Minnesota Session Laws - 1986, Regular Session

  

                         Laws of Minnesota 1986 

                        CHAPTER 467-H.F.No. 2331 
           An act relating to gambling; prohibiting certain 
          betting practices relating to horse racing; requiring 
          persons appointed to the charitable gambling control 
          board to be confirmed by the senate; permitting the 
          board to impose civil penalties; permitting local 
          investigation fees; creating a new class of license 
          for raffles; changing requirements for distributors; 
          requiring the registration of manufacturers; providing 
          for collection of certain taxes by distributors; 
          changing reporting and recordkeeping requirements for 
          organizations; providing for maximum prizes for 
          pull-tabs; requiring towns to be notified; exempting 
          certain organizations from regulation and taxation; 
          amending Minnesota Statutes 1984, sections 240.25, 
          subdivision 2; 240.26, subdivisions 1 and 2; 349.12, 
          subdivisions 13 and 17, and by adding a subdivision; 
          349.15; 349.151, subdivisions 2 and 4; 349.16, 
          subdivision 3, and by adding a subdivision; 349.161, 
          subdivision 1, and by adding a subdivision; 349.162; 
          349.17, by adding a subdivision; 349.18, subdivision 
          2; 349.19, subdivisions 5 and 6; 349.211, by adding a 
          subdivision; 349.212; 349.213; 349.214, subdivision 2, 
          and by adding a subdivision; 349.31, subdivision 1; 
          609.75, subdivision 3; and 609.761; Minnesota Statutes 
          1985 Supplement, section 349.212, subdivision 1; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 349. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 240.25, 
subdivision 2, is amended to read: 
    Subd. 2.  [OFF-TRACK BETS.] No person may, as part of an 
organized commercial activity, place or accept a bet off the 
premises of a licensed racetrack for delivery to a licensed 
racetrack shall: 
    (1) for a fee, directly or indirectly, accept anything of 
value from another to be transmitted or delivered for wager in 
any licensed pari-mutuel system of wagering on horse races, or 
for a fee deliver anything of value which has been received 
outside of the enclosure of a licensed racetrack holding a race 
meet licensed under this chapter, to be placed as wagers in the 
pari-mutuel system of wagering on horse racing within the 
enclosure; or 
    (2) give anything of value to be transmitted or delivered 
for wager in any licensed pari-mutuel system of wagering on 
horse races to another who charges a fee, directly or 
indirectly, for the transmission or delivery. 
    Sec. 2.  Minnesota Statutes 1984, section 240.26, 
subdivision 1, is amended to read: 
    Subdivision 1.  [FELONIES.] A violation of the prohibition 
against accepting a bet in section 240.25, 
subdivisions subdivision 1 and 2, a violation of section 240.25, 
subdivision 2, clause (1), and a violation of section 240.25, 
subdivisions 3, 4, and 7 is a felony. 
    Sec. 3.  Minnesota Statutes 1984, section 240.26, 
subdivision 2, is amended to read: 
    Subd. 2.  [GROSS MISDEMEANORS.] A violation of the 
prohibition against placing a bet in section 240.25, 
subdivisions subdivision 1 and 2, a violation of section 240.25, 
subdivision 2, clause (2), and a violation of section 240.25, 
subdivisions 5 and 6, is a gross misdemeanor. 
    Sec. 4.  Minnesota Statutes 1984, section 349.12, 
subdivision 13, is amended to read: 
    Subd. 13.  "Profit" means the gross receipts collected from 
lawful gambling, less reasonable sums necessarily and actually 
expended for gambling supplies and equipment, prizes, rent, and 
utilities used during the gambling occasions, compensation paid 
to members for conducting gambling, and taxes imposed by this 
chapter, and maintenance of devices used in lawful gambling. 
    Sec. 5.  Minnesota Statutes 1984, section 349.12, 
subdivision 17, is amended to read: 
    Subd. 17.  "Distributor" is a person who sells gambling 
equipment he manufactures or purchases for resale within the 
state. 
    Sec. 6.  Minnesota Statutes 1984, section 349.12, is 
amended by adding a subdivision to read: 
    Subd. 18.  [DEAL.] "Deal" means each separate package, or 
series of packages, consisting of one game of pull-tabs with the 
same serial number purchased from a distributor. 
