HF 2908

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to gambling; modifying restrictions on allowable expenses; making
technical changes to reporting requirements for lawful gambling organizations;
amending Minnesota Statutes 2005 Supplement, sections 349.15, subdivision 1;
349.19, subdivision 5.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 349.15, subdivision 1, is
amended to read:

Subdivision 1.

Expenditure restrictions.

Gross profits from lawful gambling
may be expended only for lawful purposes or allowable expenses as authorized by the
membership of the conducting organization at a monthly meeting of the organization's
membership. Provided that no more than 70 percent of the gross profit less the tax imposed
under section 297E.02, subdivision 1, from bingo, and no more than 60 percent of the
gross profit from other forms of lawful gambling, may be expended deleted text begin biennially during the
term of the license deleted text end for allowable expenses related to lawful gambling. deleted text begin For licenses issued
after June 30, 2006, compliance with this subdivision will be measured on a biennial basis
that is concurrent with the term of the license. Compliance with this subdivision is a
condition for the renewal of any license beginning on July 1, 2008.
deleted 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. 2.

Minnesota Statutes 2005 Supplement, section 349.19, subdivision 5, is
amended to read:

Subd. 5.

Reports.

A licensed organization must report to the Department of
Revenue and to its membership monthly, or quarterly in the case of a licensed organization
which does not report more than $1,000 in gross receipts from lawful gambling in any
calendar quarter, on its gross receipts, expenses, profits, and expenditure of profits
from lawful gambling. The report must include a reconciliation of the organization's
profit carryover with its cash balance on hand. If the organization conducts both bingo
and other forms of lawful gambling, the figures for both must be reported separately.
The organization must report annually to its membership and annually file with the
board a financial summary report in a format prescribed by the board that identifies the
organization's receipts and use of lawful gambling proceeds, including:

(1) gross receipts;

(2) prizes paid;

(3) allowable expenses;

(4) lawful purpose expenditures, including annual totals for types of charitable
contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph
(a), clauses (8) and (18);

(5) the percentage of annual gross profits used for charitable contributions; and

(6) the percentage of annual gross profits used for all taxes and fees as per section
349.12, subdivision 25, paragraph (a), clauses (8) and (18).

new text begin The commissioner of revenue and the board must develop one form that licensed
organizations shall use to report the information required under this subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2006.
new text end