1.1 	A bill for an act
1.2 	relating to gambling; modifying restrictions on allowable expenses; making 
1.3 	technical changes to reporting requirements for lawful gambling organizations; 
1.4 	amending Minnesota Statutes 2005 Supplement, sections 349.15, subdivision 1; 
1.5 	349.19, subdivision 5.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2005 Supplement, section 349.15, subdivision 1, is 
1.8 	amended to read:
1.9 		Subdivision 1.Expenditure restrictions. Gross profits from lawful gambling 
1.10 	may be expended only for lawful purposes or allowable expenses as authorized by the 
1.11 	membership of the conducting organization at a monthly meeting of the organization's 
1.12 	membership. Provided that no more than 70 percent of the gross profit less the tax imposed 
1.13 	under section 297E.02, subdivision 1, from bingo, and no more than 60 percent of the 
1.14 	gross profit from other forms of lawful gambling, may be expended biennially during the 
1.15 	term of the license for allowable expenses related to lawful gambling. For licenses issued 
1.16 	after June 30, 2006, compliance with this subdivision will be measured on a biennial basis 
1.17 	that is concurrent with the term of the license. Compliance with this subdivision is a 
1.18 	condition for the renewal of any license beginning on July 1, 2008.

1.19 	EFFECTIVE DATE. This section is effective the day following final enactment. 

1.20 	Sec. 2. Minnesota Statutes 2005 Supplement, section 349.19, subdivision 5, is 
1.21 	amended to read:
1.22 		Subd. 5.Reports. A licensed organization must report to the Department of 
1.23 	Revenue and to its membership monthly, or quarterly in the case of a licensed organization 
2.1 	which does not report more than $1,000 in gross receipts from lawful gambling in any 
2.2 	calendar quarter, on its gross receipts, expenses, profits, and expenditure of profits 
2.3 	from lawful gambling. The report must include a reconciliation of the organization's 
2.4 	profit carryover with its cash balance on hand. If the organization conducts both bingo 
2.5 	and other forms of lawful gambling, the figures for both must be reported separately. 
2.6 	The organization must report annually to its membership and annually file with the 
2.7 	board a financial summary report in a format prescribed by the board that identifies the 
2.8 	organization's receipts and use of lawful gambling proceeds, including:
2.9 	(1) gross receipts;
2.10 	(2) prizes paid;
2.11 	(3) allowable expenses;
2.12 	(4) lawful purpose expenditures, including annual totals for types of charitable 
2.13 	contributions and all taxes and fees as per section 349.12, subdivision 25, paragraph 
2.14 	(a), clauses (8) and (18);
2.15 	(5) the percentage of annual gross profits used for charitable contributions; and
2.16 	(6) the percentage of annual gross profits used for all taxes and fees as per section 
2.17 	349.12, subdivision 25, paragraph (a), clauses (8) and (18).
2.18 	The commissioner of revenue and the board must develop one form that licensed 
2.19 	organizations shall use to report the information required under this subdivision. 

2.20 	EFFECTIVE DATE. This section is effective August 1, 2006.