<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to gambling; establishing video lottery terminals; imposing a tax on <br />
         		<a id="pl.1.3"></a><var>1.3</var>and providing for video lottery revenue; modifying certain lawful gambling <br />
         		<a id="pl.1.4"></a><var>1.4</var>taxes; modifying conduct of electronic bingo; authorizing gambling control <br />
         		<a id="pl.1.5"></a><var>1.5</var>board to establish video pull-tab games;amending Minnesota Statutes 2008, <br />
         		<a id="pl.1.6"></a><var>1.6</var>sections 297E.02, subdivision 1; 299L.02, subdivision 1; 299L.07, subdivisions <br />
         		<a id="pl.1.7"></a><var>1.7</var>2, 2a; 340A.410, subdivision 5; 349.12, subdivisions 5, 25b, 25c, 25d, by <br />
         		<a id="pl.1.8"></a><var>1.8</var>adding subdivisions; 349.151, subdivision 4c, by adding a subdivision; 349.16, <br />
         		<a id="pl.1.9"></a><var>1.9</var>subdivision 7; 349.1635, subdivision 1; 349.17, subdivision 8; 349.211, <br />
         		<a id="pl.1.10"></a><var>1.10</var>subdivision 1a; 349A.01, subdivisions 10, 11, 12, by adding subdivisions; <br />
         		<a id="pl.1.11"></a><var>1.11</var>349A.04; 349A.06, subdivisions 1, 5, 8, 10, by adding subdivisions; 349A.08, <br />
         		<a id="pl.1.12"></a><var>1.12</var>subdivisions 1, 5, 8; 349A.09, subdivision 1; 349A.10, subdivisions 2, 3, 4, 6; <br />
         		<a id="pl.1.13"></a><var>1.13</var>349A.11, subdivision 1; 349A.12, subdivisions 1, 2; 349A.13; 541.20; 541.21; <br />
         		<a id="pl.1.14"></a><var>1.14</var>609.651, subdivision 1; 609.75, subdivisions 3, 4; 609.761, subdivision 2; <br />
         		<a id="pl.1.15"></a><var>1.15</var>Minnesota Statutes 2009 Supplement, sections 297A.94; 349.12, subdivision <br />
         		<a id="pl.1.16"></a><var>1.16</var>12a; 349.15, subdivision 1; 349.17, subdivisions 6, 7; 349.18, subdivision 1; <br />
         		<a id="pl.1.17"></a><var>1.17</var>proposing coding for new law in Minnesota Statutes, chapters 297A; 349; 349A; <br />
         		<a id="pl.1.18"></a><var>1.18</var>repealing Minnesota Statutes 2008, sections 297E.01, subdivision 7; 297E.02, <br />
         		<a id="pl.1.19"></a><var>1.19</var>subdivisions 4, 6, 7.<br />
         		<a id="pl.1.20"></a><var>1.20</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.1.0.0"></a><div class="xtend_ce"><a id="pl.1.21"></a><var>1.21</var><b>ARTICLE 1</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.1.22"></a><var>1.22</var><b>VIDEO LOTTERY TERMINALS</b><br />
            		
         </div><br />
         		<a id="bill.1.1.0"></a><a id="pl.1.23"></a><var>1.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. <b> </b><b>[297A.652] LOTTERY GAMING MACHINES; IN-LIEU TAX.</b><br />
         		<a id="pl.1.24"></a><var>1.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Net terminal income from the operation of video lottery terminals authorized under <br />
         		<a id="pl.1.25"></a><var>1.25</var>section 349A.071 is exempt from the tax imposed under section 297A.62. The State <br />
         		<a id="pl.1.26"></a><var>1.26</var>Lottery must on or before the 20th day of each month transmit to the commissioner an <br />
         		<a id="pl.1.27"></a><var>1.27</var>amount equal to the net terminal income from the operation of video lottery terminals <br />
         		<a id="pl.1.28"></a><var>1.28</var>as defined in section 349A.01, for the previous month multiplied by 28 percent. The <br />
         		<a id="pl.2.1"></a><var>2.1</var>commissioner shall deposit the money transmitted under this section in the state treasury <br />
         		<a id="pl.2.2"></a><var>2.2</var>to be credited as provided in section 297A.94.<br />
         		<br />
         		<a id="bill.1.2.0"></a><a id="pl.2.3"></a><var>2.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2009 Supplement, section 297A.94, is amended to read:<br />
         		<a id="pl.2.4"></a><var>2.4</var><b>297A.94 DEPOSIT OF REVENUES.</b><br />
         		<a id="pl.2.5"></a><var>2.5</var>(a) Except as provided in this section, the commissioner shall deposit the revenues, <br />
         		<a id="pl.2.6"></a><var>2.6</var>including interest and penalties, derived from the taxes imposed by this chapter in the state <br />
         		<a id="pl.2.7"></a><var>2.7</var>treasury and credit them to the general fund.<br />
         		<a id="pl.2.8"></a><var>2.8</var>(b) The commissioner shall deposit taxes in the Minnesota agricultural and economic <br />
         		<a id="pl.2.9"></a><var>2.9</var>account in the special revenue fund if:<br />
         		<a id="pl.2.10"></a><var>2.10</var>(1) the taxes are derived from sales and use of property and services purchased for <br />
         		<a id="pl.2.11"></a><var>2.11</var>the construction and operation of an agricultural resource project; and<br />
         		<a id="pl.2.12"></a><var>2.12</var>(2) the purchase was made on or after the date on which a conditional commitment <br />
         		<a id="pl.2.13"></a><var>2.13</var>was made for a loan guaranty for the project under section 
         <statute_ref>41A.04, subdivision 3</statute_ref>.<br />
         		<a id="pl.2.14"></a><var>2.14</var>The commissioner of management and budget shall certify to the commissioner the date <br />
         		<a id="pl.2.15"></a><var>2.15</var>on which the project received the conditional commitment. The amount deposited in <br />
         		<a id="pl.2.16"></a><var>2.16</var>the loan guaranty account must be reduced by any refunds and by the costs incurred by <br />
         		<a id="pl.2.17"></a><var>2.17</var>the Department of Revenue to administer and enforce the assessment and collection of <br />
         		<a id="pl.2.18"></a><var>2.18</var>the taxes.<br />
         		<a id="pl.2.19"></a><var>2.19</var>(c) The commissioner shall deposit the revenues, including interest and penalties, <br />
         		<a id="pl.2.20"></a><var>2.20</var>derived from the taxes imposed on sales and purchases included in section 
         <statute_ref>297A.61, <br />
            		<a id="pl.2.21"></a><var>2.21</var>subdivision 3
         </statute_ref>, paragraph (g), clauses (1) and (4), in the state treasury, and credit them <br />
         		<a id="pl.2.22"></a><var>2.22</var>as follows:<br />
         		<a id="pl.2.23"></a><var>2.23</var>(1) first to the general obligation special tax bond debt service account in each fiscal <br />
         		<a id="pl.2.24"></a><var>2.24</var>year the amount required by section 
         <statute_ref>16A.661, subdivision 3</statute_ref>, paragraph (b); and<br />
         		<a id="pl.2.25"></a><var>2.25</var>(2) after the requirements of clause (1) have been met, the balance to the general <br />
         		<a id="pl.2.26"></a><var>2.26</var>fund.<br />
         		<a id="pl.2.27"></a><var>2.27</var>(d) The commissioner shall deposit the revenues, including interest and penalties, <br />
         		<a id="pl.2.28"></a><var>2.28</var>collected under section 
         <statute_ref>297A.64, subdivision 5</statute_ref>, in the state treasury and credit them to the <br />
         		<a id="pl.2.29"></a><var>2.29</var>general fund. By July 15 of each year the commissioner shall transfer to the highway user <br />
         		<a id="pl.2.30"></a><var>2.30</var>tax distribution fund an amount equal to the excess fees collected under section 
         <statute_ref>297A.64, <br />
            		<a id="pl.2.31"></a><var>2.31</var>subdivision 5
         </statute_ref>, for the previous calendar year.<br />
         		<a id="pl.2.32"></a><var>2.32</var>(e) For fiscal year 2001, 97 percent; for fiscal years 2002 and 2003, 87 percent; and <br />
         		<a id="pl.2.33"></a><var>2.33</var>for fiscal year 2004 and thereafter, 
         <statute_ref>72.43</statute_ref> percent of the revenues, including interest and <br />
         		<a id="pl.2.34"></a><var>2.34</var>penalties, transmitted to the commissioner under section 
         <statute_ref>297A.65</statute_ref>, must be deposited by <br />
         		<a id="pl.2.35"></a><var>2.35</var>the commissioner in the state treasury as follows:<br />
         		<a id="pl.3.1"></a><var>3.1</var>(1) 50 percent of the receipts must be deposited in the heritage enhancement account <br />
         		<a id="pl.3.2"></a><var>3.2</var>in the game and fish fund, and may be spent only on activities that improve, enhance, or <br />
         		<a id="pl.3.3"></a><var>3.3</var>protect fish and wildlife resources, including conservation, restoration, and enhancement <br />
         		<a id="pl.3.4"></a><var>3.4</var>of land, water, and other natural resources of the state;<br />
         		<a id="pl.3.5"></a><var>3.5</var>(2) 22.5 percent of the receipts must be deposited in the natural resources fund, and <br />
         		<a id="pl.3.6"></a><var>3.6</var>may be spent only for state parks and trails;<br />
         		<a id="pl.3.7"></a><var>3.7</var>(3) 22.5 percent of the receipts must be deposited in the natural resources fund, and <br />
         		<a id="pl.3.8"></a><var>3.8</var>may be spent only on metropolitan park and trail grants;<br />
         		<a id="pl.3.9"></a><var>3.9</var>(4) three percent of the receipts must be deposited in the natural resources fund, and <br />
         		<a id="pl.3.10"></a><var>3.10</var>may be spent only on local trail grants; and<br />
         		<a id="pl.3.11"></a><var>3.11</var>(5) two percent of the receipts must be deposited in the natural resources fund, <br />
         		<a id="pl.3.12"></a><var>3.12</var>and may be spent only for the Minnesota Zoological Garden, the Como Park Zoo and <br />
         		<a id="pl.3.13"></a><var>3.13</var>Conservatory, and the Duluth Zoo.<br />
         		<a id="pl.3.14"></a><var>3.14</var>(f) Revenues transmitted to the commissioner under section 297A.652 must be <br />
         		<a id="pl.3.15"></a><var>3.15</var>deposited by the commissioner in the state treasury in the general fund.<br />
         		<a id="pl.3.16"></a><var>3.16</var>~~(f)~~ (g) The revenue dedicated under ~~paragraph~~ paragraphs (e) and (f) may not be <br />
         		<a id="pl.3.17"></a><var>3.17</var>used as a substitute for traditional sources of funding for the purposes specified, but the <br />
         		<a id="pl.3.18"></a><var>3.18</var>dedicated revenue shall supplement traditional sources of funding for those purposes. Land <br />
         		<a id="pl.3.19"></a><var>3.19</var>acquired with money deposited in the game and fish fund under paragraph (e) must be open <br />
         		<a id="pl.3.20"></a><var>3.20</var>to public hunting and fishing during the open season, except that in aquatic management <br />
         		<a id="pl.3.21"></a><var>3.21</var>areas or on lands where angling easements have been acquired, fishing may be prohibited <br />
         		<a id="pl.3.22"></a><var>3.22</var>during certain times of the year and hunting may be prohibited. At least 87 percent of the <br />
         		<a id="pl.3.23"></a><var>3.23</var>money deposited in the game and fish fund for improvement, enhancement, or protection <br />
         		<a id="pl.3.24"></a><var>3.24</var>of fish and wildlife resources under paragraph (e) must be allocated for field operations.<br />
         		<a id="pl.3.25"></a><var>3.25</var>~~(g)~~ (h) The revenues deposited under paragraphs (a) to ~~(f)~~ (g) do not include <br />
         		<a id="pl.3.26"></a><var>3.26</var>the revenues, including interest and penalties, generated by the sales tax imposed <br />
         		<a id="pl.3.27"></a><var>3.27</var>under section 
         <statute_ref>297A.62, subdivision 1a</statute_ref>, which must be deposited as provided under the <br />
         		<a id="pl.3.28"></a><var>3.28</var>Minnesota Constitution, article XI, section 15.<br />
         		<br />
         		<a id="bill.1.3.0"></a><a id="pl.3.29"></a><var>3.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2008, section 297E.02, subdivision 1, is amended to read:<br />
         		<a id="pl.3.30"></a><var>3.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Imposition.</b> A tax is imposed on all lawful gambling ~~other than~~ <br />
         		<a id="pl.3.31"></a><var>3.31</var>~~(1) pull-tab deals or games; (2) tipboard deals or games; and (3) items listed in section~~ <br />
         		<a id="pl.3.32"></a><var>3.32</var>~~297E.01, subdivision 8, clauses (4) and (5),~~ at the rate of 8.5 percent on the gross receipts <br />
         		<a id="pl.3.33"></a><var>3.33</var>as defined in section 297E.01, subdivision 8, less prizes actually paid.  The tax imposed <br />
         		<a id="pl.3.34"></a><var>3.34</var>by this subdivision is in lieu of the tax imposed by section 297A.62 and all local taxes <br />
         		<a id="pl.4.1"></a><var>4.1</var>and license fees except a fee authorized under section 349.16, subdivision 8, or a tax <br />
         		<a id="pl.4.2"></a><var>4.2</var>authorized under subdivision 5.<br />
         		<a id="pl.4.3"></a><var>4.3</var>&nbsp;&nbsp;&nbsp;&nbsp; The tax imposed under this subdivision is payable by the organization or party <br />
         		<a id="pl.4.4"></a><var>4.4</var>conducting, directly or indirectly, the gambling.<br />
         		<a id="pl.4.5"></a><var>4.5</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br />
         		<br />
         		<a id="bill.1.4.0"></a><a id="pl.4.6"></a><var>4.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2008, section 299L.02, subdivision 1, is amended to read:<br />
         		<a id="pl.4.7"></a><var>4.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Lottery.</b>  (a) The director shall when required under chapter 349A or <br />
         		<a id="pl.4.8"></a><var>4.8</var>when requested by the director of the lottery conduct background checks on employees of <br />
         		<a id="pl.4.9"></a><var>4.9</var>the State Lottery, lottery retailers, and bidders of lottery procurement contracts.<br />
         		<a id="pl.4.10"></a><var>4.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The director shall, when so requested by the director of the State Lottery or when <br />
         		<a id="pl.4.11"></a><var>4.11</var>the director believes it to be reasonable and necessary, conduct investigations of lottery <br />
         		<a id="pl.4.12"></a><var>4.12</var>retailers, applicants for lottery retailer contracts, suppliers of goods or services to the State <br />
         		<a id="pl.4.13"></a><var>4.13</var>Lottery, and persons bidding on contracts for goods or services with the State Lottery.<br />
         		<a id="pl.4.14"></a><var>4.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The director shall conduct an annual security audit of the State Lottery, or arrange <br />
         		<a id="pl.4.15"></a><var>4.15</var>for such an audit by an outside agency or person, firm, or corporation.  The director shall <br />
         		<a id="pl.4.16"></a><var>4.16</var>report to the director of the lottery on the results of the audit.<br />
         		<a id="pl.4.17"></a><var>4.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) The director shall deposit in a separate account in the state treasury all money <br />
