2002 Minnesota Statutes

     349.15 Use of gross profits. 

    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 55 percent 
 of the gross profit from other forms of lawful gambling, may be 
 expended for allowable expenses related to lawful gambling.  

    Subd. 1a.    Disaster relief.  An organization may 
 expend net profits from lawful gambling to relieve the effects 
 of a disaster as defined in section 12.03, subdivision 2, 
 without the prior approval of its membership if: 

    (1) the contribution is a lawful purpose under section 
 349.12, subdivision 25; 

    (2) the contribution is authorized by the organization's 
 chief executive officer and gambling manager; and 

    (3) the contribution is approved by the membership of the 
 organization at its next regularly scheduled monthly meeting. 

 If the contribution is not approved by the membership of the 
 organization at its next regularly scheduled monthly meeting, 
 the organization shall reimburse its gambling account in the 
 amount of the contribution. 

    Subd. 2.    Cash shortages.  In computing gross profit 
 to determine maximum amounts which may be expended for allowable 
 expenses under subdivision 1, an organization may not reduce its 
 gross receipts by any cash shortages.  An organization may 
 report cash shortages to the board only as an allowable 
 expense.  An organization may not report cash shortages in any 
 reporting period that in total exceed the following percentages 
 of the organization's gross receipts from lawful gambling for 
 that period:  until August 1, 1995, four-tenths of one percent; 
 and on and after August 1, 1995, three-tenths of one percent. 

    Subd. 3.    Refunds and credits.  For purposes of this 
 section "gross profit" does not include any refund or credit 
 received under section 297E.02, subdivision 4, paragraph (d). 

    Subd. 4.    Alternative premises payment.  An 
 organization eligible to expend gross profits on real estate 
 taxes and assessments under section 349.12, subdivision 25, 
 paragraph (a), clause (9), may in the alternative, elect on a 
 calendar year basis to pay itself up to $1,000 per month for the 
 use of its premises for lawful gambling.  Any payments made 
 under this subdivision shall be considered an allowable expense. 

    HIST: 1976 c 261 s 5; 1984 c 502 art 12 s 6; 1986 c 467 s 7; 
 1Sp1986 c 3 art 2 s 16; 1987 c 327 s 7; 1989 c 203 s 2; 1989 c 
 334 art 2 s 16; 1Sp1989 c 1 art 13 s 7; 1990 c 590 art 1 s 10; 
 1991 c 336 art 2 s 13; 1994 c 633 art 2 s 19; art 5 s 22; 1996 c 
 471 art 13 s 16; 1997 c 155 s 4; 2000 c 300 s 3; 2001 c 96 s 
 7,8; 2002 c 386 art 2 s 1