    Sec. 7.  Minnesota Statutes 1984, section 349.15, is 
amended to read:  
    349.15 [USE OF PROFITS.] 
    Profits from lawful gambling may be expended only for 
lawful purposes or expenses as authorized at a regular meeting 
of the conducting organization.  Provided that no more than 50 
percent of gross receipts from bingo, and no more than 40 
percent for other forms of lawful gambling, may be expended for 
necessary expenses related to lawful gambling.  The board shall 
provide by rule for the administration of this section, 
including specifying allowable expenses.  The rules may provide 
a maximum percentage of gross receipts which may be expended for 
certain expenses.  
    Sec. 8.  Minnesota Statutes 1984, section 349.151, 
subdivision 2, is amended to read: 
    Subd. 2.  [MEMBERSHIP.] The board consists of 13 members 
appointed as follows:  
    (1) eleven persons appointed by the governor with the 
advice and consent of the senate, at least four of whom must 
reside outside of the seven-county metropolitan area;  
    (2) the commissioner of public safety or his designee; and 
    (3) the attorney general or his designee.  
    A member serving on the board by appointment must have been 
a resident of Minnesota for at least five years.  Of the 
appointees of the governor not more than six may belong to the 
same political party.  A member appointed to the board may be 
removed at any time by the appointing authority.  Vacancies on 
the board are filled in the same manner as the original 
appointment.  Of the members appointed by the governor, three 
are for terms expiring June 30, 1985, four are for terms 
expiring June 30, 1986, and four are for terms expiring June 30, 
1987.  After the expiration of the initial terms, appointments 
are for three years.  The governor shall appoint the chairperson 
from among his appointees. 
    Sec. 9.  Minnesota Statutes 1984, section 349.151, 
subdivision 4, is amended to read: 
    Subd. 4.  [POWERS AND DUTIES.] The board has the following 
powers and duties:  
    (1) to issue, revoke, and suspend licenses to organizations 
and suppliers, distributors, and manufacturers under sections 
349.16 and, 349.161, and section 15; 
    (2) to collect and deposit license fees and taxes due under 
this chapter;  
    (3) to receive reports required by this chapter and inspect 
the records, books, and other documents of organizations and 
suppliers to insure compliance with all applicable laws and 
rules;  
    (4) to make rules, including emergency rules, required by 
this chapter;  
    (5) to register gambling equipment and issue registration 
stamps under section 349.162;  
    (6) 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; and 
    (7) to report annually to the governor and legislature on 
its activities and on recommended changes in the laws governing 
charitable gambling; and 
    (8) impose civil penalties of not more than $500 per 
violation on organizations, distributors, and manufacturers for 
failure to comply with any provision of sections 349.12 to 
349.23 or any rule of the board.  
    Sec. 10.  Minnesota Statutes 1984, section 349.16, 
subdivision 3, is amended to read: 
    Subd. 3.  [FEES.] The board shall by rule establish a 
schedule of fees for licenses under this section.  The schedule 
must establish three four classes of license, authorizing all 
forms of lawful gambling, all forms except bingo, raffles only, 
and bingo only.  
    Sec. 11.  Minnesota Statutes 1984, section 349.16, is 
amended by adding a subdivision to read: 
    Subd. 4.  [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 license to conduct lawful gambling.  
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; and 
    (3) for all other cities and counties, $100. 
    Sec. 12.  Minnesota Statutes 1984, section 349.161, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PROHIBITED ACTS; LICENSES REQUIRED.] No 
person may:  
    (1) sell, offer for sale, or furnish gambling equipment for 
use within the state for gambling purposes, other than for bingo 
lawful gambling exempt from licensing under section 340.19 
349.214, except to an organization licensed for lawful gambling; 
or 
    (2) sell, offer for sale, or furnish gambling equipment to 
an organization licensed for lawful gambling without having 
obtained a distributor license under this section.  
    No licensed organization may purchase gambling equipment 
from any person not licensed as a distributor under this section.
    Sec. 13.  Minnesota Statutes 1984, section 349.161, is 
amended by adding a subdivision to read:  
    Subd. 8.  [EMPLOYEES OF DISTRIBUTORS.] Licensed 
distributors shall provide the board upon request with the names 
and business addresses of all employees.  Each person eligible 
to conduct sales on behalf of a distributor must have in 
possession a picture identification card approved by the board. 
