1.1                          A bill for an act 
  1.2             relating to gambling; providing an exemption from the 
  1.3             gambling tax; amending Minnesota Statutes 1998, 
  1.4             section 297E.02, subdivision 2. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1998, section 297E.02, 
  1.7   subdivision 2, is amended to read: 
  1.8      Subd. 2.  [TAX-EXEMPT GAMBLING.] An organization's receipts 
  1.9   from lawful gambling that are excluded or exempt from licensing 
  1.10  under section 349.166, are not subject to the tax imposed by 
  1.11  this section or section 297A.02.  This exclusion from tax is 
  1.12  only valid if at the time of the event giving rise to the tax 
  1.13  the organization either has an exclusion under section 349.166, 
  1.14  subdivision 1, or has applied for and received a valid exemption 
  1.15  from the lawful gambling control board. An organization's 
  1.16  receipts from lawful gambling are not subject to the tax imposed 
  1.17  by this section or section 297A.02 if: 
  1.18     (1) the organization is excluded or exempt from licensing 
  1.19  under section 349.166.  This exclusion from tax is only valid if 
  1.20  at the time of the event giving rise to the tax the organization 
  1.21  either has an exclusion under section 349.166, subdivision 1, or 
  1.22  has applied for and received a valid exemption from the lawful 
  1.23  gambling control board; or 
  1.24     (2) the organization holds a raffle for the purpose of 
  1.25  donating the net profits as defined in section 349.12, 
  2.1   subdivision 27, to benefit the victims of illness, crime, 
  2.2   accident, fire, or natural disaster.  Notwithstanding section 
  2.3   349.12, subdivision 25, an expenditure of net profits from such 
  2.4   a raffle is a lawful purpose. 
  2.5      Sec. 2.  [EFFECTIVE DATE.] 
  2.6      Section 1 is effective August 1, 1999.