         		<a id="pl.4.18"></a><var>4.18</var>received from the director of the State Lottery for charges for investigations and <br />
         		<a id="pl.4.19"></a><var>4.19</var>background checks relating to the owning and operating of video lottery terminals under <br />
         		<a id="pl.4.20"></a><var>4.20</var>chapter 349A. Money in the account is appropriated to the director for the purpose of <br />
         		<a id="pl.4.21"></a><var>4.21</var>carrying out the director's powers and duties under this subdivision.<br />
         		<br />
         		<a id="bill.1.5.0"></a><a id="pl.4.22"></a><var>4.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2008, section 299L.07, subdivision 2, is amended to read:<br />
         		<a id="pl.4.23"></a><var>4.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Exclusions.</b> Notwithstanding subdivision 1, a gambling device:<br />
         		<a id="pl.4.24"></a><var>4.24</var>(1) may be sold by a person who is not licensed under this section, if the person (i) is <br />
         		<a id="pl.4.25"></a><var>4.25</var>not engaged in the trade or business of selling gambling devices, and (ii) does not sell <br />
         		<a id="pl.4.26"></a><var>4.26</var>more than one gambling device in any calendar year;<br />
         		<a id="pl.4.27"></a><var>4.27</var>(2) may be sold by the governing body of a federally recognized Indian tribe <br />
         		<a id="pl.4.28"></a><var>4.28</var>described in subdivision 2a, paragraph (b), clause (1), which is not licensed under this <br />
         		<a id="pl.4.29"></a><var>4.29</var>section, if (i) the gambling device was operated by the Indian tribe, (ii) the sale is to <br />
         		<a id="pl.4.30"></a><var>4.30</var>a distributor licensed under this section, and (iii) the licensed distributor notifies the <br />
         		<a id="pl.4.31"></a><var>4.31</var>commissioner of the purchase, in the same manner as is required when the licensed <br />
         		<a id="pl.4.32"></a><var>4.32</var>distributor ships a gambling device into Minnesota;<br />
         		<a id="pl.4.33"></a><var>4.33</var>(3) may be possessed by a person not licensed under this section if the person holds <br />
         		<a id="pl.4.34"></a><var>4.34</var>a permit issued under section  
         <statute_ref>299L.08</statute_ref>; ~~and~~<br />
         		<a id="pl.5.1"></a><var>5.1</var>(4) may be possessed by a state agency, with the written authorization of the director, <br />
         		<a id="pl.5.2"></a><var>5.2</var>for display or evaluation purposes only and not for the conduct of gambling; and<br />
         		<a id="pl.5.3"></a><var>5.3</var>(5) may be possessed by the State Lottery as authorized under chapter 349A.<br />
         		<br />
         		<a id="bill.1.6.0"></a><a id="pl.5.4"></a><var>5.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2008, section 299L.07, subdivision 2a, is amended to read:<br />
         		<a id="pl.5.5"></a><var>5.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2a. <b>Restrictions.</b> (a) A manufacturer licensed under this section may sell, <br />
         		<a id="pl.5.6"></a><var>5.6</var>offer to sell, lease, or rent, in whole or in part, a gambling device only to a distributor <br />
         		<a id="pl.5.7"></a><var>5.7</var>licensed under this section or to the State Lottery as authorized under chapter 349A.<br />
         		<a id="pl.5.8"></a><var>5.8</var>(b) A distributor licensed under this section may sell, offer to sell, market, rent, <br />
         		<a id="pl.5.9"></a><var>5.9</var>lease, or otherwise provide, in whole or in part, a gambling device only to:<br />
         		<a id="pl.5.10"></a><var>5.10</var>(1) the governing body of a federally recognized Indian tribe that is authorized <br />
         		<a id="pl.5.11"></a><var>5.11</var>to operate the gambling device under a tribal state compact under the Indian Gaming <br />
         		<a id="pl.5.12"></a><var>5.12</var>Regulatory Act, Public Law 100-497, and future amendments to it;<br />
         		<a id="pl.5.13"></a><var>5.13</var>(2) a person for use in the person's dwelling for display or amusement purposes in a <br />
         		<a id="pl.5.14"></a><var>5.14</var>manner that does not afford players an opportunity to obtain anything of value;<br />
         		<a id="pl.5.15"></a><var>5.15</var>(3) another distributor licensed under this section; ~~or~~<br />
         		<a id="pl.5.16"></a><var>5.16</var>(4) a person in another state who is authorized under the laws of that state to possess <br />
         		<a id="pl.5.17"></a><var>5.17</var>the gambling device; or<br />
         		<a id="pl.5.18"></a><var>5.18</var>(5) the State Lottery as authorized under chapter 349A.<br />
         		<br />
         		<a id="bill.1.7.0"></a><a id="pl.5.19"></a><var>5.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2008, section 340A.410, subdivision 5, is amended to read:<br />
         		<a id="pl.5.20"></a><var>5.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Gambling prohibited.</b> (a) Except as otherwise provided in this <br />
         		<a id="pl.5.21"></a><var>5.21</var>subdivision, no retail establishment licensed to sell alcoholic beverages may keep, possess, <br />
         		<a id="pl.5.22"></a><var>5.22</var>or operate, or permit the keeping, possession, or operation on the licensed premises of dice <br />
         		<a id="pl.5.23"></a><var>5.23</var>or any gambling device as defined in section  
         <statute_ref>349.30</statute_ref>, or permit gambling therein.<br />
         		<a id="pl.5.24"></a><var>5.24</var>(b) Gambling equipment may be kept or operated and raffles conducted on licensed <br />
         		<a id="pl.5.25"></a><var>5.25</var>premises and adjoining rooms when the use of the gambling equipment is authorized by <br />
         		<a id="pl.5.26"></a><var>5.26</var>(1) chapter 349, (2) a tribal ordinance in conformity with the Indian Gaming Regulatory <br />
         		<a id="pl.5.27"></a><var>5.27</var>Act, Public Law 100-497, or (3) a tribal-state compact authorized under section  
         <statute_ref>3.9221</statute_ref>.<br />
         		<a id="pl.5.28"></a><var>5.28</var>(c) Lottery tickets may be purchased and sold within the licensed premises as <br />
         		<a id="pl.5.29"></a><var>5.29</var>authorized by the director of the lottery under chapter 349A.<br />
         		<a id="pl.5.30"></a><var>5.30</var>(d) Dice may be kept and used on licensed premises and adjoining rooms as <br />
         		<a id="pl.5.31"></a><var>5.31</var>authorized by section  
         <statute_ref>609.761, subdivision 4</statute_ref>.<br />
         		<a id="pl.5.32"></a><var>5.32</var>(e) Gambling devices may be operated and gambling permitted as authorized by <br />
         		<a id="pl.5.33"></a><var>5.33</var>chapter 349A.<br />
         		<br />
         		<a id="bill.1.8.0"></a><a id="pl.6.1"></a><var>6.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2009 Supplement, section 349.15, subdivision 1, is <br />
         		<a id="pl.6.2"></a><var>6.2</var>amended to read:<br />
         		<a id="pl.6.3"></a><var>6.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Expenditure restrictions, requirements, and civil penalties.</b><br />
         		 <a id="pl.6.4"></a><var>6.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(a) Gross profits from lawful gambling may be expended only for lawful purposes or <br />
         		<a id="pl.6.5"></a><var>6.5</var>allowable expenses as authorized by the membership of the conducting organization at a <br />
         		<a id="pl.6.6"></a><var>6.6</var>monthly meeting of the organization's membership.<br />
         		<a id="pl.6.7"></a><var>6.7</var>(b) ~~Provided that~~ Except as provided in paragraph (e), no more than 70 percent of <br />
         		<a id="pl.6.8"></a><var>6.8</var>the gross profit from bingo, and no more than 60 percent of the gross profit from other <br />
         		<a id="pl.6.9"></a><var>6.9</var>forms of lawful gambling, may be expended biennially during the term of the license for <br />
         		<a id="pl.6.10"></a><var>6.10</var>allowable expenses related to lawful gambling, except that for the period of July 1, 2008, <br />
         		<a id="pl.6.11"></a><var>6.11</var>to June 30, 2009, no more than 75 percent of the gross profit from bingo, and no more than <br />
         		<a id="pl.6.12"></a><var>6.12</var>65 percent of the gross profit from other forms of lawful gambling, may be expended for <br />
         		<a id="pl.6.13"></a><var>6.13</var>allowable expenses related to lawful gambling. This provision expires June 30, 2009.<br />
         		<a id="pl.6.14"></a><var>6.14</var>(c) For each 12-month period beginning July 1, 2009, a licensed organization will <br />
         		<a id="pl.6.15"></a><var>6.15</var>be evaluated by the board to determine a rating based on the percentage of annual lawful <br />
         		<a id="pl.6.16"></a><var>6.16</var>purpose expenditures when compared to available gross profits for the same period. The <br />
         		<a id="pl.6.17"></a><var>6.17</var>rating will be used to determine the organization's profitability percent and is not a rating <br />
         		<a id="pl.6.18"></a><var>6.18</var>of the organization's lawful gambling operation. An organization will be evaluated <br />
         		<a id="pl.6.19"></a><var>6.19</var>according to the following criteria:<br />
         		<a id="pl.6.20"></a><var>6.20</var>(1) an organization that expends 50 percent or more of gross profits on lawful <br />
         		<a id="pl.6.21"></a><var>6.21</var>purposes will receive a five-star rating;<br />
         		<a id="pl.6.22"></a><var>6.22</var>(2) an organization that expends 40 percent or more but less than 50 percent of gross <br />
         		<a id="pl.6.23"></a><var>6.23</var>profits on lawful purposes will receive a four-star rating;<br />
         		<a id="pl.6.24"></a><var>6.24</var>(3) an organization that expends 30 percent or more but less than 40 percent of gross <br />
         		<a id="pl.6.25"></a><var>6.25</var>profits on lawful purposes will receive a three-star rating;<br />
         		<a id="pl.6.26"></a><var>6.26</var>(4) an organization that expends 20 percent or more but less than 30 percent of gross <br />
         		<a id="pl.6.27"></a><var>6.27</var>profits on lawful purposes will receive a two-star rating; and<br />
         		<a id="pl.6.28"></a><var>6.28</var>(5) an organization that expends less than 20 percent of gross profits on lawful <br />
         		<a id="pl.6.29"></a><var>6.29</var>purposes will receive a one-star rating.<br />
         		<a id="pl.6.30"></a><var>6.30</var>(d) An organization that fails to expend a minimum of 30 percent annually of gross <br />
         		<a id="pl.6.31"></a><var>6.31</var>profits on lawful purposes is automatically on probation effective July 1 for a period of <br />
         		<a id="pl.6.32"></a><var>6.32</var>one year. The organization must increase its rating to a minimum of 30 percent or be <br />
         		<a id="pl.6.33"></a><var>6.33</var>subject to sanctions by the board. If an organization fails to meet the minimum after a <br />
         		<a id="pl.6.34"></a><var>6.34</var>one-year probation, the board may suspend the organization's license or impose a civil <br />
         		<a id="pl.6.35"></a><var>6.35</var>penalty as follows:<br />
         		<a id="pl.7.1"></a><var>7.1</var>(1) in determining any suspension or penalty for a violation of this paragraph, the <br />
         		<a id="pl.7.2"></a><var>7.2</var>board must consider any unique factors or extraordinary circumstances that caused the <br />
         		<a id="pl.7.3"></a><var>7.3</var>organization to not meet the minimum rate of profitability. Unique factors or extraordinary <br />
         		<a id="pl.7.4"></a><var>7.4</var>circumstances include, but are not limited to, the purchase of capital assets necessary to <br />
         		<a id="pl.7.5"></a><var>7.5</var>conduct lawful gambling; road or other construction causing impaired access to the lawful <br />
         		<a id="pl.7.6"></a><var>7.6</var>gambling premises; and flood, tornado, or other catastrophe that had a direct impact on the <br />
         		<a id="pl.7.7"></a><var>7.7</var>continuing lawful gambling operation; and<br />
         		<a id="pl.7.8"></a><var>7.8</var>(2) notwithstanding section 
         <statute_ref>349.151, subdivision 4</statute_ref>, paragraph (a), clause (10), the <br />
         		<a id="pl.7.9"></a><var>7.9</var>board may impose a civil penalty under this subdivision up to $10,000.<br />
         		<a id="pl.7.10"></a><var>7.10</var>(e) Money received by an organization from net video lottery terminal income under <br />
         		<a id="pl.7.11"></a><var>7.11</var>section 349A.06, subdivision 6a, may be expended only for lawful purposes.<br />
         		<br />
         		<a id="bill.1.9.0"></a><a id="pl.7.12"></a><var>7.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2008, section 349A.01, is amended by adding a subdivision <br />
         		<a id="pl.7.13"></a><var>7.13</var>to read:<br />
         		<a id="pl.7.14"></a><var>7.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9a. <b>Lottery game.</b>  "Lottery game" means any game operated by the lottery <br />
         		<a id="pl.7.15"></a><var>7.15</var>where the prize is determined primarily by chance.<br />
         		<br />
         		<a id="bill.1.10.0"></a><a id="pl.7.16"></a><var>7.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2008, section 349A.01, subdivision 10, is amended to read:<br />
         		<a id="pl.7.17"></a><var>7.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Lottery procurement contract.</b> "Lottery procurement contract" means a <br />
         		<a id="pl.7.18"></a><var>7.18</var>contract to provide lottery products, computer hardware and software used to monitor sales <br />
         		<a id="pl.7.19"></a><var>7.19</var>of lottery tickets and sales on a video lottery terminal, ~~and~~ lottery tickets, video lottery <br />
         		<a id="pl.7.20"></a><var>7.20</var>terminals, and maintenance of video lottery terminals. ~~"~~Lottery procurement contract~~"~~ <br />
         		<a id="pl.7.21"></a><var>7.21</var>does not include a contract to provide an annuity or prize payment agreement or materials, <br />
         		<a id="pl.7.22"></a><var>7.22</var>supplies, equipment, or services common to the ordinary operation of a state agency.<br />
         		<br />
         		<a id="bill.1.11.0"></a><a id="pl.7.23"></a><var>7.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2008, section 349A.01, subdivision 11, is amended to read:<br />
         		<a id="pl.7.24"></a><var>7.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Lottery retailer.</b> "Lottery retailer" means a person with whom the <br />
         		<a id="pl.7.25"></a><var>7.25</var>director has contracted to sell lottery tickets to the public. A lottery retailer includes a <br />
         		<a id="pl.7.26"></a><var>7.26</var>person with whom the director has contracted to place a video lottery terminal within its <br />
