1) to
(7), (10), (11), (13) to (15), and (19).
    Subd. 8. Checker. "Checker" means a person who records the number of bingo hard cards
purchased and played during each game and records the prizes awarded to the recorded hard
cards, but does not collect the payment for the hard cards.
    Subd. 9. Deal. "Deal" means each separate package, or series of packages, consisting of one
game of pull-tabs or tipboards with the same serial number.
    Subd. 10. Director. "Director" is the director of the Gambling Control Board.
    Subd. 11. Distributor. "Distributor" is a person who sells gambling equipment for use within
the state to licensed organizations, or to organizations conducting excluded or exempt activities
under section 349.166.
    Subd. 11a. Distributor salesperson. "Distributor salesperson" means a person who in any
manner receives orders for gambling equipment or who solicits a licensed, exempt, or excluded
organization to purchase gambling equipment from a licensed distributor.
    Subd. 12.[Repealed, 1991 c 233 s 110]
    Subd. 12a. Electronic bingo device. "Electronic bingo device" means an electronic device
used by a bingo player to monitor bingo paper sheets or facsimile of a bingo paper sheet when
purchased at the time and place of an organization's bingo occasion and which (1) provides a
means for bingo players to input numbers announced by a bingo caller; (2) compares the numbers
entered by the player to the bingo faces previously stored in the memory of the device; and (3)
identifies a winning bingo pattern.
Electronic bingo device does not mean any device into which coin, currency, or tokens are
inserted to activate play.
    Subd. 13. Face value. "Face value" means the price per ticket printed on the ticket or the flare.
    Subd. 14.[Repealed, 2002 c 386 art 1 s 12]
    Subd. 15. 501(c)(3) organization. "501(c)(3) organization" is an organization exempt from
the payment of federal income taxes under section 501(c)(3) of the Internal Revenue Code.
    Subd. 15a. Festival organization. "Festival organization" is an organization conducting
a community festival that is exempt from the payment of federal income taxes under section
501(c)(4) of the Internal Revenue Code.
    Subd. 16. Flare. "Flare" is the posted display, with registration stamp affixed or bar code
imprinted or affixed, that sets forth the rules of a particular game of pull-tabs or tipboards and that
is associated with a specific deal of pull-tabs or grouping of tipboards.
    Subd. 17. Free play. "Free play" means a winning ticket that is labeled as a free play or
its equivalent.
    Subd. 18. Gambling equipment. "Gambling equipment" means: bingo hard cards or
paper sheets, linked bingo paper sheets, devices for selecting bingo numbers, electronic bingo
devices, pull-tabs, jar tickets, paddlewheels, paddlewheel tables, paddletickets, paddleticket cards,
tipboards, tipboard tickets, and pull-tab dispensing devices.
    Subd. 19. Gambling manager. "Gambling manager" means a person who has been
designated by the organization to supervise the lawful gambling conducted by it and who:
(1) has been an active member of the organization for at least two years at the time of the
organization's initial application for a license;
(2) has been an active member of the organization for at least the most recent six months
prior to the effective date of the organization's renewal license; or
(3) meets other qualifications as prescribed by the board by rule.
    Subd. 20. Gross profit. "Gross profit" means the gross receipts collected from lawful
gambling, less reasonable sums necessarily and actually expended for prizes.
    Subd. 21. Gross receipts. "Gross receipts" means all receipts derived from lawful gambling
activity including, but not limited to, the following items:
(1) gross sales of bingo hard cards, paper sheets, facsimiles of bingo paper sheets when used
in conjunction with an electronic bingo device, and rental of electronic bingo devices before
reduction for prizes, expenses, shortages, free plays, or any other charges or offsets;
(2) the ideal gross of pull-tab and tipboard deals or games less the value of unsold and
defective tickets and before reduction for prizes, expenses, shortages, free plays, or any other
charges or offsets;
(3) gross sales of raffle tickets and paddletickets before reduction for prizes, expenses,
shortages, free plays, or any other charges or offsets;
(4) admission, commission, cover, or other charges imposed on participants in lawful
gambling activity as a condition for or cost of participation; and
(5) interest, dividends, annuities, profit from transactions, or other income derived from the
accumulation or use of gambling proceeds.
Gross receipts does not include proceeds from rental under section 349.18, subdivision 3.
    Subd. 22. Ideal gross. "Ideal gross" means the total amount of receipts that would be
received if every individual ticket in the pull-tab or tipboard deal was sold at its face value. In the
calculation of ideal gross and prizes, a free play ticket shall be valued at face value.
    Subd. 23. Ideal net. "Ideal net" means the pull-tab or tipboard deal's ideal gross, as defined
under subdivision 22, less the total predetermined prize amounts available to be paid out. When
the prize is not entirely a monetary one, the ideal net is 50 percent of the ideal gross.
    Subd. 24. Lawful gambling. "Lawful gambling" is the operation, conduct or sale of bingo,
raffles, paddlewheels, tipboards, and pull-tabs.
    Subd. 25. Lawful purpose. (a) "Lawful purpose" means one or more of the following:
(1) any expenditure by or contribution to a 501(c)(3) or festival organization, as defined in
subdivision 15a, provided that the organization and expenditure or contribution are in conformity
with standards prescribed by the board under section 349.154, which standards must apply to both
types of organizations in the same manner and to the same extent;
(2) a contribution to or expenditure for goods and services for an individual or family
suffering from poverty, homelessness, or disability, which is used to relieve the effects of that
suffering;
(3) a contribution to a program recognized by the Minnesota Department of Human Services
for the education, prevention, or treatment of problem gambling;
(4) a contribution to or expenditure on a public or private nonprofit educational institution
registered with or accredited by this state or any other state;
(5) a contribution to an individual, public or private nonprofit educational institution
registered with or accredited by this state or any other state, or to a scholarship fund of a nonprofit
organization whose primary mission is to award scholarships, for defraying the cost of education
to individuals where the funds are awarded through an open and fair selection process;
(6) activities by an organization or a government entity which recognize military service to
the United States, the state of Minnesota, or a community, subject to rules of the board, provided
that the rules must not include mileage reimbursements in the computation of the per diem
reimbursement limit and must impose no aggregate annual limit on the amount of reasonable
and necessary expenditures made to support:
(i) members of a military marching or color guard unit for activities conducted within the
state;
(ii) members of an organization solely for services performed by the members at funeral
services;
(iii) members of military marching, color guard, or honor guard units may be reimbursed
for participating in color guard, honor guard, or marching unit events within the state or states
contiguous to Minnesota at a per participant rate of up to $35 per diem; or
(iv) active military personnel and their immediate family members in need of support
services;
(7) recreational, community, and athletic facilities and activities intended primarily for
persons under age 21, provided that such facilities and activities do not discriminate on the basis
of gender and the organization complies with section 349.154;
(8) payment of local taxes authorized under this chapter, taxes imposed by the United States
on receipts from lawful gambling, the taxes imposed by section 297E.02, subdivisions 1, 4, 5, and
6, and the tax imposed on unrelated business income by section 290.05, subdivision 3;
(9) payment of real estate taxes and assessments on permitted gambling premises owned by
the licensed organization paying the taxes, or wholly leased by a licensed veterans organization
under a national charter recognized under section 501(c)(19) of the Internal Revenue Code;
(10) a contribution to the United States, this state or any of its political subdivisions, or
any agency or instrumentality thereof other than a direct contribution to a law enforcement or
prosecutorial agency;
(11) a contribution to or expenditure by a nonprofit organization which is a church or body
of communicants gathered in common membership for mutual support and edification in piety,
worship, or religious observances;
(12) payment of the reasonable costs of an audit required in section 297E.06, subdivision
4, provided the annual audit is filed in a timely manner with the Department of Revenue and
paid prior to June 30, 2006;
(13) a contribution to or expenditure on projects or activities approved by the commissioner
of natural resources for:
(i) wildlife management projects that benefit the public at large;
(ii) grant-in-aid trail maintenance and grooming established under sections 84.83 and 84.927,
and other trails open to public use, including purchase or lease of equipment for this purpose; and
(iii) supplies and materials for safety training and educational programs coordinated by the
Department of Natural Resources, including the Enforcement Division;
(14) conducting nutritional programs, food shelves, and congregate dining programs
primarily for persons who are age 62 or older or disabled;
(15) a contribution to a community arts organization, or an expenditure to sponsor arts
programs in the community, including but not limited to visual, literary, performing, or musical
arts;
(16) an expenditure by a licensed veterans organization for payment of water, fuel for
heating, electricity, and sewer costs for a building wholly owned or wholly leased by and used as
the primary headquarters of the licensed veterans organization;
(17) expenditure by a licensed veterans organization of up to $5,000 in a calendar year in net
costs to the organization for meals and other membership events, limited to members and spouses,
held in recognition of military service. No more than $5,000 can be expended in total per calendar
year under this clause by all licensed veterans organizations sharing the same veterans post home;
(18) payment of fees authorized under this chapter imposed by the state of Minnesota to
conduct lawful gambling in Minnesota; or
(19) a contribution or expenditure to honor an individual's humanitarian service as
demonstrated through philanthropy or volunteerism to the United States, this state, or local
community.
(b) Notwithstanding paragraph (a), "lawful purpose" does not include:
(1) any expenditure made or incurred for the purpose of influencing the nomination or
election of a candidate for public office or for the purpose of promoting or defeating a ballot
question;
(2) any activity intended to influence an election or a governmental decision-making process;
(3) the erection, acquisition, improvement, expansion, repair, or maintenance of real property
or capital assets owned or leased by an organization, unless the board has first specifically
authorized the expenditures after finding that (i) the real property or capital assets will be used
exclusively for one or more of the purposes in paragraph (a); (ii) with respect to expenditures for
repair or maintenance only, that the property is or will be used extensively as a meeting place or
event location by other nonprofit organizations or community or service groups and that no rental
fee is charged for the use; (iii) with respect to expenditures, including a mortgage payment or other
debt service payment, for erection or acquisition only, that the erection or acquisition is necessary
to replace with a comparable building, a building owned by the organization and destroyed or
made uninhabitable by fire or catastrophe, provided that the expenditure may be only for that
part of the replacement cost not reimbursed by insurance; (iv) with respect to expenditures,
including a mortgage payment or other debt service payment, for erection or acquisition only,
that the erection or acquisition is necessary to replace with a comparable building a building
owned by the organization that was acquired from the organization by eminent domain or sold
by the organization to a purchaser that the organization reasonably believed would otherwise
have acquired the building by eminent domain, provided that the expenditure may be only for
that part of the replacement cost that exceeds the compensation received by the organization for
the building being replaced; or (v) with respect to an expenditure to bring an existing building
into compliance with the Americans with Disabilities Act under item (ii), an organization has the
option to apply the amount of the board-approved expenditure to the erection or acquisition of a
replacement building that is in compliance with the Americans with Disabilities Act;
(4) an expenditure by an organization which is a contribution to a parent organization,
foundation, or affiliate of the contributing organization, if the parent organization, foundation,
or affiliate has provided to the contributing organization within one year of the contribution any
money, grants, property, or other thing of value;
(5) a contribution by a licensed organization to another licensed organization unless the
board has specifically authorized the contribution. The board must authorize such a contribution
when requested to do so by the contributing organization unless it makes an affirmative finding
that the contribution will not be used by the recipient organization for one or more of the purposes
in paragraph (a); or
(6) a contribution to a statutory or home rule charter city, county, or town by a licensed
organization with the knowledge that the governmental unit intends to use the contribution for a
pension or retirement fund.
    Subd. 25a. Linked bingo game. "Linked bingo game" means a bingo game played at two or
more locations where licensed organizations are authorized to conduct bingo, where there is a
common prize pool and a common selection of numbers or symbols conducted at one location,
and where the results of the selection are transmitted to all participating locations by satellite,
telephone, or other means by a linked bingo game provider.
    Subd. 25b. Linked bingo game provider. "Linked bingo game provider" means any person
who provides the means to link bingo prizes in a linked bingo game, who provides linked bingo
paper sheets to the participating organizations, who provides linked bingo prize management, and
who provides the linked bingo game system.
    Subd. 25c. Linked bingo game system. "Linked bingo game system" means the equipment
used by the linked bingo provider to conduct, transmit, and track a linked bingo game. The
system must be approved by the board before its use in this state and it must have dial-up or other
capability to permit the board to monitor its operation remotely.
    Subd. 25d. Linked bingo prize pool. "Linked bingo prize pool" means the total of all prize
money that each participating organization has contributed to the linked bingo game prize. No
participating organization may contribute more than $300 per bingo occasion to a linked bingo
prize pool.
    Subd. 26. Manufacturer. "Manufacturer" means a person or entity who assembles from raw
materials or subparts a completed piece of gambling equipment, and who sells or furnishes the
equipment for resale or for use in the state. The term includes a person who converts, modifies,
adds to, or removes parts or a portion from an item, device, or assembly to further its promotion,
sale, or use as gambling equipment in this state. A person only adding or modifying promotional
flares to advise the public of the prizes available, the rules of play, and the consideration required
is not a manufacturer.
    Subd. 26a. Master flare. "Master flare" is the posted display, with registration stamp affixed
or bar code imprinted or affixed, that is used in conjunction with sealed groupings of 100 or
fewer sequentially numbered paddleticket cards.
    Subd. 27. Net profit. "Net profit" means gross profit less reasonable sums actually expended
for allowable expenses.
    Subd. 28. Organization. "Organization" means any fraternal, religious, veterans, or other
nonprofit organization.
    Subd. 28a. Paddleticket. "Paddleticket" means a preprinted ticket that can be used to place
wagers on the spin of a paddlewheel.
    Subd. 28b. Paddleticket card. "Paddleticket card" means a card to which detachable
paddletickets are attached.
    Subd. 28c. Paddleticket card number. "Paddleticket card number" means the unique serial
number preprinted by the manufacturer on the stub of a paddleticket card and the paddletickets
attached to the card.
    Subd. 29. Paddlewheel. "Paddlewheel" means a wheel marked off into sections containing
one or more numbers, and which, after being turned or spun, uses a pointer or marker to indicate
winning chances.
    Subd. 30. Person. "Person" is an individual, organization, firm, association, partnership,
limited liability company, corporation, trustee, or legal representative.
    Subd. 30a. Profit carryover. "Profit carryover" means cumulative net profit less cumulative
lawful purpose expenditures.
    Subd. 31. Promotional ticket. A pull-tab or tipboard ticket with the words "no purchase
necessary" and "for promotional use only" and for which no consideration is given is a
promotional ticket.
    Subd. 32. Pull-tab. "Pull-tab" means a single folded or banded ticket or a multi-ply card
with perforated break-open tabs, the face of which is initially covered to conceal one or more
numbers or symbols, where one or more of each set of tickets or cards has been designated in
advance as a winner.
    Subd. 32a. Pull-tab dispensing device. "Pull-tab dispensing device" means a mechanical
device that dispenses paper pull-tabs and has no additional function as an amusement or gambling
device.
    Subd. 33. Raffle. "Raffle" means a game in which a participant buys a ticket or other
certificate of participation in an event where the prize determination is based on a method of
random selection and all entries have an equal chance of selection. The ticket or certificate of
participation must include the location, date, and time of the selection of the winning entries.
    Subd. 34. Tipboard. "Tipboard" means a board, placard or other device containing a seal that
conceals the winning number or symbol, and that serves as the game flare for a tipboard game.
    Subd. 35. Tipboard ticket. "Tipboard ticket" is a single folded or banded ticket, or multi-ply
card, the face of which is initially covered or otherwise hidden from view to conceal a number,
symbol, or set of symbols, some of which have been designated in advance and at random as
prize winners.
    Subd. 36. Veterans post home. "Veterans post home" means a building, or portion of a
building, that is leased or owned by one or more licensed veterans organizations, and that is
considered the post home for all licensed veterans organizations at that site.
    Subd. 37. Wholly leased building. "Wholly leased building" means a building that is leased
in its entirety by a licensed organization, and no part or portion of the building is subleased
to any other entity or licensed organization.
    Subd. 38. Wholly owned building. "Wholly owned building" means a building that is
owned in its entirety by a licensed organization, and no part or portion of the building is subleased
to any other entity or licensed organization.
History: 1976 c 261 s 2; 1984 c 502 art 12 s 3; 1986 c 444; 1986 c 467 s 4-6; 1987 c 327 s
2-5; 1988 c 596 s 1; 1988 c 719 art 9 s 1-3; 1989 c 203 s 1; 1989 c 334 art 2 s 2-15,51; 1Sp1989
c 1 art 13 s 1-6; 1990 c 590 art 1 s 4-9; 1991 c 199 art 2 s 1; 1991 c 233 s 100; 1991 c 336 art 2 s
10-12; 1993 c 244 art 5 s 1; 1994 c 633 art 2 s 19; art 5 s 1-20; 1995 c 186 s 68; 1995 c 261 s
20,21; 1995 c 264 art 9 s 9; 1997 c 155 s 2,3; 1998 c 322 s 1; 2000 c 300 s 1,2; 2000 c 336 s 3;
2001 c 96 s 6; 2002 c 377 art 12 s 14; 2002 c 386 art 3 s 1; 2003 c 110 s 1-13; 1Sp2003 c 1 art 2 s
84,85; 2005 c 146 s 50; 2005 c 166 art 1 s 1-6; 2006 c 205 s 2-6; 2006 c 212 art 3 s 31

