Current through Register Vol. 48, No. 39, March 25, 2024
Subpart 1.
Distributor or distributor
salesperson license required.
A person may not sell, offer for sale, or furnish gambling
equipment for use in Minnesota to any organization that conducts lawful
gambling unless the person has obtained a distributor's or distributor
salesperson's license or license renewal issued by the board.
Subp. 2.
Distributor or distributor
salesperson licensing qualifications.
A distributor or distributor salesperson is not eligible for a
license unless they have met the requirements of Minnesota Statutes, sections
349.155,
subdivision 3, and 349.161, subdivision 5. For purposes of compliance with
Minnesota Statutes, section
349.155,
subdivision 3, the following definitions apply.
A. "Director" means a member of the
distributor's board of directors.
B. "Officer" means any person elected,
appointed, or designated as an officer by the distributor's board of
directors.
C. "Other person in a
supervisory or management position" means any person employed to direct or
control the personnel and activities of a distributor's department or
division.
Subp. 3.
Distributor restrictions.
In addition to the prohibitions in Minnesota Statutes, section
349.161,
subdivisions 1 and 5, the following restrictions apply when conducting business
with organizations authorized to conduct lawful gambling in Minnesota. A
distributor, distributor salesperson, or any representative, agent, affiliate,
or employee of a distributor may not:
A. contribute more than $250 in any calendar
year to an organization or participate in a fund-raising event if the
contribution or fund-raising event is related to the organization's conduct of
lawful gambling;
B. lease premises
to an organization for the conduct of lawful gambling;
C. be an officer, director, paid employee,
gambling volunteer, or gambling manager of an organization involved in the
conduct of lawful gambling;
D.
participate directly in the determination and purchase of gambling equipment
for an organization;
E. provide or
permit an affiliate or person acting on behalf of the distributor to provide
any compensation, gift, gratuity, premium, contribution, or thing of value to a
board employee or board member;
F.
enter into any agreement with any other distributor that restricts either of
them in the sale of gambling equipment; or
G. enter into any agreement with any other
distributor to establish the price at which any gambling equipment may be
sold.
Subp. 4.
Contents of distributor license application.
The distributor license application must contain the following
information:
A. distributor's legal
name, any other names used, the legal nature of the business (corporation,
partnership, limited liability company, or sole proprietorship), Minnesota tax
identification number, and federal employer identification number;
B. principal business address and telephone
number;
C. mailing address, if
different than the business address;
D. names and titles of the owners, partners,
officers, directors, managers, supervisors, sales employees, and persons or
entities with a direct or indirect financial interest of five percent or more
in the distributorship;
E. address
and telephone number of all facilities where gambling equipment and supplies
are unloaded in Minnesota prior to sale;
F. acknowledgment regarding the licensing
qualifications and restrictions contained in subparts
2 and
3;
G. names, addresses, and account numbers of
all business bank accounts;
H. an
acknowledgment that if the license is terminated or suspended the distributor
will file the certified physical inventory required in subpart
10 or
11;
I. date and signature, in ink, of the chief
executive officer; and
J.
additional information that may be required by the board to properly identify
the distributor and ensure compliance with Minnesota Statutes, sections
349.11 to
349.23.
Subp. 5.
Attachments to
distributor license application.
The distributor must attach a distributor personnel form to the
application for persons identified in item A.
A. A distributor personnel form must be
completed by each:
(1) owner;
(2) partner;
(3) member of the board of directors or board
of governors;
(4) officer,
including but not limited to president, vice-president, secretary, treasurer,
controller, or general counsel;
(5)
manager or supervisor of shipping, sales, personnel, governmental relations,
and security;
(6) person or entity
with a direct or indirect financial interest of five percent or more in the
distributorship;
(7) consultant,
contract employee, or independent contractor who provides advice or services
for the sale or design of gambling equipment for sale or lease in Minnesota, or
who is involved in the installation or maintenance of an electronic game system
on behalf of a distributor; and
(8)
nonsales employee.
B.
For persons identified in item A, subitems (1) to (7), the distributor
personnel form must include:
(1) distributor's
name and license number, if issued;
(2) name, home address, date of birth, Social
Security number, and daytime telephone number of the person;
(3) person's position with the
distributor;
(4) employment history
and places of residence for the past ten years;
(5) criminal history statement, not including
petty misdemeanors;
(6) name,
address, license number, exempt permit number, or exclusion authorization of
any organization conducting lawful gambling in Minnesota of which the person is
a member;
(7) Minnesota tax
identification number of businesses that the person has owned for the past ten
years;
(8) for a person who will
conduct sales:
(a) the person must submit a
recent photograph measuring one inch by 1-1/4 inches; and
(b) acknowledge the licensing qualifications
in subpart
2 and restrictions in subpart
3;
(9) date and signature, in ink, of the
person; and
(10) additional
information that may be required by the board to properly identify the person
and ensure compliance with Minnesota Statutes, sections
349.11 to
349.23.