         		<a id="pl.7.27"></a><var>7.27</var>premises where video lottery terminal plays are sold.<br />
         		<br />
         		<a id="bill.1.12.0"></a><a id="pl.7.28"></a><var>7.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2008, section 349A.01, subdivision 12, is amended to read:<br />
         		<a id="pl.7.29"></a><var>7.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12. <b>Lottery ticket or ticket.</b> "Lottery ticket" or "ticket" means any tangible <br />
         		<a id="pl.7.30"></a><var>7.30</var>evidence issued by the lottery to prove participation in a lottery game other than a video <br />
         		<a id="pl.7.31"></a><var>7.31</var>lottery game.<br />
         		<br />
         		<a id="bill.1.13.0"></a><a id="pl.8.1"></a><var>8.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2008, section 349A.01, is amended by adding a <br />
         		<a id="pl.8.2"></a><var>8.2</var>subdivision to read:<br />
         		<a id="pl.8.3"></a><var>8.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 14. <b>Net terminal income.</b> "Net terminal income" means the sum of all <br />
         		<a id="pl.8.4"></a><var>8.4</var>money spent for video lottery terminal plays less the value of video lottery credit receipts.<br />
         		<br />
         		<a id="bill.1.14.0"></a><a id="pl.8.5"></a><var>8.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2008, section 349A.01, is amended by adding a <br />
         		<a id="pl.8.6"></a><var>8.6</var>subdivision to read:<br />
         		<a id="pl.8.7"></a><var>8.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Video lottery credit.</b>  "Video lottery credit" means the basic unit of <br />
         		<a id="pl.8.8"></a><var>8.8</var>play for a video lottery terminal.<br />
         		<br />
         		<a id="bill.1.15.0"></a><a id="pl.8.9"></a><var>8.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. Minnesota Statutes 2008, section 349A.01, is amended by adding a <br />
         		<a id="pl.8.10"></a><var>8.10</var>subdivision to read:<br />
         		<a id="pl.8.11"></a><var>8.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 16. <b>Video lottery credit receipt.</b>  "Video lottery credit receipt" means a <br />
         		<a id="pl.8.12"></a><var>8.12</var>receipt generated by a video lottery terminal that provides evidence of cash payment due a <br />
         		<a id="pl.8.13"></a><var>8.13</var>player from play on a video lottery terminal.<br />
         		<br />
         		<a id="bill.1.16.0"></a><a id="pl.8.14"></a><var>8.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. Minnesota Statutes 2008, section 349A.01, is amended by adding a <br />
         		<a id="pl.8.15"></a><var>8.15</var>subdivision to read:<br />
         		<a id="pl.8.16"></a><var>8.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 17. <b>Video lottery game.</b>  "Video lottery game" means an electronically <br />
         		<a id="pl.8.17"></a><var>8.17</var>simulated game authorized by the director that is displayed and played on a video lottery <br />
         		<a id="pl.8.18"></a><var>8.18</var>terminal for consideration and with prizes awarded for designated results. Video lottery <br />
         		<a id="pl.8.19"></a><var>8.19</var>game includes video poker games, keno, and video pull-tabs.<br />
         		<br />
         		<a id="bill.1.17.0"></a><a id="pl.8.20"></a><var>8.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 17. Minnesota Statutes 2008, section 349A.01, is amended by adding a <br />
         		<a id="pl.8.21"></a><var>8.21</var>subdivision to read:<br />
         		<a id="pl.8.22"></a><var>8.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 18. <b>Video lottery terminal.</b> "Video lottery terminal" means any machine, <br />
         		<a id="pl.8.23"></a><var>8.23</var>system, or device which upon payment of consideration permits the play of a video <br />
         		<a id="pl.8.24"></a><var>8.24</var>lottery game.<br />
         		<br />
         		<a id="bill.1.18.0"></a><a id="pl.8.25"></a><var>8.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 18. Minnesota Statutes 2008, section 349A.01, is amended by adding a <br />
         		<a id="pl.8.26"></a><var>8.26</var>subdivision to read:<br />
         		<a id="pl.8.27"></a><var>8.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 19. <b>Video lottery terminal play.</b>  "Video lottery terminal play" means an <br />
         		<a id="pl.8.28"></a><var>8.28</var>electronic record that proves participation in a video lottery game.<br />
         		<br />
         		<a id="bill.1.19.0"></a><a id="pl.8.29"></a><var>8.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 19. Minnesota Statutes 2008, section 349A.01, is amended by adding a <br />
         		<a id="pl.8.30"></a><var>8.30</var>subdivision to read:<br />
         		<a id="pl.9.1"></a><var>9.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 20. <b>Win percentage.</b>  "Win percentage" means the portion of the money <br />
         		<a id="pl.9.2"></a><var>9.2</var>wagered by players on a video lottery terminal that is available for the payment of prizes <br />
         		<a id="pl.9.3"></a><var>9.3</var>to winning players.<br />
         		<br />
         		<a id="bill.1.20.0"></a><a id="pl.9.4"></a><var>9.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 20. Minnesota Statutes 2008, section 349A.04, is amended to read:<br />
         		<a id="pl.9.5"></a><var>9.5</var><b>349A.04 LOTTERY GAME PROCEDURES.</b><br />
         		<a id="pl.9.6"></a><var>9.6</var>The director may adopt game procedures governing the following elements of the <br />
         		<a id="pl.9.7"></a><var>9.7</var>lottery:<br />
         		<a id="pl.9.8"></a><var>9.8</var>(1) lottery games;<br />
         		<a id="pl.9.9"></a><var>9.9</var>(2) ticket prices;<br />
         		<a id="pl.9.10"></a><var>9.10</var>(3) number and size of prizes;<br />
         		<a id="pl.9.11"></a><var>9.11</var>(4) methods of selecting winning tickets; ~~and~~<br />
         		<a id="pl.9.12"></a><var>9.12</var>(5) frequency and method of drawings~~.~~;<br />
         		<a id="pl.9.13"></a><var>9.13</var>(6) video lottery terminals; and<br />
         		<a id="pl.9.14"></a><var>9.14</var>(7) cost of video lottery plays.<br />
         		<a id="pl.9.15"></a><var>9.15</var>The adoption of lottery game procedures is not subject to chapter 14.<br />
         		<br />
         		<a id="bill.1.21.0"></a><a id="pl.9.16"></a><var>9.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 21. Minnesota Statutes 2008, section 349A.06, subdivision 1, is amended to read:<br />
         		<a id="pl.9.17"></a><var>9.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Contracts.</b>  The director shall sell tickets and operate video lottery <br />
         		<a id="pl.9.18"></a><var>9.18</var>terminals for the lottery through lottery retailers with whom the director contracts. <br />
         		<a id="pl.9.19"></a><var>9.19</var>Contracts under this section are not subject to the provisions of sections 16C.03, 16C.05, <br />
         		<a id="pl.9.20"></a><var>9.20</var>16C.06, 16C.08, 16C.09, and 16C.10, and are valid for a period of one year.  The director <br />
         		<a id="pl.9.21"></a><var>9.21</var>may permit a retailer to sell tickets and operate video lottery terminals at more than one <br />
         		<a id="pl.9.22"></a><var>9.22</var>business location under a contract entered into under this section.<br />
         		<br />
         		<a id="bill.1.22.0"></a><a id="pl.9.23"></a><var>9.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 22. Minnesota Statutes 2008, section 349A.06, subdivision 5, is amended to read:<br />
         		<a id="pl.9.24"></a><var>9.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Restrictions on lottery retailers.</b> (a) A lottery retailer may sell lottery <br />
         		<a id="pl.9.25"></a><var>9.25</var>tickets or have a video lottery terminal placed only on the premises described in the <br />
         		<a id="pl.9.26"></a><var>9.26</var>contract.<br />
         		<a id="pl.9.27"></a><var>9.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) A lottery retailer must prominently display a certificate issued by the director <br />
         		<a id="pl.9.28"></a><var>9.28</var>on the premises where lottery tickets will be sold or where video lottery terminals are <br />
         		<a id="pl.9.29"></a><var>9.29</var>operated.<br />
         		<a id="pl.9.30"></a><var>9.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A lottery retailer must keep a complete set of books of account, correspondence, <br />
         		<a id="pl.9.31"></a><var>9.31</var>and all other records necessary to show fully the retailer's lottery transactions, and make <br />
         		<a id="pl.9.32"></a><var>9.32</var>them available for inspection by employees of the lottery at all times during business <br />
         		<a id="pl.9.33"></a><var>9.33</var>hours.  The director may require a lottery retailer to furnish information as the director <br />
         		<a id="pl.10.1"></a><var>10.1</var>deems necessary to carry out the purposes of this chapter, and may require an audit to be <br />
         		<a id="pl.10.2"></a><var>10.2</var>made of the books of account and records.  The director may select an auditor to perform <br />
         		<a id="pl.10.3"></a><var>10.3</var>the audit and may require the retailer to pay the cost of the audit.  The auditor has the same <br />
         		<a id="pl.10.4"></a><var>10.4</var>right of access to the books of account, correspondence, and other records as is given to <br />
         		<a id="pl.10.5"></a><var>10.5</var>employees of the lottery.<br />
         		<a id="pl.10.6"></a><var>10.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) A contract issued under this section may not be transferred or assigned.<br />
         		<a id="pl.10.7"></a><var>10.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) The director shall require that lottery tickets may be sold by retailers only for <br />
         		<a id="pl.10.8"></a><var>10.8</var>cash.<br />
         		<a id="pl.10.9"></a><var>10.9</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) A lottery retailer must prominently post at the point of sale of lottery tickets <br />
         		<a id="pl.10.10"></a><var>10.10</var>and the area where video lottery terminals are located, in a manner approved by the <br />
         		<a id="pl.10.11"></a><var>10.11</var>commissioner of human services, the toll-free telephone number established by the <br />
         		<a id="pl.10.12"></a><var>10.12</var>commissioner of human services in connection with the compulsive gambling program <br />
         		<a id="pl.10.13"></a><var>10.13</var>established under section 245.98.<br />
         		<br />
         		<a id="bill.1.23.0"></a><a id="pl.10.14"></a><var>10.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 23. Minnesota Statutes 2008, section 349A.06, is amended by adding a <br />
         		<a id="pl.10.15"></a><var>10.15</var>subdivision to read:<br />
         		<a id="pl.10.16"></a><var>10.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5a. <b>Restrictions on lottery retailers; video lottery terminals.</b> (a) The <br />
         		<a id="pl.10.17"></a><var>10.17</var>director may only enter into a lottery retailer contract for games operated by a video lottery <br />
         		<a id="pl.10.18"></a><var>10.18</var>terminal with a retailer that has a license to sell alcoholic beverages for consumption on <br />
         		<a id="pl.10.19"></a><var>10.19</var>the premises where sold. This does not include a retailer who has only a temporary on-sale <br />
         		<a id="pl.10.20"></a><var>10.20</var>license or a retailer of 3.2 percent malt liquor whose total gross receipts from the premises <br />
         		<a id="pl.10.21"></a><var>10.21</var>were less than 50 percent attributable to the sale of 3.2 percent malt liquor.<br />
         		<a id="pl.10.22"></a><var>10.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The director may not contract with a retailer for games operated by a video <br />
         		<a id="pl.10.23"></a><var>10.23</var>lottery terminal unless the retailer has an organization licensed under chapter 349 <br />
         		<a id="pl.10.24"></a><var>10.24</var>authorized and conducting lawful gambling on the premises.<br />
         		<a id="pl.10.25"></a><var>10.25</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A lottery retailer authorized to sell games operated by a video lottery terminal <br />
         		<a id="pl.10.26"></a><var>10.26</var>may not cancel or refuse to renew a lease with an organization licensed under chapter 349 <br />
         		<a id="pl.10.27"></a><var>10.27</var>authorized and conducting lawful gambling on its premises for three years following <br />
         		<a id="pl.10.28"></a><var>10.28</var>the effective date of this act, unless the organization has failed to comply with its lease <br />
         		<a id="pl.10.29"></a><var>10.29</var>with the retailer.<br />
         		<a id="pl.10.30"></a><var>10.30</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) A lottery retailer may have up to five video lottery terminals on the retailer's <br />
         		<a id="pl.10.31"></a><var>10.31</var>premises, as determined by the director.<br />
         		<a id="pl.10.32"></a><var>10.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) A lottery retailer that is authorized to operate a video lottery terminal may not <br />
         		<a id="pl.10.33"></a><var>10.33</var>make reference to the establishment being a "casino," or use the word "casino" in its name <br />
         		<a id="pl.10.34"></a><var>10.34</var>or in any of its advertisements.<br />
         		<a id="pl.11.1"></a><var>11.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) The director, or any employee of the director, may inspect any video lottery <br />
         		<a id="pl.11.2"></a><var>11.2</var>terminal at any time during the hours when alcoholic beverages may be sold at on-sale <br />
         		<a id="pl.11.3"></a><var>11.3</var>under section 340A.504, subdivisions 1, 2, and 3, without notice, to ensure compliance <br />
         		<a id="pl.11.4"></a><var>11.4</var>with this chapter and any rules adopted by the director.<br />
         		<br />
         		<a id="bill.1.24.0"></a><a id="pl.11.5"></a><var>11.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 24. Minnesota Statutes 2008, section 349A.06, is amended by adding a <br />
         		<a id="pl.11.6"></a><var>11.6</var>subdivision to read:<br />
         		<a id="pl.11.7"></a><var>11.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6a. <b>Retention by retailers; video lottery terminals.</b> A lottery retailer who <br />
         		<a id="pl.11.8"></a><var>11.8</var>has a contract for placement of video lottery terminals may retain 31 percent of the net <br />
         		<a id="pl.11.9"></a><var>11.9</var>terminal income from the terminals located within its premises as commission. The lottery <br />
         		<a id="pl.11.10"></a><var>11.10</var>retailer receiving commission under this subdivision shall transmit to an organization <br />