349.13 LAWFUL GAMBLING.
Lawful gambling is not a lottery or gambling within the meaning of sections 609.75 to
609.76 if it is conducted under this chapter. A pull-tab dispensing device permitted by board rule
is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter 299L.
History: 1976 c 261 s 3; 1984 c 502 art 12 s 4; 1994 c 633 art 5 s 21

349.14 [Repealed, 1990 c 590 art 1 s 55]

349.15 USE OF GROSS PROFITS.
    Subdivision 1. Expenditure restrictions. Gross profits from lawful gambling may be
expended only for lawful purposes or allowable expenses as authorized by the membership of
the conducting organization at a monthly meeting of the organization's membership. Provided
that no more than 70 percent of the gross profit less the tax imposed under section 297E.02,
subdivision 1 , from bingo, and no more than 60 percent of the gross profit from other forms
of lawful gambling, may be expended biennially during the term of the license for allowable
expenses related to lawful gambling. For licenses issued after June 30, 2006, compliance with this
subdivision will be measured on a biennial basis that is concurrent with the term of the license.
Compliance with this subdivision is a condition for the renewal of any license beginning on July
1, 2008. For licenses renewed with an effective date between July 1, 2006, and June 30, 2008, an
organization shall carry forward an amount equal to 15 percent of any positive allowable expense
carryover amount. This balance must be used to offset any future negative expense balance at
the time of license renewal.
    Subd. 1a. Disaster relief. An organization may expend net profits from lawful gambling
to relieve the effects of a disaster as defined in section 12.03, subdivision 2, without the prior
approval of its membership if:
(1) the contribution is a lawful purpose under section 349.12, subdivision 25;
(2) the contribution is authorized by the organization's chief executive officer and gambling
manager; and
(3) the contribution is approved by the membership of the organization at its next regularly
scheduled monthly meeting.
If the contribution is not approved by the membership of the organization at its next regularly
scheduled monthly meeting, the organization shall reimburse its gambling account in the amount
of the contribution.
    Subd. 2. Cash shortages. In computing gross profit to determine maximum amounts which
may be expended for allowable expenses under subdivision 1, an organization may not reduce
its gross receipts by any cash shortages. An organization may report cash shortages to the board
only as an allowable expense. An organization may not report cash shortages in any fiscal year
beginning on July 1, 2004, that in total exceed three-tenths of one percent of the organization's
gross receipts from lawful gambling at each permitted premises where the organization conducts
lawful gambling.
    Subd. 3. Refunds and credits. For purposes of this section "gross profit" does not include
any refund or credit received under section 297E.02, subdivision 4, paragraph (d).
    Subd. 4. Alternative premises payment. An organization eligible to expend gross profits
on real estate taxes and assessments under section 349.12, subdivision 25, paragraph (a), clause
(9), may in the alternative, elect on a calendar year basis to pay itself up to $1,000 per month for
the use of its premises for lawful gambling. Any payments made under this subdivision shall be
considered an allowable expense.
History: 1976 c 261 s 5; 1984 c 502 art 12 s 6; 1986 c 467 s 7; 1Sp1986 c 3 art 2 s 16; 1987 c
327 s 7; 1989 c 203 s 2; 1989 c 334 art 2 s 16; 1Sp1989 c 1 art 13 s 7; 1990 c 590 art 1 s 10; 1991
c 336 art 2 s 13; 1994 c 633 art 2 s 19; art 5 s 22; 1996 c 471 art 13 s 16; 1997 c 155 s 4; 2000 c
300 s 3; 2001 c 96 s 7,8; 2002 c 386 art 2 s 1; 2004 c 172 s 1; 2005 c 166 art 1 s 7; 2006 c 205 s 7

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, distributor salespersons, manufacturers,
linked bingo game providers, 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 linked bingo game providers
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 report annually to the governor and legislature a financial summary for each licensed
organization identifying the gross receipts, prizes paid, allowable expenses, lawful purpose
expenditures including charitable contributions and all taxes and fees as per section 349.12,
subdivision 25 , paragraph (a), clauses (8) and (18), and the percentage of annual gross profit
used for lawful purposes;
(10) to impose civil penalties of not more than $500 per violation on organizations,
distributors, distributor salespersons, manufacturers, linked bingo game providers, and gambling
managers for failure to comply with any provision of this chapter or any rule or order of the board;
(11) to issue premises permits to organizations licensed to conduct lawful gambling;
(12) to delegate to the director the authority to issue or deny license and premises permit
applications and renewals under criteria established by the board;
(13) to delegate to the director the authority to approve or deny fund loss requests,
contribution of gambling funds to another licensed organization, and property expenditure
requests under criteria established by the board;
(14) to suspend or revoke licenses and premises permits of organizations, distributors,
distributor salespersons, manufacturers, linked bingo game providers, or gambling managers
as provided in this chapter;
(15) to approve or deny requests from licensees for:
(i) waivers from fee requirements as provided in section 349.16, subdivision 6; and
(ii) variances from Gambling Control Board rules under section 14.055; and
(16) to register employees of organizations licensed to conduct lawful gambling;
(17) to require fingerprints from persons determined by board rule to be subject to
fingerprinting;
(18) 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;
(19) to order organizations, distributors, distributor salespersons, manufacturers, linked
bingo game providers, and gambling managers to take corrective actions; and
(20) 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, distributor salesperson, manufacturer, linked bingo game
provider, 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, distributor salesperson, gambling manager, linked bingo game
provider, 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 penalties received by the board must be deposited in the general fund.
(d) All fees imposed by the board under sections 349.16 to 349.167 must be deposited in the
state treasury and credited to a lawful gambling regulation account in the special revenue fund.
Receipts in this account are available for the operations of the board up to the amount authorized
in biennial appropriations from the legislature.
    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
premises where bingo is conducted and admission is restricted to 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.
    Subd. 4c. Electronic bingo. (a) The board may by rule authorize but not require the use
of electronic bingo devices.
(b) Rules adopted under paragraph (a):
(1) must limit the number of bingo faces that can be played using an electronic bingo device
to 36;
(2) must require that an electronic bingo device be used with corresponding bingo paper
sheets or a facsimile, printed at the point of sale, as approved by the board;
(3) must require that the electronic bingo device site system have dial-up capability to permit
the board to remotely monitor the operation of the device and the internal accounting systems; and
(4) must prohibit the price of a face played on an electronic bingo device from being less
than the price of a face on a bingo paper sheet sold at the same occasion.
    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.
History: 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; 2003 c
110 s 14,15; 1Sp2003 c 1 art 2 s 86,87; 1Sp2003 c 23 s 7; 2005 c 166 art 1 s 8-10; 2006 c 205 s 8

349.152 DIRECTOR.
    Subdivision 1. Appointed. The governor shall appoint, with the advice and consent of the
senate, a director from a list of one or more persons submitted by the board. The director serves in
the unclassified service at the pleasure of the governor.
    Subd. 2. Duties of director. The director has the following duties:
(1) to carry out gambling policy established by the board;
(2) to employ and supervise personnel of the board;
(3) to advise and make recommendations to the board on rules, policy, and legislative
initiatives;
(4) to approve or deny operational requests from licensees as delegated by the board;
(5) to issue licenses and premises permits as authorized by the board;
(6) to issue cease and desist orders;
(7) to make recommendations to the board on license issuance, denial, censure, suspension
and revocation, civil penalties, and corrective action the board imposes;
(8) to ensure that board rules, policy, and decisions are adequately and accurately conveyed
to the board's licensees;
(9) to conduct investigations, inspections, compliance reviews, and audits under this chapter;
and
(10) to issue subpoenas to compel the attendance of witnesses and the production of
documents, books, records, and other evidence relating to an investigation, compliance review,
or audit the director is authorized to conduct.
    Subd. 3. Cease and desist orders. (a) Whenever it appears to the director that any person
has engaged or is about to engage in any act or practice constituting a violation of this chapter
or any board rule or order the director may issue and cause to be served upon the person an
order requiring the person to cease and desist from violations of this chapter or board rule or
order. The order must give reasonable notice of the rights of the person to request a hearing and
must state the reason for the entry of the order. Unless otherwise agreed between the parties, a
hearing shall be held not later than seven days after the request for the hearing is received by the
board after which and within 20 days after the receipt of the administrative law judge's report
and subsequent exceptions and argument the board shall issue an order vacating the cease and
desist order, modifying it, or making it permanent as the facts require. If no hearing is requested
within 30 days of the service of the order, the order becomes final and remains in effect until
modified or vacated by the board or director. All hearings shall be conducted in accordance
with the provisions of chapter 14. If the person to whom a cease and desist order is issued fails
to appear at the hearing after being duly notified, the person shall be deemed in default, and the
proceeding may be determined against the person upon consideration of the cease and desist
order, the allegations of which may be deemed to be true.
(b) Whenever it appears to the board that any person has engaged or is about to engage in
any act or practice that violates this chapter or any board rule or order, the board may bring an
action in the district court in the appropriate county to enjoin the acts or practices and to enforce
compliance with this chapter or any board rule or order and may refer the matter to the attorney
general. Upon a proper showing, a permanent or temporary injunction, restraining order, or writ
of mandamus shall be granted. The court may not require the board to post a bond.
    Subd. 4. Executive assistant. The director may appoint an executive assistant to the director,
who is in the unclassified service.
History: 1989 c 334 art 2 s 18; 1990 c 590 art 1 s 13-15; 1994 c 633 art 5 s 32,33; 2005 c
166 art 1 s 11

349.153 CONFLICT OF INTEREST.
(a) A person may not serve on the board, be the director, or be an employee of the board who
has an interest in any corporation, association, limited liability company, or partnership that is
licensed by the board as a distributor, manufacturer, or linked bingo game provider.
(b) A member of the board, the director, or an employee of the board may not accept
employment with, receive compensation directly or indirectly from, or enter into a contractual
relationship with an organization that conducts lawful gambling, a distributor, a linked bingo
game provider, or a manufacturer while employed with or a member of the board or within one
year after terminating employment with or leaving the board.
(c) A distributor, manufacturer, linked bingo game provider, or organization licensed to
conduct lawful gambling may not hire a former employee, director, or member of the Gambling
Control Board for one year after the employee, director, or member has terminated employment
with or left the Gambling Control Board.
(d) A member of the board, the director, or an employee of the board may not purchase any
chance in a lawful gambling game unless it is part of an investigation.
History: 1989 c 334 art 2 s 19; 1991 c 233 s 109; 1994 c 633 art 5 s 34; 2003 c 110 s 16;
2005 c 166 art 1 s 12; 2006 c 205 s 9; 2006 c 212 art 3 s 32

349.154 EXPENDITURE OF NET PROFITS FROM LAWFUL GAMBLING.
    Subdivision 1. Standards for certain organizations. The board shall by rule prescribe
standards that must be met by any licensed organization that is a 501(c)(3) organization. The
standards must provide:
(1) operating standards for the organization, including a maximum percentage or percentages
of the organization's total expenditures that may be expended for the organization's administration
and operation; and
(2) standards for any expenditure by the organization of net profits from lawful gambling,
including a requirement that the expenditure be related to the primary purpose of the organization.
    Subd. 2. Net profit reports. (a) Each licensed organization must report monthly to the board
on a form prescribed by the board each expenditure and contribution of net profits from lawful
gambling. The reports must provide for each expenditure or contribution:
(1) the name, address, and telephone number of the recipient of the expenditure or
contribution;
(2) the date the contribution was approved by the organization;
(3) the date, amount, and check number or electronic transfer confirmation number of the
expenditure or contribution;
(4) a brief description of how the expenditure or contribution meets one or more of the
purposes in section 349.12, subdivision 25; and
(5) in the case of expenditures authorized under section 349.12, subdivision 25, paragraph
(a), clause (7), whether the expenditure is for a facility or activity that primarily benefits male or
female participants.
(b) The board shall make available to the commissioners of revenue and public safety copies
of reports received under this subdivision and requested by them.
(c) The report required under this subdivision must provide for a separate accounting for
all expenditures made from the reporting organization's tax refund or credit authorized under
section 297E.02, subdivision 4, paragraph (d).
    Subd. 3.[Repealed, 1991 c 336 art 2 s 53]
    Subd. 3a. Expenditures for recreational, community, and athletic programs. An
organization that makes a greater percentage of its lawful purpose expenditures under section
349.12, subdivision 25, paragraph (a), clause (7), on facilities or activities for one gender
rather than another may not deny a reasonable request for funding of a facility or activity
for the underrepresented gender if the request is for funding for a facility or activity that is
a lawful purpose under that clause. An applicant for funding for a facility or activity for an
underrepresented gender who believes that an application for funding was denied in violation of
this subdivision may file a complaint with the board. The board shall prescribe a form for the
complaint and shall furnish a copy of the form to any requester. The board shall investigate
each complaint filed and, if the board finds that the organization against which the complaint
was filed has violated this subdivision, shall issue an order directing the organization to take
such corrective action as the board deems necessary to bring the organization into compliance
with this subdivision.
History: 1989 c 334 art 2 s 51; 1990 c 590 art 1 s 16; 1991 c 336 art 2 s 16; 1994 c 633 art
5 s 35; 1996 c 471 art 13 s 17; 1997 c 231 art 7 s 33; 1998 c 322 s 2

349.155 LICENSES; LICENSE ACTIONS.
    Subdivision 1. Forms. All applications for a license must be on a form prescribed by the
board. In the case of applications by an organization the board may require the organization to
submit a copy of its articles of incorporation and other documents the board deems necessary.
    Subd. 2. Investigation fee. In addition to initial and renewal application fees, the board may
charge license and renewal applicants a fee to cover the costs of background investigations
conducted under this chapter.
    Subd. 3. Mandatory disqualifications. (a) In the case of licenses for manufacturers,
distributors, distributor salespersons, linked bingo game providers, and gambling managers,
the board may not issue or renew a license under this chapter, and shall revoke a license under
this chapter, if the applicant or licensee, or a director, officer, partner, governor, or person in a
supervisory or management position of the applicant or licensee:
(1) has ever been convicted of a felony or a crime involving gambling;
(2) has ever been convicted of (i) assault, (ii) a criminal violation involving the use of
a firearm, or (iii) making terroristic threats;
(3) is or has ever been connected with or engaged in an illegal business;
(4) owes $500 or more in delinquent taxes as defined in section 270C.72;
(5) had a sales and use tax permit revoked by the commissioner of revenue within the past
two years; or
(6) after demand, has not filed tax returns required by the commissioner of revenue. The
board may deny or refuse to renew a license under this chapter, and may revoke a license under
this chapter, if any of the conditions in this paragraph are applicable to an affiliate or direct or
indirect holder of more than a five percent financial interest in the applicant or licensee.
(b) In the case of licenses for organizations, the board may not issue or renew a license under
this chapter, and shall revoke a license under this chapter, if the organization, or an officer or
member of the governing body of the organization:
(1) has been convicted of a felony or gross misdemeanor involving theft or fraud;
(2) has ever been convicted of a crime involving gambling; or
(3) has had a license issued by the board or director permanently revoked for violation
of law or board rule.
    Subd. 4. License revocation, suspension, denial; censure. The board may by order (i)
deny, suspend, revoke, or refuse to renew a license or premises permit, or (ii) censure a licensee
or applicant, if it finds that the order is in the public interest and that the applicant or licensee,
or a director, officer, partner, governor, person in a supervisory or management position of the
applicant or licensee, an employee eligible to make sales on behalf of the applicant or licensee, or
direct or indirect holder of more than a five percent financial interest in the applicant or licensee:
(1) has violated or failed to comply with any provision of this chapter or chapter 297E or
299L, or any rule adopted or order issued thereunder;
(2) has filed an application for a license that is incomplete in any material respect, or contains
a statement that, in light of the circumstances under which it was made, is false, misleading,
fraudulent, or a misrepresentation;
(3) has made a false statement in a document or report required to be submitted to the board
or the commissioner of revenue, or has made a false statement to the board, the compliance
review group, or the director;
(4) has been convicted of a crime in another jurisdiction that would be a felony if committed
in Minnesota;
(5) is permanently or temporarily enjoined by any gambling regulatory agency from
engaging in or continuing any conduct or practice involving any aspect of gambling;
(6) has had a gambling-related license revoked or suspended, or has paid or been required to
pay a monetary penalty of $2,500 or more, by a gambling regulator in another state or jurisdiction;
(7) has been the subject of any of the following actions by the director of alcohol and
gambling enforcement or commissioner of public safety: (i) had a license under chapter 299L
denied, suspended, or revoked, (ii) been censured, reprimanded, has paid or been required to pay
a monetary penalty or fine, or (iii) has been the subject of any other discipline by the director
or commissioner; or
(8) has engaged in conduct that is contrary to the public health, welfare, or safety, or to
the integrity of gambling; or
(9) based on past activities or criminal record poses a threat to the public interest or to the
effective regulation and control of gambling, or creates or enhances the dangers of unsuitable,
unfair, or illegal practices, methods, and activities in the conduct of gambling or the carrying on
of the business and financial arrangements incidental to the conduct of gambling.
    Subd. 4a. Illegal gambling. (a) The board may not deny, suspend, revoke, or refuse to renew
an organization's premises permit because illegal gambling occurred at the site for which the
premises permit was issued, unless the board determines that: (1) the organization knowingly
participated in the illegal gambling; or (2) the organization or any of its agents knew of the
illegal gambling and the organization did not notify the lessor of the premises, in writing and
with specificity, that illegal gambling was being conducted on the premises and requesting that
the lessor take appropriate action. For purposes of this paragraph, "agent" means any person,
compensated or otherwise, who participates in the conduct of the organization's lawful gambling.
(b) The board may not deny, suspend, revoke, or refuse to renew an organization's license
because illegal gambling occurred at a site for which a premises permit was issued to the
organization unless the board determines that the organization's chief executive officer, gambling
manager, or one or more of its assistant gambling managers participated in or authorized the
illegal gambling.
    Subd. 5. Contested case. When the board, or director if the director is authorized to act on
behalf of the board, determines that a license should be revoked, suspended or a licensee be
censured under subdivision 3 or 4, or a civil penalty be imposed or a person be required to take
corrective action, the board or director shall issue an order initiating a contested case hearing.
Hearings under this subdivision must be conducted in accordance with chapter 14.
    Subd. 6. Notice of denial. When the board, or director if authorized to act on behalf of the
board, determines that a license or premises permit application or renewal should be denied under
subdivision 3 or 4, the board or director shall promptly give a written notice to the licensee or
applicant stating ground for the action and giving reasonable notice of the rights of the licensee
or applicant to request a hearing. A hearing must be held not later than 30 days after the board
receives the request for the hearing, unless the licensee or applicant and the board agree on a later
date. If no hearing is requested within 30 days of the service of the notice, the denial becomes
final. Hearings under this subdivision must be conducted in accordance with chapter 14. After the
hearing the board may enter an order making such disposition as the facts require. If the applicant
fails to appear at the hearing after having been notified of it under this subdivision, the applicant is
considered in default and the proceeding may be determined against the person on consideration
of the written notice of denial, the allegations of which may be considered to be true. All fees
accompanying the license or renewal application are considered earned and are not refundable.
    Subd. 7. Lapsed licenses. If a license lapses, or is surrendered, withdrawn, terminated,
or otherwise becomes ineffective, the board may (1) institute a proceeding under this section
within two years after the last date on which the license was effective, (2) enter a revocation or
suspension order as of the date on which the license was effective, (3) impose a civil penalty
as provided under section 349.151, subdivision 4, or (4) order corrective action as provided
in section 349.151, subdivision 7.
    Subd. 8. Actions in another state. A licensee under this chapter must notify the board
within 30 days of the action whenever any of the actions listed in subdivision 4, clause (6), have
been taken against the licensee in another state or jurisdiction.
History: 1994 c 633 art 5 s 36; 1997 c 129 art 2 s 15; 1997 c 155 s 5; 2001 c 96 s 9; 2003 c
110 s 17; 1Sp2003 c 1 art 2 s 88; 2005 c 151 art 2 s 17; 2005 c 166 art 1 s 13