    Sec. 14.  Minnesota Statutes 1984, section 349.162, is 
amended to read: 
    349.162 [EQUIPMENT REGISTERED.] 
    Subdivision 1.  [STAMP REQUIRED.] A distributor may not 
sell to an organization and an organization may not purchase 
from a distributor gambling equipment unless the equipment has 
been registered with the board and has a registration stamp 
affixed.  The board may shall charge a fee of up to 25 five 
cents for each stamp.  Each stamp must bear a registration 
number assigned by the board.  A distributor is entitled to a 
refund for unused stamps and replacement for stamps which are 
defective or canceled by the distributor. 
    Subd. 2.  [RECORDS REQUIRED.] A distributor must maintain a 
record of all gambling equipment which it sells to 
organizations.  The record must include:  
    (1) the identity of the person or firm from whom the 
equipment was purchased;  
    (2) the registration number of the equipment;  
    (3) the name and address of the organization to which the 
sale was made; and 
    (4) the date of the sale.  
    The record invoice for each sale must be retained for at 
least three years one year after the sale is completed and a 
copy of the invoice is delivered to the board.  For purposes of 
this section, a sale is completed when the gambling equipment is 
physically delivered to the purchaser.  
    Each distributor must report monthly to the board, on in a 
form the board prescribes, its sales of each type of gambling 
equipment.  Employees of the board may inspect the books, 
records, and other documents of a distributor at any reasonable 
time without notice and without a search warrant.  
    Subd. 3.  [SALES FROM FACILITIES.] All gambling equipment 
purchased by a licensed distributor for resale in Minnesota must 
prior to its resale be unloaded into a facility located in 
Minnesota which the distributor owns or leases. 
    Subd. 3.  [EXEMPTION.] For purposes of this section, bingo 
cards intended to be used for more than one game need not be 
registered.  
    Sec. 15.  [349.163] [REGISTRATION OF MANUFACTURERS.] 
    Subdivision 1.  [REGISTRATION.] No manufacturer of gambling 
equipment may sell any gambling equipment to any person unless 
the manufacturer has registered with the board and has been 
issued a certificate of registration. 
    Subd. 2.  [CERTIFICATE; FEE.] A certificate under this 
section is valid for one year.  The annual fee for registration 
is $500. 
    Subd. 3.  [PROHIBITED SALES.] A manufacturer may not sell 
gambling equipment to any person not licensed as a distributor 
unless the manufacturer is also a licensed distributor. 
    Sec. 16.  Minnesota Statutes 1984, section 349.17, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [DISTRIBUTOR LICENSE EXEMPTION FOR LESSOR.] As 
part of a lease agreement on a leased bingo premises, the lessor 
may furnish bingo equipment without being a licensed distributor.
    Sec. 17.  [349.171] [CERTAIN SIGNS PROHIBITED.] 
     No organization may post on the premises where it conducts 
lawful gambling any sign which states directly or indirectly 
that all of the receipts from the lawful gambling it conducts 
are used for charitable purposes. 
    Sec. 18.  Minnesota Statutes 1984, section 349.18, 
subdivision 2, is amended to read: 
    Subd. 2.  [EXCEPTIONS.] (a) A licensed organization may 
conduct raffles on a premise it does not own or lease.  
    (b) A licensed organization may with the permission of the 
board, conduct bingo on premises it does not own or lease for up 
to six days in a calendar year, in connection with a county fair 
or civil celebration.  
    (c) A licensed organization may, after compliance with 
section 349.213, conduct lawful gambling on premises other than 
the organization's licensed premise for one day per year for not 
more than 12 hours that day.  A lease for that time period for 
the exempted premises must accompany the request to the board. 
    Sec. 19.  Minnesota Statutes 1984, section 349.19, 
subdivision 5, is amended to read: 
    Subd. 5.  [REPORTS.] A licensed organization must report to 
the board 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.  If the 
organization conducts both bingo and other forms of lawful 
gambling, the figures for both must be reported separately.  In 
addition, a licensed organization must report to the board 
monthly on its purchases of gambling equipment and must include 
the type, quantity, and dollar amount from each supplier 
separately.  The reports must be on a form the board prescribes. 