         		<a id="pl.11.11"></a><var>11.11</var>licensed under chapter 349, and conducting lawful gambling on the premises of the <br />
         		<a id="pl.11.12"></a><var>11.12</var>retailer, 29 percent of the lottery retailer's commission received under this subdivision. <br />
         		<a id="pl.11.13"></a><var>11.13</var>If more than one organization conducts lawful gambling on the premises, the payment <br />
         		<a id="pl.11.14"></a><var>11.14</var>must be reasonably allocated between the organizations, pro rata based on their respective <br />
         		<a id="pl.11.15"></a><var>11.15</var>gross receipts.<br />
         		<br />
         		<a id="bill.1.25.0"></a><a id="pl.11.16"></a><var>11.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 25. Minnesota Statutes 2008, section 349A.06, subdivision 8, is amended to read:<br />
         		<a id="pl.11.17"></a><var>11.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Proceeds of sales.</b> All proceeds from the sale of lottery tickets or proceeds <br />
         		<a id="pl.11.18"></a><var>11.18</var>from the sale of video lottery terminal plays received by a lottery retailer constitute a trust <br />
         		<a id="pl.11.19"></a><var>11.19</var>fund until paid to the director.  The lottery retailer is personally liable for all proceeds.<br />
         		<br />
         		<a id="bill.1.26.0"></a><a id="pl.11.20"></a><var>11.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 26. Minnesota Statutes 2008, section 349A.06, subdivision 10, is amended to read:<br />
         		<a id="pl.11.21"></a><var>11.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Local licenses.</b> No political subdivision may require a local license to <br />
         		<a id="pl.11.22"></a><var>11.22</var>operate as a lottery retailer, restrict or regulate the placement of a video lottery terminal, <br />
         		<a id="pl.11.23"></a><var>11.23</var>or impose a tax or fee on the business of operating as a lottery retailer.<br />
         		<br />
         		<a id="bill.1.27.0"></a><a id="pl.11.24"></a><var>11.24</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 27. <b> </b><b>[349A.071] VIDEO LOTTERY TERMINALS.</b><br />
         		<a id="pl.11.25"></a><var>11.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Operation.</b> (a) All video lottery terminals must be operated and <br />
         		<a id="pl.11.26"></a><var>11.26</var>controlled by the director.<br />
         		<a id="pl.11.27"></a><var>11.27</var>(b) Video lottery terminals must be owned or leased by the director.<br />
         		<a id="pl.11.28"></a><var>11.28</var>(c) Video lottery terminals must be maintained by the lottery, or by a vendor that is <br />
         		<a id="pl.11.29"></a><var>11.29</var>under the control and direction of the director.<br />
         		<a id="pl.11.30"></a><var>11.30</var>(d) The director must have a central communications system that monitors activities <br />
         		<a id="pl.11.31"></a><var>11.31</var>and provides auditing program information on each video lottery terminal. <br />
         		<a id="pl.12.1"></a><var>12.1</var>(e) The director must approve the general security arrangements associated with and <br />
         		<a id="pl.12.2"></a><var>12.2</var>relating to the operation of the video lottery terminal.<br />
         		<a id="pl.12.3"></a><var>12.3</var>(f) Video lottery terminals must maintain on nonresettable meters, a permanent <br />
         		<a id="pl.12.4"></a><var>12.4</var>record, capable of being printed out, of all transactions by the terminal and all entries <br />
         		<a id="pl.12.5"></a><var>12.5</var>into the terminal.<br />
         		<a id="pl.12.6"></a><var>12.6</var>(g) The director may implement other controls as are deemed necessary to ensure <br />
         		<a id="pl.12.7"></a><var>12.7</var>and maintain the integrity of video lottery terminals operated under this section.<br />
         		<a id="pl.12.8"></a><var>12.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Testing and examination of machines.</b> The director shall examine <br />
         		<a id="pl.12.9"></a><var>12.9</var>prototypes of video lottery terminals and require that the manufacturer of the terminal <br />
         		<a id="pl.12.10"></a><var>12.10</var>pay the cost of the examination. The director may contract for the examination of <br />
         		<a id="pl.12.11"></a><var>12.11</var>video lottery terminals. The director may require working models of a video lottery <br />
         		<a id="pl.12.12"></a><var>12.12</var>terminal transported to the locations the director designates for testing, examination, <br />
         		<a id="pl.12.13"></a><var>12.13</var>and analysis. The manufacturer shall pay all costs of any testing, examination, analysis, <br />
         		<a id="pl.12.14"></a><var>12.14</var>and transportation of the terminal model.<br />
         		<a id="pl.12.15"></a><var>12.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Deactivation of terminal.</b> The director may deactivate a video lottery <br />
         		<a id="pl.12.16"></a><var>12.16</var>terminal without notice if the lottery retailer has violated any provision of this chapter, <br />
         		<a id="pl.12.17"></a><var>12.17</var>rule, or provision of its contract with the director.<br />
         		<br />
         		<a id="bill.1.28.0"></a><a id="pl.12.18"></a><var>12.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 28. Minnesota Statutes 2008, section 349A.08, subdivision 1, is amended to read:<br />
         		<a id="pl.12.19"></a><var>12.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Agreement by players.</b>  A person who buys a lottery ticket or plays a <br />
         		<a id="pl.12.20"></a><var>12.20</var>video lottery game agrees to be bound by the rules and game procedures applicable to ~~the~~ <br />
         		<a id="pl.12.21"></a><var>12.21</var>that particular lottery game ~~for which the ticket is purchased~~.  The player acknowledges <br />
         		<a id="pl.12.22"></a><var>12.22</var>that the determination of whether a ticket or video lottery credit receipt is ~~a~~ valid ~~winning~~ <br />
         		<a id="pl.12.23"></a><var>12.23</var>~~ticket is subject to~~ under the rules ~~of~~ and game procedures adopted by the director, claims <br />
         		<a id="pl.12.24"></a><var>12.24</var>procedures established by the director for that game, and any confidential or public <br />
         		<a id="pl.12.25"></a><var>12.25</var>validation tests established by the director for that game.<br />
         		<br />
         		<a id="bill.1.29.0"></a><a id="pl.12.26"></a><var>12.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 29. Minnesota Statutes 2008, section 349A.08, subdivision 5, is amended to read:<br />
         		<a id="pl.12.27"></a><var>12.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Payment; unclaimed prizes.</b> (a) Except as provided in this subdivision, a <br />
         		<a id="pl.12.28"></a><var>12.28</var>prize in the state lottery must be claimed by the winner within one year of the date of the <br />
         		<a id="pl.12.29"></a><var>12.29</var>drawing at which the prize was awarded or the last day sales were authorized for a game <br />
         		<a id="pl.12.30"></a><var>12.30</var>where a prize was determined in a manner other than by means of a drawing.  If a valid <br />
         		<a id="pl.12.31"></a><var>12.31</var>claim is not made for a prize payable directly by the lottery by the end of this period, the <br />
         		<a id="pl.12.32"></a><var>12.32</var>prize money is considered unclaimed and the winner of the prize shall have no further <br />
         		<a id="pl.12.33"></a><var>12.33</var>claim to the prize.<br />
         		<a id="pl.13.1"></a><var>13.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) A video lottery credit receipt from a video lottery terminal must be presented <br />
         		<a id="pl.13.2"></a><var>13.2</var>for payment within 60 days of the date the video lottery credit receipt was printed. If a <br />
         		<a id="pl.13.3"></a><var>13.3</var>valid claim for a video lottery credit receipt is not made by the end of this period, the <br />
         		<a id="pl.13.4"></a><var>13.4</var>video lottery credit receipt is considered unclaimed and the player shall have no further <br />
         		<a id="pl.13.5"></a><var>13.5</var>claim to the amount due from the video lottery credit receipt.<br />
         		<a id="pl.13.6"></a><var>13.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A prize won by a person who purchased the winning ticket or played a video <br />
         		<a id="pl.13.7"></a><var>13.7</var>lottery game in violation of section 349A.12, subdivision 1, or won by a person ineligible <br />
         		<a id="pl.13.8"></a><var>13.8</var>to be awarded a prize under subdivision 7 must be treated as an unclaimed prize under this <br />
         		<a id="pl.13.9"></a><var>13.9</var>section.  The director must transfer all unclaimed prize money at the end of each fiscal <br />
         		<a id="pl.13.10"></a><var>13.10</var>year from the lottery cash flow account to the general fund.<br />
         		<br />
         		<a id="bill.1.30.0"></a><a id="pl.13.11"></a><var>13.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 30. Minnesota Statutes 2008, section 349A.08, subdivision 8, is amended to read:<br />
         		<a id="pl.13.12"></a><var>13.12</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>Withholding of delinquent state taxes or other debts.</b> The director <br />
         		<a id="pl.13.13"></a><var>13.13</var>shall report the name, address, and Social Security number of each winner of a lottery <br />
         		<a id="pl.13.14"></a><var>13.14</var>prize of $600 or more, or a video lottery prize of $1,200 or more, to the Department of <br />
         		<a id="pl.13.15"></a><var>13.15</var>Revenue to determine whether the person who has won the prize is delinquent in payment <br />
         		<a id="pl.13.16"></a><var>13.16</var>of state taxes or owes a debt as defined in section 270A.03, subdivision 5.  If the person <br />
         		<a id="pl.13.17"></a><var>13.17</var>is delinquent in payment of state taxes or owes a debt as defined in section 270A.03, <br />
         		<a id="pl.13.18"></a><var>13.18</var>subdivision 5, the director shall withhold the delinquent amount from the person's prize <br />
         		<a id="pl.13.19"></a><var>13.19</var>for remittance to the Department of Revenue for payment of the delinquent taxes or <br />
         		<a id="pl.13.20"></a><var>13.20</var>distribution to a claimant agency in accordance with chapter 270A.  Section 270A.10 <br />
         		<a id="pl.13.21"></a><var>13.21</var>applies to the priority of claims.<br />
         		<br />
         		<a id="bill.1.31.0"></a><a id="pl.13.22"></a><var>13.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 31. Minnesota Statutes 2008, section 349A.09, subdivision 1, is amended to read:<br />
         		<a id="pl.13.23"></a><var>13.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Odds; required information.</b> (a) The director shall include on each <br />
         		<a id="pl.13.24"></a><var>13.24</var>brochure, pamphlet, booklet, or other similar material the director publishes to promote <br />
         		<a id="pl.13.25"></a><var>13.25</var>or explain any lottery game, a prominent and clear statement of the approximate odds of <br />
         		<a id="pl.13.26"></a><var>13.26</var>winning each prize offered in that lottery game.<br />
         		<a id="pl.13.27"></a><var>13.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Except for the operation of a video lottery terminal, each lottery retailer must <br />
         		<a id="pl.13.28"></a><var>13.28</var>post prominently at or near the point of ticket sale a notice or notices printed and provided <br />
         		<a id="pl.13.29"></a><var>13.29</var>by the director of the approximate odds of winning each prize in each game for which <br />
         		<a id="pl.13.30"></a><var>13.30</var>the lottery retailer sells tickets.<br />
         		<a id="pl.13.31"></a><var>13.31</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The approximate odds of winning a prize from a video lottery terminal must be <br />
         		<a id="pl.13.32"></a><var>13.32</var>displayed on the face or screen of the video lottery terminal.<br />
         		<br />
         		<a id="bill.1.32.0"></a><a id="pl.13.33"></a><var>13.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 32. Minnesota Statutes 2008, section 349A.10, subdivision 2, is amended to read:<br />
         		<a id="pl.14.1"></a><var>14.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. ~~<b>Deposit in</b>~~<b> Prize fund.</b> (a) The director shall establish a lottery prize <br />
         		<a id="pl.14.2"></a><var>14.2</var>fund outside the state treasury. The fund consists of all money deposited in it under this <br />
         		<a id="pl.14.3"></a><var>14.3</var>subdivision and all interest earned thereon.<br />
         		<a id="pl.14.4"></a><var>14.4</var>(b) The director shall deposit in the lottery prize fund, from gross receipts from the <br />
         		<a id="pl.14.5"></a><var>14.5</var>sale of lottery tickets, an amount sufficient to pay lottery prizes from the lottery prize <br />
         		<a id="pl.14.6"></a><var>14.6</var>fund according to the following provisions:<br />
         		<a id="pl.14.7"></a><var>14.7</var>(1) for games which require online terminal connections, the prizes paid in any fiscal <br />
         		<a id="pl.14.8"></a><var>14.8</var>year must be at least 45 percent of gross receipts from those games in that fiscal year;<br />
         		<a id="pl.14.9"></a><var>14.9</var>(2) for games which do not require online terminal connections, the prizes paid in any <br />
         		<a id="pl.14.10"></a><var>14.10</var>fiscal year must be at least ~~the following percentages of gross receipts from those games:~~<br />
         		<a id="pl.14.11"></a><var>14.11</var>~~(i) 50 percent through fiscal year 1991;~~<br />
         		<a id="pl.14.12"></a><var>14.12</var>~~(ii) 55 percent from July 1, 1991, to June 30, 1992; and~~<br />
         		<a id="pl.14.13"></a><var>14.13</var>~~(iii)~~ 60 percent ~~thereafter~~ of gross receipts from those games in that fiscal year.<br />
         		<a id="pl.14.14"></a><var>14.14</var>(c) For lottery games played on a video lottery terminal, the win percentage in any <br />
         		<a id="pl.14.15"></a><var>14.15</var>fiscal year will be the win percentage established by the game procedures adopted for the <br />
         		<a id="pl.14.16"></a><var>14.16</var>game, but shall be at least 80 percent but not more than 95 percent.<br />
         		<br />
         		<a id="bill.1.33.0"></a><a id="pl.14.17"></a><var>14.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 33. Minnesota Statutes 2008, section 349A.10, subdivision 3, is amended to read:<br />
         		<a id="pl.14.18"></a><var>14.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Lottery operations.</b> (a) The director shall establish a lottery operations <br />
