1.1                          A bill for an act 
  1.2             relating to lawful gambling; eliminating the 
  1.3             requirement for a separate tax refund and credit 
  1.4             account; amending Minnesota Statutes 1996, sections 
  1.5             349.154, subdivision 2; and 349.19, subdivision 2a. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 349.154, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [NET PROFIT REPORTS.] (a) Each licensed 
  1.10  organization must report monthly to the board on a form 
  1.11  prescribed by the board each expenditure and contribution of net 
  1.12  profits from lawful gambling.  The reports must provide for each 
  1.13  expenditure or contribution: 
  1.14     (1) the name, address, and telephone number of the 
  1.15  recipient of the expenditure or contribution; 
  1.16     (2) the date the contribution was approved by the 
  1.17  organization; 
  1.18     (3) the date, amount, and check number of the expenditure 
  1.19  or contribution; 
  1.20     (4) a brief description of how the expenditure or 
  1.21  contribution meets one or more of the purposes in section 
  1.22  349.12, subdivision 25; and 
  1.23     (5) in the case of expenditures authorized under section 
  1.24  349.12, subdivision 25, paragraph (a), clause (7), whether the 
  1.25  expenditure is for a facility or activity that primarily 
  2.1   benefits male or female participants. 
  2.2      (b) The board shall make available to the commissioners of 
  2.3   revenue and public safety copies of reports received under this 
  2.4   subdivision and requested by them. 
  2.5      (c) The report required under this subdivision must provide 
  2.6   for a separate accounting for all expenditures made from the 
  2.7   reporting organization's tax refund and or credit account 
  2.8   authorized under section 297E.02, subdivision 4, paragraph (d). 
  2.9      Sec. 2.  Minnesota Statutes 1996, section 349.19, 
  2.10  subdivision 2a, is amended to read: 
  2.11     Subd. 2a.  [TAX REFUND AND CREDIT ACCOUNT.] (a) Each 
  2.12  organization that receives a refund or credit under section 
  2.13  297E.02, subdivision 4, paragraph (d), must establish a separate 
  2.14  account designated as the tax and credit refund account.  The 
  2.15  organization must (1) within four business days of receiving a 
  2.16  refund under that paragraph deposit the refund in 
  2.17  the organization's gambling account, and (2) within four 
  2.18  business days of filing a tax return that claims a credit under 
  2.19  that paragraph, transfer from the separate account established 
  2.20  under subdivision 2 to the tax refund and credit account an 
  2.21  amount equal to the tax credit. 
  2.22     (b) The name and address of the bank, the account number 
  2.23  for the tax refund and credit account, and the names of 
  2.24  organization members authorized as signatories on the account 
  2.25  must be provided to the board within 30 days of the date when 
  2.26  the organization establishes the account.  Changes in the 
  2.27  information must be submitted to the board at least ten days 
  2.28  before the change is made. 
  2.29     (c) (b) The organization may expend money in the account 
  2.30  the tax refund or credit issued under section 297E.02, 
  2.31  subdivision 4, paragraph (d), only for lawful purposes, other 
  2.32  than lawful purposes described in section 349.012, subdivision 
  2.33  25, paragraph (a), clauses (8), (9), and (12).  Amounts in the 
  2.34  account received as refunds or allowed as credits must be spent 
  2.35  for qualifying lawful purposes no later than one year after the 
  2.36  refund or credit is deposited received.