    Sec. 20.  Minnesota Statutes 1984, section 349.19, 
subdivision 6, is amended to read: 
    Subd. 6.  [PRESERVATION OF RECORDS.] The board may require 
that records required to be kept by this section must be 
preserved by a licensed organization for at least three two 
years and may be inspected by employees of the board at any 
reasonable time without notice or a search warrant. 
    Sec. 21.  Minnesota Statutes 1984, section 349.211, is 
amended by adding a subdivision to read: 
    Subd. 2a.  [PULL-TAB PRIZES.] The maximum prize which may 
be awarded for any single pull-tab is $250.  An organization may 
not sell any pull-tab for more than $2. 
    Sec. 22.  Minnesota Statutes 1985 Supplement, section 
349.212, subdivision 1, is amended to read: 
    Subdivision 1.  [RATE.] There is hereby imposed a tax on 
all lawful gambling, other than pull-tabs, conducted by 
organizations licensed by the board at the rate specified in 
this subdivision.  The tax imposed by this section subdivision 
is in lieu of the tax imposed by section 297A.02 and of all 
local taxes and license fees except a fee authorized under 
section 349.213, subdivision 3.  
    On all lawful gambling, other than pull-tabs, the tax is 
ten percent of the gross receipts of a licensed organization 
from lawful gambling less prizes actually paid out, payable by 
the organization.  
    Sec. 23.  Minnesota Statutes 1984, section 349.212, is 
amended by adding a subdivision to read: 
    Subd. 4.  [PULL-TAB TAX.] There is imposed a tax on the 
sale of each deal of pull-tabs sold by a licensed distributor to 
a licensed organization, or to an organization holding an 
exemption identification number.  The rate of the tax is ten 
percent of the face resale value of all the pull-tabs in each 
deal less the total prizes which may be paid out on all the 
pull-tabs in that deal.  The tax is payable to the commissioner 
of revenue in the manner prescribed in section 24 and the rules 
of the commissioner.  The commissioner shall pay the proceeds of 
the tax to the state treasurer for deposit in the general fund.  
The sales tax imposed by chapter 297A on the sale of the 
pull-tabs by the licensed distributor to an organization is 
imposed on the retail sales price less the tax imposed by this 
subdivision.  The retail sale of pull-tabs by the organization 
is exempt from taxes imposed by chapter 297A if the tax imposed 
by this subdivision has been paid and is exempt from all local 
taxes and license fees except a fee authorized under section 
349.213, subdivision 3. 
    Sec. 24.  [349.2121] [PULL-TAB TAX; COLLECTION.] 
    Subdivision 1.  [APPLICATION AND ISSUANCE.] Every 
distributor licensed by the board who sells pull-tabs to 
organizations authorized to sell pull-tabs under this chapter 
must file with the commissioner of revenue an application, on a 
form the commissioner prescribes, for a gambling tax 
identification number and gambling tax permit.  The 
commissioner, when satisfied that the applicant has a valid 
license from the board, shall issue the applicant a permit and 
number.  A permit is not assignable and is valid only for the 
distributor in whose name it is issued. 
    Subd. 2.  [RECORDS.] The commissioner may by rule require a 
licensed distributor holding a permit under this section to keep 
such books, papers, documents, and records as the commissioner 
deems necessary to the enforcement of this chapter.  The 
commissioner may examine, or cause to be examined, any books, 
papers, records, or other documents relevant to making a 
determination, whether they are in the possession of a 
distributor or another person or corporation.  The commissioner 
may require the attendance of any persons having knowledge or 
information in the premises, to compel the production of books, 
papers, records, or memoranda by persons so required to attend, 
to take testimony on matters material to a determination, and to 
administer oaths or affirmations. 
