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SF2728 (Legislative Session 94 (2025-2026))

Certain charitable gambling lawful expenditures cap increase provision

Related bill: HF2780

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to increase the allowable cap on certain expenditures for charitable gambling activities in Minnesota. By doing so, the bill aims to provide more flexibility and support for organizations engaging in lawful charitable activities through gambling.

Main Provisions

  • The bill outlines various expenditures considered lawful when associated with charitable gambling. These include contributions to educational, health-related, recreational, military, and veteran-related activities and organizations.
  • It specifically increases the allowable expenditures by licensed veterans’ organizations for membership events that honor military service, raising the cap from $5,000 to $15,000 per calendar year.
  • These expenditures can be used for meals and events limited to members and their spouses, provided they are held for the recognition of military service.
  • Conditions surrounding lawful expenditures, such as contributions to churches, community arts organizations, and payments of local taxes related to gambling, are also detailed.

Significant Changes

  • The primary change introduced by this bill is the increase in the cap for veterans' organizations for certain events related to military service, from $5,000 to $15,000 annually.
  • The bill maintains comprehensive guidelines on what constitutes lawful use of funds derived from charitable gambling, reinforcing the emphasis on community-oriented and nonprofit activities.

Relevant Terms

charitable gambling, lawful purpose, veterans organizations, military service, nonprofit organizations, event expenditure, educational contribution, community arts, tax payment, capital assets

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 19, 2025SenateFloorActionIntroduction and first reading
March 19, 2025SenateFloorActionReferred toState and Local Government

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarifies expenditure eligibility for various purposes including educational contributions, veterans support, and arts sponsorship."
      ],
      "removed": [
        "The restriction on aggregate annual limits for reasonable and necessary expenditures for organizations recognizing military service."
      ],
      "summary": "This bill amends the definition of 'lawful purpose' under Minnesota Statutes section 349.12, subdivision 25, concerning charitable gambling.",
      "modified": [
        "Increases the cap on expenditures by a licensed veterans organization for meals and membership events from $5,000 to $15,000."
      ]
    },
    "citation": "349.12"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References standards prescribed by the board under section 349.154 for lawful purposes.",
      "modified": []
    },
    "citation": "349.154"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends existing legal text referencing the authority for local taxes on gambling under section 349.213, subdivision 3.",
      "modified": []
    },
    "citation": "349.213"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References standards for citizen monitoring of surface water quality compliant with section 115.06, subdivision 4.",
      "modified": []
    },
    "citation": "115.06"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cites grant-in-aid trail maintenance under section 84.83 as an approved project.",
      "modified": []
    },
    "citation": "84.83"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Cites grant-in-aid trail maintenance under section 84.927.",
      "modified": []
    },
    "citation": "84.927"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References tax on unrelated business income under section 290.05, subdivision 3.",
      "modified": []
    },
    "citation": "290.05"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References permitted gambling premises under section 349.165.",
      "modified": []
    },
    "citation": "349.165"
  }
]

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