         		<a id="pl.14.19"></a><var>14.19</var>account in the lottery fund. The director shall pay all costs of operating the lottery, <br />
         		<a id="pl.14.20"></a><var>14.20</var>including payroll costs or amounts transferred to the state treasury for payroll costs, but <br />
         		<a id="pl.14.21"></a><var>14.21</var>not including lottery prizes, from the lottery operating account. The director shall credit to <br />
         		<a id="pl.14.22"></a><var>14.22</var>the lottery operations account amounts sufficient to pay the operating costs of the lottery.<br />
         		<a id="pl.14.23"></a><var>14.23</var>(b) Except as provided in paragraph (e), the director may not credit in any fiscal year <br />
         		<a id="pl.14.24"></a><var>14.24</var>~~thereafter~~ amounts to the lottery operations account which when totaled exceed nine <br />
         		<a id="pl.14.25"></a><var>14.25</var>percent of gross revenue, exclusive of net terminal income, and 12 percent of net terminal <br />
         		<a id="pl.14.26"></a><var>14.26</var>income to the lottery fund in that fiscal year. In computing total amounts credited to <br />
         		<a id="pl.14.27"></a><var>14.27</var>the lottery operations account under this paragraph the director shall disregard amounts <br />
         		<a id="pl.14.28"></a><var>14.28</var>transferred to or retained by lottery retailers as sales commissions or other compensation.<br />
         		<a id="pl.14.29"></a><var>14.29</var>(c) The director of the lottery may not expend ~~after July 1, 1991,~~ more than 2-3/4 <br />
         		<a id="pl.14.30"></a><var>14.30</var>percent of gross revenues in a fiscal year for contracts for the preparation, publication, and <br />
         		<a id="pl.14.31"></a><var>14.31</var>placement of advertising.<br />
         		<a id="pl.14.32"></a><var>14.32</var>(d) Except as the director determines, the lottery is not subject to chapter 16A <br />
         		<a id="pl.14.33"></a><var>14.33</var>relating to budgeting, payroll, and the purchase of goods and services.<br />
         		<a id="pl.14.34"></a><var>14.34</var>(e) In addition to the amounts credited to the lottery operations account under <br />
         		<a id="pl.14.35"></a><var>14.35</var>paragraph (b), the director is authorized, if necessary, to meet the current obligations of <br />
         		<a id="pl.15.1"></a><var>15.1</var>the lottery and to credit up to 25 percent of an amount equal to the average annual amount <br />
         		<a id="pl.15.2"></a><var>15.2</var>which was authorized to be credited to the lottery operations account for the previous three <br />
         		<a id="pl.15.3"></a><var>15.3</var>fiscal years but was not needed to meet the obligations of the lottery.<br />
         		<br />
         		<a id="bill.1.34.0"></a><a id="pl.15.4"></a><var>15.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 34. Minnesota Statutes 2008, section 349A.10, subdivision 4, is amended to read:<br />
         		<a id="pl.15.5"></a><var>15.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4. <b>Deposit of receipts.</b> (a) The director may require lottery retailers to:<br />
         		<a id="pl.15.6"></a><var>15.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) deposit in a separate account to the credit of the lottery fund, in banks designated <br />
         		<a id="pl.15.7"></a><var>15.7</var>by the director, all money received by the lottery retailer from the sale of lottery tickets <br />
         		<a id="pl.15.8"></a><var>15.8</var>and video lottery terminal plays, less money retained as the lottery retailer's commission <br />
         		<a id="pl.15.9"></a><var>15.9</var>and for payment of prizes;<br />
         		<a id="pl.15.10"></a><var>15.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) file with the director reports of the lottery retailer's receipts and transactions in <br />
         		<a id="pl.15.11"></a><var>15.11</var>ticket sales and video lottery terminal plays in a form that the director prescribes; and<br />
         		<a id="pl.15.12"></a><var>15.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) allow money deposited by the lottery retailer from the sale of lottery tickets and <br />
         		<a id="pl.15.13"></a><var>15.13</var>video lottery terminal plays to be transferred to the lottery through electronic fund transfer.<br />
         		<a id="pl.15.14"></a><var>15.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) The director may make arrangements for any person, including a financial <br />
         		<a id="pl.15.15"></a><var>15.15</var>institution, to perform functions, activities, or services in connection with the receipt and <br />
         		<a id="pl.15.16"></a><var>15.16</var>distribution of lottery revenues.<br />
         		<a id="pl.15.17"></a><var>15.17</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) A lottery retailer who fails to pay any money due to the director within the time <br />
         		<a id="pl.15.18"></a><var>15.18</var>prescribed by the director shall pay interest on the amount owed at the rate determined by <br />
         		<a id="pl.15.19"></a><var>15.19</var>rule.<br />
         		<br />
         		<a id="bill.1.35.0"></a><a id="pl.15.20"></a><var>15.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 35. Minnesota Statutes 2008, section 349A.10, subdivision 6, is amended to read:<br />
         		<a id="pl.15.21"></a><var>15.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Budget; plans.</b> The director shall prepare and submit a biennial budget <br />
         		<a id="pl.15.22"></a><var>15.22</var>plan to the commissioner of management and budget. The governor shall recommend <br />
         		<a id="pl.15.23"></a><var>15.23</var>the maximum amount available for the lottery in the budget the governor submits to <br />
         		<a id="pl.15.24"></a><var>15.24</var>the legislature under section 
         <statute_ref>16A.11</statute_ref>. The maximum amount available to the lottery for <br />
         		<a id="pl.15.25"></a><var>15.25</var>operating expenses and capital expenditures shall be determined by law. Operating <br />
         		<a id="pl.15.26"></a><var>15.26</var>expenses shall not include expenses that are a direct function of lottery sales, which <br />
         		<a id="pl.15.27"></a><var>15.27</var>include the cost of lottery prizes, amounts paid to lottery retailers as sales commissions <br />
         		<a id="pl.15.28"></a><var>15.28</var>or other compensation, amounts paid to produce and deliver scratch lottery games, ~~and~~ <br />
         		<a id="pl.15.29"></a><var>15.29</var>amounts paid to an outside vendor to operate and maintain an online gaming system, <br />
         		<a id="pl.15.30"></a><var>15.30</var>amounts paid to an outside vendor to operate and maintain a central system for video <br />
         		<a id="pl.15.31"></a><var>15.31</var>lottery terminals, and amounts paid to acquire and maintain video lottery terminals. In <br />
         		<a id="pl.15.32"></a><var>15.32</var>addition, the director shall appear at least once each fiscal year before the senate and house <br />
         		<a id="pl.15.33"></a><var>15.33</var>of representatives committees having jurisdiction over gambling policy to present and <br />
         		<a id="pl.16.1"></a><var>16.1</var>explain the lottery's plans for future games and the related advertising and promotions <br />
         		<a id="pl.16.2"></a><var>16.2</var>and spending plans for the next fiscal year. <br />
         		<br />
         		<a id="bill.1.36.0"></a><a id="pl.16.3"></a><var>16.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 36. Minnesota Statutes 2008, section 349A.11, subdivision 1, is amended to read:<br />
         		<a id="pl.16.4"></a><var>16.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Lottery ticket; retailer.</b>  The director, an employee of the lottery, <br />
         		<a id="pl.16.5"></a><var>16.5</var>a member of the immediate family of the director or employee residing in the same <br />
         		<a id="pl.16.6"></a><var>16.6</var>household may not:<br />
         		<a id="pl.16.7"></a><var>16.7</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) purchase a lottery ticket or play a game on a video lottery terminal; or<br />
         		<a id="pl.16.8"></a><var>16.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) have any personal pecuniary interest in any vendor holding a lottery procurement <br />
         		<a id="pl.16.9"></a><var>16.9</var>contract, or in any lottery retailer; or<br />
         		<a id="pl.16.10"></a><var>16.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) receive any gift, gratuity, or other thing of value, excluding food or beverage, <br />
         		<a id="pl.16.11"></a><var>16.11</var>from any lottery vendor or lottery retailer, or person applying to be a retailer or vendor, in <br />
         		<a id="pl.16.12"></a><var>16.12</var>excess of $100 in any calendar year.<br />
         		<br />
         		<a id="bill.1.37.0"></a><a id="pl.16.13"></a><var>16.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 37. Minnesota Statutes 2008, section 349A.12, subdivision 1, is amended to read:<br />
         		<a id="pl.16.14"></a><var>16.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Purchase by minors.</b>  A person under the age of 18 years may not <br />
         		<a id="pl.16.15"></a><var>16.15</var>buy or redeem for a prize a ticket in the state lottery and a person under the age of 21 years <br />
         		<a id="pl.16.16"></a><var>16.16</var>may not play a game or redeem a video lottery credit receipt from a video lottery terminal.<br />
         		<br />
         		<a id="bill.1.38.0"></a><a id="pl.16.17"></a><var>16.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 38. Minnesota Statutes 2008, section 349A.12, subdivision 2, is amended to read:<br />
         		<a id="pl.16.18"></a><var>16.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Sale to minors.</b> A lottery retailer may not sell and a lottery retailer or other <br />
         		<a id="pl.16.19"></a><var>16.19</var>person may not furnish or redeem for a prize a ticket in the state lottery to any person <br />
         		<a id="pl.16.20"></a><var>16.20</var>under the age of 18 years, or allow a person under the age of 21 years to play a game or <br />
         		<a id="pl.16.21"></a><var>16.21</var>redeem a video lottery credit receipt from a video lottery terminal.  It is an affirmative <br />
         		<a id="pl.16.22"></a><var>16.22</var>defense to a charge under this subdivision for the lottery retailer or other person to prove <br />
         		<a id="pl.16.23"></a><var>16.23</var>by a preponderance of the evidence that the lottery retailer or other person reasonably and <br />
         		<a id="pl.16.24"></a><var>16.24</var>in good faith relied upon representation of proof of age described in section 340A.503, <br />
         		<a id="pl.16.25"></a><var>16.25</var>subdivision 6, in making the sale or furnishing or redeeming the ticket or allowing the <br />
         		<a id="pl.16.26"></a><var>16.26</var>play of a video lottery game or redeem a video lottery credit receipt from a video lottery <br />
         		<a id="pl.16.27"></a><var>16.27</var>terminal.<br />
         		<br />
         		<a id="bill.1.39.0"></a><a id="pl.16.28"></a><var>16.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 39. Minnesota Statutes 2008, section 349A.13, is amended to read:<br />
         		<a id="pl.16.29"></a><var>16.29</var><b>349A.13 RESTRICTIONS.</b><br />
         		<a id="pl.16.30"></a><var>16.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Nothing in this chapter:<br />
         		<a id="pl.17.1"></a><var>17.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) authorizes the director to conduct a lottery game or contest the winner or winners <br />
         		<a id="pl.17.2"></a><var>17.2</var>of which are determined by the result of a sporting event other than a horse race conducted <br />
         		<a id="pl.17.3"></a><var>17.3</var>under chapter 240; or<br />
         		<a id="pl.17.4"></a><var>17.4</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(2) authorizes the director to install or operate a lottery device operated by coin or~~ <br />
         		<a id="pl.17.5"></a><var>17.5</var>~~currency which when operated determines the winner of a game; and~~ <br />
         		<a id="pl.17.6"></a><var>17.6</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(3)~~ (2) authorizes the director to sell pull-tabs as defined under section 349.12, <br />
         		<a id="pl.17.7"></a><var>17.7</var>subdivision 32.<br />
         		<br />
         		<a id="bill.1.40.0"></a><a id="pl.17.8"></a><var>17.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 40. Minnesota Statutes 2008, section 541.20, is amended to read:<br />
         		<a id="pl.17.9"></a><var>17.9</var><b>541.20 RECOVERY OF MONEY LOST.</b><br />
         		<a id="pl.17.10"></a><var>17.10</var>Every person who, by playing at cards, dice, or other game, or by betting on the <br />
         		<a id="pl.17.11"></a><var>17.11</var>hands or sides of such as are gambling, shall lose to any person so playing or betting <br />
         		<a id="pl.17.12"></a><var>17.12</var>any sum of money or any goods, and pays or delivers the same, or any part thereof, to <br />
         		<a id="pl.17.13"></a><var>17.13</var>the winner, may sue for and recover such money by a civil action, before any court <br />
         		<a id="pl.17.14"></a><var>17.14</var>of competent jurisdiction. For purposes of this section, gambling shall not include <br />
         		<a id="pl.17.15"></a><var>17.15</var>pari-mutuel wagering conducted under a license issued pursuant to chapter 240, purchase <br />
         		<a id="pl.17.16"></a><var>17.16</var>or sale of tickets in the state lottery, purchase of video lottery plays as authorized under <br />
         		<a id="pl.17.17"></a><var>17.17</var>chapter 349A, or gambling authorized under chapters 349 and 349A.<br />
         		<br />
         		<a id="bill.1.41.0"></a><a id="pl.17.18"></a><var>17.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 41. Minnesota Statutes 2008, section 541.21, is amended to read:<br />
         		<a id="pl.17.19"></a><var>17.19</var><b>541.21 COMMITMENTS FOR GAMBLING DEBT VOID.</b><br />
         		<a id="pl.17.20"></a><var>17.20</var>Every note, bill, bond, mortgage, or other security or conveyance in which the whole <br />
         		<a id="pl.17.21"></a><var>17.21</var>or any part of the consideration shall be for any money or goods won by gambling or <br />
         		<a id="pl.17.22"></a><var>17.22</var>playing at cards, dice, or any other game whatever, or by betting on the sides or hands <br />
         		<a id="pl.17.23"></a><var>17.23</var>of any person gambling, or for reimbursing or repaying any money knowingly lent or <br />
         		<a id="pl.17.24"></a><var>17.24</var>advanced at the time and place of such gambling or betting, or lent and advanced for any <br />
