Minnesota Session Laws - 2000, Regular Session

                            CHAPTER 336-S.F.No. 2828 
                  An act relating to gambling; regulating and 
                  prohibiting certain activities with respect to 
                  gambling; regulating shipment of gambling devices; 
                  providing penalties; amending Minnesota Statutes 1998, 
                  sections 299L.07, subdivisions 2a and 10; 349.12, 
                  subdivision 25; 349.2125, subdivision 1; 609.75, by 
                  adding subdivisions; and 609.76, subdivision 2, and by 
                  adding subdivisions. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1998, section 299L.07, 
        subdivision 2a, is amended to read: 
           Subd. 2a.  [RESTRICTIONS.] (a) A manufacturer licensed 
        under this section may sell, offer to sell, lease, or rent, in 
        whole or in part, a gambling device only to a distributor 
        licensed under this section. 
           (b) A distributor licensed under this section may sell, 
        offer to sell, market, rent, lease, or otherwise provide, in 
        whole or in part, a gambling device only to: 
           (1) the governing body of a federally recognized Indian 
        tribe that is authorized to operate the gambling device under a 
        tribal state compact under the Indian Gaming Regulatory Act, 
        Public Law Number 100-497, and future amendments to it; 
           (2) a person for use in the person's dwelling for display 
        or amusement purposes in a manner that does not afford players 
        an opportunity to obtain anything of value; 
           (3) another distributor licensed under this section; or 
           (4) a person in another state who is authorized under the 
        laws of that state to possess the gambling device. 
           Sec. 2.  Minnesota Statutes 1998, section 299L.07, 
        subdivision 10, is amended to read: 
           Subd. 10.  [TRANSPORTATION OF GAMBLING DEVICES.] In 
        addition to the requirements of this section, the transportation 
        of gambling devices into or out of Minnesota must be in 
        compliance with United States Code, title 15, sections 1171 to 
        1177, as amended. 
           Sec. 3.  Minnesota Statutes 1998, section 349.12, 
        subdivision 25, is amended to read: 
           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 an individual or family suffering 
        from poverty, homelessness, or physical or mental disability, 
        which is used to relieve the effects of that poverty, 
        homelessness, or disability; 
           (3) a contribution to an individual for treatment for 
        delayed posttraumatic stress syndrome or a contribution to a 
        program recognized by the Minnesota department of human services 
        for the education, prevention, or treatment of compulsive 
        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 a scholarship fund 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 humanitarian or 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 occasion 
        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; or 
           (ii) members of an organization solely for services 
        performed by the members at funeral 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 wholly owned by the licensed 
        organization paying the taxes, not to exceed: 
           (i) for premises used for bingo, the amount that an 
        organization may expend under board rules on rent for bingo; and 
           (ii) $35,000 per year for premises used for other forms of 
        lawful gambling; 
           (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 one-half of the reasonable costs of an 
        audit required in section 297E.06, subdivision 4; 
           (13) a contribution to or expenditure on a wildlife 
        management project that benefits the public at-large, provided 
        that the state agency with authority over that wildlife 
        management project approves the project before the contribution 
        or expenditure is made; 
           (14) expenditures, approved by the commissioner of natural 
        resources, by an organization for grooming and maintaining 
        snowmobile trails that are (1) grant-in-aid trails established 
        under section 85.019, or (2) other trails open to public use, 
        including purchase or lease of equipment for this purpose; or 
           (15) conducting nutritional programs, food shelves, and 
        congregate dining programs primarily for persons who are age 62 
        or older or disabled; or 
           (16) 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.
           (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 natural disaster, 
        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. 
           Sec. 4.  Minnesota Statutes 1998, section 349.2125, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONTRABAND DEFINED.] The following are 
        contraband: 
           (1) all pull-tab or tipboard deals or paddleticket cards 
        not stamped or 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, whether stamped or 
        unstamped; 
           (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; and 
           (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. 
           Sec. 5.  Minnesota Statutes 1998, section 609.75, is 
        amended by adding a subdivision to read: 
           Subd. 4a.  [ASSOCIATED EQUIPMENT.] Associated equipment 
        means any equipment used in connection with gambling that would 
        not be classified as a gambling device, including but not 
        limited to:  cards, dice, computerized systems of betting at a 
        race book or sports pool, computerized systems for monitoring 
        slot machines or games of chance, devices for weighing or 
        counting money, and links which connect progressive slot 
        machines. 
           Sec. 6.  Minnesota Statutes 1998, section 609.75, is 
        amended by adding a subdivision to read: 
           Subd. 10.  [GAME.] A game means any game played with cards, 
        dice, equipment, or any mechanical or electronic device or 
        machine for money or other value, whether or not approved by 
        law, and includes, but is not limited to:  card and dice games 
        of chance, slot machines, banking or percentage games, video 
        games of chance, sports pools, pari-mutuel betting, and race 
        book.  "Game" does not include any private social bet. 
           Sec. 7.  Minnesota Statutes 1998, section 609.75, is 
        amended by adding a subdivision to read: 
           Subd. 11.  [AUTHORIZED GAMBLING ACTIVITY.] An authorized 
        gambling activity means any form of gambling authorized by and 
        operated in conformance with law. 
           Sec. 8.  Minnesota Statutes 1998, section 609.75, is 
        amended by adding a subdivision to read: 
           Subd. 12.  [AUTHORIZED GAMBLING ESTABLISHMENT.] An 
        authorized gambling establishment means any premises where 
        gambling authorized by law is occurring. 
