Subdivision 1. Credit restriction. A manufacturer may not offer or extend to a distributor or linked bingo game provider, and a linked bingo game provider or a distributor may not offer or extend to an organization, credit for a period of more than 30 days for the sale or lease of any gambling equipment. No right of action exists for the collection of any claim based on credit prohibited by this subdivision. The 30-day period allowed by this subdivision begins with the day immediately following the day of invoice and includes all successive days, including Sundays and holidays, to and including the 30th successive day.
Subd. 1a. Credit and sales to delinquent organizations. (a) If a distributor or linked bingo game provider does not receive payment in full from an organization within 30 days of the day immediately following the date of the invoice, the distributor or linked bingo game provider must notify the board in writing of the delinquency on the next business day.
(b) If a distributor or linked bingo game provider who has notified the board under paragraph (a) has not received payment in full from the organization within 60 days of the notification under paragraph (a), the distributor or linked bingo game provider must notify the board of the continuing delinquency.
(c) On receipt of a notice under paragraph (a), the board shall order all distributors and linked bingo game providers that until further notice from the board, they may sell or lease gambling equipment to the delinquent organizations only on a cash basis with no credit extended. On receipt of a notice under paragraph (b), the board shall order all distributors and linked bingo game providers not to sell or lease any gambling equipment to the delinquent organization.
(d) No distributor or linked bingo game provider may extend credit or sell or lease gambling equipment to an organization in violation of an order under paragraph (c) until the board has authorized such credit or sale or lease.
Subd. 1b. Credit and sales to delinquent distributors or linked bingo game providers. (a) If a manufacturer does not receive payment in full from a distributor or linked bingo game provider within 30 days of the day immediately following the date of invoice, the manufacturer must notify the board in writing of the delinquency on the next business day.
(b) If a manufacturer who has notified the board under paragraph (a) has not received payment in full from the distributor or linked bingo game provider within 60 days of the notification under paragraph (a), the manufacturer must notify the board of the continuing delinquency.
(c) On receipt of a notice under paragraph (a), the board shall order all manufacturers that until further notice from the board, they may sell or lease gambling equipment to the delinquent distributor or linked bingo game provider only on a cash basis with no credit extended. On receipt of a notice under paragraph (b), the board shall order all manufacturers not to sell or lease any gambling equipment to the delinquent distributor or linked bingo game provider.
(d) No manufacturer may extend credit or sell or lease gambling equipment to a distributor or linked bingo game provider in violation of an order under paragraph (c) until the board has authorized such credit or sale or lease.
Subd. 2. Invoices. All invoices prepared by a manufacturer, distributor, or linked bingo game provider and presented as part of a credit transaction for the purchase of gambling equipment must clearly bear the words "Notice: State Law Prohibits the Extension of Credit For This Sale or Lease For More Than 30 Days."
Subd. 3. Rules. Any rule of the board which requires a manufacturer to report to the board any distributor or linked bingo game provider who is delinquent in payment for gambling equipment must provide that a distributor or linked bingo game provider is subject to the rule if the distributor or linked bingo game provider is more than 30 days delinquent in payment to a manufacturer.
Subd. 4. Credit; postdated checks. For purposes of this section, "credit" includes acceptance by a manufacturer, distributor, or linked bingo game provider of a postdated check in payment for gambling equipment.
1990 c 590 art 1 s 33; 1994 c 633 art 5 s 82-85; 1995 c 261 s 24; 1997 c 231 art 7 s 35; 2002 c 386 art 1 s 10,11; 2003 c 110 s 39,40; 2008 c 260 s 15,16; 2009 c 124 s 51-56
Structure Minnesota Statutes
Chapter 349 — Lawful Gambling And Gambling Devices
Section 349.13 — Lawful Gambling.
Section 349.15 — Use Of Gross Profits.
Section 349.151 — Gambling Control Board.
Section 349.153 — Conflict Of Interest.
Section 349.154 — Expenditures; Standards.
Section 349.155 — Licenses; License Actions.
Section 349.16 — Organization Licenses.
Section 349.161 — Distributor Licenses.
Section 349.162 — Equipment Registered.
Section 349.163 — Licensing Of Manufacturers.
Section 349.1635 — Linked Bingo Game Provider License.
Section 349.1641 — Licenses; Summary Suspension.
Section 349.165 — Premises Permits.
Section 349.166 — Exclusions; Exemptions.
Section 349.167 — Gambling Managers.
Section 349.168 — Gambling Employees.
Section 349.169 — Filing Of Inventory And Discounts.
Section 349.17 — Conduct Of Bingo.
Section 349.1711 — Conduct Of Tipboards.
Section 349.172 — Pull-tabs; Information Required To Be Posted.
Section 349.1721 — Conduct Of Pull-tabs.
Section 349.173 — Conduct Of Raffles.
Section 349.18 — Premises Used For Gambling.
Section 349.181 — Restrictions On Who May Participate In Lawful Gambling.
Section 349.19 — Accounts, Records, And Reports.
Section 349.191 — Sales On Credit.
Section 349.211 — Prize Limits.
Section 349.2113 — Prize Payout Limit.
Section 349.2123 — Certified Physical Inventory.
Section 349.2124 — Sales To Indian Tribes.
Section 349.2125 — Contraband.
Section 349.2127 — Prohibitions.
Section 349.213 — Local Authority.
Section 349.23 — Validity Of Prior Agreements.
Section 349.31 — Gambling Device; Possession Of.
Section 349.32 — Issuing Authority To Suspend Or Revoke.
Section 349.33 — Peace Officers To Observe And Inspect Premises.
Section 349.34 — Proceedings Before Issuing Authority; Order To Show Cause.
Section 349.35 — Revocation Of License.
Section 349.36 — Duties Of County Attorney Or Attorney General.