         		<a id="pl.17.25"></a><var>17.25</var>gambling or betting to any persons so gambling or betting, shall be void and of no effect <br />
         		<a id="pl.17.26"></a><var>17.26</var>as between the parties to the same, and as to all persons except such as hold or claim <br />
         		<a id="pl.17.27"></a><var>17.27</var>under them in good faith, without notice of the illegality of the consideration of such <br />
         		<a id="pl.17.28"></a><var>17.28</var>contract or conveyance. The provisions of this section shall not apply to: (1) pari-mutuel <br />
         		<a id="pl.17.29"></a><var>17.29</var>wagering conducted under a license issued pursuant to chapter 240; (2) purchase of tickets <br />
         		<a id="pl.17.30"></a><var>17.30</var>in the state lottery or other wagering authorized under chapter 349A; (3) gaming activities <br />
         		<a id="pl.17.31"></a><var>17.31</var>conducted pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq.; or (4) <br />
         		<a id="pl.17.32"></a><var>17.32</var>lawful gambling activities permitted under chapter 349.<br />
         		<br />
         		<a id="bill.1.42.0"></a><a id="pl.17.33"></a><var>17.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 42. Minnesota Statutes 2008, section 609.651, subdivision 1, is amended to read:<br />
         		<a id="pl.18.1"></a><var>18.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b> </b>~~<b>Felony</b>~~<b> Fraud</b><b>.</b> A person is guilty of a felony and may be sentenced <br />
         		<a id="pl.18.2"></a><var>18.2</var>under subdivision 4 if the person does any of the following with intent to defraud the <br />
         		<a id="pl.18.3"></a><var>18.3</var>State Lottery:<br />
         		<a id="pl.18.4"></a><var>18.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) alters or counterfeits a state lottery ticket or a video lottery credit receipt from a <br />
         		<a id="pl.18.5"></a><var>18.5</var>State Lottery video lottery terminal;<br />
         		<a id="pl.18.6"></a><var>18.6</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) knowingly presents an altered or counterfeited state lottery ticket or video lottery <br />
         		<a id="pl.18.7"></a><var>18.7</var>credit receipt from a State Lottery video lottery terminal for payment;<br />
         		<a id="pl.18.8"></a><var>18.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) knowingly transfers an altered or counterfeited state lottery ticket or video lottery <br />
         		<a id="pl.18.9"></a><var>18.9</var>credit receipt from a State Lottery video lottery terminal to another person; ~~or~~<br />
         		<a id="pl.18.10"></a><var>18.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) tampers with or manipulates the outcome, prize payable, or operation of a State <br />
         		<a id="pl.18.11"></a><var>18.11</var>Lottery video lottery terminal; or<br />
         		<a id="pl.18.12"></a><var>18.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) otherwise claims a lottery prize by means of fraud, deceit, or misrepresentation.<br />
         		<br />
         		<a id="bill.1.43.0"></a><a id="pl.18.13"></a><var>18.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 43. Minnesota Statutes 2008, section 609.75, subdivision 3, is amended to read:<br />
         		<a id="pl.18.14"></a><var>18.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>What are not bets.</b> The following are not bets:<br />
         		<a id="pl.18.15"></a><var>18.15</var>(1) a contract to insure, indemnify, guarantee or otherwise compensate another for a <br />
         		<a id="pl.18.16"></a><var>18.16</var>harm or loss sustained, even though the loss depends upon chance;<br />
         		<a id="pl.18.17"></a><var>18.17</var>(2) a contract for the purchase or sale at a future date of securities or other <br />
         		<a id="pl.18.18"></a><var>18.18</var>commodities;<br />
         		<a id="pl.18.19"></a><var>18.19</var>(3) offers of purses, prizes or premiums to the actual contestants in any bona fide <br />
         		<a id="pl.18.20"></a><var>18.20</var>contest for the determination of skill, speed, strength, endurance, or quality or to the bona <br />
         		<a id="pl.18.21"></a><var>18.21</var>fide owners of animals or other property entered in such a contest;<br />
         		<a id="pl.18.22"></a><var>18.22</var>(4) the game of bingo when conducted in compliance with sections 
         <statute_ref>349.11</statute_ref> to 
         <statute_ref>349.23</statute_ref>;<br />
         		<a id="pl.18.23"></a><var>18.23</var>(5) a private social bet not part of or incidental to organized, commercialized, or <br />
         		<a id="pl.18.24"></a><var>18.24</var>systematic gambling;<br />
         		<a id="pl.18.25"></a><var>18.25</var>(6) the operation of equipment or the conduct of a raffle under sections 
         <statute_ref>349.11</statute_ref> to <br />
         		
         <statute_ref><a id="pl.18.26"></a><var>18.26</var>349.22
         </statute_ref>, by an organization licensed by the Gambling Control Board or an organization <br />
         		<a id="pl.18.27"></a><var>18.27</var>exempt from licensing under section 
         <statute_ref>349.166</statute_ref>;<br />
         		<a id="pl.18.28"></a><var>18.28</var>(7) pari-mutuel betting on horse racing when the betting is conducted under chapter <br />
         		<a id="pl.18.29"></a><var>18.29</var>240; and<br />
         		<a id="pl.18.30"></a><var>18.30</var>(8) the purchase and sale of state lottery tickets and plays on a video lottery terminal <br />
         		<a id="pl.18.31"></a><var>18.31</var>under chapter 349A.<br />
         		<br />
         		<a id="bill.1.44.0"></a><a id="pl.18.32"></a><var>18.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 44. Minnesota Statutes 2008, section 609.75, subdivision 4, is amended to read:<br />
         		<a id="pl.18.33"></a><var>18.33</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4.  <b>Gambling device.</b> A gambling device is a contrivance the purpose of which <br />
         		<a id="pl.18.34"></a><var>18.34</var>is that for a consideration a player is afforded an opportunity to obtain something of value, <br />
         		<a id="pl.19.1"></a><var>19.1</var>other than free plays, automatically from the machine or otherwise, the award of which <br />
         		<a id="pl.19.2"></a><var>19.2</var>is determined principally by chance, whether or not the contrivance is actually played. <br />
         		<a id="pl.19.3"></a><var>19.3</var>"Gambling device" also includes a video game of chance, as defined in subdivision 8, but <br />
         		<a id="pl.19.4"></a><var>19.4</var>does not include a video lottery terminal operated by the State Lottery under chapter 349A.<br />
         		<br />
         		<a id="bill.1.45.0"></a><a id="pl.19.5"></a><var>19.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 45. Minnesota Statutes 2008, section 609.761, subdivision 2, is amended to read:<br />
         		<a id="pl.19.6"></a><var>19.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>State lottery.</b>  Sections 609.755 and 609.76 do not prohibit the operation <br />
         		<a id="pl.19.7"></a><var>19.7</var>of the state lottery ~~or~~; the sale, possession, or purchase of tickets for the state lottery; or <br />
         		<a id="pl.19.8"></a><var>19.8</var>the manufacture, possession, or operation of a video lottery terminal for the state lottery <br />
         		<a id="pl.19.9"></a><var>19.9</var>under chapter 349A.<br />
         		<br />
         		<a id="bill.1.46.0"></a><a id="pl.19.10"></a><var>19.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 46. <b>LOTTERY BUDGET; VIDEO LOTTERY TERMINALS.</b><br />
         		<a id="pl.19.11"></a><var>19.11</var>The director of the State Lottery shall submit a budget for the operation of video <br />
         		<a id="pl.19.12"></a><var>19.12</var>lottery terminals as authorized under Minnesota Statutes, section 349A.071, to the <br />
         		<a id="pl.19.13"></a><var>19.13</var>commissioner of finance. Notwithstanding Minnesota Statutes, section 349A.10, <br />
         		<a id="pl.19.14"></a><var>19.14</var>subdivision 6, the director of the State Lottery may expend amounts necessary to operate <br />
         		<a id="pl.19.15"></a><var>19.15</var>video lottery terminals. Amounts expended by the director of the State Lottery for the <br />
         		<a id="pl.19.16"></a><var>19.16</var>conduct of video lottery terminals in fiscal year 2010 are not subject to the maximum <br />
         		<a id="pl.19.17"></a><var>19.17</var>amount set in law for the operation of the lottery.<br />
         		<br />
         		<a id="bill.1.47.0"></a><a id="pl.19.18"></a><var>19.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 47. <b>REPEALER.</b><br />
         		<a id="pl.19.19"></a><var>19.19</var>Minnesota Statutes 2008, sections 297E.01, subdivision 7; and 297E.02, subdivisions <br />
         		<a id="pl.19.20"></a><var>19.20</var>4, 6, and 7, are repealed.<br />
         		<a id="pl.19.21"></a><var>19.21</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2010.<br />
         		<br />
         		<a id="bill.1.48.0"></a><a id="pl.19.22"></a><var>19.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 48. <b>EFFECTIVE DATE.</b><br />
         		<a id="pl.19.23"></a><var>19.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise provided, this article is effective the day following final <br />
         		<a id="pl.19.24"></a><var>19.24</var>enactment.<br />
         		<br />
         		<a id="bill.2.0.0"></a><div class="xtend_ce"><a id="pl.19.25"></a><var>19.25</var><b>ARTICLE 2</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.19.26"></a><var>19.26</var><b>ELECTRONIC LINKED BINGO</b><br />
            		
         </div><br />
         		<a id="bill.2.1.0"></a><a id="pl.19.27"></a><var>19.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2008, section 349.12, subdivision 5, is amended to read:<br />
         		<a id="pl.19.28"></a><var>19.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Bingo occasion.</b> "Bingo occasion" means a single gathering or session <br />
         		<a id="pl.19.29"></a><var>19.29</var>at which a series of one or more successive bingo games is played. There is no limit on <br />
         		<a id="pl.19.30"></a><var>19.30</var>the number of games conducted during a bingo occasion ~~but~~. A bingo occasion must not <br />
         		<a id="pl.20.1"></a><var>20.1</var>last longer than eight consecutive hours, except that all linked bingo games played on <br />
         		<a id="pl.20.2"></a><var>20.2</var>electronic bingo devices during the regular daily business hours of the permitted premises <br />
         		<a id="pl.20.3"></a><var>20.3</var>are considered a separate bingo occasion.<br />
         		<br />
         		<a id="bill.2.2.0"></a><a id="pl.20.4"></a><var>20.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2009 Supplement, section 349.12, subdivision 12a, is <br />
         		<a id="pl.20.5"></a><var>20.5</var>amended to read:<br />
         		<a id="pl.20.6"></a><var>20.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12a. <b>Electronic bingo device.</b> (a) "Electronic bingo device" means an <br />
         		<a id="pl.20.7"></a><var>20.7</var>electronic bingo device used by a bingo player to (1) monitor bingo paper sheets or a <br />
         		<a id="pl.20.8"></a><var>20.8</var>facsimile of a bingo paper sheet when purchased at the time and place of an organization's <br />
         		<a id="pl.20.9"></a><var>20.9</var>bingo occasion ~~and which (1) provides a means for bingo players to~~; (2)  activate numbers <br />
         		<a id="pl.20.10"></a><var>20.10</var>announced ~~by a bingo caller; (2) compares~~ or displayed and compare the numbers ~~entered~~ <br />
         		<a id="pl.20.11"></a><var>20.11</var>~~by the player~~ to the bingo faces previously stored in the memory of the device; and (3) <br />
         		<a id="pl.20.12"></a><var>20.12</var>~~identifies~~ identify a winning bingo pattern.<br />
         		<a id="pl.20.13"></a><var>20.13</var>(b) An electronic bingo device may be used only in the conduct of bingo permitted <br />
         		<a id="pl.20.14"></a><var>20.14</var>under this chapter and may not display or simulate any other form of gambling or <br />
         		<a id="pl.20.15"></a><var>20.15</var>entertainment and must be provided by a licensed distributor to a licensed organization.<br />
         		<a id="pl.20.16"></a><var>20.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) An electronic bingo device used in conjunction with a linked bingo game system <br />
         		<a id="pl.20.17"></a><var>20.17</var>must be provided by a linked bingo game provider as part of its linked bingo game system. <br />
         		<a id="pl.20.18"></a><var>20.18</var>Electronic bingo device does not mean any device into which coin, currency, or tokens are <br />
         		<a id="pl.20.19"></a><var>20.19</var>inserted to activate play.<br />
         		<br />
         		<a id="bill.2.3.0"></a><a id="pl.20.20"></a><var>20.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2008, section 349.12, subdivision 25b, is amended to read:<br />
         		<a id="pl.20.21"></a><var>20.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 25b. <b>Linked bingo game provider.</b> "Linked bingo game provider" means <br />
         		<a id="pl.20.22"></a><var>20.22</var>any person who provides the means to link bingo ~~prizes in a linked bingo game, who~~ <br />
         		<a id="pl.20.23"></a><var>20.23</var>~~provides linked bingo paper sheets to the participating organizations~~ games, who provides <br />
         		<a id="pl.20.24"></a><var>20.24</var>linked bingo prize management, and who provides the linked bingo game system.<br />
         		<br />
         		<a id="bill.2.4.0"></a><a id="pl.20.25"></a><var>20.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2008, section 349.12, subdivision 25c, is amended to read:<br />
         		<a id="pl.20.26"></a><var>20.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 25c. <b>Linked bingo game system.</b> "Linked bingo game system" means the <br />
         		<a id="pl.20.27"></a><var>20.27</var>equipment used by the linked bingo provider to conduct, transmit, and track a linked bingo <br />
         		<a id="pl.20.28"></a><var>20.28</var>game. The system must be approved by the board before its use in this state and it must <br />
         		<a id="pl.20.29"></a><var>20.29</var>have ~~dial-up or other~~ the capability to permit the board to monitor its operation remotely.<br />
         		<br />
         		<a id="bill.2.5.0"></a><a id="pl.20.30"></a><var>20.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2008, section 349.12, subdivision 25d, is amended to read:<br />
         		<a id="pl.20.31"></a><var>20.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 25d. <b>Linked bingo prize pool.</b> "Linked bingo prize pool" means the total of <br />
         		<a id="pl.20.32"></a><var>20.32</var>all prize money that each participating organization has contributed to a linked bingo game <br />
