Purpose of the Bill

The bill aims to provide guidelines and conditions under which organizations involved in lawful gambling activities can request compensation for losses due to theft. It details circumstances under which these fund loss requests may be accepted or denied by the appropriate board.

Main Provisions

• Automatic Acceptance Conditions:

  • The board overseeing gambling must approve an organization's fund loss request if:
  • The loss is due to theft of cash, inventory, or prizes.
  • The organization files a timely report with local law enforcement.
  • The organization promptly submits the fund loss request to the board.

• Denial of Requests:

  • The board can deny a fund loss request if the organization has made two or more requests in the last 12 months, or if other specific rules are violated.
  • If denied, the board is required to provide a written explanation along with guidance on preventing future losses.

• Reimbursement Rule:

  • The board cannot demand that the organization reimburse its gambling account with non-gambling funds for the theft-related loss, even if a fund loss request is denied.

Significant Changes to Existing Law

This bill amends Minnesota Statutes section 349.19 by adding a new subdivision, clarifying conditions under which fund loss reimbursements can be requested and disallowing the requirement for non-gambling fund reimbursement in cases of theft.

Relevant Terms

lawful gambling, fund loss requests, theft, cash inventory, prizes, board approval, law enforcement report, reimbursement, Minnesota Statutes section 349.19