Bill Text: MN HF1770 | 2013-2014 | 88th Legislature | Introduced


Bill Title: Electronic games definitions modified and other technical, clarifying, and conforming changes made.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2013-04-15 - Introduction and first reading, referred to Commerce and Consumer Protection Finance and Policy [HF1770 Detail]

Download: Minnesota-2013-HF1770-Introduced.html

1.1A bill for an act
1.2relating to lawful gambling; modifying definitions and making other technical,
1.3clarifying, and conforming changes related to electronic games;amending
1.4Minnesota Statutes 2012, sections 349.12, subdivisions 12a, 12b, 12d, 18;
1.5349.13; 349.151, subdivision 4d; 349.17, subdivision 9; 349.1721, subdivision 4;
1.6349.2127, subdivision 7.
1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8    Section 1. Minnesota Statutes 2012, section 349.12, subdivision 12a, is amended to read:
1.9    Subd. 12a. Electronic bingo device. (a) "Electronic bingo device" means a
1.10handheld and portable electronic device that:
1.11(a) (1) is used approved by the board for use by a bingo player to:
1.12(1) (i) monitor bingo paper sheets or a facsimile of a bingo paper sheet purchased
1.13and played at the time and place of an organization's bingo occasion, or to play an
1.14electronic bingo game that is linked with other permitted premises;
1.15(2) (ii) activate numbers announced or displayed, and to compare the numbers to the
1.16bingo faces previously stored in the memory of the device;
1.17(3) (iii) identify a winning bingo pattern or game requirement; and
1.18(4) (iv) play against other bingo players;
1.19(b) (2) limits the play of bingo faces to 36 faces per game;
1.20(c) (3) requires coded entry to activate play but does not allow the use of a coin,
1.21currency, or tokens to be inserted to activate play;
1.22(d) (4) may only be used for play against other bingo players in a bingo game;
1.23(e) (5) has no additional function as an amusement or a gambling device other
1.24than as an electronic pull-tab game defined under section 349.12, subdivision 12c, or
1.25as otherwise permitted by applicable law;
2.1(f) (6) has the capability to ensure adequate levels of security internal controls;
2.2(g) (7) has the capability to permit the board to electronically monitor the operation
2.3of the device and the internal accounting systems; and
2.4(h) (8) has the capability to allow use by a player who is visually impaired.
2.5(b) An electronic bingo device is still considered "portable" if it is tethered to a
2.6fixture or connected to a power supply during play, provided that the device is capable of
2.7functioning when removed from the tethering or power supply.
2.8(c) An electronic bingo device located at the Minneapolis-St. Paul International
2.9Airport may have additional nongambling functions for the benefit of an organization or
2.10lessor of permitted premises, provided that any additional functions have been reviewed
2.11and approved by the board and have no possible effect on the operation or integrity of
2.12the bingo games played using the device.

2.13    Sec. 2. Minnesota Statutes 2012, section 349.12, subdivision 12b, is amended to read:
2.14    Subd. 12b. Electronic pull-tab device. (a) "Electronic pull-tab device" means a
2.15handheld and portable electronic device that:
2.16(1) is used to approved by the board for use in connection with the play of one or
2.17more electronic pull-tab games;
2.18(2) requires coded entry to activate play but does not allow the use of coin, currency,
2.19or tokens to be inserted to activate play;
2.20(3) requires that a player must activate or open each electronic pull-tab ticket and
2.21each individual line, row, or column of each electronic pull-tab ticket;
2.22(4) maintains information pertaining to accumulated win credits that may be applied
2.23to games in play or redeemed upon termination of play;
2.24(5) has no spinning reels or other representations that mimic a video slot machine;
2.25(6) has no additional function as a gambling device other than as an electronic-linked
2.26bingo game played on a device defined under section 349.12, subdivision 12a, or as
2.27otherwise permitted by applicable law;
2.28(7) may incorporate an amusement game feature as part of the pull-tab game but
2.29may not require additional consideration for that feature or award any prize, or other
2.30benefit for that feature;
2.31(8) may have auditory or visual enhancements to promote or provide information
2.32about the game being played, provided the component does not affect the outcome of
2.33a game or display the results of a game;
2.34(9) maintains, on nonresettable meters, a printable, permanent record of all
2.35transactions involving each device and electronic pull-tab games played on the device;
3.1(10) is not a pull-tab dispensing device as defined under subdivision 32a; and
3.2    (11) has the capability to allow use by a player who is visually impaired.
3.3(b) An electronic pull-tab device is still considered "portable" if it is tethered to a
3.4fixture or connected to a power supply during play, provided that the device is capable of
3.5functioning when removed from the tethering or power supply.
3.6(c) An electronic pull-tab device located at the Minneapolis-St. Paul International
3.7Airport may have additional nongambling functions for the benefit of an organization or
3.8lessor of permitted premises, provided that any additional functions have been reviewed
3.9and approved by the board and have no possible effect on the operation or integrity of the
3.10pull-tab games played using the device.

