Bill Text: MN HF2259 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Lawful gambling net profits for military marching, color guard, or honor guard units allowable per diem reimbursement increased.
Sponsorship: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2012-04-25 - Author added Erickson [HF2259 Detail]
Download: Minnesota-2011-HF2259-Introduced.html
1.2relating to lawful gambling; increasing the allowable per diem reimbursement
1.3from lawful gambling net profits for military marching, color guard, or honor
1.4guard units; amending Minnesota Statutes 2010, section 349.12, subdivision 25.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 349.12, subdivision 25, is amended to read:
1.7 Subd. 25. Lawful purpose. (a) "Lawful purpose" means one or more of the
1.8following:
1.9 (1) any expenditure by or contribution to a 501(c)(3) or festival organization, as
1.10defined in subdivision 15a, provided that the organization and expenditure or contribution
1.11are in conformity with standards prescribed by the board under section349.154 , which
1.12standards must apply to both types of organizations in the same manner and to the same
1.13extent;
1.14 (2) a contribution to or expenditure for goods and services for an individual or
1.15family suffering from poverty, homelessness, or disability, which is used to relieve the
1.16effects of that suffering;
1.17 (3) a contribution to a program recognized by the Minnesota Department of Human
1.18Services for the education, prevention, or treatment of problem gambling;
1.19 (4) a contribution to or expenditure on a public or private nonprofit educational
1.20institution registered with or accredited by this state or any other state;
1.21 (5) a contribution to an individual, public or private nonprofit educational institution
1.22registered with or accredited by this state or any other state, or to a scholarship fund of a
1.23nonprofit organization whose primary mission is to award scholarships, for defraying the
2.1cost of education to individuals where the funds are awarded through an open and fair
2.2selection process;
2.3 (6) activities by an organization or a government entity which recognize military
2.4service to the United States, the state of Minnesota, or a community, subject to rules
2.5of the board, provided that the rules must not include mileage reimbursements in the
2.6computation of the per diem reimbursement limit and must impose no aggregate annual
2.7limit on the amount of reasonable and necessary expenditures made to support:
2.8 (i) members of a military marching or color guard unit for activities conducted
2.9within the state;
2.10 (ii) members of an organization solely for services performed by the members at
2.11funeral services;
2.12 (iii) members of military marching, color guard, or honor guard units may be
2.13reimbursed for participating in color guard, honor guard, or marching unit events within
2.14the state or states contiguous to Minnesota at a per participant rate of up to$35 $50 per
2.15diem; or
2.16 (iv) active military personnel and their immediate family members in need of
2.17support services;
2.18 (7) recreational, community, and athletic facilities and activities intended primarily
2.19for persons under age 21, provided that such facilities and activities do not discriminate on
2.20the basis of gender and the organization complies with section349.154, subdivision 3a ;
2.21 (8) payment of local taxes authorized under this chapter, taxes imposed by the
2.22United States on receipts from lawful gambling, the taxes imposed by section297E.02 ,
2.23subdivisions 1, 4, 5, and 6, and the tax imposed on unrelated business income by section
2.24290.05, subdivision 3
;
2.25 (9) payment of real estate taxes and assessments on permitted gambling premises
2.26owned by the licensed organization paying the taxes, or wholly leased by a licensed
2.27veterans organization under a national charter recognized under section 501(c)(19) of the
2.28Internal Revenue Code;
2.29 (10) a contribution to the United States, this state or any of its political subdivisions,
2.30or any agency or instrumentality thereof other than a direct contribution to a law
2.31enforcement or prosecutorial agency;
2.32 (11) a contribution to or expenditure by a nonprofit organization which is a church
2.33or body of communicants gathered in common membership for mutual support and
2.34edification in piety, worship, or religious observances;
2.35 (12) an expenditure for citizen monitoring of surface water quality by individuals
2.36or nongovernmental organizations that is consistent with section115.06, subdivision 4 ,
3.1and Minnesota Pollution Control Agency guidance on monitoring procedures, quality
3.2assurance protocols, and data management, provided that the resulting data is submitted
3.3to the Minnesota Pollution Control Agency for review and inclusion in the state water
3.4quality database;
3.5 (13) a contribution to or expenditure on projects or activities approved by the
3.6commissioner of natural resources for:
3.7 (i) wildlife management projects that benefit the public at large;
3.8 (ii) grant-in-aid trail maintenance and grooming established under sections84.83
3.9and
84.927 , and other trails open to public use, including purchase or lease of equipment
