1.1                          A bill for an act 
  1.2             relating to lawful gambling; authorizing organizations 
  1.3             to make certain expenditures and contributions through 
  1.4             electronic fund transfers; amending Minnesota Statutes 
  1.5             1996, sections 349.168, subdivision 6; and 349.19, 
  1.6             subdivision 3; Minnesota Statutes 1997 Supplement, 
  1.7             section 349.154, subdivision 2.  
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.10  349.154, subdivision 2, is amended to read: 
  1.11     Subd. 2.  [NET PROFIT REPORTS.] (a) Each licensed 
  1.12  organization must report monthly to the board on a form 
  1.13  prescribed by the board each expenditure and contribution of net 
  1.14  profits from lawful gambling.  The reports must provide for each 
  1.15  expenditure or contribution: 
  1.16     (1) the name, address, and telephone number of the 
  1.17  recipient of the expenditure or contribution; 
  1.18     (2) the date the contribution was approved by the 
  1.19  organization; 
  1.20     (3) the date, amount, and check number or electronic 
  1.21  transfer confirmation number of the expenditure or contribution; 
  1.22     (4) a brief description of how the expenditure or 
  1.23  contribution meets one or more of the purposes in section 
  1.24  349.12, subdivision 25; and 
  1.25     (5) in the case of expenditures authorized under section 
  1.26  349.12, subdivision 25, paragraph (a), clause (7), whether the 
  2.1   expenditure is for a facility or activity that primarily 
  2.2   benefits male or female participants. 
  2.3      (b) The board shall make available to the commissioners of 
  2.4   revenue and public safety copies of reports received under this 
  2.5   subdivision and requested by them. 
  2.6      (c) The report required under this subdivision must provide 
  2.7   for a separate accounting for all expenditures made from the 
  2.8   reporting organization's tax refund or credit authorized under 
  2.9   section 297E.02, subdivision 4, paragraph (d). 
  2.10     Sec. 2.  Minnesota Statutes 1996, section 349.168, 
  2.11  subdivision 6, is amended to read: 
  2.12     Subd. 6.  [COMPENSATION PAID BY CHECK OR ELECTRONIC 
  2.13  TRANSFER.] Compensation paid by an organization in connection 
  2.14  with lawful gambling must either be:  (1) in the form of a check 
  2.15  drawn on the organization's gambling account, as specified in 
  2.16  section 349.19, and paid directly to the person being 
  2.17  compensated, or (2) transferred electronically from the 
  2.18  organization's gambling account, as specified in section 349.19, 
  2.19  subdivision 3, directly to the employee's bank account.  
  2.20     Sec. 3.  Minnesota Statutes 1996, section 349.19, 
  2.21  subdivision 3, is amended to read: 
  2.22     Subd. 3.  [EXPENDITURES.] (a) All expenditures of gross 
  2.23  profits from lawful gambling must be itemized as to payee, 
  2.24  purpose, amount, and date of payment, and must be in compliance 
  2.25  with section 349.154.  Authorization of the expenditures must be 
  2.26  recorded in the monthly meeting minutes of the licensed 
  2.27  organization.  Checks for expenditures of gross profits must be 
  2.28  signed by at least two persons authorized by board rules to sign 
  2.29  the checks.  Expenditures of gross profits from lawful gambling 
  2.30  for local, state, and federal taxes as identified in section 
  2.31  349.12, subdivision 25, paragraph (a), clause (8), may be 
  2.32  transferred electronically from the organization's gambling 
  2.33  account directly to bank accounts identified by local, state, or 
  2.34  federal agencies if the organization's gambling account monthly 
  2.35  bank statement specifically identifies the payee by name, the 
  2.36  amount transferred, the account number of the account into which 
  3.1   the funds were transferred, and the date of the transaction.  
  3.2   Expenditures of gross profits from lawful gambling as authorized 
  3.3   by section 349.15, subdivision 1, for utility payments may be 
  3.4   transferred electronically from the organization's gambling 
  3.5   account directly to bank accounts identified by the utility 
  3.6   vendor if the organization's gambling account monthly bank 
  3.7   statement specifically identifies the payee by name, the amount 
  3.8   transferred, the account number of the account into which the 
  3.9   funds were transferred, and the date of the transaction.  
  3.10  Electronic payments of local, state, and federal taxes and 
  3.11  utility payments are permitted only if they have been authorized 
  3.12  by the membership, the organization maintains supporting 
  3.13  documentation, and the expenditures can be verified. 
  3.14     (b) Expenditures authorized by the board according to 
  3.15  section 349.12, subdivision 25, paragraph (b), clause (3), must 
  3.16  be 51 percent completed within two years of the date of board 
  3.17  approval.  "Fifty-one percent completed" means that the work 
  3.18  completed must represent at least 51 percent of the value of the 
  3.19  project as documented by the contractor or vendor.  An 
  3.20  organization that fails to comply with this paragraph shall 
  3.21  reapply to the board for approval of the project.