    Subd. 3.  [SUSPENSION, REVOCATION.] The commissioner, after 
notice and hearing, may for reasonable cause revoke or suspend a 
permit held by a distributor.  A notice must be sent to the 
distributor at least 30 days before the hearing and give notice 
of the time and place of the hearing, must give the reason for 
the proposed suspension or revocation, and must require the 
distributor show cause why the proposed action should not be 
taken.  The notice may be served personally or by mail in the 
manner prescribed for service of notice of a deficiency.  The 
commissioner may not issue a new permit after revocation except 
upon application accompanied by reasonable evidence of the 
intention of the applicant to comply with all applicable laws 
and rules.  The commissioner may condition the issuance of a new 
permit to the applicant on the supplying of security in addition 
to that authorized by subdivision 2 as is reasonably necessary 
to ensure compliance with all applicable laws and rules.  
    Subd. 4.  [COLLECTION.] The tax imposed by section 349.212, 
subdivision 4, for each taxable sale is due and payable to the 
commissioner monthly on or before the 25th day of the month 
succeeding the month in which the taxable sale was made.  
    Subd. 5.  [INFORMATION CONFIDENTIAL.] Neither the 
commissioner nor any other public official or employee may 
divulge or otherwise make known in any manner any particulars 
disclosed in any report or return required by this section, or 
any information concerning the affairs of the distributor making 
the return acquired from its records, officers, or employees 
while examining or auditing under the authority of this chapter, 
except in connection with a proceeding involving taxes due under 
this chapter.  Nothing herein prohibits the commissioner from 
publishing statistics so classified as not to disclose the 
identity of particular returns or reports and their contents.  
Any person violating the provisions of this section is guilty of 
a gross misdemeanor. 
    Notwithstanding the provisions of this section, the 
commissioner may furnish information on a reciprocal basis to 
the taxing officials of another state or the board in order to 
implement the purposes of this chapter. 
    In order to facilitate processing of returns and payments 
of taxes required by this chapter, the commissioner may contract 
with outside vendors and may disclose private and nonpublic data 
to the vendor.  The data disclosed must be administered by the 
vendor consistent with this section.  
    Subd. 6.  [COLLECTIONS; CIVIL PENALTIES.] The provisions of 
chapter 297A relating to the commissioner's authority to audit, 
assess, and collect the tax imposed by that chapter apply to the 
tax, penalties and interest imposed by section 349.212, 
subdivision 4.  The commissioner shall impose civil penalties 
for violation of this section as provided in chapter 297A, and 
the additional tax and penalties are subject to interest at the 
rate provided in section 270.75. 
    Subd. 7.  [RULES.] The commissioner shall adopt rules, 
including emergency rules, for the administration and 
enforcement of this section and section 349.212, subdivision 4. 
    Sec. 25.  Minnesota Statutes 1984, section 349.213, is 
amended to read: 
    Subdivision 1.  [LOCAL REGULATION.] A statutory or home 
rule city or county has the authority to adopt more stringent 
regulation of any form of lawful gambling within its 
jurisdiction, including the prohibition of any form of lawful 
gambling, and may require a permit for the conduct of gambling 
exempt from licensing under section 349.214.  The fee for a 
permit issued under this subdivision may not exceed $100.  The 
authority granted by this subdivision does not include the 
authority to require a license or permit to conduct gambling by 
organizations or sales by distributors licensed by the board.  
    Subd. 2.  [LOCAL APPROVAL.] Before issuing or renewing an 
organization license, the board must notify the city council of 
the statutory or home rule city in which the organization's 
premises are located or, if the premises are located outside a 
city, by the county board of the county and the town board of 
the town where the premises are located.  If the city council or 
county board adopts a resolution disapproving the license and so 
informs the board within 30 days of receiving notice of the 
license, the license may not be issued or renewed.  
    Sec. 26.  Minnesota Statutes 1984, section 349.214, 
subdivision 2, is amended to read: 
    Subd. 2.  [RAFFLES LAWFUL GAMBLING.] (a) Raffles may be 
conducted by an organization as defined in section 349.12, 
subdivision 13 12, without complying with sections 349.11 
to 349.14 and 349.151 to 349.213 if the value of all raffle 
prizes awarded by the organization in a calendar year does not 
exceed $750.  
    (b) Lawful gambling may be conducted by an organization as 
defined in section 349.12, subdivision 12, without complying 
with sections 349.11 to 349.14 and 349.151 to 349.212 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 notifies the board in writing not less 
than 30 days before each lawful gambling occasion of the date 
and location of the occasion, 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; 
    (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.  
