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HF 356

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/16/2020 10:26am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to lawful gambling; providing relief to certain organizations affected by
executive order closing bars, restaurants, and other places of public accommodation;
providing waivers, extensions, and other temporary requirements and restrictions
for lawful gambling.

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

Section 1. new text beginEMERGENCY EXPENDITURES; BUSINESS LOANS.
new text end

new text begin (a) Notwithstanding any law to the contrary, a veterans or fraternal club 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 of the board's director. 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.
new text end

new text begin (b) All loans made under this section must be repaid to the gambling account within one
calendar year. 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.
new text end

new text begin (c) Applications for loans under this section must be received by the 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or is terminated or rescinded.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.
new text end

new text begin (d) If a veterans or fraternal club is terminating lawful gambling and the loan under this
section has not been repaid, the loan repayment must be included in the termination plan.
new text end

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

new text begin EFFECTIVE DATE. new text end

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terminated or rescinded.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

Sec. 2. new text beginUSE OF GROSS PROFITS; TEMPORARY EXPENDITURE
REQUIREMENTS.
new text end

new text begin 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, 2020, 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 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).
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 3. new text beginTEMPORARY SALES ON CREDIT RESTRICTION.
new text end

new text begin 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.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin 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.
new text end

Sec. 4. new text beginUSE OF GROSS PROFITS; EVALUATION OF EXPENDITURES.
new text end

new text begin 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.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text beginEXTENSION OF LICENSE RENEWAL DATES.
new text end

new text begin (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.
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 6. new text beginEXEMPT ACTIVITIES.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin 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.
new text end

Sec. 7. new text beginTRAINING OF GAMBLING MANAGERS.
new text end

new text begin 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.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin 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.
new text end