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 and has identified an annual goal for
charitable contributions, expressed as a percentage of gross profits.
(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.
(h) The organization has not exceeded the expenditure restrictions imposed under section
349.15, subdivision 1, or if the organization has exceeded the expenditure restrictions under
section 349.15, subdivision 1, the organization has reimbursed any excess expenses from a source
of nongambling funds. Reimbursement of excess expenses is a condition for license renewal. The
board may by rule impose sanctions or penalties on organizations that exceed the expenditure
restrictions under section 349.15, subdivision 1.
    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 fees. The board shall impose an annual fee of $350 for an organization's
license application. Organizations that expect to receive less than $100,000 in gross annual
receipts may request from the board a waiver of organization license fees.
    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 applying
for or renewing a premises permit. 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.
    Subd. 11. Agreement to pay taxes. An organization which is recognized by federal law,
regulation, or other ruling as a quasi-governmental organization that would otherwise be exempt
from one or more taxes under chapter 297E must agree to pay all taxes under chapter 297E on
lawful gambling conducted by the organization as a condition of receiving or renewing a license
or premises permit.
History: 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; 1Sp2003 c 1 art 2 s 89; 1Sp2003 c 21 art 9 s 14; 2005 c
166 art 1 s 14,15; 2006 c 205 s 10

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

349.162 EQUIPMENT REGISTERED.
    Subdivision 1. Registration required. A distributor may not sell, transfer, furnish, or
otherwise provide to a person, and no person may purchase, borrow, accept, or acquire from a
distributor gambling equipment for use within the state unless the equipment has been registered
with the board or the Department of Revenue in a manner prescribed by the board or the
Department of Revenue. Gambling equipment kept in violation of this subdivision is contraband
under section 349.2125.
    Subd. 2. Records required. A distributor must maintain a record of all gambling equipment
which it sells to organizations as required by section 297E.05, subdivision 2, and provide copies
of the record to the board upon demand. Employees of the board and the Division of Alcohol and
Gambling Enforcement may inspect the business premises, books, records, and other documents
of a distributor at any reasonable time without notice and without a search warrant.
The board may require that a distributor submit the monthly report and invoices required in
this subdivision via magnetic media or electronic data transfer.
    Subd. 3.[Repealed, 2005 c 166 art 1 s 38]
    Subd. 4. Prohibition. (a) No person other than a licensed distributor may possess unaffixed
registration stamps issued by the board for the purpose of registering gambling equipment.
(b) Unless otherwise provided in this chapter, no person may possess gambling equipment
that has not been registered.
(c) No distributor may:
(1) sell a bingo hard card or paper sheet that does not bear an individual number; or
(2) sell a package of bingo paper sheets that does not contain bingo paper sheets in numerical
order.
    Subd. 5. Sales from facilities. (a) All gambling equipment purchased or possessed by a
licensed distributor for resale to any person for use in Minnesota must, prior to the equipment's
resale, be unloaded into a storage facility located in Minnesota which the distributor owns or
leases; and which has been registered, in advance and in writing, with the Division of Alcohol
and Gambling Enforcement as a storage facility of the distributor. All unregistered gambling
equipment and all unaffixed registration stamps owned by, or in the possession of, a licensed
distributor in the state of Minnesota shall be stored at a storage facility which has been registered
with the Division of Alcohol and Gambling Enforcement. No gambling equipment may be moved
from the facility unless the gambling equipment has been first registered with the board or the
Department of Revenue.
(b) Notwithstanding section 349.163, subdivisions 5, 6, and 8, a licensed manufacturer may
ship into Minnesota approved or unapproved gambling equipment if the licensed manufacturer
ships the gambling equipment to a Minnesota storage facility that is: (1) owned or leased by the
licensed manufacturer; and (2) registered, in advance and in writing, with the Division of Alcohol
and Gambling Enforcement as a manufacturer's storage facility. No gambling equipment may be
shipped into Minnesota to the manufacturer's registered storage facility unless the shipment of
the gambling equipment is reported to the Department of Revenue in a manner prescribed by the
department. No gambling equipment may be moved from the storage facility unless the gambling
equipment is sold to a licensed distributor and is otherwise in conformity with this chapter, is
shipped to an out-of-state site and the shipment is reported to the Department of Revenue in a
manner prescribed by the department, or is otherwise sold and shipped as permitted by board rule.
(c) All storage facilities owned, leased, used, or operated by a licensed distributor or
manufacturer may be entered upon and inspected by the employees of the Division of Alcohol and
Gambling Enforcement, the Division of Alcohol and Gambling Enforcement director's authorized
representatives, employees of the Gambling Control Board or its authorized representatives,
employees of the Department of Revenue, or authorized representatives of the director of the
Division of Special Taxes of the Department of Revenue during reasonable and regular business
hours. Obstruction of, or failure to permit, entry and inspection is cause for revocation or
suspension of a manufacturer's or distributor's licenses and permits issued under this chapter.
(d) Unregistered gambling equipment found at any location in Minnesota other than the
manufacturing plant of a licensed manufacturer or a registered storage facility are contraband
under section 349.2125. This paragraph does not apply:
(1) to unregistered gambling equipment being transported in interstate commerce between
locations outside this state, if the interstate shipment is verified by a bill of lading or other valid
shipping document; and
(2) to gambling equipment registered with the Department of Revenue for distribution
to the tribal casinos.
    Subd. 6. Removal of equipment from inventory. Authorized employees of the board, the
Division of Alcohol and Gambling Enforcement of the Department of Public Safety, and the
commissioner of revenue may remove gambling equipment from the inventories of distributors
and organizations and test that equipment to determine its compliance with all applicable laws
and rules. A distributor or organization may return to the manufacturer thereof any gambling
equipment which is determined to be in violation of law or rule. The cost to an organization of
gambling equipment removed from inventory under this paragraph and found to be in compliance
with all applicable law and rules is an allowable expense under section 349.15.
History: 1984 c 502 art 12 s 10; 1986 c 467 s 14; 1987 c 327 s 13,14; 1989 c 334 art 2 s 23;
1990 c 590 art 1 s 19; 1991 c 233 s 109; 1994 c 633 art 5 s 44-47; 1995 c 261 s 22; 1997 c 129 art
2 s 15; 2002 c 386 art 1 s 1; 1Sp2003 c 1 art 2 s 93; 2005 c 166 art 1 s 17-19; 2006 c 205 s 11,12

349.163 LICENSING OF MANUFACTURERS.
    Subdivision 1. License required. No manufacturer of gambling equipment may sell any
gambling equipment to any person for use or resale within the state, unless the manufacturer has a
current and valid license issued by the board under this section and has satisfied other criteria
prescribed by the board by rule.
A manufacturer licensed under this section may not also be directly or indirectly licensed as
a distributor under section 349.161.
    Subd. 1a.[Repealed, 1994 c 633 art 5 s 99]
    Subd. 1b. Applications; information. An applicant for a manufacturer's license must list
on the license application the names and addresses of all subsidiaries, affiliates, and branches in
which the applicant has any form of ownership or control, in whole or in part, without regard to
whether the subsidiary, affiliate, or branch does business in Minnesota.
    Subd. 2. License; fee. The annual fee for a manufacturer's license is $9,000.
    Subd. 2a.[Repealed, 1994 c 633 art 5 s 99]
    Subd. 3. Prohibited sales. (a) A manufacturer may not:
(1) sell gambling equipment for use or resale within the state to any person not licensed as
a distributor, except that gambling equipment used exclusively in a linked bingo game may be
sold to a licensed linked bingo provider; or
(2) sell gambling equipment to a distributor in this state that has the same serial number as
another item of gambling equipment of the same type that is sold by that manufacturer for use
or resale in this state.
(b) A manufacturer, affiliate of a manufacturer, or person acting as a representative or agent
of a manufacturer may not provide a lessor of gambling premises or an appointed official any
compensation, gift, gratuity, premium, contribution, or other thing of value.
(c) A manufacturer may not sell or otherwise provide a pull-tab or tipboard deal with the
symbol required by subdivision 5, paragraph (d), imprinted on the flare to any person other than a
licensed distributor unless the manufacturer first renders the symbol permanently invisible.
    Subd. 4. Inspection of manufacturers. Employees of the board and the Division of Alcohol
and Gambling Enforcement may inspect the books, records, inventory, and business premises of
a licensed manufacturer without notice during the normal business hours of the manufacturer.
The board may charge a manufacturer for the actual cost of conducting scheduled or unscheduled
inspections of the manufacturer's facilities, where the amount charged to the manufacturer for
such inspections in any year does not exceed $7,500. The board shall deposit in a separate account
in the state treasury all money received as reimbursement for the costs of inspections. Money in
the account is appropriated to the board to pay the costs of the inspections.
    Subd. 5. Pull-tab and tipboard flares. (a) A manufacturer may not ship or cause to be
shipped into this state or sell for use or resale in this state any deal of pull-tabs or tipboards that
does not have its own individual flare as required for that deal by this subdivision and rule of
the board. A person other than a manufacturer may not manufacture, alter, modify, or otherwise
change a flare for a deal of pull-tabs or tipboards except as allowed by this chapter or board rules.
(b) The flare of each pull-tab and tipboard game must have affixed to or imprinted at the
bottom a bar code that provides all information required by the commissioner of revenue under
section 297E.04, subdivision 2.
The serial number included in the bar code must be the same as the serial number of the
tickets included in the deal. A manufacturer who manufactures a deal of pull-tabs must affix to
the outside of the box containing that game the same bar code that is affixed to or imprinted at
the bottom of a flare for that deal.
(c) No person may alter the bar code that appears on the outside of a box containing a deal of
pull-tabs and tipboards. Possession of a box containing a deal of pull-tabs and tipboards that has a
bar code different from the bar code of the deal inside the box is prima facie evidence that the
possessor has altered the bar code on the box.
(d) The flare of each deal of pull-tabs and tipboards sold by a manufacturer for use or resale
in Minnesota must have imprinted on it a symbol that is at least one inch high and one inch wide
consisting of an outline of the geographic boundaries of Minnesota with the letters "MN" inside
the outline. The flare must be placed inside the wrapping of the deal which the flare describes.
(e) Each pull-tab and tipboard flare must bear the following statement printed in letters
large enough to be clearly legible:
"Pull-tab (or tipboard) purchasers -- This pull-tab (or tipboard) game is not legal in Minnesota
unless:
-- an outline of Minnesota with letters "MN" inside it is imprinted on this sheet, and
-- the serial number imprinted on the bar code at the bottom of this sheet is the same as the
serial number on the pull-tab (or tipboard) ticket you have purchased."
(f) The flare of each pull-tab and tipboard game must have the serial number of the game
imprinted on the bar code at the bottom of the flare in numerals at least one-half inch high.
    Subd. 6. Samples of gambling equipment. The board shall require each licensed
manufacturer to submit to the board one or more samples of each item of gambling equipment the
manufacturer manufactures for use or resale in this state. The board shall inspect and test all the
equipment it deems necessary to determine the equipment's compliance with law and board rules.
Samples required under this subdivision must be approved by the board before the equipment
being sampled is shipped into or sold for use or resale in this state. The board shall impose a fee
of $25 for each item of gambling equipment that the manufacturer submits for approval or for
which the manufacturer requests approval. The board shall impose a fee of $100 for each sample
of gambling equipment that it tests. The board may require samples of gambling equipment to
be tested by an independent testing laboratory prior to submission to the board for approval. All
costs of testing by an independent testing laboratory must be borne by the manufacturer. An
independent testing laboratory used by a manufacturer to test samples of gambling equipment
must be approved by the board before the equipment is submitted to the laboratory for testing.
The board may request the assistance of the commissioner of public safety and the director
of the State Lottery in performing the tests.
    Subd. 6a.[Repealed, 2002 c 386 art 1 s 12]
    Subd. 7. Recycled paper. The board may, after January 1, 1991, by rule require that all
pull-tabs sold in Minnesota be manufactured using recycled paper.
    Subd. 8. Paddleticket card master flares. Each sealed grouping of 100 or fewer paddleticket
cards must have its own individual master flare. The manufacturer must affix to or imprint at the
bottom of the master flare a bar code that provides all information required by the commissioner
of revenue under section 297E.04, subdivision 3.
    Subd. 9. Sales required. No licensed manufacturer may refuse to sell gambling equipment
to a licensed distributor unless:
(1) a specific type of gambling equipment sold on an exclusive basis is at issue;
(2) the manufacturer does not sell gambling equipment to any distributor in Minnesota;
(3) a Minnesota statute or rule prohibits the sale; or
(4) the distributor is delinquent on any payment owed to the manufacturer.
History: 1986 c 467 s 15; 1989 c 334 art 2 s 24; 1Sp1989 c 1 art 13 s 10; 1990 c 590 art 1 s
20; 1991 c 233 s 109; 1991 c 336 art 2 s 18; 1992 c 513 art 4 s 37; 1994 c 633 art 5 s 48-52;
1995 c 264 art 17 s 9; 1997 c 129 art 2 s 15; 1997 c 155 s 7; 1997 c 202 art 2 s 45; 1999 c 250 art
1 s 101; 2000 c 300 s 4; 2000 c 499 s 2; 2002 c 379 art 1 s 75; 2002 c 386 art 1 s 2-4; art 2 s 4;
2003 c 110 s 19; 1Sp2003 c 1 art 2 s 94,95; 2004 c 172 s 2; 2005 c 166 art 1 s 20

349.1635 LINKED BINGO GAME PROVIDER LICENSE.
    Subdivision 1. License required. No person may do any of the following without having
first obtained a license from the board:
(1) provide the means to link prizes in a linked bingo game;
(2) provide linked bingo game prize management;
(3) provide the linked bingo system; or
(4) provide linked bingo paper sheets to an organization.
    Subd. 2. License application. The board may issue a license to a linked bingo game
provider who meets the qualifications of this chapter and the rules promulgated by the board. The
application shall be on a form prescribed by the board. The license is valid for two years and the
fee for a linked bingo game provider license is $5,000 per year.
    Subd. 3. Attachments to application. An applicant for a linked bingo game provider license
must attach to its application:
(1) evidence of a bond in the principal amount of $100,000 payable to the state of Minnesota
conditioned on the payment of all linked bingo prizes and any other money due and payable
under this chapter;
(2) detailed plans and specifications for the operation of the linked bingo game and the
linked bingo system; and
(3) any other information required by the board by rule.
    Subd. 4. Prohibition. (a) Except for services associated exclusively with a linked bingo
game, a linked bingo game provider may not participate or assist in the conduct of lawful
gambling by an organization. No linked bingo game provider or employee, representative, agent,
affiliate, or other employee of a linked bingo game provider may:
(1) hold any financial or managerial interest in a premises leased for the conduct of bingo;
(2) also be licensed as a distributor or hold any financial or managerial interest in a distributor;
(3) sell or lease linked bingo game equipment to any person not licensed as an organization;
(4) purchase gambling equipment to be used exclusively in a linked bingo game from any
person not licensed as a manufacturer under section 349.163;
(5) provide a lessor of gambling premises or an appointed official any compensation, gift,
gratuity, premium, or contribution; and
(6) 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.
(b) Employees of the board and the Division of Alcohol and Gambling Enforcement may
inspect the books, records, inventory, and business premises of a licensed linked bingo game
provider without notice during the normal business hours of the linked bingo game provider. The
board may charge a linked bingo game provider for the actual cost of conducting scheduled or
unscheduled inspections of the licensee's facilities.
History: 2003 c 110 s 20; 2005 c 166 art 1 s 21; 2006 c 205 s 13,14

