1.1.................... moves to amend H.F. No. 1511 as follows:
1.2Page 1, after line 22, insert:

1.3"ARTICLE 1
1.4MISCELLANEOUS"
1.5Page 35, after line 20, insert:

1.6"ARTICLE 2
1.7STATIONARY ELECTRONIC BINGO

1.8    Section 1. Minnesota Statutes 2008, section 349.12, subdivision 5, is amended to read:
1.9    Subd. 5. Bingo occasion. "Bingo occasion" means a single gathering or session
1.10at which a series of one or more successive bingo games is played. There is no limit on
1.11the number of games conducted during a bingo occasion but. A bingo occasion must not
1.12last longer than eight consecutive hours, except that all linked bingo games played on
1.13stationary electronic bingo devices during the regular daily business hours of the permitted
1.14premises are considered a separate bingo occasion.

1.15    Sec. 2. Minnesota Statutes 2008, section 349.12, subdivision 12a, is amended to read:
1.16    Subd. 12a. Electronic bingo device. (a) "Electronic bingo device" means an a
1.17portable or stationary electronic bingo device used by a bingo player to (1) monitor bingo
1.18paper sheets or facsimile of a bingo paper sheet when purchased at the time and place of an
1.19organization's bingo occasion and which (1) provides a means for bingo players to input;
1.20(2) activate numbers announced by a bingo caller; (2) compares or displayed and compare
1.21the numbers entered by the player to the bingo faces previously stored in the memory of
1.22the device; and (3) identifies identify a winning bingo pattern.
1.23    (b) An electronic bingo device may be used only in the conduct of bingo permitted
1.24under this chapter and may not display or simulate any other form of gambling or
1.25entertainment. A portable electronic bingo device is considered a device that is handheld
2.1and portable and must be provided by a licensed distributor. A stationary electronic bingo
2.2device is considered a device that is not readily portable and must be provided by a linked
2.3bingo game provider as part of its linked bingo game system. Electronic bingo device does
2.4not mean any device into which coin, currency, or tokens are inserted to activate play.

2.5    Sec. 3. Minnesota Statutes 2008, section 349.12, subdivision 18, is amended to read:
2.6    Subd. 18. Gambling equipment. "Gambling equipment" means: bingo hard cards
2.7or paper sheets, linked bingo paper sheets, devices for selecting bingo numbers, portable
2.8electronic bingo devices, pull-tabs, jar tickets, paddle wheels, paddle wheel tables, paddle
2.9tickets, paddle ticket cards, tipboards, tipboard tickets, promotional tickets that mimic a
2.10pull-tab or tipboard, and pull-tab dispensing devices.

2.11    Sec. 4. Minnesota Statutes 2008, section 349.12, subdivision 25b, is amended to read:
2.12    Subd. 25b. Linked bingo game provider. "Linked bingo game provider" means
2.13any person who provides the means to link bingo prizes in a linked bingo game, who
2.14provides linked bingo paper sheets to the participating organizations games, who provides
2.15linked bingo prize management, and who provides the linked bingo game system.

2.16    Sec. 5. Minnesota Statutes 2008, section 349.12, subdivision 25c, is amended to read:
2.17    Subd. 25c. Linked bingo game system. "Linked bingo game system" means the
2.18equipment used by the linked bingo provider to conduct, transmit, and track a linked bingo
2.19game. The system must be approved by the board before its use in this state and it must
2.20have dial-up or other the capability to permit the board to monitor its operation remotely.

2.21    Sec. 6. Minnesota Statutes 2008, section 349.12, subdivision 25d, is amended to read:
2.22    Subd. 25d. Linked bingo prize pool. "Linked bingo prize pool" means the total
2.23of all prize money that each participating organization has contributed to a linked bingo
2.24game prize and includes any portion of the prize pool that is carried over from one
2.25occasion game to another in a progressive linked bingo game.

2.26    Sec. 7. Minnesota Statutes 2008, section 349.151, subdivision 4b, is amended to read:
2.27    Subd. 4b. Pull-tab sales from dispensing devices. (a) The board may by rule
2.28authorize but not require the use of pull-tab dispensing devices.
2.29(b) Rules adopted under paragraph (a):
2.30(1) must limit the number of pull-tab dispensing devices on any permitted premises
2.31to three; and.
3.1(2) must limit the use of pull-tab dispensing devices to a permitted premises which is
3.2(i) a licensed premises for on-sales of intoxicating liquor or 3.2 percent malt beverages;
3.3or (ii) a premises where bingo is conducted and admission is restricted to persons 18
3.4years or older.
3.5(c) Notwithstanding rules adopted under paragraph (b), pull-tab dispensing devices
3.6may be used in establishments licensed for the off-sale of intoxicating liquor, other than
3.7drugstores and general food stores licensed under section 340A.405, subdivision 1.