C. For nonsales employees as
identified in item A, subitem (8), the distributor personnel form must include:
(1) distributor's name and license number, if
issued;
(2) name, home address,
date of birth, and daytime telephone number of the person;
(3) person's position with the
distributor;
(4) name, address,
license number, exempt permit number, or exclusion authorization of any
organization conducting lawful gambling in Minnesota of which the person is a
member;
(5) an acknowledgment
regarding the restrictions in subpart
3;
(6) date and signature, in ink, of the
person; and
(7) additional
information that may be required by the board to properly identify the person
and ensure compliance with Minnesota Statutes, sections
349.11 to
349.23.
Subp. 6.
Contents
of distributor salesperson license application.
For a person who will be employed by a distributor to conduct
sales, as identified in subpart
5, item A, subitems (3) to
(6), a distributor salesperson license application must contain the
following:
A. information required in
subpart
5, item B;
B. recent photograph of the person measuring
one inch by 1-1/4 inches; and
C.
acknowledgment regarding the licensing qualifications in subpart
2 and restrictions in subpart
3.
A person who is an independent contractor is not eligible for a
license. A distributor salesperson license is not required for the owner or
partner of a distributorship licensed by the board.
Subp. 7.
Changes in
distributor or distributor salesperson license application information.
If any information submitted in the application changes during
the license term, the distributor or distributor salesperson must notify the
board within ten days of the change.
Subp. 8.
Issuing or denying a new or
renewal distributor or distributor salesperson license.
This subpart governs a new or renewal distributor or
distributor salesperson license issued or denied by the board.
A. Before issuing a new or renewal
distributor license, the board must conduct or request the director of alcohol
and gambling enforcement to conduct a background investigation, which may
include a review of the distributor's sources of financing, ownership, and
organizational structure. Actual costs in addition to the new or renewal
application fee must be paid by the distributor.
B. The board must issue a license to a
distributor or distributor salesperson who:
(1) submits the information required in the
application and attachments and for a renewal application submits a complete
application at least 75 days before the expiration of the existing
license;
(2) pays the fee required
by Minnesota Statutes, section
349.161,
subdivision 4; and
(3) is eligible
to receive a license under item A and subparts
2 and
3.
C. The board must deny a new or renewal
application if a distributor or distributor salesperson:
(1) is ineligible under item A and subparts
2 and
3; and
(2) has failed to submit all information
required by subparts
5 and
6.
When the board determines that an application must be denied,
the board must promptly give a written notice to the distributor or distributor
salesperson. The notice must contain the grounds for the action and reasonable
notice of the rights of the distributor or distributor salesperson to request
an appeal under part
7865.0260, subpart
2 or
4, whichever is
applicable.
D.
All fees submitted with a new or renewal license application are considered
earned and are not refundable.
Subp.
9.
Distributor license effective date.
A distributor license issued by the board is effective on the
first day of the month after board approval or as otherwise determined by the
board.
Subp. 10.
Distributor license termination.
Before terminating its license, the distributor must submit to
the board and commissioner of revenue a certified physical inventory in a
format prescribed by the board. Termination of a license may occur due to
revocation or denial of the license by the board, or the distributor
voluntarily quitting its business. The certified physical inventory must
include the following information:
A.
an inventory of all gambling equipment when the form is prepared, including
name, form number, bar code information, and quantity of all gambling equipment
in the distributor's inventory; and
B. plans for disposal of all gambling
equipment by the date of termination. After the date on which a license is
terminated, it is illegal for a distributor to have gambling equipment in its
possession.
The distributor or designated agent must keep all invoices and
other required documentation related to the sale of gambling equipment for
3-1/2 years after the license has been terminated.
Subp. 11.
License suspension.
When a distributor's license is suspended under part
7865.0220, the licensee must
provide to the commissioner of revenue a certified physical inventory of
gambling equipment in inventory on the day the suspension begins. The certified
physical inventory must include the name, form number, bar code information,
and quantity of all gambling equipment in the distributor's inventory on the
day the suspension begins.
Statutory Authority: MS s
14.055;
349.12;
349.151;
349.154;
349.155;
349.16;
349.162;
349.163;
349.1635;
349.165;
349.166;
349.167;
349.169;
349.17;
349.1711;
349.1721;
349.173;
349.19;
349.191;
349.211