    Subdivision 1.[Repealed, 2005 c 166 art 1 s 38]
    Subd. 2.[Repealed, 2005 c 166 art 1 s 38]
    Subd. 3.[Repealed, 1994 c 633 art 5 s 99]
    Subd. 4.[Repealed, 2005 c 166 art 1 s 38]
    Subd. 5.[Repealed, 1994 c 633 art 5 s 99]
    Subd. 6.[Repealed, 2005 c 166 art 1 s 38]
    Subd. 7.MS 1988 [Renumbered in part subd 6]
    Subd. 7.MS 2004 [Repealed, 2005 c 166 art 1 s 38]
    Subd. 8.MS 1988 [Renumbered subd 7]
    Subd. 8.MS 1992 [Repealed, 1994 c 633 art 5 s 99]
    Subd. 9.[Renumbered subd 8]
    Subd. 10.[Repealed, 2005 c 166 art 1 s 38]

349.1641 LICENSES; SUMMARY SUSPENSION.
The board may (1) summarily suspend the license of an organization that is more than three
months late in filing a tax return or in paying a tax required under chapter 297E and may keep
the suspension in effect until all required returns are filed and required taxes are paid; and (2)
summarily suspend for not more than 90 days any license issued by the board or director for what
the board determines are actions detrimental to the integrity of lawful gambling in Minnesota.
The board must notify the licensee at least 14 days before suspending the license under this
section. If a license is summarily suspended under this section, a contested case hearing on the
merits must be held within 20 days of the issuance of the order of suspension, unless the parties
agree to a later hearing date. The administrative law judge's report must be issued within 20 days
after the close of the hearing record. In all cases involving summary suspension, the board must
issue its final decision within 30 days after receipt of the report of the administrative law judge
and subsequent exceptions and argument under section 14.61. When an organization's license is
suspended under this section, the board shall within three days notify all municipalities in which
the organization's gambling premises are located and all licensed distributors in the state.
History: 1990 c 590 art 1 s 22; 1994 c 633 art 5 s 56

349.165 PREMISES PERMITS.
    Subdivision 1. Premises permit required; application. A licensed organization may not
conduct lawful gambling at any site unless it has first obtained from the board a premises permit
for the site. The board shall prescribe a form for permit applications, and each application
for a permit must be submitted on a separate form. The premises permit issued by the board
runs concurrently with the license of the organization unless the premises permit is suspended,
revoked, or voluntarily terminated by the organization. The board may by rule limit the number of
premises permits that may be issued to an organization.
    Subd. 2. Contents of application. An application for a premises permit must contain:
(1) the name and address of the applying organization;
(2) a description of the site for which the permit is sought, including its address and, where
applicable, its placement within another premises or establishment;
(3) if the site is leased, the name and address of the lessor and information about the lease the
board requires, including all rents and other charges for the use of the site; and
(4) other information the board deems necessary to carry out its purposes.
An organization holding a premises permit must notify the board in writing within ten days
whenever any material change is made in the above information.
    Subd. 3. Fees. (a) The board may issue premises permits to organizations licensed under
section 349.16, subdivision 6. The annual fee for each premises permit is $150.
(b) In addition to the annual fee for a premises permit, an organization must pay a monthly
regulatory fee of 0.1 percent of the organization's gross receipts from lawful gambling conducted
at that site. The fee must be reported and paid on a monthly basis in a format as determined
by the commissioner of revenue, and remitted to the commissioner of revenue along with the
organization's monthly tax return for that premises. All premises permit fees received by the
commissioner of revenue under this subdivision must be deposited in the lawful gambling
regulation account in the special revenue fund according to section 349.151. Failure to pay the
monthly premises permit fees in a timely manner may result in disciplinary action by the board.
    Subd. 4. Identification of premises. No organization may seek or accept assistance from a
manufacturer or distributor, or a representative, agent, affiliate, or employee of a manufacturer or
distributor, in identifying potential locations for gambling conducted by the organization.
History: 1990 c 590 art 1 s 23; 1991 c 336 art 2 s 19,20; 1Sp2001 c 10 art 2 s 75,76;
2002 c 386 art 1 s 5; 1Sp2003 c 1 art 2 s 97

349.166 EXCLUSIONS; EXEMPTIONS.
    Subdivision 1. Exclusions. (a) Bingo, with the exception of linked bingo games, may be
conducted without a license and without complying with sections 349.168, subdivisions 1 and 2;
349.17, subdivisions 1, 4, and 5; 349.18, subdivision 1; and 349.19, if it is conducted:
(1) by an organization in connection with a county fair, the state fair, or a civic celebration
and is not conducted for more than 12 consecutive days and is limited to no more than four
separate applications for activities applied for and approved in a calendar year; or
(2) by an organization that conducts bingo on four or fewer days in a calendar year.
An organization that holds a license to conduct lawful gambling under this chapter may not
conduct bingo under this subdivision.
(b) Bingo may be conducted within a nursing home or a senior citizen housing project or by
a senior citizen organization if the prizes for a single bingo game do not exceed $10, total prizes
awarded at a single bingo occasion do not exceed $200, no more than two bingo occasions are
held by the organization or at the facility each week, only members of the organization or residents
of the nursing home or housing project are allowed to play in a bingo game, no compensation is
paid for any persons who conduct the bingo, and a manager is appointed to supervise the bingo.
Bingo conducted under this paragraph is exempt from sections 349.11 to 349.23, and the board
may not require an organization that conducts bingo under this paragraph, or the manager who
supervises the bingo, to register or file a report with the board. The gross receipts from bingo
conducted under the limitations of this subdivision are exempt from taxation under chapter 297A.
(c) Raffles may be conducted by an organization without registering with the board if the
value of all raffle prizes awarded by the organization in a calendar year does not exceed $1,500.
(d) Except as provided in paragraph (b), the organization must maintain all required records
of excluded gambling activity for 3-1/2 years.
    Subd. 2. Exemptions. (a) Lawful gambling, with the exception of linked bingo games, may
be conducted by an organization without a license and without complying with sections 349.168,
subdivisions 1 and 2 ; 349.17, subdivisions 4 and 5; 349.18, subdivision 1; and 349.19 if:
(1) the organization conducts lawful gambling on five or fewer days in a calendar year;
(2) the organization does not award more than $50,000 in prizes for lawful gambling in a
calendar year;
(3) the organization pays a fee of $50 to the board, notifies the board in writing not less than
30 days before each lawful gambling occasion of the date and location of the occasion, or 60 days
for an occasion held in the case of a city of the first class, the types of lawful gambling to be
conducted, the prizes to be awarded, and receives an exemption identification number;
(4) the organization notifies the local government unit 30 days before the lawful gambling
occasion, or 60 days for an occasion held in a city of the first class;
(5) the organization purchases all gambling equipment and supplies from a licensed
distributor; and
(6) the organization reports to the board, on a single-page form prescribed by the board,
within 30 days of each gambling occasion, the gross receipts, prizes, expenses, expenditures of
net profits from the occasion, and the identification of the licensed distributor from whom all
gambling equipment was purchased.
(b) If the organization fails to file a timely report as required by paragraph (a), clause (3) or
(6), the board shall not issue any authorization, license, or permit to the organization to conduct
lawful gambling on an exempt, excluded, or licensed basis until the report has been filed and the
organization may be subject to penalty as determined by the board. The board may refuse to issue
any authorization, license, or permit if a report or application is determined to be incomplete or
knowingly contains false or inaccurate information.
(c) Merchandise prizes must be valued at their fair market value.
(d) Organizations that qualify to conduct exempt raffles under paragraph (a), are exempt
from section 349.173, paragraph (b), clause (2), if the raffle tickets are sold only in combination
with an organization's membership or a ticket for an organization's membership dinner and are not
included with any other raffle conducted under the exempt permit.
(e) Unused pull-tab and tipboard deals must be returned to the distributor within seven
working days after the end of the lawful gambling occasion. The distributor must accept and pay a
refund for all returns of unopened and undamaged deals returned under this paragraph.
(f) An organization that is exempt from taxation on purchases of pull-tabs and tipboards
under section 297E.02, subdivision 4, paragraph (b), clause (4), must return to the distributor any
tipboard or pull-tab deal no part of which is used at the lawful gambling occasion for which it
was purchased by the organization.
(g) The organization must maintain all required records of exempt gambling activity for
3-1/2 years.
    Subd. 3. Raffles; certain organizations. Sections 349.168, subdivision 4; and 349.211,
subdivision 3 , and the membership requirements of section 349.16, subdivision 2, paragraph (c),
do not apply to raffles conducted by an organization that directly or under contract to the state or a
political subdivision delivers health or social services and that is a 501(c)(3) organization if the
prizes awarded in the raffles are real or personal property donated by an individual, firm, or other
organization. The person who accounts for the gross receipts, expenses, and profits of the raffles
may be the same person who accounts for other funds of the organization.
    Subd. 4.[Repealed, 1994 c 633 art 2 s 21]
History: 1989 c 334 art 2 s 51; 1990 c 590 art 1 s 24; 1991 c 199 art 2 s 1; 1994 c 633 art 2
s 19; art 5 s 57-59; 1996 c 467 s 4,5; 1999 c 128 s 1; 2003 c 110 s 21,22; 1Sp2003 c 1 art 2 s
98,99; 2005 c 166 art 1 s 22,23; 2006 c 205 s 15,16

349.167 GAMBLING MANAGERS.
    Subdivision 1. Gambling manager required. (a) All lawful gambling conducted by a
licensed organization must be under the supervision of a gambling manager. A gambling manager
designated by an organization to supervise lawful gambling is responsible for the gambling gross
receipts of the organization and for its conduct in compliance with all laws and rules. A person
designated as a gambling manager shall maintain a dishonesty bond in the sum of $10,000 in
favor of the organization conditioned on the faithful performance of the manager's duties. The
terms of the bond must provide that notice be given to the board in writing not less than 30
days before its cancellation.
(b) A person may not act as a gambling manager for more than one organization.
(c) An organization may not conduct lawful gambling without having a gambling manager.
(d) An organization may not have more than one gambling manager at any time.
    Subd. 2. Gambling managers; licenses. A person may not serve as a gambling manager
for an organization unless the person possesses a valid gambling manager's license issued by the
board. In addition to the disqualifications in section 349.155, subdivision 3, the board may not
issue a gambling manager's license to a person applying for the license who:
(1) has not complied with subdivision 4, clause (1);
(2) within the five years before the date of the license application, has committed a violation
of law or board rule that resulted in the revocation of a license issued by the board;
(3) has ever been convicted of a criminal violation involving fraud, theft, tax evasion,
misrepresentation, or gambling; or
(4) has engaged in conduct the board determines is contrary to the public health, welfare,
or safety or the integrity of lawful gambling.
A gambling manager's license runs concurrent with the organization's license unless the
gambling manager's license is suspended or revoked. The annual fee for a gambling manager's
license is $100.
    Subd. 3.[Repealed, 1994 c 633 art 5 s 99]
    Subd. 4. Training of gambling managers. The board shall by rule require all persons
licensed as gambling managers to receive periodic training in laws and rules governing lawful
gambling. The rules must contain the following requirements:
(1) each gambling manager must receive training before being issued a new license, except
that in the case of the death, disability, or termination of a gambling manager, a replacement
gambling manager must receive the training within 90 days of being issued a license;
(2) each gambling manager applying for a renewal of a license must have received continuing
education training, as required by board rule, each year of the two-year license period, or pass a
gambling manager examination as required in subdivision 7; and
(3) the training required by this subdivision may be provided by a person authorized by the
board to provide the training. Before authorizing a person to provide training, the board must
determine that:
(i) the provider and all of the provider's personnel conducting the training are qualified to
do so;
(ii) the curriculum to be used fully and accurately covers all elements of lawful gambling law
and rules that the board determines are necessary for a gambling manager to know and understand;
(iii) the fee to be charged for participants in the training sessions is fair and reasonable; and
(iv) the training provider has an adequate system for documenting completion of training.
The board or the director may provide the training required by this subdivision using
employees of the board.
    Subd. 5.[Repealed, 1994 c 633 art 5 s 99]
    Subd. 6. Recruitment of gambling managers. No organization may seek or accept
assistance from a manufacturer, distributor, or linked bingo game provider, or a representative,
agent, affiliate, or employee of a manufacturer, distributor, or linked bingo game provider, in
identifying or recruiting candidates to become a gambling manager for the organization.
    Subd. 7. Gambling manager examination. Each applicant for a new gambling manager's
license, and each renewing applicant that has failed to receive training as required in subdivision
4, must pass an examination prepared and administered by the board that tests the applicant's
knowledge of the responsibilities of gambling managers, and of gambling procedures, laws,
and rules before being issued the license. In the case of the death, disability, or termination of
a gambling manager, a replacement gambling manager must pass the examination within 90
days of being issued a gambling manager's license. The board shall revoke the replacement
gambling manager's license if the replacement gambling manager fails to pass the examination as
required in this subdivision.
History: 1990 c 590 art 1 s 25; 1991 c 233 s 109; 1991 c 336 art 2 s 21-23; 1994 c 633 art
5 s 60-63; 2002 c 386 art 1 s 6; 2003 c 110 s 23-25; 1Sp2003 c 23 s 9; 2004 c 172 s 3,4; 2005
c 166 art 1 s 24; 2006 c 205 s 17

349.168 GAMBLING EMPLOYEES.
    Subdivision 1. Registration of employees. A person may not receive compensation for
participating in the conduct of lawful gambling as an employee of a licensed organization unless
the person has first registered with the board on a form the board prescribes. The form must
require each registrant to provide the person's name, address, and date of birth, and the name,
address, and license number of the employing organization.
    Subd. 2. Identification of employees. Each person receiving compensation for the conduct
of lawful gambling must publicly display the person's name at all times while conducting the
lawful gambling.
    Subd. 3.[Repealed, 1996 c 467 s 9]
    Subd. 4. Amounts paid. The amounts of compensation that may be paid under this section
may be provided for in a schedule of compensation adopted by the board by rule. In adopting
a schedule, the board must consider the nature of the participation and the types of lawful
gambling participated in.
    Subd. 5. Compensation records. An organization paying compensation to persons who
participate in the conduct of lawful gambling must maintain a compensation record. The record
must itemize each payment made to each recipient of compensation and must include the amount
and the full name, address, and membership status of each recipient.
    Subd. 6. Compensation paid by check or electronic transfer. Compensation paid by
an organization in connection with lawful gambling must either be: (1) in the form of a check
drawn on the organization's gambling account, as specified in section 349.19, and paid directly to
the person being compensated; (2) transferred electronically from the organization's gambling
account, as specified in section 349.19, subdivision 3, directly to the employee's bank account; (3)
transferred electronically from the organization's gambling account to the account of a payroll
processing firm from which payment in the form of a check is paid directly to the person being
compensated; or (4) transferred electronically to and from the account of a payroll processing firm
for payment to the employee's account and for the payment of local, state, and federal withholding
taxes, provided that the payroll processing firm is (i) currently registered with and meets the
criteria of the Department of Revenue as a third-party bulk filer under section 290.92, subdivision
30 , (ii) is able to provide proof of a third-party audit and an annual report and statement of
financial condition, (iii) is able to provide evidence of a fidelity bond, and (iv) can provide proof
of having been in business as a third-party bulk filer for the most recent three years.
    Subd. 7. Penalty. (a) An organization that makes payment of compensation, or causes
compensation to be made, that violates subdivision 4 must be assessed a civil penalty not to
exceed $1,000 for each violation of subdivision 4. A second violation within 12 months of
notification by the board to the organization of the first violation must result in suspension of the
organization's gambling license for a period of three months, in addition to any civil penalty
assessed. A third violation within 12 months of the board's notification to the organization of the
second violation must result in revocation of the organization's gambling license in addition to
any civil penalty assessed.
(b) Upon each violation, the director shall notify the organization in writing of its violation
and of the penalties under this subdivision for future violations. Notification is effective upon
mailing.
(c) For purposes of this subdivision, a violation consists of a payroll period or compensation
date that includes payments made in violation of subdivision 4.
    Subd. 8. Percentage of gross profit paid. (a) A licensed organization may pay a percentage
of the gross profit from raffle ticket sales to a nonprofit organization that sells raffle tickets for
the licensed organization.
(b) A licensed organization may compensate an employee of the organization for the sale
of gambling equipment at a bar operation if the frequency of the activity is one day or less per
week and the games are limited to 32 chances or less per game. For purposes of this paragraph,
an employee must not be a lessor, employee of the lessor, or an immediate family member of
the lessor.
    Subd. 9.[Repealed, 2003 c 110 s 44]
    Subd. 10. Employment of certain persons. An organization that leases a premises may
not pay compensation to the lessor, a member of the lessor's immediate family, or the lessor's
employees, other than as a seller of pull-tabs and tipboards within a booth operation on the
premises. A member of the lessor's immediate family may be compensated by an organization for
the conduct of gambling at other sites not owned by the lessor.
History: 1990 c 590 art 1 s 26; 1994 c 633 art 5 s 64-66; 1998 c 322 s 3; 2001 c 96 s 10;
2002 c 386 art 1 s 7,8; 2003 c 110 s 26-29; 2005 c 166 art 1 s 25; 2006 c 205 s 18

