SF 512

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/15/2020 02:10pm

A bill for an act
relating to state government; making temporary adjustments to gambling control
laws in response to COVID-19.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. EMERGENCY EXPENDITURES; BUSINESS LOANS.

(a) Notwithstanding any law to the contrary, a congressionally chartered veterans
organization or a fraternal organization as defined in Minnesota Statutes, section 349.12,
subdivision 16a, that qualifies to make utility payments under Minnesota Statutes, section
349.12, subdivision 25, paragraph (a), clause (16), may loan lawful gambling funds to the
organization's general account for emergency expenditures with prior approval. For purposes
of this section, "emergency expenditure" means money required by the organization to have
sufficient funds to: (1) reopen its primary headquarters or a non-gambling-related business
it conducts at its primary headquarters; or (2) meet a financial obligation due and payable
that, if not met, would require the organization to immediately close its primary headquarters
or a non-gambling-related business it conducts at its primary headquarters. Loans made
under this section cannot be used to pay salaries or payroll expenses.

(b) All loans made under this section must be repaid to the gambling account within 12
months after the date of the loan. Loans made under this section must not be forgiven, except
by law. The Gambling Control Board is not authorized to forgive loans made under this
section. As a condition of loan approval, the organization must agree to suspend the conduct
of lawful gambling one year from the loan date until such time as the entire amount has
been repaid to the gambling fund, to the satisfaction of the director of the Gambling Control
Board.

(c) Applications for loans under this section must be received by the Gambling Control
Board no later than 90 days following the date that the governor's emergency executive
authority has expired, or is terminated or rescinded. For purposes of this section, "governor's
emergency executive authority" means the governor's Emergency Executive Order 20-04,
20-08, or 20-18, or other subsequent executive order that provides for, modifies, or extends
the temporary closure of bars, restaurants, and other places of public accommodation in
response to the COVID-19 pandemic.

(d) If a congressionally chartered veterans organization or a fraternal organization as
defined in Minnesota Statutes, section 349.12, subdivision 16a, is terminating lawful
gambling and the loan under this section has not been repaid, the loan repayment must be
included in the termination plan.

(e) This section does not authorize the use of gambling funds as loan collateral.

EFFECTIVE DATE.

This section is effective the day following final enactment and
paragraphs (a) and (c) expire the day that the governor's emergency executive authority has
expired, or is terminated or rescinded.

Sec. 2. USE OF GROSS PROFITS; TEMPORARY EXPENDITURE
REQUIREMENTS.

Notwithstanding Minnesota Statutes, section 349.15, subdivision 1, paragraph (c), or
any other law to the contrary, an organization that fails to expend a minimum of 30 percent
annually of gross profits on lawful purposes, or 20 percent annually for organizations that
conduct lawful gambling in a location where the primary business is bingo for fiscal year
2019, is automatically on probation effective July 1, 2019, for a period of two years. The
organization must increase its rating to the required minimum for fiscal year 2021 or be
subject to sanctions by the Gambling Control Board. If an organization fails to meet the
minimum for fiscal year 2021, the board may suspend the organization's license or impose
a civil penalty as provided in Minnesota Statutes, section 349.15, subdivision 1, paragraph
(c), clauses (1) and (2).

EFFECTIVE DATE.

This section is effective the day following final enactment and
expires June 30, 2021.

Sec. 3. TEMPORARY SALES ON CREDIT RESTRICTION.

Notwithstanding any law to the contrary, the 30-day limit on credit for the sale of lawful
gambling equipment contained in Minnesota Statutes, section 349.191, subdivision 1, does
not apply during the period that the governor's emergency executive authority is in force.
For purposes of this section, "governor's emergency executive authority" means the
governor's Emergency Executive Order 20-04, 20-08, or 20-18, or other subsequent executive
order that provides for, modifies, or extends the temporary closure of bars, restaurants, and
other places of public accommodation in response to the COVID-19 pandemic; and the
governor's Emergency Executive Order 20-20, or other subsequent executive order that
provides for, modifies, or extends the restriction to stay at home or in place of residence,
except to engage in exempt activities and critical sector work in response to the COVID-19
pandemic.

EFFECTIVE DATE.

This section is effective retroactively from March 17, 2020, and
expires the day that the governor's emergency executive authority has expired, or is
terminated or rescinded.

Sec. 4. USE OF GROSS PROFITS; EVALUATION OF EXPENDITURES.

Notwithstanding any law to the contrary, the requirements of Minnesota Statutes, section
349.15, subdivision 1, paragraph (b), are waived for the fiscal year ending June 30, 2020.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5. EXTENSION OF LICENSE RENEWAL DATES.

(a) The expiration dates for annual licenses required by Minnesota Statutes, sections
349.16, subdivisions 3 and 6; 349.161, subdivision 4; 349.163, subdivision 2; 349.1635,
subdivision 2; 349.165, subdivision 1; and 349.167, subdivision 2, paragraph (b), are
extended two calendar months from the respective licenses' current expiration dates.

(b) This subdivision applies only to licenses that were effective on April 1, 2020.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6. EXEMPT ACTIVITIES.

(a) The $150 application fee under Minnesota Statutes, section 349.166, subdivision 2,
paragraph (a), is waived for 60 days following the date that the governor's emergency
executive authority has expired, or is terminated or rescinded. The waiver granted under
this paragraph is onetime.

(b) An organization that was granted a permit under Minnesota Statutes, section 349.166,
subdivision 2, paragraph (a), for an exempt activity that occurred during the time that the
governor's emergency executive authority was in force, may postpone its exempt activity
for up to 400 days from the original date.

(c) For purposes of this section, "governor's emergency executive authority" means the
governor's Emergency Executive Order 20-20, or other subsequent executive order that
provides for, modifies, or extends the restriction to stay at home or in place of residence,
except to engage in exempt activities and critical sector work in response to the COVID-19
pandemic.

EFFECTIVE DATE.

This section is effective the day following final enactment and
expires on the day that the governor's emergency executive authority has expired, or is
terminated or rescinded.

Sec. 7. TRAINING OF GAMBLING MANAGERS.

The 90-day gambling training requirement in Minnesota Statutes, section 349.167,
subdivision 4, is extended 60 days following the date that the governor's emergency executive
authority has expired, or is terminated or rescinded. For purposes of this section, "governor's
emergency executive authority" means the governor's Emergency Executive Order 20-20,
or other subsequent executive order that provides for, modifies, or extends the restriction
to stay at home or in place of residence, except to engage in exempt activities and critical
sector work in response to the COVID-19 pandemic.

EFFECTIVE DATE.

This section is effective the day following final enactment and
expires on the day that the governor's emergency executive authority has expired, or is
terminated or rescinded.