3.8    Sec. 8. Minnesota Statutes 2008, section 349.151, subdivision 4c, is amended to read:
3.9    Subd. 4c. Electronic bingo. (a) The board may by rule authorize but not require the
3.10use of electronic bingo devices.
3.11(b) Rules adopted under paragraph (a):
3.12(1) must limit the number of bingo faces that can be played using an electronic
3.13bingo device to 36;
3.14(2) must require that an electronic bingo device be used with corresponding bingo
3.15paper sheets or a facsimile, printed at the point of sale, of a bingo paper sheet as approved
3.16by the board;
3.17(3) must require that the electronic bingo device site system have dial-up the
3.18capability to permit the board to remotely monitor the operation of the device and the
3.19internal accounting systems; and
3.20(4) must prohibit the price of a face played on an electronic bingo device from being
3.21less than the price of a face on a bingo paper sheet sold at the same occasion.

3.22    Sec. 9. Minnesota Statutes 2008, section 349.16, subdivision 7, is amended to read:
3.23    Subd. 7. Purchase of gambling equipment. An organization may purchase or
3.24lease gambling equipment only from a person licensed as a distributor or linked bingo
3.25game provider.

3.26    Sec. 10. Minnesota Statutes 2008, section 349.1635, subdivision 1, is amended to read:
3.27    Subdivision 1. License required. No person may do any of the following without
3.28having first obtained a license from the board:
3.29(1) provide the means to link prizes in a linked bingo game;
3.30(2) provide linked bingo game prize management;
3.31(3) provide the linked bingo system; or
3.32(4) provide linked bingo paper sheets or stationary electronic bingo devices to an
3.33organization.

4.1    Sec. 11. Minnesota Statutes 2008, section 349.17, subdivision 6, is amended to read:
4.2    Subd. 6. Conduct of bingo. (a) Each bingo hard card and paper sheets must have
4.3five horizontal rows of spaces with each row except one having five numbers. The center
4.4row must have four numbers and the center space marked "free." Each column must
4.5have one of the letters B-I-N-G-O in order at the top. Bingo paper sheets may also have
4.6numbers that are not preprinted but are filled in by players.
4.7(b) A game of bingo begins with the first letter and number called or displayed. Each
4.8player must cover or, mark, or activate the numbers when bingo numbers are randomly
4.9selected, announced, and selected and announced or displayed to the players, either
4.10manually or with a flashboard and monitor. The game is won when a player, using bingo
4.11paper, bingo hard card, or a facsimile of a bingo paper sheet, has covered or marked
4.12completed, as described in the bingo program, a previously designated arrangement of
4.13numbers on the card or sheet pattern or previously determined requirements of the game
4.14and declared bingo. The game is completed when a winning card or, sheet, or facsimile
4.15is verified and a prize awarded, except that prizes won in linked bingo games may be
4.16awarded pursuant to subdivision 3.

4.17    Sec. 12. Minnesota Statutes 2008, section 349.17, subdivision 7, is amended to read:
4.18    Subd. 7. Bar bingo. An organization may conduct bar bingo subject to the
4.19following restrictions:
4.20    (1) the bingo is conducted at a site the organization owns or leases and which has a
4.21license for the sale of intoxicating beverages on the premises under chapter 340A; and
4.22    (2) the bingo is conducted using only bingo paper sheets purchased from a licensed
4.23distributor;
4.24    (3) no rent may be paid for a bar bingo occasion; and
4.25(4) the lessor's immediate family and employees may participate if they are not
4.26involved with the sale or operation of bar bingo.
4.27(2) bingo hard cards are not used.