3.10for this purpose; and
3.11 (iii) supplies and materials for safety training and educational programs coordinated
3.12by the Department of Natural Resources, including the Enforcement Division;
3.13 (14) conducting nutritional programs, food shelves, and congregate dining programs
3.14primarily for persons who are age 62 or older or disabled;
3.15 (15) a contribution to a community arts organization, or an expenditure to sponsor
3.16arts programs in the community, including but not limited to visual, literary, performing,
3.17or musical arts;
3.18 (16) an expenditure by a licensed fraternal organization or a licensed veterans
3.19organization for payment of water, fuel for heating, electricity, and sewer costs for:
3.20(i) up to 100 percent for a building wholly owned or wholly leased by and used as
3.21the primary headquarters of the licensed veteran or fraternal organization; or
3.22(ii) a proportional amount subject to approval by the director and based on the
3.23portion of a building used as the primary headquarters of the licensed veteran or fraternal
3.24organization;
3.25 (17) expenditure by a licensed veterans organization of up to $5,000 in a calendar
3.26year in net costs to the organization for meals and other membership events, limited to
3.27members and spouses, held in recognition of military service. No more than $5,000 can be
3.28expended in total per calendar year under this clause by all licensed veterans organizations
3.29sharing the same veterans post home;
3.30 (18) payment of fees authorized under this chapter imposed by the state of Minnesota
3.31to conduct lawful gambling in Minnesota;
3.32 (19) a contribution or expenditure to honor an individual's humanitarian service
3.33as demonstrated through philanthropy or volunteerism to the United States, this state,
3.34or local community;
4.1(20) a contribution by a licensed organization to another licensed organization with
4.2prior board approval, with the contribution designated to be used for one or more of the
4.3following lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25);
4.4(21) an expenditure that is a contribution to a parent organization, if the parent
4.5organization: (i) has not provided to the contributing organization within one year of the
4.6contribution any money, grants, property, or other thing of value, and (ii) has received
4.7prior board approval for the contribution that will be used for a program that meets one or
4.8more of the lawful purposes under subdivision 7a;
4.9(22) an expenditure for the repair, maintenance, or improvement of real property
4.10and capital assets owned by an organization, or for the replacement of a capital asset that
4.11can no longer be repaired, with a fiscal year limit of five percent of gross profits from
4.12the previous fiscal year, with no carryforward of unused allowances. The fiscal year is
4.13July 1 through June 30. Total expenditures for the fiscal year may not exceed the limit
4.14unless the board has specifically approved the expenditures that exceed the limit due to
4.15extenuating circumstances beyond the organization's control. An expansion of a building
4.16or bar-related expenditures are not allowed under this provision.
4.17(i) The expenditure must be related to the portion of the real property or capital asset
4.18that must be made available for use free of any charge to other nonprofit organizations,
4.19community groups, or service groups, or is used for the organization's primary mission or
4.20headquarters.
4.21(ii) An expenditure may be made to bring an existing building that the organization
4.22owns into compliance with the Americans with Disabilities Act.
4.23(iii) An organization may apply the amount that is allowed under item (ii) to the
4.24erection or acquisition of a replacement building that is in compliance with the Americans
4.25with Disabilities Act if the board has specifically approved the amount. The cost of
4.26the erection or acquisition of a replacement building may not be made from gambling
4.27proceeds, except for the portion allowed under this item;
4.28(23) an expenditure for the acquisition or improvement of a capital asset with a cost
4.29greater than $2,000, excluding real property, that will be used exclusively for lawful
4.30purposes under this section if the board has specifically approved the amount;
4.31(24) an expenditure for the acquisition, erection, improvement, or expansion of real
4.32property, if the board has first specifically authorized the expenditure after finding that the
4.33real property will be used exclusively for lawful purpose under this section; or
4.34(25) an expenditure, including a mortgage payment or other debt service payment,
4.35for the erection or acquisition of a comparable building to replace an organization-owned
4.36building that was destroyed or made uninhabitable by fire or catastrophe or to replace an
5.1organization-owned building that was taken or sold under an eminent domain proceeding.
5.2The expenditure may be only for that part of the replacement cost not reimbursed by
5.3insurance for the fire or catastrophe or compensation not received from a governmental
5.4unit under the eminent domain proceeding, if the board has first specifically authorized
5.5the expenditure.