         		<a id="pl.21.1"></a><var>21.1</var>prize and includes any portion of the prize pool that is carried over from one ~~occasion~~ <br />
         		<a id="pl.21.2"></a><var>21.2</var>game to another in a progressive linked bingo game. <br />
         		<br />
         		<a id="bill.2.6.0"></a><a id="pl.21.3"></a><var>21.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2008, section 349.151, subdivision 4c, is amended to read:<br />
         		<a id="pl.21.4"></a><var>21.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4c. <b>Electronic bingo.</b> (a) The board may by rule authorize but not require the <br />
         		<a id="pl.21.5"></a><var>21.5</var>use of electronic bingo devices.<br />
         		<a id="pl.21.6"></a><var>21.6</var>(b) Rules adopted under paragraph (a):<br />
         		<a id="pl.21.7"></a><var>21.7</var>(1) must limit the number of bingo faces that can be played using an electronic <br />
         		<a id="pl.21.8"></a><var>21.8</var>bingo device to 36;<br />
         		<a id="pl.21.9"></a><var>21.9</var>(2) must require that an electronic bingo device be used with corresponding bingo <br />
         		<a id="pl.21.10"></a><var>21.10</var>paper sheets or a facsimile~~, printed at the point of sale,~~ of a bingo paper sheet as approved <br />
         		<a id="pl.21.11"></a><var>21.11</var>by the board;<br />
         		<a id="pl.21.12"></a><var>21.12</var>(3) must require that the electronic bingo device site system have ~~dial-up~~ the <br />
         		<a id="pl.21.13"></a><var>21.13</var>capability to permit the board to remotely monitor the operation of the device and the <br />
         		<a id="pl.21.14"></a><var>21.14</var>internal accounting systems; and<br />
         		<a id="pl.21.15"></a><var>21.15</var>(4) must prohibit the price of a face played on an electronic bingo device from being <br />
         		<a id="pl.21.16"></a><var>21.16</var>less than the price of a face on a bingo paper sheet sold at the same occasion.<br />
         		<br />
         		<a id="bill.2.7.0"></a><a id="pl.21.17"></a><var>21.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2008, section 349.16, subdivision 7, is amended to read:<br />
         		<a id="pl.21.18"></a><var>21.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Purchase of gambling equipment.</b> An organization may purchase or <br />
         		<a id="pl.21.19"></a><var>21.19</var>lease gambling equipment only from a person licensed as a distributor or linked bingo <br />
         		<a id="pl.21.20"></a><var>21.20</var>game provider.<br />
         		<br />
         		<a id="bill.2.8.0"></a><a id="pl.21.21"></a><var>21.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2008, section 349.1635, subdivision 1, is amended to read:<br />
         		<a id="pl.21.22"></a><var>21.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>License required.</b> No person may do any of the following without <br />
         		<a id="pl.21.23"></a><var>21.23</var>having first obtained a license from the board:<br />
         		<a id="pl.21.24"></a><var>21.24</var>(1) provide the means to link prizes in a linked bingo game;<br />
         		<a id="pl.21.25"></a><var>21.25</var>(2) provide linked bingo game prize management;<br />
         		<a id="pl.21.26"></a><var>21.26</var>(3) provide the linked bingo system; or<br />
         		<a id="pl.21.27"></a><var>21.27</var>(4) provide linked bingo paper sheets or electronic bingo devices to an organization.<br />
         		<br />
         		<a id="bill.2.9.0"></a><a id="pl.21.28"></a><var>21.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2009 Supplement, section 349.17, subdivision 6, is <br />
         		<a id="pl.21.29"></a><var>21.29</var>amended to read:<br />
         		<a id="pl.21.30"></a><var>21.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 6. <b>Conduct of bingo.</b> (a) Each bingo hard card and paper sheet must have <br />
         		<a id="pl.21.31"></a><var>21.31</var>five horizontal rows of spaces with each row except one having five numbers. The center <br />
         		<a id="pl.21.32"></a><var>21.32</var>row must have four numbers and the center space marked "free." Each column must <br />
         		<a id="pl.22.1"></a><var>22.1</var>have one of the letters B-I-N-G-O in order at the top. Bingo paper sheets may also have <br />
         		<a id="pl.22.2"></a><var>22.2</var>numbers that are not preprinted but are filled in by players.<br />
         		<a id="pl.22.3"></a><var>22.3</var>(b) A game of bingo begins with the first letter and number called or displayed. Each <br />
         		<a id="pl.22.4"></a><var>22.4</var>player must cover, mark, or activate the numbers when bingo numbers are randomly <br />
         		<a id="pl.22.5"></a><var>22.5</var>selected~~,~~ and announced~~, and~~ or displayed to the players~~, either manually or with a~~ <br />
         		<a id="pl.22.6"></a><var>22.6</var>~~flashboard and monitor~~. The game is won when a player, using bingo paper, bingo hard <br />
         		<a id="pl.22.7"></a><var>22.7</var>card, or a facsimile of a bingo paper sheet, has completed, as described in the bingo <br />
         		<a id="pl.22.8"></a><var>22.8</var>program, a previously designated pattern or previously determined requirements of the <br />
         		<a id="pl.22.9"></a><var>22.9</var>game and declared bingo. The game is completed when a winning card, sheet, or facsimile <br />
         		<a id="pl.22.10"></a><var>22.10</var>is verified and a prize awarded pursuant to subdivision 3.<br />
         		<br />
         		<a id="bill.2.10.0"></a><a id="pl.22.11"></a><var>22.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2009 Supplement, section 349.17, subdivision 7, is <br />
         		<a id="pl.22.12"></a><var>22.12</var>amended to read:<br />
         		<a id="pl.22.13"></a><var>22.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 7. <b>Bar bingo.</b> An organization may conduct bar bingo subject to the <br />
         		<a id="pl.22.14"></a><var>22.14</var>following restrictions:<br />
         		<a id="pl.22.15"></a><var>22.15</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the bingo is conducted at a site the organization owns or leases and which has a <br />
         		<a id="pl.22.16"></a><var>22.16</var>license for the sale of intoxicating beverages on the premises under chapter 340A; and<br />
         		<a id="pl.22.17"></a><var>22.17</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(2) the bingo is conducted using only bingo paper sheets or facsimiles of bingo paper~~ <br />
         		<a id="pl.22.18"></a><var>22.18</var>~~sheets purchased from a licensed distributor or licensed linked bingo game provider; and~~<br />
         		<a id="pl.22.19"></a><var>22.19</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(3) no rent may be paid for a bar bingo occasion.~~<br />
         		<a id="pl.22.20"></a><var>22.20</var>(2) bingo hard cards are not used.<br />
         		<br />
         		<a id="bill.2.11.0"></a><a id="pl.22.21"></a><var>22.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2008, section 349.17, subdivision 8, is amended to read:<br />
         		<a id="pl.22.22"></a><var>22.22</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8.  <b>Linked bingo games.</b> (a) A licensed organization may conduct or <br />
         		<a id="pl.22.23"></a><var>22.23</var>participate in ~~not more than two~~ linked bingo games ~~per occasion, one~~, some of which <br />
         		<a id="pl.22.24"></a><var>22.24</var>may be a progressive game in which a portion of the prize is carried over from one <br />
         		<a id="pl.22.25"></a><var>22.25</var>~~occasion~~ game to another until won by a player achieving a bingo within a predetermined <br />
         		<a id="pl.22.26"></a><var>22.26</var>amount of bingo numbers called. <br />
         		<a id="pl.22.27"></a><var>22.27</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(b) Each participating licensed organization shall contribute to each prize awarded~~ <br />
         		<a id="pl.22.28"></a><var>22.28</var>~~in a linked bingo game in an amount not to exceed $300.~~ <br />
         		<a id="pl.22.29"></a><var>22.29</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(c)~~ (b) An electronic bingo device as defined in section 
         <statute_ref>349.12, subdivision 12a</statute_ref>, <br />
         		<a id="pl.22.30"></a><var>22.30</var>may be used for a linked bingo game. No more than six electronic bingo devices may be <br />
         		<a id="pl.22.31"></a><var>22.31</var>located at a permitted premises with 200 seats or less. No more than 12 electronic bingo <br />
         		<a id="pl.22.32"></a><var>22.32</var>devices may be located at a permitted premises with 201 seats or more. Seating capacity is <br />
         		<a id="pl.22.33"></a><var>22.33</var>determined as specified under local fire code. <br />
         		<a id="pl.23.1"></a><var>23.1</var>(c) An electronic bingo device may be located only at a permitted premises where <br />
         		<a id="pl.23.2"></a><var>23.2</var>the organization conducts another form of gambling and the premises is: (1) a licensed <br />
         		<a id="pl.23.3"></a><var>23.3</var>premises for on-sale or off-sale of intoxicating liquor or 3.2 percent malt beverages except <br />
         		<a id="pl.23.4"></a><var>23.4</var>that electronic bingo may not be allowed at a licensee for a general foods store or drug <br />
         		<a id="pl.23.5"></a><var>23.5</var>store permitted to operate under section 340A.405, subdivision 1; or (2) where bingo is <br />
         		<a id="pl.23.6"></a><var>23.6</var>conducted and admission is restricted to persons 18 years or older.<br />
         		<a id="pl.23.7"></a><var>23.7</var>(d) Prior to a bingo occasion for linked bingo games played on electronic bingo <br />
         		<a id="pl.23.8"></a><var>23.8</var>devices, the linked bingo game provider, on behalf of the participating organizations, must <br />
         		<a id="pl.23.9"></a><var>23.9</var>provide to the board a bingo program in a format prescribed by the board.<br />
         		<a id="pl.23.10"></a><var>23.10</var>&nbsp;&nbsp;&nbsp;&nbsp;~~(d)~~ (e) The board may adopt rules to: <br />
         		<a id="pl.23.11"></a><var>23.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) specify the manner in which a linked bingo game must be played and how the <br />
         		<a id="pl.23.12"></a><var>23.12</var>linked bingo prizes must be awarded; <br />
         		<a id="pl.23.13"></a><var>23.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) specify the records to be maintained by a linked bingo game provider; <br />
         		<a id="pl.23.14"></a><var>23.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) require the submission of periodic reports by the linked bingo game provider and <br />
         		<a id="pl.23.15"></a><var>23.15</var>specify the content of the reports; <br />
         		<a id="pl.23.16"></a><var>23.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) establish the qualifications required to be licensed as a linked bingo game <br />
         		<a id="pl.23.17"></a><var>23.17</var>provider; and <br />
         		<a id="pl.23.18"></a><var>23.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(5) any other matter involving the operation of a linked bingo game. <br />
         		<br />
         		<a id="bill.2.12.0"></a><a id="pl.23.19"></a><var>23.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2009 Supplement, section 349.18, subdivision 1, is <br />
         		<a id="pl.23.20"></a><var>23.20</var>amended to read:<br />
         		<a id="pl.23.21"></a><var>23.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Lease or ownership required; rent limitations.</b> (a) An organization <br />
         		<a id="pl.23.22"></a><var>23.22</var>may conduct lawful gambling only on premises it owns or leases. Leases must be on a <br />
         		<a id="pl.23.23"></a><var>23.23</var>form prescribed by the board. The term of the lease is concurrent with the premises permit. <br />
         		<a id="pl.23.24"></a><var>23.24</var>Leases approved by the board must specify that the board may authorize an organization <br />
         		<a id="pl.23.25"></a><var>23.25</var>to withhold rent from a lessor for a period of up to 90 days if the board determines that <br />
         		<a id="pl.23.26"></a><var>23.26</var>illegal gambling occurred on the premises or that the lessor or its employees participated <br />
         		<a id="pl.23.27"></a><var>23.27</var>in the illegal gambling or knew of the gambling and did not take prompt action to stop the <br />
         		<a id="pl.23.28"></a><var>23.28</var>gambling. The lease must authorize the continued tenancy of the organization without <br />
         		<a id="pl.23.29"></a><var>23.29</var>the payment of rent during the time period determined by the board under this paragraph. <br />
         		<a id="pl.23.30"></a><var>23.30</var>Copies of all leases must be made available to employees of the board and the Division of <br />
         		<a id="pl.23.31"></a><var>23.31</var>Alcohol and Gambling Enforcement on request.<br />
         		<a id="pl.23.32"></a><var>23.32</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) Rent paid by an organization for leased premises for the conduct of pull-tabs, <br />
         		<a id="pl.23.33"></a><var>23.33</var>tipboards, and paddle wheels is subject to the following limits:<br />
         		<a id="pl.23.34"></a><var>23.34</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) for booth operations, including booth operations where a pull-tab dispensing <br />
         		<a id="pl.23.35"></a><var>23.35</var>device is located, booth operations where a bar operation is also conducted, and booth <br />
         		<a id="pl.24.1"></a><var>24.1</var>operations where both a pull-tab dispensing device is located and a bar operation is also <br />
         		<a id="pl.24.2"></a><var>24.2</var>conducted, the maximum rent is:<br />
         		<a id="pl.24.3"></a><var>24.3</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) in any month where the organization's gross profit at those premises does not <br />
         		<a id="pl.24.4"></a><var>24.4</var>exceed $4,000, up to $400; and<br />
         		<a id="pl.24.5"></a><var>24.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any month where the organization's gross profit at those premises exceeds <br />
         		<a id="pl.24.6"></a><var>24.6</var>$4,000, up to $400 plus not more than ten percent of the gross profit for that month in <br />
         		<a id="pl.24.7"></a><var>24.7</var>excess of $4,000;<br />
         		<a id="pl.24.8"></a><var>24.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) for bar operations, including bar operations where a pull-tab dispensing device <br />
         		<a id="pl.24.9"></a><var>24.9</var>is located but not including bar operations subject to clause (1), and for locations where <br />
         		<a id="pl.24.10"></a><var>24.10</var>only a pull-tab dispensing device is located:<br />