349.169 FILING OF PRICES.
    Subdivision 1. Filing required. When required by the board, manufacturers and distributors
must file with the director the prices at which the manufacturer or distributor will sell all gambling
equipment currently offered for sale by that manufacturer or distributor. The filing must be in a
format the director prescribes.
    Subd. 2. Copies. The director shall provide copies of price filings to any person requesting
them and may charge a reasonable fee for the copies. Any person may examine price filings in the
board office at no cost, and the director shall make the filings available for that purpose.
    Subd. 3. Sales at filed prices. When required to report under subdivision 1, no manufacturer
may sell to a distributor, and no distributor may sell to an organization, any gambling equipment
for any price other than a price the manufacturer or distributor has filed with the director under
subdivision 1, including volume discounts, and exclusive of transportation costs.
History: 1990 c 590 art 1 s 27; 1991 c 233 s 109; 1994 c 633 art 5 s 67; 2003 c 110 s 30,31

349.17 CONDUCT OF BINGO.
    Subdivision 1.[Repealed, 2005 c 166 art 1 s 38]
    Subd. 2. Bingo. During any bingo occasion conducted by an organization, the organization is
directly responsible for the:
(1) staffing of the bingo occasion;
(2) conducting of lawful gambling during the bingo occasion;
(3) acquiring, storage, inventory control, and reporting of all gambling equipment used
by the organization;
(4) receipt, accounting, and all expenditures of gross receipts from lawful gambling; and
(5) preparation of the bingo packets.
    Subd. 2a.[Repealed, 2002 c 386 art 1 s 12]
    Subd. 3. Winners. Each bingo winner must be determined and every prize shall be awarded
and delivered the same day on which the bingo occasion is conducted, except that prizes won
in a linked bingo game must be delivered within three business days of the day on which the
occasion was conducted.
    Subd. 4. Checkers. One or more checkers must be engaged for each bingo occasion when
bingo is conducted using bingo hard cards. The checker or checkers must record, on a form the
board provides, the number of hard cards played in each game and the prizes awarded to recorded
hard cards. The form must provide for the inclusion of the face number of each winning hard
card and must include a checker's certification that the figures recorded are correct to the best of
the checker's knowledge.
    Subd. 5. Bingo cards and sheets. (a) The board shall by rule require that all licensed
organizations: (1) conduct bingo only using a bingo paper sheet or facsimile of a bingo face that
bears an individual number recorded by the distributor or linked bingo game provider; and (2) use
each bingo paper sheet for no more than one bingo occasion. In lieu of the requirements of clause
(2), a licensed organization may electronically record the sale of each bingo hard card or paper
sheet at each bingo occasion using an electronic recording system approved by the board.
(b) The requirements of paragraph (a) shall only apply to a licensed organization that
received gross receipts from bingo in excess of $150,000 in the organization's last fiscal year.
    Subd. 6. Conduct of bingo. (a) Each bingo hard card and paper sheets must have five
horizontal rows of spaces with each row except one having five numbers. The center row must
have four numbers and the center space marked "free." Each column must have one of the letters
B-I-N-G-O in order at the top. Bingo paper sheets may also have numbers that are not preprinted
but are filled in by players.
(b) A game of bingo begins with the first letter and number called. Each player must cover
or mark the numbers when bingo numbers are randomly selected, announced, and displayed to
the players, either manually or with a flashboard and monitor. The game is won when a player
has covered or marked a previously designated arrangement of numbers on the card or sheet and
declared bingo. The game is completed when a winning card or sheet is verified and a prize
awarded, except that prizes won in linked bingo games may be awarded pursuant to subdivision 3.
    Subd. 7. Bar bingo. An organization may conduct bar bingo subject to the following
restrictions:
(1) the bingo is conducted at a site the organization owns or leases and which has a license
for the sale of intoxicating beverages on the premises under chapter 340A;
(2) the bingo is conducted using only bingo paper sheets purchased from a licensed
distributor; and
(3) no rent may be paid for a bar bingo occasion.
    Subd. 8. Linked bingo games. (a) A licensed organization may conduct or participate in a
linked bingo game in association with one or more other licensed organizations.
(b) Each participating licensed organization shall contribute to each prize awarded in a
linked bingo game in an amount not to exceed $300 per occasion.
(c) The board may adopt rules to:
(1) specify the manner in which a linked bingo game must be played and how the linked
bingo prizes must be awarded;
(2) specify the records to be maintained by a linked bingo game provider;
(3) require the submission of periodic reports by the linked bingo game provider and specify
the content of the reports;
(4) establish the qualifications required to be licensed as a linked bingo game provider; and
(5) any other matter involving the operation of a linked bingo game.
History: 1976 c 261 s 7; 1979 c 166 s 1; 1984 c 502 art 12 s 11; 1986 c 467 s 16; 1987 c
327 s 15,16; 1988 c 596 s 3,4; 1989 c 334 art 2 s 26; 1990 c 590 art 1 s 28; 1991 c 336 art 2 s 24;
1994 c 633 art 5 s 68-71; 1995 c 186 s 69; 1995 c 261 s 23; 2001 c 96 s 11; 2003 c 110 s 32-35;
2005 c 166 art 1 s 26,27; 2006 c 205 s 19-21

349.171 [Repealed, 1989 c 334 art 2 s 52]

349.1711 CONDUCT OF TIPBOARDS.
    Subdivision 1. Sale of tickets. Tipboard games must be played using only tipboard tickets
that are either (1) attached to a placard and arranged in columns or rows, or (2) separate from the
placard and contained in a receptacle while the game is in play. The placard serves as the game
flare. The placard must contain a seal that conceals the winning number or symbol. When a
tipboard ticket is purchased and opened from a game containing more than 32 tickets, each player
having a tipboard ticket with one or more predesignated numbers or symbols must sign the
placard at the line indicated by the number or symbol on the tipboard ticket.
    Subd. 2. Determination of winners. When the predesignated numbers or symbols have all
been purchased, or all of the tipboard tickets for that game have been sold, the seal must be
removed to reveal a number or symbol that determines which of the predesignated numbers or
symbols is the winning number or symbol. A tipboard may also contain consolation winners that
need not be determined by the use of the seal.
    Subd. 3. Prizes. Cash or merchandise prizes may be awarded in a tipboard game. All prizes
available in each game must be stated on the game flare.
    Subd. 4.[Repealed, 2004 c 172 s 12]
    Subd. 5. Tipboard rules. The board shall adopt rules for tipboard games with multiple seals.
The board shall also adopt rules for cumulative or carryover tipboard prizes.
History: 1994 c 633 art 5 s 72; 1999 c 206 s 11; 2004 c 172 s 5; 2005 c 166 art 1 s 28

349.172 PULL-TABS; INFORMATION REQUIRED TO BE POSTED.
    Subdivision 1. Board may require certain posting. The board may issue an order requiring
an organization selling pull-tabs to post major pull-tab prizes and the names of major prize
winners if the board has reasonable grounds to believe that the organization, or a person receiving
compensation from the organization for participating in the sale of pull-tabs, has been or is
providing information to a player or players that provides an unfair advantage related to the
potential winnings from pull-tabs. The board must notify the organization at least 14 days before
the order becomes effective. The notice to the organization must describe the organization's
right to a hearing under subdivision 3.
    Subd. 2. Posting; requirements. The information required to be posted under subdivision 1
must be posted prominently at the point of sale of the pull-tabs. An easily legible pull-tab flare
that lists prizes in the deal for that flare, and on which prizes are marked off as they are awarded,
satisfies the requirements of this section that major prizes be posted, provided that a separate flare
is posted for each deal of pull-tabs. An organization must post or mark off each major prize and
post the name of the prize winner immediately on awarding the prize.
    Subd. 3. Appeal. An organization to which the board issues an order under subdivision 1
may request a contested case hearing on the order. The hearing must be held within 20 days of the
effective date of the order, and the report by the administrative law judge must be issued within
20 days after the close of the hearing record. The board must issue its final decision within 30
days after receipt of the report of the administrative law judge and subsequent exceptions and
arguments under section 14.61.
    Subd. 4. Major prizes. For purposes of this section, a "major prize" in a deal of pull-tabs is a
prize of at least 50 times the face value of any pull-tab in the deal.
    Subd. 5. Compulsive gambling hotline number. An organization conducting lawful
gambling must post at each point of sale a sign containing the toll-free telephone number
established by the commissioner of human services in connection with the compulsive gambling
program established under section 245.98. The sign must be kept in easily legible form and repair
by the owner, lessee, or person having control thereof, and must either:
(1) be approved by the commissioner; or
(2) have lettering at least three-quarters of an inch in height, of block letter design.
    Subd. 6. Voluntary posting. Nothing in this section limits the right of an organization
voluntarily to post the names of winners of lawful gambling prizes.
History: 1990 c 590 art 1 s 29; 1991 c 336 art 2 s 25

349.1721 CONDUCT OF PULL-TABS.
    Subdivision 1. Cumulative or carryover games. The board shall by rule permit pull-tab
games with multiple seals. The board shall also adopt rules for pull-tab games with cumulative
or carryover prizes.
    Subd. 2. Event games. The board shall by rule permit pull-tab games in which certain
winners are determined by the random selection of one or more bingo numbers or by another
method approved by the board.
History: 2006 c 205 s 22

349.173 CONDUCT OF RAFFLES.
(a) Raffle tickets or certificates of participation at a minimum must list the three most
expensive prizes to be awarded. If additional prizes will be awarded, a complete list of additional
prizes must be publicly posted at the event and copies of the complete prize list made available
upon request. Notwithstanding section 349.12, subdivision 33, raffles conducted under the
exemptions in section 349.166 may use tickets that contain only the sequential number of the
raffle ticket and no other information if the organization makes a list of prizes and a statement of
other relevant information required by rule available to persons purchasing tickets and if tickets
are only sold at the event and on the date when the tickets are drawn.
(b) Raffles must be conducted in a manner that ensures:
(1) all entries in the raffle have an equal chance of selection;
(2) entry in the raffle is not conditioned upon any other purchase, except that a certificate of
participation may be a button with a nominal value of less than $5;
(3) the method of selection is conducted in a public forum;
(4) the method of selection cannot be manipulated or based on the outcome of an event not
under the control of the organization;
(5) physical presence at the raffle is not a requirement to win; and
(6) all sold and unsold tickets or certificates of participation are accounted for.
(c) Methods of selecting winning entries from a raffle other than prescribed in rule may be
used with the prior written approval of the board.
History: 1999 c 206 s 12; 1999 c 249 s 5; 2005 c 166 art 1 s 29; 2006 c 205 s 23

349.174 [Repealed, 2002 c 386 art 1 s 12]

349.18 PREMISES USED FOR GAMBLING.
    Subdivision 1. Lease or ownership required; rent limitations. (a) An organization may
conduct lawful gambling only on premises it owns or leases. Leases must be on a form prescribed
by the board. The term of the lease may not begin before the effective date of the premises permit
and must expire on the same day that the premises permit expires. Leases approved by the board
must specify that the board may authorize an organization to withhold rent from a lessor for a
period of up to 90 days if the board determines that illegal gambling occurred on the premises and
that the lessor or its employees participated in the illegal gambling or knew of the gambling and
did not take prompt action to stop the gambling. The lease must authorize the continued tenancy
of the organization without the payment of rent during the time period determined by the board
under this paragraph. Copies of all leases must be made available to employees of the board and
the Division of Alcohol and Gambling Enforcement on request. The board may prescribe by rule
limits on the amount of rent which an organization may pay to a lessor for premises leased for
bingo. Any rule adopted by the board limiting the amount of rent to be paid may only be effective
for leases entered into, or renewed, after the effective date of the rule.
(b) Rent paid by an organization for leased premises for the conduct of pull-tabs, tipboards,
and paddlewheels is subject to the following limits:
(1) for booth operations, including booth operations where a pull-tab dispensing device is
located, booth operations where a bar operation is also conducted, and booth operations where
both a pull-tab dispensing device is located and a bar operation is also conducted, the maximum
rent is:
(i) in any month where the organization's gross profit at those premises does not exceed
$4,000, up to $400; and
(ii) in any month where the organization's gross profit at those premises exceeds $4,000, up
to $400 plus not more than ten percent of the gross profit for that month in excess of $4,000;
(2) for bar operations, including bar operations where a pull-tab dispensing device is located
but not including bar operations subject to clause (1), and for locations where only a pull-tab
dispensing device is located:
(i) in any month where the organization's gross profit at those premises does not exceed
$1,000, up to $200; and
(ii) in any month where the organization's gross profit at those premises exceeds $1,000, up
to $200 plus not more than 20 percent of the gross profit for that month in excess of $1,000;
(3) a lease not governed by clauses (1) and (2) must be approved by the board before
becoming effective;
(4) total rent paid to a lessor from all organizations from leases governed by clause (1)
may not exceed $1,750 per month. Total rent paid to a lessor from all organizations from leases
governed by clause (2) may not exceed $2,500 per month.
(c) Rent paid by an organization for leased premises for the conduct of bingo is subject to
either of the following limits at the option of the parties to the lease:
(1) not more than ten percent of the monthly gross profit from all lawful gambling activities
held during bingo occasions excluding bar bingo or at a rate based on a cost per square foot
not to exceed 110 percent of a comparable cost per square foot for leased space as approved
by the director; and
(2) no rent may be paid for bar bingo.
(d) Amounts paid as rent under leases are all-inclusive. No other services or expenses
provided or contracted by the lessor may be paid by the organization, including, but not limited
to, trash removal, janitorial and cleaning services, snow removal, lawn services, electricity, heat,
security, security monitoring, storage, other utilities or services, and, in the case of bar operations,
cash shortages, unless approved by the director. Any other expenditure made by an organization
that is related to a leased premises must be approved by the director. An organization may not
provide any compensation or thing of value to a lessor or the lessor's employees from any fund
source other than its gambling account. Rent payments may not be made to an individual.
(e) Notwithstanding paragraph (b), an organization may pay a lessor for food or beverages
or meeting room rental if the charge made is comparable to similar charges made to other
individuals or groups.
(f) No entity other than the licensed organization may conduct any activity within a booth
operation on a leased premises.
(g) Employees of a lessor not involved in the conduct of lawful gambling on the premises or
nongambling employees of an organization conducting lawful gambling on the premises may
participate in lawful gambling on the premises provided if pull-tabs or tipboards are sold, the
organization posts the major prizes awarded.
(h) A gambling employee may purchase pull-tabs or tipboards at the site of the employee's
place of employment provided:
(1) the organization posts the major prizes for pull-tab or tipboard games; and
(2) the employee is not involved in the sale of pull-tabs or tipboards at that site.
(i) At a leased site where an organization uses a paddlewheel consisting of 30 numbers or
less or a tipboard consisting of 30 tickets or less, tickets may be sold throughout the permitted
premises, but winning tickets must be redeemed, the paddlewheel must be located, and the
tipboard seal must be opened within the leased premises.
    Subd. 1a. Storage of gambling equipment. (a) Gambling equipment owned by or in the
possession of an organization must be kept at a permitted premises owned or leased by the
organization, or at other storage sites within the state that the organization has notified the
board are being used as gambling equipment storage sites. At each storage site or permitted
premises, the organization must have the invoices or true and correct copies of the invoices for the
purchase of all gambling equipment at the site or premises. Gambling equipment owned by an
organization may not be kept at a distributor's office, warehouse, storage unit, or other place of
the distributor's business.
(b) Gambling equipment, other than devices for selecting bingo numbers, owned by an
organization must be secured and kept separate from gambling equipment owned by other
persons, organizations, distributors, or manufacturers.
(c) Paddlewheels must be covered or disabled when not in use by the organization in the
conduct of lawful gambling.
(d) Gambling equipment kept in violation of this subdivision is contraband under section
349.2125.
(e) An organization may transport gambling equipment it owns or possesses between
approved gambling equipment storage sites and to and from licensed distributors, if the invoices
or true and correct copies of the invoices for the organization's acquisition of the gambling
equipment accompany the gambling equipment at all times and are available for inspection.
    Subd. 2. Exceptions. (a) An organization may conduct raffles on a premise it does not
own or lease.
(b) An organization may, with the permission of the board, conduct bingo on premises it
does not own or lease for up to 12 consecutive days in a calendar year, in connection with a
county fair, the state fair, or a civic celebration.
(c) A licensed organization may, after compliance with section 349.213, conduct lawful
gambling on premises other than the organization's permitted premises for four days per calendar
year and one event up to 12 consecutive days in a calendar year in connection with a county
fair, the state fair, a church festival, or a civic celebration. A lease for that time period for the
exempted premises must accompany the request to the board.
    Subd. 3. Proceeds from rental. Rental proceeds from premises owned by an organization
and leased to one or more other organizations for the purposes of conducting lawful gambling
shall not be reported as gambling proceeds under this chapter.
    Subd. 4. Prohibition. (a) An organization may not pay rent to itself or to any of its affiliates
for use of space for conducting lawful gambling.
(b) An organization may not pay rent for space for conducting lawful gambling from any
account or fund other than the organization's separate gambling account.
    Subd. 5. Certain agreements prohibited. An organization may not enter into or be a party
to a lending agreement under which any of the organization's receipts from lawful gambling
are pledged as collateral for a loan.
History: 1976 c 261 s 8; 1984 c 502 art 12 s 12; 1986 c 467 s 18; 1987 c 327 s 17,18; 1989
c 334 art 2 s 27,28; 1990 c 590 art 1 s 31; 1991 c 233 s 109; 1991 c 336 art 2 s 26,27; 1994 c 633
art 5 s 74-76; 1996 c 467 s 6; 1997 c 129 art 2 s 15; 1998 c 322 s 4; 2000 c 300 s 5,6; 2003 c 110
s 36; 2004 c 172 s 6,7; 2005 c 166 art 1 s 30; 2006 c 205 s 24

