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
, from bingo, and no more than 60 percent of the gross profit from other forms
of lawful gambling, may be expended biennially during the term of the license for allowable
expenses related to lawful gambling. 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. For licenses renewed with an effective date between July 1, 2006, and June 30, 2008, an
organization shall carry forward an amount equal to 15 percent of any positive allowable expense
carryover amount. This balance must be used to offset any future negative expense balance at
the time of license renewal.
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
(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 fiscal year
beginning on July 1, 2004, that in total exceed three-tenths of one percent of the organization's
gross receipts from lawful gambling at each permitted premises where the organization conducts
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.
History: 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; 2004 c 172 s 1; 2005 c 166 art 1 s 7; 2006 c 205 s 7