(St. Paul, MN) – The Minnesota Senate unanimously passed a bill on Monday to provide relief to American Legions, veteran charitable gambling operations, and other congressionally chartered organizations which are suffering from financial pressures under the state’s current economic situation. The legislation is meant to help organizations maintain their facilities and continue their charitable work in the future. The bill passed during the regular legislative session, but the House of Representatives was unable to send it to the governor for signing. It is being renewed during this year’s legislative session, which started June 12th.
Senator Mark Koran (R-North Branch), chief author of the bill, stated, “I am willing to keep coming back to this subject as many times as it takes to support our veterans and get this right. Keeping charitable gambling up and running is vital. The best thing the governor could do to support these organizations, and the veterans they help, is getting the state safely and fully opened up. As that measure appears to be slow coming, we must be willing to make adjustments.”
Many VFW’s and American Legions depend on pull tabs and other legal gambling in restaurants and bars for a large portion of revenue. Under normal circumstances, 30% of their net receipts are required to go to charities. This bill waives that requirement and gives flexibility to spend any remaining revenue or received loans on the bills and maintenance of the brick and mortar establishment. The funds used would be re-payed at a later date when the emergency has passed.
In the vein of exceptions due to the peacetime emergency, the probationary period has also been extended. Organizations currently on probation will not be forced to take negative hits on their ability to get off probation due to COVID-19-induced circumstances. Similarly, manager training and gambling license deadlines will be extended by 60 days to prevent back-ups in the system and unnecessary strain.
The last portion of the bill pertains to gambling audit information. Currently, when an organization makes $750,000 or more in gross receipts in any calendar year, they will be asked to perform an audit. The Department of Revenue receives the results of the audit, but the Gambling Control Board (GCB) does not. This bill allows the GCB to see the results of the audit, so they can create relevant best practices for the organizations in the future.
“People who need the services funded by charitable gaming and those who are employed by them should not be unduly hurt by circumstances out of their control. This bill ensures they won’t be,” concluded Senator Koran.