4.28    Sec. 13. Minnesota Statutes 2008, section 349.17, subdivision 8, is amended to read:
4.29    Subd. 8. Linked bingo games. (a) A licensed organization may conduct or
4.30participate in not more than two linked bingo games per occasion, one, some of which
4.31may be a progressive game in which a portion of the prize is carried over from one
4.32occasion game to another until won by a player achieving a bingo within a predetermined
4.33amount of bingo numbers called.
4.34    (b) Each participating licensed organization shall contribute to each prize awarded
4.35in a linked bingo game in an amount not to exceed $300.
5.1    (c) An electronic bingo device as defined in section 349.12, subdivision 12a, may
5.2be used for a linked bingo game. No more than six stationary electronic bingo devices
5.3may be located at a permitted premises with 200 seats or less. No more than 12 stationary
5.4electronic bingo devices may be located at a permitted premises with 201 seats or more.
5.5Seating capacity is determined as specified under local fire code.
5.6    (d) (c) A stationary electronic bingo device may be located only at a permitted
5.7premises where the organization conducts another form of gambling and the premises is:
5.8(1) a licensed premises for on-sales and off-sales of intoxicating liquor or 3.2
5.9percent malt beverages; or
5.10(2) where bingo is conducted and admission is restricted to persons 18 years or older.
5.11(d) Prior to a bingo occasion for linked bingo games played on stationary electronic
5.12bingo devices, the linked bingo game provider, on behalf of the participating organizations,
5.13must provide to the board a bingo program in a format prescribed by the board.
5.14(e) The board may adopt rules to:
5.15    (1) specify the manner in which a linked bingo game must be played and how the
5.16linked bingo prizes must be awarded;
5.17    (2) specify the records to be maintained by a linked bingo game provider;
5.18    (3) require the submission of periodic reports by the linked bingo game provider and
5.19specify the content of the reports;
5.20    (4) establish the qualifications required to be licensed as a linked bingo game
5.21provider; and
5.22    (5) any other matter involving the operation of a linked bingo game.

5.23    Sec. 14. Minnesota Statutes 2008, section 349.18, subdivision 1, is amended to read:
5.24    Subdivision 1. Lease or ownership required; rent limitations. (a) An organization
5.25may conduct lawful gambling only on premises it owns or leases. Leases must be on a
5.26form prescribed by the board. The term of the lease may not begin before the effective date
5.27of the premises permit and must expire on the same day that the premises permit expires.
5.28Leases approved by the board must specify that the board may authorize an organization
5.29to withhold rent from a lessor for a period of up to 90 days if the board determines that
5.30illegal gambling occurred on the premises and that the lessor or its employees participated
5.31in the illegal gambling or knew of the gambling and did not take prompt action to stop the
5.32gambling. The lease must authorize the continued tenancy of the organization without
5.33the payment of rent during the time period determined by the board under this paragraph.
5.34Copies of all leases must be made available to employees of the board and the Division of
5.35Alcohol and Gambling Enforcement on request. The board may prescribe by rule limits
6.1on the amount of rent which an organization may pay to a lessor for premises leased for
6.2bingo. Any rule adopted by the board limiting the amount of rent to be paid may only be
6.3effective for leases entered into, or renewed, after the effective date of the rule.
6.4    (b) Rent paid by an organization for leased premises for the conduct of pull-tabs,
6.5tipboards, and paddle wheels is subject to the following limits:
6.6    (1) for booth operations, including booth operations where a pull-tab dispensing
6.7device is located, booth operations where a bar operation is also conducted, and booth
6.8operations where both a pull-tab dispensing device is located and a bar operation is also
6.9conducted, the maximum rent is:
6.10    (i) in any month where the organization's gross profit at those premises does not
6.11exceed $4,000, up to $400; and
6.12    (ii) in any month where the organization's gross profit at those premises exceeds
6.13$4,000, up to $400 plus not more than ten percent of the gross profit for that month in
6.14excess of $4,000;
6.15    (2) for bar operations, including bar operations where a pull-tab dispensing device
6.16is located but not including bar operations subject to clause (1), and for locations where
6.17only a pull-tab dispensing device is located:
6.18    (i) in any month where the organization's gross profit at those premises does not
6.19exceed $1,000, up to $200; and
6.20    (ii) in any month where the organization's gross profit at those premises exceeds
6.21$1,000, up to $200 plus not more than 20 percent of the gross profit for that month
6.22in excess of $1,000;
6.23    (3) a lease not governed by clauses (1) and (2) must be approved by the board
6.24before becoming effective;
6.25    (4) total rent paid to a lessor from all organizations from leases governed by clause
6.26(1) may not exceed $1,750 per month. Total rent paid to a lessor from all organizations
6.27from leases governed by clause (2) may not exceed $2,500 per month.
6.28    (c) Rent paid by an organization for leased premises for the conduct of bingo is
6.29subject to either of the following limits at the option of the parties to the lease:
6.30    (1) not more than ten percent of the monthly gross profit from all lawful gambling
6.31activities held during bingo occasions excluding bar bingo or at a rate based on a cost per
6.32square foot not to exceed 110 percent of a comparable cost per square foot for leased space
6.33as approved by the director; and
6.34    (2) no rent may be paid for bar bingo, except as allowed under 349.185.
6.35    (d) Amounts paid as rent under leases are all-inclusive. No other services or
6.36expenses provided or contracted by the lessor may be paid by the organization, including,
7.1but not limited to, trash removal, janitorial and cleaning services, snow removal, lawn
7.2services, electricity, heat, security, security monitoring, storage, other utilities or services,
7.3and, in the case of bar operations, cash shortages, unless approved by the director. Any
7.4other expenditure made by an organization that is related to a leased premises must be
7.5approved by the director. An organization may not provide any compensation or thing of
7.6value to a lessor or the lessor's employees from any fund source other than its gambling
7.7account. Rent payments may not be made to an individual.
7.8    (e) Notwithstanding paragraph (b), an organization may pay a lessor for food or
7.9beverages or meeting room rental if the charge made is comparable to similar charges
7.10made to other individuals or groups.
7.11    (f) No entity other than the licensed organization may conduct any activity within
7.12a booth operation on a leased premises.
7.13     (g) Employees of a lessor not involved in the conduct of lawful gambling on the
7.14premises or nongambling employees of an organization conducting lawful gambling on
7.15the premises may participate in lawful gambling on the premises provided if pull-tabs or
7.16tipboards are sold, the organization posts the major prizes awarded.
7.17     (h) A gambling employee may purchase pull-tabs or tipboards at the site of the
7.18employee's place of employment provided:
7.19    (1) the organization posts the major prizes for pull-tab or tipboard games; and
7.20    (2) the employee is not involved in the sale of pull-tabs or tipboards at that site.
7.21     (i) At a leased site where an organization uses a paddle wheel consisting of 32
7.22numbers or less or a tipboard consisting of 32 tickets or less, tickets may be sold
7.23throughout the permitted premises, but winning tickets must be redeemed, the paddle
7.24wheel must be located, and the tipboard seal must be opened within the leased premises.

