HF2780 (Legislative Session 94 (2025-2026))
Cap on certain lawful expenditures for charitable gambling increased.
Related bill: SF2728
AI Generated Summary
Purpose of the Bill
The bill aims to amend existing laws related to charitable gambling in Minnesota. Specifically, it seeks to increase the spending limit on certain permissible expenses funded by proceeds from lawful gambling activities.
Main Provisions
- Increased Expenditure Cap: The bill raises the limit for spending by licensed veterans organizations on membership events such as meals held in recognition of military service. The cap is increased from $5,000 to $15,000 per calendar year.
- Lawful Expenditures Defined: It outlines a comprehensive list of activities and purposes for which gambling proceeds can be lawfully used. These include contributions to educational institutions, community arts organizations, military service recognition, and relief for poverty, homelessness, and disability.
- Rules for Expenditures: Clearly defines certain expenditures related to veterans and fraternal organizations, including costs for utilities and the maintenance of their primary headquarters.
- Exclusions: The bill specifically identifies expenditures that do not qualify as lawful purposes, such as influencing political elections or contributing to government pension funds.
Significant Changes
- The bill modifies Minnesota Statutes 2024, section 349.12, subdivision 25, by increasing the fiscal cap for certain veterans' organization expenditures.
- It also continues to restrict the use of gambling proceeds for activities that could influence political decisions or election outcomes.
Relevant Terms
- Charitable Gambling
- Lawful Purpose
- Veterans Organizations
- 501(c)(3)
- Expenditure Cap
- Nonprofit Organizations
- Political Influence
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 23, 2025 | House | Floor | Action | Introduction and first reading, referred to | State Government Finance and Policy |
| March 23, 2025 | House | Floor | Action | Introduction and first reading, referred to | State Government Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Increases cap on expenditures for veterans organizations from $5,000 to $15,000.",
"Allows veterans organizations to receive higher contributions."
],
"removed": [
"Previous cap on veterans organization expenditures was removed."
],
"summary": "Amends the definition and applications of lawful purpose expenditures for charitable gambling under section 349.12.",
"modified": [
"Clarified approval process for specific expenditures related to real property and capital assets.",
"Updated definitions and requirements for a lawful purpose."
]
},
"citation": "349.12",
"subdivision": "subdivision 25"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References local gambling taxes under section 349.213, subdivision 3.",
"modified": [
"References to this section ensure compliance with lawful purpose financial obligations."
]
},
"citation": "349.213",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References taxes imposed on receipts from lawful gambling under section 297E.02.",
"modified": [
"Clarifies taxation obligations for gambling organizations."
]
},
"citation": "297E.02",
"subdivision": "subdivisions 1 and 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References tax imposed on unrelated business income under section 290.05.",
"modified": [
"Provides tax obligations clarification for unrelated business income."
]
},
"citation": "290.05",
"subdivision": "subdivision 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References citizen monitoring of surface water quality under section 115.06.",
"modified": [
"Ensures citizen monitoring aligns with state water quality database requirements."
]
},
"citation": "115.06",
"subdivision": "subdivision 4"
}
]