Current through Register Vol. 48, No. 39, March 25, 2024
Subpart 1.
Premises permit required.
An organization must obtain a premises permit issued by the
board for each premises it owns or leases where it will conduct lawful
gambling. The permit, when issued, is not transferable from one site to
another.
Subp. 2.
Contents of and attachment to premises permit application.
A premises permit application must contain the following
information:
A. organization's legal
name;
B. name and daytime telephone
number of the organization's chief executive officer;
C. name and street address of the proposed
gambling premises;
D. city and
county or township and county where the proposed gambling premises is
located;
E. address in Minnesota of
any temporary or permanent storage space for gambling equipment and records, if
different than the permitted premises;
F. bank name, address, and account number for
each bank account in Minnesota into which gross receipts from gambling are
deposited;
G. authorization
permitting the board and agents of the board and the commissioners of revenue
and public safety and their agents to inspect the bank records of the gambling
account;
H. a statement giving
consent to local law enforcement officers, the board or its agents, and the
commissioners of revenue and public safety and their agents to enter and
inspect the premises;
I.
acknowledgment signed by the chief executive officer;
J. acknowledgment by the local unit of
government that it has approved the application by resolution as authorized by
Minnesota Statutes, section
349.213,
subdivision 2; and
K. if the
premises is leased, a copy of the lease as required by subpart
3.
Subp. 3.
Lease required for leased
premises.
For premises not owned by the organization, a lease must be on
a form prescribed by the board and contain at a minimum the following
information:
A. name, business
address, and telephone number of the legal owner of the premises and the
lessor;
B. organization's name,
business address, license number, and daytime telephone number;
C. name, address, and telephone number of the
leased premises;
D. type of
gambling activity to be conducted;
E. monetary consideration, if any, that may
not be directly or indirectly supplemented above the amounts in Minnesota
Statutes, section
349.18;
F. an irrevocable consent from the lessor
that:
(1) the board and its agents, the
commissioners of revenue and public safety and their agents, and law
enforcement personnel have access to the permitted premises at any reasonable
time during the business hours of the lessor;
(2) the organization has access to the
permitted premises during any time reasonable and when necessary for the
conduct of lawful gambling on the premises;
(3) the owner of the premises or the lessor
will not manage the conduct of gambling at the premises;
(4) the lessor, the lessor's immediate
family, and any agents or gambling employees of the lessor will not participate
as players in the conduct of lawful gambling on the premises, except as
authorized under Minnesota Statutes, section
349.181;
(5) the lessor, the lessor's immediate
family, any person residing in the same residence as the lessor, and any agents
or employees of the lessor will not require the organization to perform any
action that would violate statute or rule, with a clause stating that the
lessor must not modify or terminate the lease in whole or in part because of a
violation of this provision. If there is a dispute as to whether a violation
has occurred, the lease will remain in effect pending a final determination by
the compliance review group. The lessor agrees to arbitration when a violation
is alleged. For purposes of this subitem, the arbitrator must be the compliance
review group of the board; and
(6)
the lessor must maintain a record of all money received from the organization,
and make the record available to the board and its agents and the commissioners
of revenue and public safety and their agents. The record must be maintained
for 3-1/2 years;
G.
clauses pertaining to illegal gambling stating that:
(1) notwithstanding part
7865.0220, subpart
3, an organization is
required to continue making rent payments, under the terms of the lease, if the
organization or its agents are found to be solely responsible for any illegal
gambling conducted at the site that is prohibited by part
7861.0260, subpart
1, item H, or Minnesota
Statutes, section
609.75,
unless the organization's agents responsible for the illegal gambling activity
are also agents or employees of the lessor;
(2) the lessor must not modify or terminate
the lease in whole or in part because the organization reported to a state or
local law enforcement authority or the board the conduct at the site of illegal
gambling activity in which the organization did not participate;
(3) the lessor is aware of the prohibition
against illegal gambling in Minnesota Statutes, section
609.75, and
the penalties for illegal gambling violations in part
7865.0220, subpart
3;
(4) to the best of the lessor's knowledge,
the lessor affirms that any and all games or devices located on the premises
are not being used, and are not capable of being used, in a manner that
violates the prohibitions against illegal gambling in Minnesota Statutes,
section
609.75, and
the penalties for illegal gambling violations in part
7865.0220, subpart
3; and
(5) the lessor acknowledges the provisions of
Minnesota Statutes, section
349.18,
subdivision 1, paragraph (a);
H. a clause stating that the lessor must not
impose restrictions on the organization with respect to providers of
gambling-related equipment and services or in the use of net profits for lawful
purposes; and
I. all other
agreements between the organization and the lessor.
Subp. 4.
Changes in premises permit
application and lease information.
The following items pertain to changes in application and lease
information.
A. Except for items B and
C, the organization must notify the board in writing when any information
submitted in the application changes, no later than ten days after the change
has taken effect.
B. For changes to
a lease that do not include a change in the lessor, the organization must
submit to the board a new lease at least ten days before the effective date of
the change.
C. For a change in
ownership of the site, the organization must submit to the board a new lease
within ten days after the new lessor has assumed ownership.
Subp. 5.
Issuing or denying
a premises permit; violation of lease agreement.
The following items apply to a premises permit issued or denied
by the board.
A. The board must issue
a premises permit when an application is complete and contains:
(1) information required in the application
and application attachments;
(2)
the fee required by Minnesota Statutes, section
349.165,
subdivision 3; and
(3) local unit
of government approval.
B. The board must deny the application if:
(1) the organization does not or will not
have an organization license or licensed gambling manager when the premises
permit is issued, or the organization license has lapsed according to Minnesota
Statutes, section
349.16,
subdivision 3a;
(2) the application
has been denied by the local unit of government;
(3) illegal gambling was conducted at the
proposed site within the 90 days immediately preceding the date of the
application, and at a time when no licensed organization had a premises permit
for the site;
(4) another
organization's premises permit for the proposed site is under suspension or
revocation for illegal gambling under part
7865.0220, subpart
3;
(5) a prior premises permit for the proposed
site would have been subject to suspension or revocation for illegal gambling
under part
7865.0220, subpart
3, and the suspension period
or revocation that could have been imposed for that site has not
elapsed;
(6) the organization has
not submitted the information required by subpart
2, and for a leased site the
organization has not submitted a lease as required by subpart
3, and the application
remains incomplete for more than 90 days after it was received by the board;
or
(7) the lessor, the lessor's
immediate family, any person residing in the same residence as the lessor, or
the lessor's agents or employees have required an organization to perform an
action that would violate statute or rule, as referenced in the lease
agreement. If such a violation of the lease agreement has occurred, any
premises permit application for that site will not be considered for the
following periods:
(a) up to one year from the
date of the board's final decision on the matter; or
(b) up to two years from the date of the
board's final decision on the matter for a second such violation, unless a
complete change of ownership of the site occurred at the time of the first or
second violation. "Complete change of ownership" has the meaning given in part
7865.0210, subpart
3, item C.
When the board determines that an application must be denied,
the board must promptly give a written notice to the organization. The notice
must contain the grounds for the action and reasonable notice of the rights of
the organization to request an appeal under part
7865.0260, subpart
2.
C. All fees submitted
with a permit application are considered earned and are not
refundable.
Subp. 6.
Permit effective date.
A premises permit issued by the board is effective on the first
day of a month or as otherwise determined by the board.