1.1 	A bill for an act
1.2 	relating to lawful gambling; providing for fund loss requests by organizations;
1.3 	amending Minnesota Statutes 2024, section 349.19, by adding a subdivision.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. Minnesota Statutes 2024, section 349.19, is amended by adding a subdivision 
1.6 	to read:
1.7 		Subd. 13.Fund loss requests. (a) The board may not deny a fund loss request if: (1) 
1.8 	the fund loss is due to the theft of cash, inventory, or prizes; (2) the organization files a 
1.9 	timely report with local law enforcement authorities; and (3) the organization files a timely 
1.10 	fund loss request with the board under Minnesota Rules, part 7861.0320, subpart 9.
1.11 	(b) Notwithstanding paragraph (a), the board may deny a fund loss request if the 
1.12 	organization has filed two or more fund loss requests within the past 12 months and the 
1.13 	denial is based on criteria specified in rule.
1.14 	(c) When a fund loss request is denied by the board, the board must provide the 
1.15 	organization with a written determination specifying the reasons for the denial and the 
1.16 	corrective action or other measures the organization should put in place to prevent future 
1.17 	loss.
1.18 	(d) The board may not require reimbursement of the organization's gambling account 
1.19 	for the amount of the fund loss from a source of nongambling funds if the fund loss is due 
1.20 	to theft of cash, inventory, or prizes, even if the fund loss request has been denied by the 
1.21 	board.