7.25    Sec. .... [349.185] GROSS PROFIT ALLOCATION; STATIONARY
7.26ELECTRONIC BINGO.
7.27    Subdivision 1. Definition. For the purposes of this section, a "year" is determined to
7.28start on the first date of operation of a stationary electronic bingo device at a permitted
7.29premises.
7.30    Subd. 2. Gross profit allocation. The allocation of gross profits from the operation
7.31of a stationary electronic bingo device is as follows:
7.32(a) The licensed organization shall receive;
7.33(i) a minimum 50 percent of gross profits to be used exclusively for lawful purpose
7.34expenditures as defined under 349.12, subdivision 25, and
8.1(ii) no more than 15 percent each year for allowable expenses as defined under
8.2349.12, subdivision 3a, including the cost of a lease or purchase of the stationary
8.3electronic bingo devices;
8.4(b) A linked bingo game provider shall receive no more than 25 percent of gross
8.5profits in the first year, no more than 19 percent in the second year, and no more than 15
8.6percent thereafter;
8.7(c) When a stationary electronic bingo device is placed in a location where the
8.8primary business is not bingo, the allocation for rent to the lessor shall be no more than
8.910 percent of gross profits in the first year, no more than 16 percent in the second year,
8.10and no more than 20 percent thereafter. The lessor and the lessor's employees shall
8.11operate the devices on behalf of the licensed organization, and the lessor is responsible
8.12for cash shortages.
8.13(d) When a stationary electronic bingo device is placed in a location where the
8.14primary business is bingo, the lessor is limited to the rent limitations under 349.18,
8.15subdivision 1, item (c), subitem (1).

8.16    Sec. 15. Minnesota Statutes 2008, section 349.211, subdivision 1a, is amended to read:
8.17    Subd. 1a. Linked bingo prizes. Prizes for a linked bingo game shall be limited
8.18as follows:
8.19(1) no for each participating permitted premises, an organization may not contribute
8.20more than $300 per linked bingo game to a linked bingo prize pool;, and for a linked bingo
8.21game played with stationary electronic bingo devices an organization may not contribute
8.22more than 85 percent of the gross receipts to a linked bingo game prize pool;
8.23(2) no an organization may not award more than $200 for a linked bingo game
8.24consolation prize. For purposes of this subdivision, a linked bingo game consolation
8.25prize is a prize awarded by an organization after a prize from the linked bingo prize pool
8.26has been won; and
8.27    (3) for a progressive linked bingo game, if no player declares a valid bingo within
8.28the predetermined amount of bingo numbers called, a portion of the prize is carried over to
8.29another occasion game until the accumulated prize is won. The portion of the prize that is
8.30not carried over must be awarded to the first player or players who declares a valid bingo
8.31as additional numbers are called. If a valid bingo is declared within the predetermined
8.32amount of bingo numbers called, the entire prize pool for that game is awarded to the
8.33winner. The annual limit for progressive bingo game prizes contained in subdivision 2
8.34must be reduced by the amount an organization contributes to progressive linked bingo
8.35games during the same calendar year.

9.1    Sec. 16. EFFECTIVE DATE.
9.2Sections 1 to 15 are effective July 1, 2009."