           Sec. 9.  Minnesota Statutes 1998, section 609.75, is 
        amended by adding a subdivision to read: 
           Subd. 13.  [APPLICABILITY OF DEFINITIONS.] For the purposes 
        of sections 609.75 to 609.762, the terms defined in this section 
        have the meanings given, unless the context clearly indicates 
        otherwise. 
           Sec. 10.  Minnesota Statutes 1998, section 609.76, 
        subdivision 2, is amended to read: 
           Subd. 2.  [FELONY GAMBLING SPORTS BOOKMAKING.] Whoever 
        engages in sports bookmaking is guilty of a felony.  
           Sec. 11.  Minnesota Statutes 1998, section 609.76, is 
        amended by adding a subdivision to read: 
           Subd. 3.  [CHEATING.] Whoever cheats in a game, as 
        described in this subdivision, is subject to the following 
        penalties: 
           (i) if the person holds a license related to gambling or is 
        an employee of the licensee, the person is guilty of a felony; 
        and 
           (ii) any other person is guilty of a gross misdemeanor.  
        Any person who is a repeat offender is guilty of a felony.  
           A person cheats in a game by intentionally: 
           (1) altering or misrepresenting the outcome of a game or 
        event on which wagers have been made, after the outcome is 
        determined, but before the outcome is revealed to the players; 
           (2) placing, canceling, increasing, or decreasing a bet 
        after acquiring knowledge, not available to other players, of 
        the outcome of the game or subject of the bet, or of events 
        affecting the outcome of the game or subject of the bet; 
           (3) claiming or collecting money or anything of value from 
        a game or authorized gambling establishment not won or earned 
        from the game or authorized gambling establishment; 
           (4) manipulating a gambling device or associated equipment 
        to affect the outcome of the game or the number of plays or 
        credits available on the game; or 
           (5) otherwise altering the elements of chance or methods of 
        selection or criteria which determine the result of the game or 
        amount or frequency of payment of the game. 
           Sec. 12.  Minnesota Statutes 1998, section 609.76, is 
        amended by adding a subdivision to read: 
           Subd. 4.  [CERTAIN DEVICES PROHIBITED.] (a) Whoever uses or 
        possesses a probability-calculating or outcome-affecting device 
        at an authorized gambling establishment is guilty of a felony.  
        For purposes of this subdivision, a "probability-calculating" or 
        "outcome-affecting" device is any device to assist in: 
           (1) projecting the outcome of a game other than pari-mutuel 
        betting authorized by chapter 240; 
           (2) keeping track of or counting cards used in a game; 
           (3) analyzing the probability of the occurrence of an event 
        relating to a game other than pari-mutuel betting authorized by 
        chapter 240; or 
           (4) analyzing the strategy for playing or betting in a game 
        other than pari-mutuel betting authorized by chapter 240.  
           For purposes of this section, a book, graph, periodical, 
        chart, or pamphlet is not a "probability-calculating" or 
        "outcome-affecting" device. 
           (b) Whoever uses, or possesses with intent to use, a key or 
        other instrument for the purpose of opening, entering, and 
        affecting the operation of any game or gambling device or for 
        removing money, chips, tokens, or other contents from therein, 
        is guilty of a felony.  This paragraph does not apply to an 
        agent or employee of an authorized gambling establishment acting 
        within the scope of employment. 
           Sec. 13.  Minnesota Statutes 1998, section 609.76, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [COUNTERFEIT CHIPS PROHIBITED.] Whoever 
        intentionally uses counterfeit chips or tokens to play a game at 
        an authorized gambling establishment as defined in section 
        609.75, subdivision 5, designed to be played with or operated by 
        chips or tokens is guilty of a felony.  For purposes of this 
        subdivision, counterfeit chips or tokens are chips or tokens not 
        approved by the government regulatory agency for use in an 
        authorized gambling activity. 
           Sec. 14.  Minnesota Statutes 1998, section 609.76, is 
        amended by adding a subdivision to read: 
           Subd. 6.  [MANUFACTURE, SALE, AND MODIFICATION 
        PROHIBITED.] (a) Whoever manufactures, sells, distributes, or 
        otherwise provides cards, chips, tokens, dice, or other 
        equipment or devices intended to be used to violate this 
        section, is guilty of a felony. 
           (b) Whoever intentionally marks, alters, or otherwise 
        modifies lawful associated equipment or gambling devices for the 
        purpose of violating this section is guilty of a felony. 
           Sec. 15.  Minnesota Statutes 1998, section 609.76, is 
        amended by adding a subdivision to read: 
           Subd. 7.  [INSTRUCTION.] Whoever instructs another person 
        to violate the provisions of this section, with the intent that 
        the information or knowledge conveyed be used to violate this 
        section, is guilty of a felony. 
           Sec. 16.  Minnesota Statutes 1998, section 609.76, is 
        amended by adding a subdivision to read: 
           Subd. 8.  [VALUE OF CHIPS OR TOKENS.] The value of chips or 
        tokens approved for use in a game designed to be played with or 
        operated by chips or tokens, as the term "value" is used in 
        section 609.52, is the amount or denomination shown on the face 
        of the chip or token representing United States currency.  Chips 
        used in tournament play at a card club at a class A facility 
        have no United States currency value. 
           Sec. 17.  [EFFECTIVE DATE.] 
           Sections 1 to 16 are effective the day following final 
        enactment. 
           Presented to the governor April 3, 2000 
           Signed by the governor April 6, 2000, 3:48 p.m.