    (c) If the organization fails to file a timely report as 
required by paragraph (b), clause (3) or (6), a $250 penalty is 
imposed on the organization.  Failure to file a timely report 
does not disqualify the organization as exempt under this 
paragraph if a report is subsequently filed and the penalty paid.
    (d) Merchandise prizes must be valued at their fair market 
value. 
    Sec. 27.  Minnesota Statutes 1984, section 349.214, is 
amended by adding a subdivision to read: 
    Subd. 4.  [TAXATION.] An organization's receipts from 
lawful gambling that is exempt from licensing under this section 
is not subject to the tax imposed by section 297A.02 or 349.212. 
    Sec. 28.  Minnesota Statutes 1984, section 349.31, 
subdivision 1, is amended to read: 
    Subdivision 1.  [INTENTIONAL POSSESSION; WILLFUL KEEPING.] 
The intentional possession or willful keeping of a gambling 
device on a licensed premises is cause for the 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 17, which is used for lawful gambling licensed by 
the charitable gambling control board 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. 
    Sec. 29.  Minnesota Statutes 1984, section 609.75, 
subdivision 3, is amended to read: 
    Subd. 3.  [WHAT ARE NOT BETS.] The following are not bets: 
    (1) A contract to insure, indemnify, guarantee or otherwise 
compensate another for a harm or loss sustained, even though the 
loss depends upon chance. 
    (2) A contract for the purchase or sale at a future date of 
securities or other commodities. 
    (3) Offers of purses, prizes or premiums to the actual 
contestants in any bona fide contest for the determination of 
skill, speed, strength, endurance, or quality or to the bona 
fide owners of animals or other property entered in such a 
contest. 
    (4) The game of bingo when conducted in compliance with 
sections 349.11 to 349.23. 
    (5) A private social bet not part of or incidental to 
organized, commercialized, or systematic gambling. 
    (6) The operation of equipment or the conduct of a raffle 
under sections 349.11 to 349.22, by an organization licensed by 
the charitable gambling control board or an organization exempt 
from licensing under section 349.214.  
    (7) Pari-mutuel betting on horse racing when the betting is 
conducted under chapter 240.  
    Sec. 30.  Minnesota Statutes 1984, section 609.761, is 
amended to read: 
    609.761 [OPERATIONS PERMITTED.] 
    Notwithstanding sections 609.755 and 609.76, an 
organization may conduct lawful gambling as defined in section 
349.12, if licensed by the charitable gambling control board and 
conducted under sections 349.11 to 349.22 authorized under 
chapter 349, and a person may manufacture, sell, or offer for 
sale a gambling device to the an organization authorized under 
chapter 349 to conduct lawful gambling, and pari-mutuel betting 
on horse racing may be conducted under chapter 240. 
    Sec. 31.  [TAX AMNESTY; NONPROFIT ORGANIZATIONS.] 
    For an organization that has an unpaid liability for sales 
tax due under Minnesota Statutes, chapter 297A, arising out of 
lawful gambling conducted under Minnesota Statutes, chapter 349, 
between March 1, 1982, and June 30, 1985, the commissioner of 
revenue shall accept as full payment of the liability, a 
certified check, cashier's check, or money order in the amount 
of 50 percent of the liability incurred, plus interest.  Payment 
must be received by the commissioner of revenue before January 
1, 1987.  For delinquent returns filed under this section, the 
civil and criminal penalties imposed by law are waived. 
    Sec. 32.  [SALES TAX EXEMPTION.] 
    The gross receipts from the conduct of lawful gambling 
conducted under Minnesota Statutes, chapter 349, received prior 
to March 1, 1982, shall be exempt from taxation under Minnesota 
Statutes, chapter 297A.  No refunds shall be paid pursuant to 
this section unless the organization can demonstrate to the 
commissioner of revenue that the refunds will be paid to those 
who paid the tax.  
    Sec. 33.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective the day following final 
enactment.  Section 8 is effective the day following final 
enactment and applies to persons appointed to the charitable 
gambling control board after that date.  Sections 4 to 7, 9 to 
14, 16 to 21, and 25 to 32 are effective June 1, 1986.  Section 
15 is effective July 1, 1986.  Sections 22 to 24 are effective 
January 1, 1987. 
    Approved March 25, 1986