349.19 RECORDS AND REPORTS.
    Subdivision 1. Required record of receipts. A licensed organization must keep a record of
each occasion on which it conducts gambling, including each bingo occasion and each day on
which other forms of lawful gambling are conducted. The record must include gross receipts,
quantities of free plays if any, expenses, prizes, and gross profit. The board may by rule provide
for the methods by which expenses are documented. In the case of bingo, gross receipts must
be compared to the checkers' records for the occasion by a person who did not sell cards for the
occasion. Separate records must be kept for bingo and all other forms of lawful gambling.
    Subd. 2. Accounts. Gross receipts from lawful gambling by each organization must be
segregated from all other revenues of the conducting organization and placed in a separate
account. All expenditures for expenses, taxes, and lawful purposes must be made from the
separate account except (1) in the case of expenditures previously approved by the organization's
membership for emergencies as defined by board rule, (2) as provided in subdivision 2a, or (3)
when restricted to one electronic fund transaction for the payment of taxes for the organization as
a whole, the organization may transfer the amount of taxes related to the conduct of gambling to
the general account at the time when due and payable. The name and address of the bank, the
account number for the separate account, and the names of organization members authorized
as signatories on the separate account must be provided to the board when the application is
submitted. Changes in the information must be submitted to the board at least ten days before the
change is made. Gambling receipts must be deposited into the gambling bank account within four
business days of completion of the bingo occasion, deal, or game from which they are received. A
deal of pull-tabs is considered complete when either the last pull-tab of the deal is sold or the
organization does not continue the play of the deal during the next scheduled period of time in
which the organization will conduct pull-tabs. A tipboard game is considered complete when the
seal on the game flare is uncovered. Deposit records must be sufficient to allow determination of
deposits made from each bingo occasion, deal, or game at each permitted premises. The person
who accounts for gambling gross receipts and profits may not be the same person who accounts
for other revenues of the organization.
    Subd. 2a. Tax refund or credit. (a) Each organization that receives a refund or credit under
section 297E.02, subdivision 4, paragraph (d), must within four business days of receiving a
refund under that paragraph deposit the refund in the organization's gambling account.
(b) The organization may expend the tax refund or credit issued under section 297E.02,
subdivision 4 , paragraph (d), only for lawful purposes, other than lawful purposes described in
section 349.12, subdivision 25, paragraph (a), clauses (8), (9), and (12). Amounts subject to this
paragraph must be spent for qualifying lawful purposes no later than one year after the refund
or credit is received.
    Subd. 2b. Linked bingo prize pool account. A licensed organization participating in a
linked bingo game must maintain a separate account in a bank for the deposit of the organization's
portion of the linked bingo game prize pool. The name of the bank, the account number, and
authorization for electronic funds transfer must be provided by the organization to the linked
bingo game provider. Deposits must be made into the account by the organization as designated
by the linked bingo game provider. Money in the account must be available to the linked bingo
game provider at all times by electronic funds transfer, unless the linked bingo provider agrees
to the transfer of the funds by other means.
    Subd. 3. Expenditures. (a) All expenditures of gross profits from lawful gambling must be
itemized as to payee, purpose, amount, and date of payment, and must be in compliance with
section 349.154. Authorization of the expenditures must be recorded in the monthly meeting
minutes of the licensed organization. Checks or authorizations for electronic fund transfers for
expenditures of gross profits must be signed by at least two persons authorized by board rules
to sign the checks. Expenditures of gross profits from lawful gambling for local, state, and
federal taxes as identified in section 349.12, subdivision 25, paragraph (a), clause (8), may be:
(1) transferred electronically from the organization's gambling account directly to bank accounts
identified by local, state, or federal agencies if the organization's gambling account monthly bank
statement specifically identifies the payee by name, the amount transferred, and the date of the
transaction; or (2) transferred electronically to and from the account of a payroll processing
firm that meets the criteria for such a firm established under section 349.168, subdivision 6.
Expenditures of gross profits from lawful gambling as identified in section 349.12, subdivision
3a , and as authorized by section 349.15, subdivision 1, for payments for taxes and allowable
expenses may be transferred electronically from the organization's gambling account directly to
bank accounts identified by the vendor if the organization's gambling account monthly bank
statement specifically identifies the payee by name, the amount transferred, the account number
of the account into which the funds were transferred, and the date of the transaction. Electronic
payments of taxes and allowable expenses are permitted only if they have been authorized by
the membership, the organization maintains supporting documentation, and the expenditures
can be verified.
(b) Expenditures authorized by the board according to section 349.12, subdivision 25,
paragraph (b), clause (3), must be 51 percent completed within two years of the date of board
approval. "Fifty-one percent completed" means that the work completed must represent at least 51
percent of the value of the project as documented by the contractor or vendor. An organization
that fails to comply with this paragraph shall reapply to the board for approval of the project.
    Subd. 4. Discrepancies. If at a bingo occasion a discrepancy of more than $50 is found
between the gross receipts as reported by the checkers and the gross receipts determined by
adding the cash receipts, the discrepancy must be reported to the board within five days of the
bingo occasion.
    Subd. 5. Reports. A licensed organization must report to the Department of Revenue and to
its membership monthly, or quarterly in the case of a licensed organization which does not report
more than $1,000 in gross receipts from lawful gambling in any calendar quarter, on its gross
receipts, expenses, profits, and expenditure of profits from lawful gambling. The report must
include a reconciliation of the organization's profit carryover with its cash balance on hand. If the
organization conducts both bingo and other forms of lawful gambling, the figures for both must
be reported separately. The organization must report annually to its membership and annually file
with the board a financial summary report in a format prescribed by the board that identifies the
organization's receipts and use of lawful gambling proceeds, including:
(1) gross receipts;
(2) prizes paid;
(3) allowable expenses;
(4) lawful purpose expenditures, including annual totals for types of charitable contributions
and all taxes and fees as per section 349.12, subdivision 25, paragraph (a), clauses (8) and (18);
(5) the percentage of annual gross profits used for charitable contributions; and
(6) the percentage of annual gross profits used for all taxes and fees as per section 349.12,
subdivision 25 , paragraph (a), clauses (8) and (18).
    Subd. 6. Preservation of records. Records required to be kept by this section must be
preserved by a licensed organization for at least 3-1/2 years and may be inspected by the
commissioner of revenue, the board, or the commissioner of public safety at any reasonable time
without notice or a search warrant.
    Subd. 7. Tax records. The board may by rule require each licensed organization to provide
copies of forms it files with the United States Department of the Treasury which are required
for organizations exempt from income tax.
    Subd. 8. Termination plan. Upon termination of a license for any reason, a licensed
organization must notify the board in writing within 30 calendar days of the license termination
date of its plan for disposal of gambling equipment and distribution of remaining gambling
proceeds. Before implementation, a plan must be approved by the board as provided in board rule.
The board may accept or reject a plan and order submission of a new plan or amend a proposed
plan. The board may specify a time for submission of new or amended plans or for completion
of an accepted plan.
    Subd. 9. Annual audit; filing requirement. An organization licensed under this chapter
must have an annual financial audit or financial review when required by section 297E.06,
subdivision 4 .
    Subd. 9a. Records. An organization licensed under this chapter must maintain records that
account for the assets, liabilities, and fund balance of the organization. The records must also
account for the revenues, taxes, prize payouts, expenses, and lawful purpose expenditures of the
organization. The records must include a perpetual inventory of games purchased but not yet
played and games in play.
    Subd. 9b. Accounting manual. The board must prepare and distribute to each organization
licensed under this chapter a manual designed to facilitate compliance with section 349.19,
subdivision 9a . The manual must include a clear description of the processes needed to maintain
the records required in section 349.19, subdivision 9a. The board may contract for preparation
of the manual.
    Subd. 10. Pull-tab records. (a) The board shall by rule require a licensed organization to
require each winner of a pull-tab prize of $50 or more to present identification in the form of a
driver's license, Minnesota identification card, or other identification the board deems sufficient
to allow the identification and tracing of the winner. The rule must require the organization to
retain winning pull-tabs of $50 or more, and the identification of the winner of the pull-tab,
for 3-1/2 years.
(b) An organization must maintain separate cash banks for each deal of pull-tabs unless
(1) two or more deals are commingled in a pull-tab dispensing device, or (2) the organization
uses a cash register, of a type approved by the board, which records all sales of pull-tabs by
separate deals.
(c) The board shall:
(1) by rule adopt minimum technical standards for cash registers that may be used by
organizations, and shall approve for use by organizations any cash register that meets the
standards; and
(2) before allowing an organization to use a cash register that commingles receipts from
several different pull-tab games in play, adopt rules that define how cash registers may be used
and that establish a procedure for organizations to reconcile all pull-tab games in play at the
end of each month.
    Subd. 11. Information made part of organization minutes. A licensed organization which
receives a copy of a written audit under subdivision 9, or an audit or compliance report prepared
by an agency of the state, must place the audit report or compliance report in the minutes of the
next meeting of the organization following receipt of the report. Copies of such minutes must be
made available to all members of the organization upon request.
History: 1976 c 261 s 9; 1984 c 502 art 12 s 13; 1986 c 467 s 19,20; 1987 c 327 s 19; 1988
c 596 s 5; 1989 c 334 art 2 s 29-33; 1Sp1989 c 1 art 13 s 11; 1990 c 590 art 1 s 32; 1991 c 336
art 2 s 28-32; 1993 c 13 art 1 s 4; 1994 c 633 art 5 s 77-81; 1996 c 467 s 7; 1996 c 471 art 13
s 18,19; 1997 c 7 art 1 s 128; 1997 c 231 art 7 s 34; 1998 c 322 s 5; 1998 c 389 art 13 s 6;
1Sp2001 c 5 art 13 s 13; 2002 c 386 art 1 s 9; 2003 c 110 s 37,38; 2004 c 172 s 8; 2005 c 166
art 1 s 31-33; 2006 c 205 s 25,26

349.191 SALES ON CREDIT.
    Subdivision 1. Credit restriction. A manufacturer may not offer or extend to a distributor, a
linked bingo game provider may not offer or extend to an organization, and a distributor may
not offer or extend to an organization, credit for a period of more than 30 days for the sale or
lease of any gambling equipment. No right of action exists for the collection of any claim based
on credit prohibited by this subdivision. The 30-day period allowed by this subdivision begins
with the day immediately following the day of invoice and includes all successive days, including
Sundays and holidays, to and including the 30th successive day.
    Subd. 1a. Credit and sales to delinquent organizations. (a) If a distributor or linked bingo
game provider does not receive payment in full from an organization within 35 days of the day
immediately following the date of the invoice, the distributor or linked bingo game provider must
notify the board in writing of the delinquency on the next business day.
(b) If a distributor or linked bingo game provider who has notified the board under paragraph
(a) has not received payment in full from the organization within 60 days of the notification
under paragraph (a), the distributor or linked bingo game provider must notify the board of
the continuing delinquency.
(c) On receipt of a notice under paragraph (a), the board shall order all distributors and linked
bingo game providers that until further notice from the board, they may sell gambling equipment
to the delinquent organizations only on a cash basis with no credit extended. On receipt of a notice
under paragraph (b), the board shall order all distributors and linked bingo game providers not to
sell any gambling equipment to the delinquent organization.
(d) No distributor or linked bingo game provider may extend credit or sell gambling
equipment to an organization in violation of an order under paragraph (c) until the board has
authorized such credit or sale.
    Subd. 1b. Credit and sales to delinquent distributors. (a) If a manufacturer does not
receive payment in full from a distributor within 35 days of the day immediately following
the date of invoice, the manufacturer must notify the board in writing of the delinquency on
the next business day.
(b) If a manufacturer who has notified the board under paragraph (a) has not received
payment in full from the distributor within 60 days of the notification under paragraph (a), the
manufacturer must notify the board of the continuing delinquency.
(c) On receipt of a notice under paragraph (a), the board shall order all manufacturers that
until further notice from the board, they may sell gambling equipment to the delinquent distributor
only on a cash basis with no credit extended. On receipt of a notice under paragraph (b), the board
shall order all manufacturers not to sell any gambling equipment to the delinquent distributor.
(d) No manufacturer may extend credit or sell gambling equipment to a distributor in
violation of an order under paragraph (c) until the board has authorized such credit or sale.
    Subd. 2. Invoices. All invoices prepared by a manufacturer or distributor and presented as
part of a credit transaction for the purchase of gambling equipment must clearly bear the words
"Notice: State Law Prohibits the Extension of Credit For This Sale For More Than 30 Days."
    Subd. 3. Rules. Any rule of the board which requires a manufacturer to report to the board
any distributor who is delinquent in payment for gambling equipment must provide that a
distributor is subject to the rule if the distributor is more than 30 days delinquent in payment to
a manufacturer.
    Subd. 4. Credit; postdated checks. For purposes of this section, "credit" includes acceptance
by a manufacturer or distributor of a postdated check in payment for gambling equipment.
History: 1990 c 590 art 1 s 33; 1994 c 633 art 5 s 82-85; 1995 c 261 s 24; 1997 c 231 art 7 s
35; 2002 c 386 art 1 s 10,11; 2003 c 110 s 39,40

349.20 [Repealed, 1990 c 590 art 1 s 55]

349.21 [Repealed, 1990 c 590 art 1 s 55]

349.211 PRIZE LIMITS.
    Subdivision 1. Bingo. Except as provided in subdivisions 1a and 2, prizes for a single bingo
game may not exceed $200 except prizes for a cover-all game, which may exceed $200 if the
aggregate value of all cover-all prizes in a bingo occasion does not exceed $1,000. Total prizes
awarded at a bingo occasion may not exceed $2,800, unless a cover-all game is played in which
case the limit is $3,800. A prize may be determined based on the value of the bingo packet sold to
the player. For purposes of this subdivision, a cover-all game is one in which a player must cover
all spaces except a single free space to win.
    Subd. 1a. Linked bingo prizes. Prizes for a linked bingo game shall be limited as follows:
(1) no organization may contribute more than $300 per occasion to a linked bingo game
prize pool; and
(2) if an organization contributes to a linked bingo game prize pool, the organization's
aggregate value of cover-all prizes available during the bingo occasion must be reduced by the
amount contributed to the linked bingo game prize pool.
    Subd. 2. Progressive bingo games. A prize of up to $2,000 may be awarded for a
progressive bingo game, including a cover-all game. The prize for a progressive bingo game may
start at $500 and be increased by up to $100 for each occasion during which the progressive bingo
game is played. A consolation prize of up to $200 for a progressive bingo game may be awarded
in each occasion during which the progressive bingo game is played and the accumulated prize
is not won. The total amount awarded in progressive bingo game prizes in any calendar year
may not exceed $48,000.
    Subd. 2a. Pull-tab prizes. The maximum prize which may be awarded for any single pull-tab
is $599, not including any cumulative or carryover prizes. Cumulative or carryover prizes in a
pull-tab game shall not exceed $2,500. An organization may not sell any pull-tab for more than $2.
    Subd. 2b. Paddlewheel prizes. The maximum cash prize which may be awarded for a
paddleticket is $70. An organization may not sell any paddleticket for more than $2.
    Subd. 2c. Tipboard prizes. The maximum prize which may be awarded for a tipboard
ticket is $599, not including any cumulative or carryover prizes. Cumulative or carryover prizes
in tipboard games shall not exceed $2,500.
    Subd. 3. Other gambling. The board by rule shall establish a schedule of prize limits for
all other forms of gambling consistent with the purposes set out in section 349.11. The schedule
may include daily and annual prize limits and prize limits for each game, raffle or operation
of a gambling device.
    Subd. 4. Prize value. (a) Merchandise prizes must be valued at their fair market value. For
purposes of sections 349.11 to 349.22 "prizes" do not include free plays awarded.
(b) Merchandise prizes for a paddlewheel consisting of 30 numbers or less or a tipboard
consisting of 30 tickets or less may be paid for by the organization up to 30 days after the prize is
received by the organization.
History: 1984 c 502 art 12 s 16; 1986 c 467 s 21; 1991 c 336 art 2 s 33; 1994 c 633 art 5 s
86-88; 1995 c 261 s 25; 1997 c 155 s 8,9; 1999 c 206 s 13,14; 2000 c 300 s 7; 2002 c 386 art 2 s
6,7; 2003 c 110 s 41,42; 2004 c 172 s 9; 2005 c 166 art 1 s 34; 2006 c 205 s 27