3.11    Sec. 3. Minnesota Statutes 2012, section 349.12, subdivision 12d, is amended to read:
3.12    Subd. 12d. Electronic pull-tab game system. "Electronic pull-tab game system"
3.13means the equipment or software leased from a licensed distributor and used by a licensed
3.14organization to conduct, manage, and record electronic pull-tab games, and to report and
3.15transmit the game results as prescribed by the board and the Department of Revenue. The
3.16system must provide security and access levels sufficient so that internal control objectives
3.17are met as prescribed by the board. The system must contain a point of sale station.

3.18    Sec. 4. Minnesota Statutes 2012, section 349.12, subdivision 18, is amended to read:
3.19    Subd. 18. Gambling equipment. (a) "Gambling equipment" means gambling
3.20equipment that is either disposable or permanent gambling equipment.
3.21(a) (b) Disposable gambling equipment includes the following:
3.22(1) bingo hard cards or paper sheets, including linked bingo paper sheets;
3.23(2) paper and electronic pull-tabs;
3.24(3) jar tickets;
3.25(4) paddle tickets and paddle ticket cards;
3.26(5) tipboards and tipboard tickets; and
3.27(6) promotional tickets that mimic a pull-tab or tipboard.
3.28(b) (c) Permanent gambling equipment includes the following:
3.29(1) devices for selecting bingo numbers;
3.30(2) electronic linked bingo devices game systems;
3.31(3) electronic pull-tab devices game systems;
3.32(4) pull-tab dispensing devices;
3.33(5) programmable electronic devices that have no effect on the outcome of a game
3.34and are used to provide a visual or auditory enhancement of a game;
4.1(6) paddle wheels; and
4.2(7) paddle wheel tables.

4.3    Sec. 5. Minnesota Statutes 2012, section 349.13, is amended to read:
4.4349.13 LAWFUL GAMBLING.
4.5Lawful gambling is not a lottery or gambling within the meaning of sections 609.75
4.6to 609.76 if it is conducted under this chapter. A pull-tab dispensing device, electronic
4.7bingo device, and electronic pull-tab device permitted under this chapter and by board
4.8rule is not a gambling device within the meaning of sections 609.75 to 609.76 and chapter
4.9299L. An electronic game device allowed under this chapter may not be a slot machine.
4.10Electronic game devices, including but not limited to electronic bingo devices, electronic
4.11paddle wheels, and electronic pull-tab devices authorized under this chapter, may only
4.12be used in the conduct of lawful gambling permitted under this chapter and board rule
4.13and may not display or simulate any other form of gambling or entertainment, except as
4.14otherwise allowed under this chapter applicable law.

4.15    Sec. 6. Minnesota Statutes 2012, section 349.151, subdivision 4d, is amended to read:
4.16    Subd. 4d. Electronic pull-tab devices and electronic pull-tab game system. (a)
4.17The board may adopt rules it deems necessary to ensure the integrity of electronic pull-tab
4.18devices, the electronic pull-tab games played on the devices, and the electronic pull-tab
4.19game system necessary to operate them.
4.20(b) The board may not require an organization to use electronic pull-tab devices.
4.21(c) Before authorizing the use, lease, or sale of any devices used as electronic
4.22pull-tab devices and the or electronic pull-tab game system systems, the board shall
4.23examine the electronic pull-tab devices allowed under section 349.12, subdivision 12b, or
4.24the electronic pull-tab game systems allowed under section 349.12, subdivision 12d. The
4.25board may contract for the examination of the game system and electronic pull-tab devices
4.26and may require a working model to be transported to locations the board designates for
4.27testing, examination, and analysis. The organization seeking to use or the manufacturer
4.28seeking to lease or sell an electronic pull-tab device or electronic pull-tab game system
4.29must pay all costs of any testing, examination, analysis, and transportation of the model
4.30 device or system. The device or system must be approved by the board before its use in
4.31the state and must have the capability to permit the board to electronically monitor its
4.32operation and internal accounting systems.
4.33(d) The board may require a manufacturer to submit a certificate from an independent
4.34testing laboratory approved by the board to perform testing services, stating that the
5.1equipment device or system has been tested, analyzed, and meets the standards required in
5.2this chapter and any applicable board rules.
5.3(e) The board, or the director if authorized by the board, may require the deactivation
5.4of an electronic pull-tab device or an electronic pull-tab game system for violation of a
5.5law or rule and to implement any other controls deemed necessary to ensure and maintain
5.6the integrity of electronic pull-tab devices and the electronic pull-tab games played on
5.7the devices or systems.

