SF 214

as introduced - 88th Legislature (2013 - 2014) Posted on 02/08/2013 08:58am

A bill for an act
relating to lawful gambling; adjusting audit amounts for organizations; making
clarifying and technical changes; amending Minnesota Statutes 2012, sections
297E.06, subdivision 4; 349.19, subdivision 2.

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

Section 1.

Minnesota Statutes 2012, section 297E.06, subdivision 4, is amended to read:

Subd. 4.

Annual audit, certified inventory, and cash count.

(a) An organization
licensed under chapter 349 with gross receipts from lawful gambling of more than
$500,000 $1,000,000 in any year must have an annual financial audit of its lawful
gambling activities and funds for that year.

(b) The commissioner may require a financial audit of the lawful gambling activities
and funds of an organization licensed under chapter 349, with gross receipts less than
$500,000 $1,000,000 annually, when an organization has:

(1) failed to timely file required gambling tax returns;

(2) failed to timely pay the gambling tax or regulatory fee;

(3) filed fraudulent gambling tax returns;

(4) failed to take corrective actions required by the commissioner; or

(5) failed to otherwise comply with this chapter.

(c) Audits under this subdivision must be performed by an independent accountant
licensed in accordance with chapter 326A.

(d) An organization licensed under chapter 349 must perform an annual certified
inventory and cash count at the end of its fiscal year and submit the report to the
commissioner within 30 days after the end of its fiscal year. The report shall be on a form
prescribed by the commissioner.

(e) The commissioner of revenue shall prescribe standards for the audits, certified
inventory, and cash count reports required under this subdivision. The standards may
vary based on the gross receipts of the organization. The standards must incorporate and
be consistent with standards prescribed by the American Institute of Certified Public
Accountants. A complete, true, and correct copy of the audits, certified inventory, and
cash count report must be filed as prescribed by the commissioner.

Sec. 2.

Minnesota Statutes 2012, section 349.19, subdivision 2, is amended to read:

Subd. 2.

Accounts.

(a) Gross receipts from lawful gambling by each organization
must be segregated from all other revenues of the conducting organization and placed in a
separate gambling bank account.

(b) All expenditures for allowable expenses, taxes, and lawful purposes must be
made from the separate account except (1) in the case of expenditures previously approved
by the organization's membership for emergencies as defined by board rule, (2) as provided
in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment
of taxes for the organization as a whole, the organization may transfer the amount of taxes
related to the conduct of gambling to the general account at the time when due and payable.

(c) The name and address of the bank, the account number for the separate account,
and the names of organization members authorized as signatories on the separate account
must be provided to the board when the application is submitted. Changes in the
information must be submitted to the board at least ten days before the change is made.

(d) Except for gambling receipts from electronic pull-tab games and linked
electronic bingo games, All gambling receipts must be deposited into the gambling bank
account within four business days of completion of the bingo occasion, deal, or game from
which they are received.

(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of
the deal is sold or the organization does not continue the play of the deal during the next
scheduled period of time in which the organization will conduct pull-tabs.

(2) A tipboard game is considered complete when the seal on the game flare is
uncovered or the organization does not continue the play of the deal during the next
scheduled period of time in which the organization will conduct tipboards.

(e) Gambling receipts from all electronic pull-tab games and all linked electronic
bingo games must be recorded on a daily basis and deposited into the gambling bank
account within two business days.

(f) (e) Deposit records must be sufficient to allow determination of deposits made
from each bingo occasion, deal, or game at each permitted premises.

(g) (f) The person who accounts for gambling gross receipts and profits may not be
the same person who accounts for other revenues of the organization.

Sec. 3. EFFECTIVE DATE.

Sections 1 and 2 are effective the day following final enactment.