         		<a id="pl.24.11"></a><var>24.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(i) in any month where the organization's gross profit at those premises does not <br />
         		<a id="pl.24.12"></a><var>24.12</var>exceed $1,000, up to $200; and<br />
         		<a id="pl.24.13"></a><var>24.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(ii) in any month where the organization's gross profit at those premises exceeds <br />
         		<a id="pl.24.14"></a><var>24.14</var>$1,000, up to $200 plus not more than 20 percent of the gross profit for that month <br />
         		<a id="pl.24.15"></a><var>24.15</var>in excess of $1,000;<br />
         		<a id="pl.24.16"></a><var>24.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) a lease not governed by clauses (1) and (2) must be approved by the board <br />
         		<a id="pl.24.17"></a><var>24.17</var>before becoming effective;<br />
         		<a id="pl.24.18"></a><var>24.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) total rent paid to a lessor from all organizations from leases governed by clause <br />
         		<a id="pl.24.19"></a><var>24.19</var>(1) may not exceed $1,750 per month.<br />
         		<a id="pl.24.20"></a><var>24.20</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Rent paid by an organization for leased premises for the conduct of bingo is <br />
         		<a id="pl.24.21"></a><var>24.21</var>subject to either of the following limits at the option of the parties to the lease:<br />
         		<a id="pl.24.22"></a><var>24.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) not more than ten percent of the monthly gross profit from all lawful gambling <br />
         		<a id="pl.24.23"></a><var>24.23</var>activities held during bingo occasions excluding bar bingo or at a rate based on a cost per <br />
         		<a id="pl.24.24"></a><var>24.24</var>square foot not to exceed 110 percent of a comparable cost per square foot for leased space <br />
         		<a id="pl.24.25"></a><var>24.25</var>as approved by the director; and<br />
         		<a id="pl.24.26"></a><var>24.26</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) no rent may be paid for bar bingo, except as allowed under section 349.185.<br />
         		<a id="pl.24.27"></a><var>24.27</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) Amounts paid as rent under leases are all-inclusive. No other services or <br />
         		<a id="pl.24.28"></a><var>24.28</var>expenses provided or contracted by the lessor may be paid by the organization, including, <br />
         		<a id="pl.24.29"></a><var>24.29</var>but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn <br />
         		<a id="pl.24.30"></a><var>24.30</var>services, electricity, heat, security, security monitoring, storage, other utilities or services, <br />
         		<a id="pl.24.31"></a><var>24.31</var>and, in the case of bar operations, cash shortages, unless approved by the director. Any <br />
         		<a id="pl.24.32"></a><var>24.32</var>other expenditure made by an organization that is related to a leased premises must be <br />
         		<a id="pl.24.33"></a><var>24.33</var>approved by the director. An organization may not provide any compensation or thing of <br />
         		<a id="pl.24.34"></a><var>24.34</var>value to a lessor or the lessor's employees from any fund source other than its gambling <br />
         		<a id="pl.24.35"></a><var>24.35</var>account. Rent payments may not be made to an individual.<br />
         		<a id="pl.25.1"></a><var>25.1</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding paragraph (b), an organization may pay a lessor for food or <br />
         		<a id="pl.25.2"></a><var>25.2</var>beverages or meeting room rental if the charge made is comparable to similar charges <br />
         		<a id="pl.25.3"></a><var>25.3</var>made to other individuals or groups.<br />
         		<a id="pl.25.4"></a><var>25.4</var>&nbsp;&nbsp;&nbsp;&nbsp;(f) No entity other than the licensed organization may conduct any activity within <br />
         		<a id="pl.25.5"></a><var>25.5</var>a booth operation on a leased premises.<br />
         		<br />
         		<a id="bill.2.13.0"></a><a id="pl.25.6"></a><var>25.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. <b>[349.185] GROSS PROFIT ALLOCATION; ELECTRONIC BINGO.</b><br />
         		<a id="pl.25.7"></a><var>25.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definition.</b>  For the purposes of this section, a "year" is determined to <br />
         		<a id="pl.25.8"></a><var>25.8</var>start on the first date of operation of an electronic bingo device at a permitted premises.<br />
         		<a id="pl.25.9"></a><var>25.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Gross profit allocation.</b> The allocation of gross profits from the operation <br />
         		<a id="pl.25.10"></a><var>25.10</var>of an electronic bingo device is as follows.<br />
         		<a id="pl.25.11"></a><var>25.11</var>(a) The license organization shall receive:<br />
         		<a id="pl.25.12"></a><var>25.12</var>(1) a minimum of 50 percent of gross profits to be used exclusively for lawful <br />
         		<a id="pl.25.13"></a><var>25.13</var>purpose expenditures as defined under section 349.12, subdivision 25; and<br />
         		<a id="pl.25.14"></a><var>25.14</var>(2) no more than 15 percent each year for allowable expenses as defined under <br />
         		<a id="pl.25.15"></a><var>25.15</var>section 349.12, subdivision 3a, including the cost of a lease or purchase of the electronic <br />
         		<a id="pl.25.16"></a><var>25.16</var>bingo devices.<br />
         		<a id="pl.25.17"></a><var>25.17</var>(b) A linked bingo game provider shall receive no more than 25 percent of gross <br />
         		<a id="pl.25.18"></a><var>25.18</var>profits in the first year, no more than 19 percent in the second year, and no more than 15 <br />
         		<a id="pl.25.19"></a><var>25.19</var>percent thereafter.<br />
         		<a id="pl.25.20"></a><var>25.20</var>(c) When an electronic bingo device is placed in a location where the primary <br />
         		<a id="pl.25.21"></a><var>25.21</var>business is not bingo, the allocation for rent to the lessor shall be no more than ten percent <br />
         		<a id="pl.25.22"></a><var>25.22</var>of gross profits in the first year, no more than 16 percent in the second year, and no more <br />
         		<a id="pl.25.23"></a><var>25.23</var>than 20 percent thereafter. The lessor and the lessor's employees shall operate the devices <br />
         		<a id="pl.25.24"></a><var>25.24</var>on behalf of the licensed organization, and the lessor is responsible for cash shortages.<br />
         		<a id="pl.25.25"></a><var>25.25</var>(d) When an electronic bingo device is placed in a location where the primary <br />
         		<a id="pl.25.26"></a><var>25.26</var>business is bingo, the lessor is limited to the rent limitations under section 349.18, <br />
         		<a id="pl.25.27"></a><var>25.27</var>subdivision 1, paragraph (c), clause (1).<br />
         		<br />
         		<a id="bill.2.14.0"></a><a id="pl.25.28"></a><var>25.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2008, section 349.211, subdivision 1a, is amended to read:<br />
         		<a id="pl.25.29"></a><var>25.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 1a. <b>Linked bingo prizes.</b> Prizes for a linked bingo game shall be limited <br />
         		<a id="pl.25.30"></a><var>25.30</var>as follows:<br />
         		<a id="pl.25.31"></a><var>25.31</var>(1) ~~no~~ for each participating permitted premises, an organization may not contribute <br />
         		<a id="pl.25.32"></a><var>25.32</var>more than $300 per linked bingo game to a linked bingo prize pool, and for a linked bingo <br />
         		<a id="pl.25.33"></a><var>25.33</var>game played with electronic bingo devices, an organization may not contribute more than <br />
         		<a id="pl.25.34"></a><var>25.34</var>85 percent of the gross receipts to a linked bingo game prize pool; <br />
         		<a id="pl.26.1"></a><var>26.1</var>(2) ~~no~~ an organization may not award more than $200 for a linked bingo game <br />
         		<a id="pl.26.2"></a><var>26.2</var>consolation prize. For purposes of this subdivision, a linked bingo game consolation <br />
         		<a id="pl.26.3"></a><var>26.3</var>prize is a prize awarded by an organization after a prize from the linked bingo prize pool <br />
         		<a id="pl.26.4"></a><var>26.4</var>has been won; and<br />
         		<a id="pl.26.5"></a><var>26.5</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) for a progressive linked bingo game, if no player declares a valid bingo within <br />
         		<a id="pl.26.6"></a><var>26.6</var>the predetermined amount of bingo numbers called, a portion of the prize is carried over to <br />
         		<a id="pl.26.7"></a><var>26.7</var>another ~~occasion~~ game until the accumulated prize is won. The portion of the prize that is <br />
         		<a id="pl.26.8"></a><var>26.8</var>not carried over must be awarded to the first player or players who declares a valid bingo <br />
         		<a id="pl.26.9"></a><var>26.9</var>as additional numbers are called. If a valid bingo is declared within the predetermined <br />
         		<a id="pl.26.10"></a><var>26.10</var>amount of bingo numbers called, the entire prize pool for that game is awarded to the <br />
         		<a id="pl.26.11"></a><var>26.11</var>winner. ~~The annual limit for progressive bingo game prizes contained in subdivision 2~~ <br />
         		<a id="pl.26.12"></a><var>26.12</var>~~must be reduced by the amount an organization contributes to progressive linked bingo~~ <br />
         		<a id="pl.26.13"></a><var>26.13</var>~~games during the same calendar year.~~<br />
         		<br />
         		<a id="bill.3.0.0"></a><div class="xtend_ce"><a id="pl.26.14"></a><var>26.14</var><b>ARTICLE 3</b><br />
            		
         </div>
         <div class="xtend_ce"><a id="pl.26.15"></a><var>26.15</var><b>ELECTRONIC PULL-TABS</b><br />
            		
         </div><br />
         		<a id="bill.3.1.0"></a><a id="pl.26.16"></a><var>26.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2008, section 349.12, is amended by adding a <br />
         		<a id="pl.26.17"></a><var>26.17</var>subdivision to read:<br />
         		<a id="pl.26.18"></a><var>26.18</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12b. <b>Electronic pull-tab device.</b> "Electronic pull-tab device" means a <br />
         		<a id="pl.26.19"></a><var>26.19</var>terminal, system, or device authorized by the board that permits, upon payment of <br />
         		<a id="pl.26.20"></a><var>26.20</var>consideration, the play of electronic pull-tab games.<br />
         		<br />
         		<a id="bill.3.2.0"></a><a id="pl.26.21"></a><var>26.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2008, section 349.12, is amended by adding a subdivision <br />
         		<a id="pl.26.22"></a><var>26.22</var>to read:<br />
         		<a id="pl.26.23"></a><var>26.23</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12c. <b>Electronic pull-tab game.</b> "Electronic pull-tab game" means an <br />
         		<a id="pl.26.24"></a><var>26.24</var>electronically simulated game authorized by the board that is played and displayed on <br />
         		<a id="pl.26.25"></a><var>26.25</var>a video monitor device.<br />
         		<br />
         		<a id="bill.3.3.0"></a><a id="pl.26.26"></a><var>26.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2008, section 349.151, is amended by adding a subdivision <br />
         		<a id="pl.26.27"></a><var>26.27</var>to read:<br />
         		<a id="pl.26.28"></a><var>26.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4d. <b>Electronic pull-tabs.</b> (a) The board shall by rule authorize, but not <br />
         		<a id="pl.26.29"></a><var>26.29</var>require, the use of electronic pull-tab devices.<br />
         		<a id="pl.26.30"></a><var>26.30</var>(b) Rules adopted under this subdivision must follow the guidelines for what is <br />
         		<a id="pl.26.31"></a><var>26.31</var>currently allowed for the conduct of pull-tabs under section 349.1721 in terms of the style <br />
         		<a id="pl.26.32"></a><var>26.32</var>of the game and prize payout and must additionally include:<br />
         		<a id="pl.26.33"></a><var>26.33</var>(1) finite number of tickets in each electronic deal;<br />
         		<a id="pl.27.1"></a><var>27.1</var>(2) predetermined number of winning and losing tickets;<br />
         		<a id="pl.27.2"></a><var>27.2</var>(3) serialized tracking for each deal;<br />
         		<a id="pl.27.3"></a><var>27.3</var>(4) no spinning symbols which mimic a video slot machine;<br />
         		<a id="pl.27.4"></a><var>27.4</var>(5) no regeneration of serialized deal;<br />
         		<a id="pl.27.5"></a><var>27.5</var>(6) all deals must be sold and played on-site and cannot be transferred electronically <br />
         		<a id="pl.27.6"></a><var>27.6</var>or otherwise to any other location by the licensed organization;<br />
         		<a id="pl.27.7"></a><var>27.7</var>(7) serialized deals cannot be shared or commingled with any other deals or locations;<br />
         		<a id="pl.27.8"></a><var>27.8</var>(8) the number of devices at any single site the organization owns or leases is <br />
         		<a id="pl.27.9"></a><var>27.9</var>limited to five;<br />
         		<a id="pl.27.10"></a><var>27.10</var>(9) allowance for the board to remotely monitor the operation of the electronic <br />
         		<a id="pl.27.11"></a><var>27.11</var>pull-tab devices and the internal accounting systems;<br />
         		<a id="pl.27.12"></a><var>27.12</var>(10) requirement that electronic pull-tab devices maintain, on nonresettable meters, <br />
         		<a id="pl.27.13"></a><var>27.13</var>a printable, permanent record of all transactions involving the device; and<br />
         		<a id="pl.27.14"></a><var>27.14</var>(11) authority for the board to deactivate an electronic pull-tab device without notice <br />
         		<a id="pl.27.15"></a><var>27.15</var>for violation of a law or rule and to implement any other controls deemed by the board <br />
         		<a id="pl.27.16"></a><var>27.16</var>necessary to ensure and maintain the integrity of electronic pull-tab games operated under <br />
         		<a id="pl.27.17"></a><var>27.17</var>this subdivision.<br />
         		<a id="pl.27.18"></a><var>27.18</var>(c) The board shall examine prototypes of electronic pull-tab devices. The board <br />
         		<a id="pl.27.19"></a><var>27.19</var>may contract for the examination of electronic pull-tab devices and may require working <br />
         		<a id="pl.27.20"></a><var>27.20</var>models of electronic pull-tab devices to be transported to the locations the board designates <br />
         		<a id="pl.27.21"></a><var>27.21</var>for testing, examination, and analysis. The manufacturer shall pay all costs of any testing, <br />
         		<a id="pl.27.22"></a><var>27.22</var>examination, analysis, and transportation of the model.<br />
         		
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