SF 746

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/26/2021 10:09am

A bill for an act
relating to lawful gambling; modifying expenditure restrictions for organizations;
amending Minnesota Statutes 2020, section 349.15, subdivision 1.

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

Section 1.

Minnesota Statutes 2020, section 349.15, subdivision 1, is amended to read:

Subdivision 1.

Expenditure restrictions, requirements, and civil penalties.

(a) 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.

(b) For each 12-month period beginning July 1, a licensed organization will be evaluated
by the board to determine a rating based on the percentage of annual lawful purpose
expenditures new text begin , excluding those expenditures defined in section 349.12, subdivision 25,
paragraph (a), clauses (8) and (18), new text end when compared to deleted text begin available gross profits deleted text end new text begin total allowable
expenses new text end for the same period. The rating will be used to determine the organization's
profitability percent and is not a rating of the organization's lawful gambling operation. An
organization will be evaluated according to the following criteria:

(1) an organization deleted text begin that expends 50 deleted text end new text begin with a ratio of lawful purpose expenditures to
allowable expenses of 100 new text end percent or more deleted text begin of gross profits on lawful purposes deleted text end will receive
a five-star rating;

(2) an organization deleted text begin that expends 40 deleted text end new text begin with a ratio of lawful purpose expenditures to
allowable expenses of 80 new text end percent or more but less than deleted text begin 50 deleted text end new text begin 100 new text end percent deleted text begin of gross profits on
lawful purposes deleted text end will receive a four-star rating;

(3) an organization deleted text begin that expends 30 deleted text end new text begin with a ratio of lawful purpose expenditures to
allowable expenses of 60 new text end percent or more but less than deleted text begin 40 deleted text end new text begin 80 new text end percent deleted text begin of gross profits on
lawful purposes deleted text end will receive a three-star rating;

(4) an organization deleted text begin that expends 20 deleted text end new text begin with a ratio of lawful purpose expenditures to
allowable expenses of 40 new text end percent or more but less than deleted text begin 30 deleted text end new text begin 60 new text end percent deleted text begin of gross profits on
lawful purposes deleted text end will receive a two-star rating; deleted text begin and
deleted text end

(5) an organization deleted text begin that expends less than deleted text end new text begin with a ratio of lawful purpose expenditures
to allowable expenses of new text end 20 percent deleted text begin of gross profits on lawful purposes deleted text end new text begin or more but less
than 40 percent new text end will receive a one-star rating deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) an organization with a ratio of lawful purpose expenditures to allowable expenses
of less than 20 percent will receive a zero-star rating.
new text end

(c) An organization that new text begin is licensed under this chapter with gross receipts from lawful
gambling of more than $750,000 in any fiscal year and new text end fails to expend a minimum of deleted text begin 30 deleted text end new text begin 20 new text end
percent deleted text begin annually of gross profits deleted text end new text begin of its annual total allowable expenses new text end on lawful purposes deleted text begin ,
or 20 percent annually for organizations that conduct lawful gambling in a location where
the primary business is bingo, deleted text end is automatically on probation effective July 1 for a period of
one year. The organization must increase its rating to the required minimum or be subject
to sanctions by the board. If an organization fails to meet the minimum after a one-year
probation, the board may suspend the organization's license or impose a civil penalty as
follows:

(1) in determining any suspension or penalty for a violation of this paragraph, the board
must consider any unique factors or extraordinary circumstances that caused the organization
to not meet the minimum rate of profitability. Unique factors or extraordinary circumstances
include, but are not limited to, the purchase of capital assets necessary to conduct lawful
gambling; road or other construction causing impaired access to the lawful gambling
premises; and flood, tornado, or other catastrophe that had a direct impact on the continuing
lawful gambling operation; and

(2) notwithstanding section 349.151, subdivision 4, paragraph (a), clause (10), the board
may impose a civil penalty under this subdivision up to $10,000.

new text begin EFFECTIVE DATE. new text end

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