5.8    Sec. 7. Minnesota Statutes 2012, section 349.17, subdivision 9, is amended to read:
5.9    Subd. 9. Linked bingo games played exclusively on electronic bingo devices. (a)
5.10In addition to the requirements of subdivision 8, the following requirements and restrictions
5.11apply when linked bingo games are played exclusively on electronic bingo devices.
5.12(a) (b) The permitted premises must be:
5.13(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
5.14malt beverages, except for a general food store or drug store permitted to sell alcoholic
5.15beverages under section 340A.405, subdivision 1; or
5.16(2) a premises where bingo is conducted as the primary business and has a seating
5.17capacity of at least 100.
5.18(b) (c) The number of electronic bingo devices is limited to:
5.19(1) no more than six devices in play for permitted premises with 200 seats or less;
5.20(2) no more than 12 devices in play for permitted premises with 201 seats or more; and
5.21(3) no more than 50 devices in play for permitted premises where bingo is the
5.22primary business.
5.23Seating capacity is determined as specified under the local fire code. The device
5.24limitations in this subdivision shall not apply to permitted premises located at the
5.25Minneapolis-St. Paul International Airport.
5.26(c) (d) Prior to a bingo occasion, the linked bingo game provider, on behalf of
5.27the participating organizations, must provide to the board a bingo program in a format
5.28prescribed by the board.
5.29(d) (e) Before participating in the play of a linked bingo game, a player must present
5.30and register a valid picture identification card that includes the player's address and
5.31date of birth.
5.32(e) (f) An organization may remove from play a device that a player has not
5.33maintained in an activated mode for a specified period of time determined by the
5.34organization. The organization must provide the notice in its house rules.

6.1    Sec. 8. Minnesota Statutes 2012, section 349.1721, subdivision 4, is amended to read:
6.2    Subd. 4. Electronic pull-tab device requirements and restrictions. (a) The
6.3following pertain to the use of electronic pull-tab devices as defined under section 349.12,
6.4subdivision 12b.
6.5(a) (b) The use of any electronic pull-tab device may only be at a permitted premises
6.6that is:
6.7(1) a premises licensed for the on-sale or off-sale of intoxicating liquor or 3.2 percent
6.8malt beverages, except for a general food store or drug store permitted to sell alcoholic
6.9beverages under section 340A.405, subdivision 1; or
6.10(2) a premises where bingo is conducted as the primary business and has a seating
6.11capacity of at least 100; and
6.12(3) where the licensed organization sells paper pull-tabs.
6.13(b) (c) The number of electronic pull-tab devices is limited to:
6.14(1) no more than six devices in play at any permitted premises with 200 seats or less;
6.15(2) no more than 12 devices in play at any permitted premises with 201 seats
6.16or more; and
6.17(3) no more than 50 devices in play at any permitted premises where the primary
6.18business is bingo.
6.19Seating capacity is determined as specified under the local fire code. The device
6.20limitations in this subdivision shall not apply to permitted premises located at the
6.21Minneapolis-St. Paul International Airport.
6.22(c) (d) The hours of operation for the devices are limited to 8:00 a.m. to 2:00 a.m.
6.23(d) (e) All electronic pull-tab games must be sold and played on the permitted
6.24premises and may not be linked to other permitted premises.
6.25(e) (f) Electronic pull-tab games may not be transferred electronically or otherwise
6.26to any other location by the licensed organization.
6.27(f) (g) Electronic pull-tab games may be commingled if the games are from the
6.28same family of games and manufacturer and contain the same game name, form number,
6.29type of game, ticket count, prize amounts, and prize denominations. Each commingled
6.30game must have a unique serial number.
6.31(g) (h) An organization may remove from play a device that a player has not
6.32maintained in an activated mode for a specified period of time determined by the
6.33organization. The organization must provide the notice in its house rules.
6.34(h) (i) Before participating in the play of an electronic pull-tab game, a player must
6.35present and register a valid picture identification card that includes the player's address
6.36and date of birth.
7.1(i) (j) Each player is limited to the use of one device at a time.

7.2    Sec. 9. Minnesota Statutes 2012, section 349.2127, subdivision 7, is amended to read:
7.3    Subd. 7. Checks for gambling purchases. An organization may not accept checks
7.4or debit cards in payment for the purchase of any gambling equipment or for the chance to
7.5participate in any form of lawful gambling except a raffle. If an organization accepts a
7.6check or debit card, the payment of which is subsequently dishonored, the organization
7.7shall reimburse its gambling account for the amount of the dishonored payment within
7.830 days of receiving notice of the dishonor. This subdivision does not apply to gaming
7.9activities conducted pursuant to the Indian Gaming Regulatory Act, United States Code,
7.10title 25, section 2701 et seq, or gaming activities conducted at the Minneapolis-St. Paul
7.11International Airport.
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