349.2113 PRIZE PAYOUT LIMIT.
On or after January 1, 2004, a licensed organization may not put into play a pull-tab or
tipboard deal that provides for a prize payout of greater than 85 percent of the ideal gross of the
deal.
History: 1Sp2003 c 1 art 2 s 100

349.2115 [Repealed, 1994 c 633 art 2 s 21]

    Subdivision 1.[Repealed, 1994 c 633 art 2 s 21]
    Subd. 2.[Repealed, 1994 c 633 art 2 s 21]
    Subd. 3.[Repealed, 1Sp1985 c 13 s 376 subd 1]
    Subd. 4.[Repealed, 1994 c 633 art 2 s 21]
    Subd. 5.[Repealed, 1994 c 633 art 2 s 21]
    Subd. 6.[Repealed, 1994 c 633 art 2 s 21]
    Subd. 7.[Repealed, 1994 c 633 art 2 s 21]

349.2121 [Repealed, 1994 c 633 art 2 s 21]

349.2122 [Repealed, 1994 c 633 art 2 s 21]

349.2123 CERTIFIED PHYSICAL INVENTORY.
The board may, upon request, require a distributor to furnish a certified physical inventory
of all gambling equipment in stock. The inventory must contain the information required by
the board.
History: 1987 c 268 art 15 s 12; 1988 c 719 art 9 s 13; 1990 c 590 art 1 s 36; 1994
c 633 art 3 s 2

349.2124 SALES TO INDIAN TRIBES.
A distributor may set aside that part of the distributor's stock necessary for the conduct of
business in making sales to the established governing body of any Indian tribe recognized by the
United States Department of Interior. A distributor shall, when shipping or delivering any stock to
an Indian tribal organization, make a true duplicate invoice showing the complete details of the
sale or delivery and shall keep the duplicate.
History: 1987 c 268 art 15 s 13

349.2125 CONTRABAND.
    Subdivision 1. Contraband defined. The following are contraband:
(1) all pull-tab or tipboard deals or paddleticket cards not bar coded in accordance with
this chapter or chapter 297E;
(2) all pull-tab or tipboard deals in the possession of any unlicensed person, firm, or
organization;
(3) any container used for the storage and display of any contraband pull-tab or tipboard
deals as defined in clauses (1) and (2);
(4) all currency, checks, and other things of value used for pull-tab or tipboard transactions
not expressly permitted under this chapter, and any cash drawer, cash register, or any other
container used for illegal pull-tab or tipboard transactions including its contents;
(5) any device including, but not limited to, motor vehicles, trailers, snowmobiles, airplanes,
and boats used, with the knowledge of the owner or of a person operating with the consent of
the owner, for the storage or transportation of more than five pull-tab or tipboard deals that are
contraband under this subdivision. When pull-tabs and tipboards are being transported in the
course of interstate commerce between locations outside this state, the pull-tab and tipboard deals
are not contraband, notwithstanding the provisions of clauses (1) and (12);
(6) any unaffixed registration stamps except as provided in section 349.162, subdivision 4;
(7) any prize used or offered in a game utilizing contraband as defined in this subdivision;
(8) any altered, modified, or counterfeit pull-tab or tipboard ticket;
(9) any unregistered gambling equipment except as permitted by this chapter;
(10) any gambling equipment kept in violation of section 349.18;
(11) any gambling equipment not in conformity with law or board rule;
(12) any pull-tab or tipboard deal in the possession of a person other than a licensed
distributor or licensed manufacturer for which the person, upon demand of a licensed peace
officer or authorized agent of the commissioner of revenue or director of alcohol and gambling
enforcement, does not immediately produce for inspection the invoice or a true and correct copy
of the invoice for the acquisition of the deal from a licensed distributor;
(13) any pull-tab or tipboard deals or portions of deals on which the tax imposed under
chapter 297E has not been paid; and
(14) any device prohibited by section 609.76, subdivisions 4 to 6.
    Subd. 2. Seizure. Property made contraband by subdivision 1 may be seized by the
commissioner of revenue or the director of alcohol and gambling enforcement or their authorized
agents or by any sheriff or other police officer, hereinafter referred to as the seizing authority, with
or without process, and shall be subject to forfeiture as provided in subdivisions 3 and 4.
    Subd. 3. Inventory; judicial determination; appeal; disposition of seized property.
Within ten days after the seizure of any alleged contraband, the person making the seizure shall
make available an inventory of the property seized to the person from whom the property was
seized, if known, and file a copy with the commissioner of revenue or the director of alcohol and
gambling enforcement. Within ten days after the date of service of the inventory, the person from
whom the property was seized or any person claiming an interest in the property may file with the
seizing authority a demand for judicial determination of whether the property was lawfully subject
to seizure and forfeiture. Within 60 days after the date of filing of the demand, the seizing authority
must bring an action in the district court of the county where seizure was made to determine
the issue of forfeiture. The action must be brought in the name of the state and be prosecuted
by the county attorney or by the attorney general. The court shall hear the action without a jury
and determine the issues of fact and laws involved. When a judgment of forfeiture is entered,
the seizing authority may, unless the judgment is stayed pending an appeal, either (1) cause the
forfeited property to be destroyed; or (2) cause it to be sold at a public auction as provided by law.
If demand for judicial determination is made and no action is commenced by the seizing
authority as provided in this subdivision, the property must be released by the seizing authority
and delivered to the person entitled to it. If no demand is made, the property seized is considered
forfeited to the seizing authority by operation of law and may be disposed of by the seizing
authority as provided where there has been a judgment of forfeiture. When the seizing authority is
satisfied that a person from whom property is seized was acting in good faith and without intent
to evade a tax imposed by chapter 297E, the seizing authority shall release the property seized
without further legal proceedings.
    Subd. 4. Disposal. (a) The property described in subdivision 1, clauses (4) and (5), must be
confiscated after conviction of the person from whom it was seized, upon compliance with the
following procedure: the seizing authority shall file with the court a separate complaint against the
property, describing it and charging its use in the specific violation, and specifying substantially
the time and place of the unlawful use. A copy of the complaint must be served upon the
defendant or person in charge of the property at the time of seizure, if any. If the person arrested
is acquitted, the court shall dismiss the complaint against the property and order it returned to
the persons legally entitled to it. Upon conviction of the person arrested, the court shall issue an
order directed to any person known or believed to have any right, title or interest in, or lien
upon, any of the property, and to persons unknown claiming any right, title, interest, or lien in it,
describing the property and (1) stating that it was seized and that a complaint against it, charging
the specified violation, has been filed with the court, (2) requiring the persons to file with the court
administrator their answer to the complaint, setting forth any claim they may have to any right or
title to, interest in, or lien upon the property, within 30 days after the service of the order, and (3)
notifying them in substance that if they fail to file their answer within the time, the property will
be ordered sold by the seizing authority. The court shall cause the order to be served upon any
person known or believed to have any right, title, interest, or lien as in the case of a summons in
a civil action, and upon unknown persons by publication, as provided for service of summons
in a civil action. If no answer is filed within the time prescribed, the court shall, upon affidavit
by the court administrator, setting forth the fact, order the property sold by the seizing authority.
Seventy percent of the proceeds of the sale of forfeited property, after payment of seizure,
storage, forfeiture and sale expenses, must be forwarded to the seizing authority for deposit as a
supplement to its operating fund or similar fund for official use, and 20 percent must be forwarded
to the county attorney or other prosecuting agency that handled the forfeiture for deposit as a
supplement to its operating fund or similar fund for prosecutorial purposes. The remaining ten
percent of the proceeds must be forwarded within 60 days after resolution of the forfeiture to the
Department of Human Services to fund programs for the treatment of compulsive gamblers. If
answer is filed within the time provided, the court shall fix a time for a hearing, which shall be
not less than ten nor more than 30 days after the time for filing answer expires. At the time
fixed for hearing, unless continued for cause, the matter shall be heard and determined by the
court, without a jury, as in other civil actions.
(b) If the court finds that the property, or any part of it, was used in the violation specified in
the complaint, it shall order the property unlawfully used, sold as provided by law, unless the
owner shows to the satisfaction of the court that the owner had no notice or knowledge or reason
to believe that the property was used or intended to be used in the violation. The officer making a
sale, after deducting the expense of keeping the property, the fee for seizure, and the costs of the
sale, shall pay all liens according to their priority, which are established at the hearing as being
bona fide and as existing without the lienor having any notice or knowledge that the property was
being used or was intended to be used for or in connection with the violation specified in the order
of the court, and shall pay the balance of the proceeds to the seizing authority for official use and
sharing in the manner provided in paragraph (a). A sale under this section shall free the property
sold from any and all liens on it. Appeal from the order of the district court will lie as in other
civil cases. At any time after seizure of the articles specified in this subdivision, and before the
hearing provided for, the property must be returned to the owner or person having a legal right
to its possession, upon execution of a good and valid bond to the state, with corporate surety,
in the sum of not less than $100 and not more than double the value of the property seized, to
be approved by the court in which the case is triable, or a judge of it, conditioned to abide any
order and the judgment of the court, and to pay the full value of the property at the time of the
seizure. The seizing authority may dismiss the proceedings outlined in this subdivision when the
seizing authority considers it to be in the public interest to do so.
History: 1988 c 719 art 9 s 14; 1989 c 334 art 2 s 40-42; 1990 c 590 art 2 s 1-3; 1994 c 633
art 5 s 89,90; 1997 c 129 art 2 s 15; 2000 c 336 s 4; 2005 c 166 art 1 s 35

349.2127 PROHIBITIONS.
    Subdivision 1. Counterfeiting. A person is guilty of a felony who, with intent to defraud the
state, makes, alters, forges, or counterfeits any license or stamp provided for in this chapter, or
has in possession any forged, spurious, or altered stamps, with the intent, or with the result of,
depriving the state of the tax imposed by chapter 297E.
    Subd. 2. Prohibition against possession. (a) A person is guilty of a crime who sells, offers
for sale, or possesses a pull-tab or tipboard deal or paddleticket cards not stamped or bar coded
in accordance with the provisions of this chapter or chapter 297E. A violation of this paragraph
is a gross misdemeanor if it involves ten or fewer pull-tab or tipboard deals. A violation of this
paragraph is a felony if it involves more than ten pull-tab or tipboard deals, or a combination of
more than ten deals of pull-tabs and tipboards.
(b) A person, other than a licensed manufacturer, a licensed distributor, or an organization
licensed or exempt or excluded from licensing under this chapter, is guilty of a crime who
sells, offers to sell, or possesses gambling equipment. A violation of this paragraph is a gross
misdemeanor if it involves ten or fewer pull-tab or tipboard deals. A violation of this paragraph is
a felony if it involves more than ten pull-tab or tipboard deals, or a combination of more than
ten deals of pull-tabs and tipboards.
(c) A person is guilty of a crime who alters, modifies, or counterfeits pull-tabs, tipboards, or
tipboard tickets, or possesses altered, modified, or counterfeit pull-tabs, tipboards, or tipboard
tickets. A violation of this paragraph is a gross misdemeanor if the total face value for all such
pull-tabs, tipboards, or tipboard tickets does not exceed $200. A violation of this paragraph is a
felony if the total face value exceeds $200. For purposes of this paragraph, the face value of all
pull-tabs, tipboards, and tipboard tickets altered, modified, or counterfeited within a six-month
period may be aggregated and the defendant charged accordingly.
(d) A person, other than a licensed distributor or licensed manufacturer, is guilty of a crime
who possesses a pull-tab or tipboard deal for which the person, upon demand of a licensed peace
officer or authorized agent of the commissioner of revenue or director of alcohol and gambling
enforcement, does not immediately produce for inspection the invoice or a true and correct copy of
the invoice for the acquisition of the deal from a licensed distributor. A violation of this paragraph
is a gross misdemeanor if it involves ten or fewer pull-tab or tipboard deals. A violation of this
paragraph is a felony if it involves more than ten pull-tab or tipboard deals, or a combination of
more than ten deals of pull-tabs and tipboards. This paragraph does not apply to pull-tab and
tipboard deals being transported in interstate commerce between locations outside this state.
    Subd. 3. False information. A person is guilty of a felony who:
(1) knowingly submits materially false information in any license application or other
document or communication submitted to the board;
(2) knowingly places materially false information on a pull-tab or tipboard deal invoice
or a copy of the invoice; or
(3) knowingly presents to a licensed peace officer or authorized agent of the commissioner of
revenue or director of alcohol and gambling enforcement a pull-tab or tipboard deal invoice, or a
copy of the invoice, that contains materially false information.
    Subd. 4. Transporting unstamped deals. A person is guilty of a gross misdemeanor who
transports into, causes to be transported into, receives, carries, moves from place to place, or
causes to be moved from place to place in this state, any paddleticket cards or deals of pull-tabs or
tipboards not stamped or bar coded in accordance with this chapter or chapter 297E except in
the course of interstate commerce between locations outside this state. A person is guilty of a
felony who violates this subdivision with respect to more than ten pull-tab or tipboard deals, or a
combination of more than ten deals of pull-tabs and tipboards.
    Subd. 5. Providing information. (a) An employee of an organization may not provide
any information to a player that would provide an unfair advantage to the player related to the
potential winnings of any lawful gambling activity.
(b) An employee may not provide, and a person may not receive, with expectation of
pecuniary gain to either, any information that would provide an unfair advantage to the recipient
of the information related to the potential winnings of any lawful gambling activity. A person who
violates this paragraph is guilty of a gross misdemeanor. A person who violates this paragraph
within five years after a previous conviction under this paragraph is guilty of a felony.
(c) For purposes of this subdivision, "employee" includes a volunteer.
    Subd. 6. Unlawful expenditures. (a) A person who knowingly or with reason to know
makes an unlawful expenditure of gross profits from lawful gambling is guilty of a crime and may
be sentenced as provided in this subdivision.
(b) If the unlawful expenditure is of $200 or less, the penalty in section 349.22, subdivision
1 , applies.
(c) If the unlawful expenditure is of more than $200 but not more than $2,500, the person
is guilty of a gross misdemeanor.
(d) If the unlawful expenditure is of more than $2,500, the person is guilty of a felony.
(e) For purposes of this subdivision, expenditures made within a six-month period may be
aggregated and the defendant charged accordingly.
    Subd. 7. Checks for gambling purchases. An organization may not accept checks in
payment for the purchase of any gambling equipment or for the chance to participate in any form
of lawful gambling except a raffle. If an organization accepts a check, the payment of which is
subsequently dishonored, the organization shall reimburse its gambling account for the amount
of the dishonored check within 30 days of receiving notice of the dishonor. This subdivision
does not apply to gaming activities conducted pursuant to the Indian Gaming Regulatory Act,
United States Code, title 25, section 2701 et seq.
    Subd. 8. Minimum age. (a) A person under the age of 18 years may not buy a pull-tab,
tipboard ticket, paddlewheel ticket, or raffle ticket, or a chance to participate in a bingo game other
than (1) a bingo game exempt or excluded from licensing, or (2) one bingo occasion conducted
by a licensed organization as part of an annual community event if the person under age 18 is
accompanied by a parent or guardian. Violation of this paragraph is a misdemeanor.
(b) A licensed organization or employee may not allow a person under age 18 to participate
in lawful gambling in violation of paragraph (a). Violation of this paragraph is a misdemeanor.
(c) In a prosecution under paragraph (b), it is a defense for the defendant to prove by a
preponderance of the evidence that the defendant reasonably and in good faith relied upon
representations of proof of age authorized in section 340A.503, subdivision 6, paragraph (a).
    Subd. 9. Tipboard defined. For purposes of this section "tipboard" includes tipboards as
defined in section 349.12, subdivision 34, and any board, placard or other device marked off in a
grid or columns, in which each section contains a hidden number or numbers, or other symbol,
which determines the winning chances.
History: 1988 c 719 art 9 s 15; 1989 c 334 art 2 s 43; 1Sp1989 c 1 art 13 s 16,17; 1990 c
590 art 2 s 4-10; 1991 c 256 s 10; 1994 c 633 art 2 s 19; art 5 s 91-95; 1997 c 129 art 2 s
15; 2001 c 96 s 12; 2004 c 172 s 10

349.213 LOCAL AUTHORITY.
    Subdivision 1. Local regulation. (a) A statutory or home rule city or county has the authority
to adopt more stringent regulation of lawful gambling within its jurisdiction, including the
prohibition of lawful gambling, and may require a permit for the conduct of gambling exempt
from licensing under section 349.166. The fee for a permit issued under section 349.166 may
not exceed $100. The authority granted by this subdivision does not include the authority to
require a license or fee for a license or permit to conduct gambling by organizations, gambling
managers, gambling employees, or sales by distributors or linked bingo game providers licensed
by or registered with the board. The authority granted by this subdivision does not include the
authority to require an organization to make specific expenditures of more than ten percent per
year from its net profits derived from lawful gambling. For the purposes of this subdivision,
net profits are gross profits less amounts expended for allowable expenses and paid in taxes
assessed on lawful gambling. A statutory or home rule charter city or a county may not require an
organization conducting lawful gambling within its jurisdiction to make an expenditure to the
city or county as a condition to operate within that city or county, except as authorized under
section 349.16, subdivision 8, or 297E.02; provided, however, that an ordinance requirement
that such organizations must contribute ten percent per year of their net profits derived from
lawful gambling conducted at premises within the city's or county's jurisdiction to a fund
administered and regulated by the responsible local unit of government without cost to such fund,
for disbursement by the responsible local unit of government of the receipts for (i) charitable
contributions as defined in section 349.12, subdivision 7a, or (ii) police, fire, and other emergency
or public safety-related services, equipment, and training, excluding pension obligations, is not
considered an expenditure to the city or county nor a tax under section 297E.02, and is valid and
lawful. A city or county making expenditures authorized under this paragraph must by March
15 of each year file a report with the board, on a form the board prescribes, that lists all such
revenues collected and expenditures for the previous calendar year.
(b) A statutory or home rule city or county may by ordinance require that a licensed
organization conducting lawful gambling within its jurisdiction expend all or a portion of its
expenditures for lawful purposes on lawful purposes conducted or located within the city's
or county's trade area. Such an ordinance must be limited to lawful purpose expenditures of
gross profits derived from lawful gambling conducted at premises within the city's or county's
jurisdiction, must define the city's or county's trade area, and must specify the percentage of lawful
purpose expenditures which must be expended within the trade area. A trade area defined by a
city under this subdivision must include each city and township contiguous to the defining city.
(c) A more stringent regulation or prohibition of lawful gambling adopted by a political
subdivision under this subdivision must apply equally to all forms of lawful gambling within the
jurisdiction of the political subdivision, except a political subdivision may prohibit the use of
paddlewheels.
    Subd. 2. Local approval. Before issuing or renewing a premises permit, the board must
notify the city council of the statutory or home rule city in which the organization's premises
is located or, if the premises is located outside a city, the county board of the county and the
town board of the town where the premises is located. The board may require organizations to
notify the appropriate local government at the time of application. This required notification is
sufficient to constitute the notice required by this subdivision. The board may not issue or renew
a premises permit unless the organization submits a resolution from the city council or county
board approving the premises permit. The resolution must have been adopted within 90 days of
the date of application for the new or renewed permit or license.
    Subd. 3. Local gambling tax. A statutory or home rule charter city that has one or more
licensed organizations operating lawful gambling, and a county that has one or more licensed
organizations outside incorporated areas operating lawful gambling, may impose a local gambling
tax on each licensed organization within the city's or county's jurisdiction. The tax may be
imposed only if the amount to be received by the city or county is necessary to cover the costs
incurred by the city or county to regulate lawful gambling. The tax imposed by this subdivision
may not exceed three percent per year of the gross receipts of a licensed organization from all
lawful gambling less prizes actually paid out by the organization. A city or county may not use
money collected under this subdivision for any purpose other than to regulate lawful gambling.
All documents pertaining to site inspections, fines, penalties, or other corrective action involving
local lawful gambling regulation must be shared with the board within 30 days of filing at the
city or county of jurisdiction. A tax imposed under this subdivision is in lieu of all other local
taxes and local investigation fees on lawful gambling. A city or county that imposes a tax under
this subdivision shall annually, by March 15, file a report with the board in a form prescribed by
the board showing (1) the amount of revenue produced by the tax during the preceding calendar
year, and (2) the use of the proceeds of the tax.
History: 1984 c 502 art 12 s 18; 1986 c 467 s 25; 1987 c 327 s 21; 1988 c 705 s 1; 1989 c
209 art 1 s 35; 1989 c 334 art 2 s 44,45; 1989 c 335 art 1 s 220; 1990 c 590 art 1 s 37; 1991 c 199
art 2 s 1; 1991 c 336 art 2 s 34; 1994 c 633 art 2 s 19; art 5 s 96; 1994 c 633 art 2 s 2; 1995 c 264
art 17 s 11; 1998 c 322 s 6; 2000 c 300 s 8; 2001 c 96 s 13; 2005 c 166 art 1 s 36; 2006 c 205 s 28

349.214 [Repealed, 1990 c 590 art 1 s 55]

349.215 [Repealed, 1994 c 633 art 2 s 21]

349.2151 [Repealed, 1994 c 633 art 2 s 21]

349.2152 [Repealed, 1994 c 633 art 2 s 21]

349.216 [Repealed, 1994 c 633 art 2 s 21]

349.217 [Repealed, 1994 c 633 art 2 s 21]

349.2171 [Repealed, 1994 c 633 art 2 s 21]

349.218 [Repealed, 1996 c 305 art 1 s 73]

349.219 [Repealed, 1994 c 633 art 2 s 21]

349.22 PENALTY.
    Subdivision 1. Penalty. (a) A person who violates any provision of sections 349.11 to 349.23
for which another penalty is not provided is guilty of a misdemeanor.
(b) A person who violates any provision of sections 349.11 to 349.23 for which another
penalty is not provided is guilty of a gross misdemeanor if the violation occurs within five years
after a previous conviction under any provision of sections 349.11 to 349.23.
(c) A person who in any manner hinders or interferes with a seizing authority when a seizure
is made as provided by section 349.2125, is guilty of a gross misdemeanor.
    Subd. 2. Other action. This section does not preclude civil or criminal actions under other
applicable law or preclude any agency of government from investigating or prosecuting violations
of the provisions of sections 349.11 to 349.213, and chapter 297E. County attorneys and the
attorney general have joint responsibility for prosecuting violations of sections 349.11 to 349.213,
and chapter 297E, and the attorney general may prosecute any violation of those sections. If
the county attorney fails to initiate the prosecution within 30 days, the attorney general may
initiate prosecution.
    Subd. 3.[Repealed, 1990 c 590 art 2 s 18]
    Subd. 3a. Aggregation. When the value of prizes or pull-tabs received within a six-month
period is aggregated under this section and two or more offenses were committed by the same
person in two or more counties, the accused may be prosecuted in any county in which one of the
offenses was committed for all of the offenses aggregated under this section.
    Subd. 4. Sales after revocation. A person selling pull-tabs or tipboards after the person's
license or permit has been revoked is guilty of a felony.
History: 1976 c 261 s 12; 1984 c 502 art 12 s 20; 1988 c 719 art 9 s 16-18; 1989 c 334
art 2 s 47,48; 1990 c 590 art 2 s 11,12; 1990 c 594 art 1 s 70; 1991 c 199 art 2 s 1; 1994 c 633
art 2 s 19; art 3 s 3

349.23 VALIDITY OF PRIOR AGREEMENTS.
Nothing in sections 349.11 to 349.22 shall be construed to affect the validity of any
agreement or contract between an organization and any financial or lending institution, entered
into prior to August 1, 1976.
History: 1976 c 261 s 13

349.26 [Repealed, 1984 c 502 art 12 s 25]

349.30 DEFINITIONS.
    Subdivision 1. Scope. For the purposes of sections 349.30 to 349.39, unless a different
meaning is indicated by the context, the words, terms, and phrases defined in this section shall
have the meanings given them.
    Subd. 2. Gambling device. "Gambling device" has the meaning given it in section 609.75,
subdivision 4 .
    Subd. 3. Person. "Person" means an individual, a copartnership, an association, a
corporation, or any other entity or organization.
    Subd. 4. Municipality. "Municipality" means any county, city, or town.
    Subd. 5. License. "License" includes permits of every kind, nature and description issued
pursuant to any statute or ordinance for the carrying on of any business, trade, vocation,
commercial enterprise or undertaking.
    Subd. 6. Licensee. "Licensee" means any person to whom a license of any kind is issued,
but does not include a common carrier transporting, or a public warehouse operator storing, any
gambling device for hire, or a manufacturer or distributor of such devices keeping the same only
for the purpose of sale or distribution to others or repairing of same.
    Subd. 7. Licensed business. "Licensed business" means any business, trade, vocation,
commercial enterprise, or undertaking for which a license is issued.
    Subd. 8. Licensed premises. "Licensed premises" means the place or building, or the room
in a building, designated in the license as the place where the licensed business is to be carried
on, and all land adjacent thereto and used in connection with and in the operation of a licensed
business, and all adjacent or contiguous rooms or buildings operated or used in connection with
the buildings where the licensed business is carried on. If no place is described in any license,
then "licensed premises" means the building or place where the licensed business is carried on
under such license.
    Subd. 9. Issuing authority. "Issuing authority" and "authority issuing the license" mean
and include the officer, board, bureau, department, commission, or agency of the state, or of any
of its municipalities, by whom any license is issued and include the councils and governing
bodies of all municipalities.
History: 1947 c 586 s 1; 1973 c 123 art 5 s 7; 1981 c 204 s 9; 1986 c 444; 1990 c 590
art 1 s 38

349.31 GAMBLING DEVICE; POSSESSION OF.
    Subdivision 1. Intentional possession; willful keeping. The intentional possession or willful
keeping of a gambling device on a licensed premises is cause for the suspension or revocation of
any license under which the licensed business is carried on upon the premises where the gambling
device is found, provided that possession of gambling equipment as defined in section 349.12,
subdivision 18 , which is used for lawful gambling authorized by this chapter, and the manufacture
of gambling devices for use in jurisdictions where use of the gambling device is legal as provided
for by section 349.40 shall not be cause for revocation of a license.
    Subd. 2. Suspension and revocation of licenses. All licenses under which any licensed
business is permitted to be carried on upon the licensed premises shall be suspended or revoked
if the intentional possession or willful keeping of any such gambling devices upon the licensed
premises is established, notwithstanding that it may not be made to appear that such devices have
actually been used or operated for the purpose of gambling.
History: 1947 c 586 s 2; 1978 c 507 s 1; 1981 c 126 s 1; 1981 c 204 s 10; 1984 c 502 art 12
s 21; 1986 c 467 s 28; 1989 c 334 art 2 s 51; 1990 c 590 art 1 s 39; 1993 c 13 art 1 s 37

349.32 ISSUING AUTHORITY TO SUSPEND OR REVOKE.
The proceedings for suspension or revocation are held before the issuing authority, which
has the power to suspend or revoke the license or licenses involved, as hereinafter provided.
History: 1947 c 586 s 3; 1990 c 590 art 1 s 40

349.33 PEACE OFFICERS TO OBSERVE AND INSPECT PREMISES.
Every sheriff, deputy sheriff, police officer, and peace officer shall observe and inspect the
premises where occupations are carried on under license and ascertain whether gambling devices
are present thereon and immediately report the finding thereof to the authority or authorities
issuing the license or licenses applicable to the premises in question.
History: 1947 c 586 s 4; 1986 c 444; 2005 c 10 art 2 s 4

349.34 PROCEEDINGS BEFORE ISSUING AUTHORITY; ORDER TO SHOW CAUSE.
If an issuing authority, on receipt of information from a peace officer described in section
349.33, is of the opinion that cause exists for the suspension or revocation of a license, the
authority shall issue an order to show cause directed to the licensee of the premises, stating the
ground upon which the proceeding is based and requiring the licensee to appear and show cause
at a time and place, within the county in which the licensed premises are located, not less than ten
days after the date of the order, why the license should not be suspended or revoked. That order to
show cause shall be served upon the licensee in the manner prescribed by law for the service of
summons in a civil action, or by certified mail, not less than eight days before the date fixed for
the hearing thereof. A copy of the order shall forthwith be mailed to the owner of the premises, as
shown by the records in the office of the county recorder, at the owner's last known post office
address. A copy of the order shall at the same time be mailed to any other issuing authority, of
which the authority issuing the order to show cause has knowledge, by which other license to that
licensee may have been issued, and any such other authority may participate in the suspension or
revocation proceedings after notifying the licensee and the officer or authority holding the hearing
of its intention so to do on or before the date of hearing, and after the hearing take such action as it
could have taken had it instituted the suspension or revocation proceedings in the first instance.
History: 1947 c 586 s 5; 1976 c 181 s 2; 1978 c 674 s 60; 1986 c 444; 1990 c 590 art 1 s 41

349.35 REVOCATION OF LICENSE.
    Subdivision 1. Suspension; revocation; stay; appeal. If, upon the hearing of the order to
show cause, it appears that the licensee intentionally possessed or willfully kept upon the licensed
premises any gambling device, then the license or licenses under which the licensed business is
operated on the licensed premises, shall be suspended or revoked. The order of suspension or
revocation shall not be enforced during the period allowed by section 349.39 for taking an appeal.
    Subd. 2. Limitation as to issuance of new license on premises. No new license or licenses
for the same business upon the same premises shall be issued for the period of one year thereafter,
except as hereinafter provided.
History: 1947 c 586 s 6; 1986 c 444; 1990 c 590 art 1 s 42

349.36 DUTIES OF COUNTY ATTORNEY OR ATTORNEY GENERAL.
The county attorney of the county in which the hearing is held, the city attorney if the issuing
authority is the city, or the attorney general shall attend the hearing, interrogate the witnesses,
advise the issuing authority, and appear for the issuing authority on any appeal taken pursuant
to the provisions of section 349.39.
History: 1947 c 586 s 7; 1986 c 444; 1990 c 590 art 1 s 43; 1990 c 594 art 1 s 71

349.37 WITNESSES.
The issuing authority may issue subpoenas and compel the attendance of witnesses at any
hearing. Witnesses duly subpoenaed and attending any such hearing shall be paid fees and mileage
by the issuing authority equal to the fees and mileage paid witnesses in the district court.
History: 1947 c 586 s 8

349.38 PROPERTY OWNERS LIABILITY.
When a license is suspended or revoked under the provisions of sections 349.30 to 349.39,
the owner of the premises upon which any licensed business has been operated shall not be
penalized by reason thereof unless it is established that the owner had knowledge of the existence
of the gambling devices resulting in license suspension or revocation.
History: 1947 c 586 s 9; 1986 c 444; 1990 c 590 art 1 s 44

349.39 APPEAL TO DISTRICT COURT; STAY; CONTINUANCE UNDER BOND;
HEARING UPON ONE YEAR LIMITATION ON PREMISES.
Any licensee, or any owner of licensed premises, aggrieved by an order of an issuing
authority suspending or revoking any license may appeal from that order to the district court of the
county in which the licensee resides by serving a notice of the appeal upon the issuing authority
or the clerk thereof. The notice of appeal shall state that the person appealing takes an appeal
to that district court from the order suspending or revoking the license or licenses, describing
them and identifying the order appealed from. This notice shall be served within 15 days from
the date of service of the order appealed from, and the same, with proof of service thereof, shall
be filed with the court administrator of the district court of the proper county. The appeal shall
stand for trial at the next term of the district court following the filing of the notice of appeal,
without the service of any notice of trial, and shall be tried in the district court de novo. The
trial shall be by jury if the appellant shall so demand. The licensee may continue to operate the
licensed business or businesses until the final disposition of such appeal. If the district court
upon the appeal shall determine that any license involved in the appeal should be suspended or
revoked, it may, nevertheless, in its discretion permit the continuance of the licensed business
under a bond in the amount and in the form and containing the conditions prescribed by the court.
The district court on the appeal, or in a separate proceeding, may permit the issuance of a new
license to a different licensee before the expiration of the period of one year specified in section
349.35, subdivision 2, upon such terms and conditions imposed by the court as will insure that no
gambling device shall thereafter be maintained upon the licensed premises.
History: 1947 c 586 s 10; 1986 c 444; 1Sp1986 c 3 art 1 s 82; 1990 c 590 art 1 s 45

349.40 GAMBLING DEVICES; MANUFACTURE FOR USE IN OTHER STATES.
The manufacture in this state of gambling devices, or any component parts thereof, for
shipment, sale, and use in jurisdictions where use of the gambling device is legal is allowed
notwithstanding the provisions of this chapter, sections 349.31, 609.75, and 609.76, or other
laws to the contrary.
History: 1981 c 126 s 2

349.50 [Repealed, 1990 c 590 art 1 s 48]

349.501 [Repealed, 1990 c 590 art 1 s 48]

    Subdivision 1.[Repealed, 1990 c 590 art 1 s 48]
    Subd. 2.[Repealed, 1990 c 590 art 2 s 18]

349.51 [Repealed, 1990 c 590 art 1 s 48]

349.52 [Repealed, 1990 c 590 art 1 s 48]

349.53 [Repealed, 1990 c 590 art 1 s 48]

349.54 [Repealed, 1990 c 590 art 1 s 48]

349.55 [Repealed, 1990 c 590 art 1 s 48]

349.56 [Repealed, 1990 c 590 art 1 s 48]

349.57 [Repealed, 1990 c 590 art 1 s 48]

349.58 [Repealed, 1990 c 590 art 1 s 48]

349.59 [Repealed, 1990 c 590 art 1 s 48]

349.60 [Repealed, 1990 c 590 art 1 s 48]

349.61 REPEAL; TERMINATION OF LICENSES.
    Subdivision 1. Repeal. Section 299L.03, subdivision 9, and sections 349.50; 349.501;
349.502; 349.51; 349.52; 349.53; 349.54; 349.55; 349.56; 349.57; 349.58; 349.59; and 349.60 are
repealed January 1, 1992. All licenses issued under sections 349.51 and 349.52 in effect on that
date expire on that date. The commissioner of finance shall on that date transfer all money in the
video gaming license account to the general fund.
    Subd. 2. Not to affect certain compacts. Nothing in subdivision 1 is intended to affect the
validity of any compact entered into before or after August 1, 1990, between the state and the
governing body of an Indian tribe that governs the conduct of any form of gambling on Indian
lands.
History: 1990 c 590 art 1 s 48