5.6(b) Expenditures authorized by the board under clauses (24) and (25) must be
5.751 percent completed within two years of the date of board approval; otherwise the
5.8organization must reapply to the board for approval of the project. "Fifty-one percent
5.9completed" means that the work completed must represent at least 51 percent of the value
5.10of the project as documented by the contractor or vendor.
5.11 (c) Notwithstanding paragraph (a), "lawful purpose" does not include:
5.12 (1) any expenditure made or incurred for the purpose of influencing the nomination
5.13or election of a candidate for public office or for the purpose of promoting or defeating a
5.14ballot question;
5.15 (2) any activity intended to influence an election or a governmental decision-making
5.16process;
5.17 (3) a contribution to a statutory or home rule charter city, county, or town by a
5.18licensed organization with the knowledge that the governmental unit intends to use the
5.19contribution for a pension or retirement fund; or
5.20(4) a contribution to a 501(c)(3) organization or other entity with the intent or effect
5.21of not complying with lawful purpose restrictions or requirements.
1.3from lawful gambling net profits for military marching, color guard, or honor
1.4guard units; amending Minnesota Statutes 2010, section 349.12, subdivision 25.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 349.12, subdivision 25, is amended to read:
1.7 Subd. 25. Lawful purpose. (a) "Lawful purpose" means one or more of the
1.8following:
1.9 (1) any expenditure by or contribution to a 501(c)(3) or festival organization, as
1.10defined in subdivision 15a, provided that the organization and expenditure or contribution
1.11are in conformity with standards prescribed by the board under section
1.12standards must apply to both types of organizations in the same manner and to the same
1.13extent;
1.14 (2) a contribution to or expenditure for goods and services for an individual or
1.15family suffering from poverty, homelessness, or disability, which is used to relieve the
1.16effects of that suffering;
1.17 (3) a contribution to a program recognized by the Minnesota Department of Human
1.18Services for the education, prevention, or treatment of problem gambling;
1.19 (4) a contribution to or expenditure on a public or private nonprofit educational
1.20institution registered with or accredited by this state or any other state;
1.21 (5) a contribution to an individual, public or private nonprofit educational institution
1.22registered with or accredited by this state or any other state, or to a scholarship fund of a
1.23nonprofit organization whose primary mission is to award scholarships, for defraying the
2.1cost of education to individuals where the funds are awarded through an open and fair
2.2selection process;
2.3 (6) activities by an organization or a government entity which recognize military
2.4service to the United States, the state of Minnesota, or a community, subject to rules
2.5of the board, provided that the rules must not include mileage reimbursements in the
2.6computation of the per diem reimbursement limit and must impose no aggregate annual
2.7limit on the amount of reasonable and necessary expenditures made to support:
2.8 (i) members of a military marching or color guard unit for activities conducted
2.9within the state;
2.10 (ii) members of an organization solely for services performed by the members at
2.11funeral services;
2.12 (iii) members of military marching, color guard, or honor guard units may be
2.13reimbursed for participating in color guard, honor guard, or marching unit events within
2.14the state or states contiguous to Minnesota at a per participant rate of up to
2.15diem; or
2.16 (iv) active military personnel and their immediate family members in need of
2.17support services;
2.18 (7) recreational, community, and athletic facilities and activities intended primarily
2.19for persons under age 21, provided that such facilities and activities do not discriminate on
2.20the basis of gender and the organization complies with section
2.21 (8) payment of local taxes authorized under this chapter, taxes imposed by the
2.22United States on receipts from lawful gambling, the taxes imposed by section
2.23subdivisions 1, 4, 5, and 6, and the tax imposed on unrelated business income by section
2.25 (9) payment of real estate taxes and assessments on permitted gambling premises
2.26owned by the licensed organization paying the taxes, or wholly leased by a licensed
2.27veterans organization under a national charter recognized under section 501(c)(19) of the
2.28Internal Revenue Code;
2.29 (10) a contribution to the United States, this state or any of its political subdivisions,
2.30or any agency or instrumentality thereof other than a direct contribution to a law
2.31enforcement or prosecutorial agency;
2.32 (11) a contribution to or expenditure by a nonprofit organization which is a church
2.33or body of communicants gathered in common membership for mutual support and
2.34edification in piety, worship, or religious observances;
2.35 (12) an expenditure for citizen monitoring of surface water quality by individuals
2.36or nongovernmental organizations that is consistent with section
3.1and Minnesota Pollution Control Agency guidance on monitoring procedures, quality
3.2assurance protocols, and data management, provided that the resulting data is submitted
3.3to the Minnesota Pollution Control Agency for review and inclusion in the state water
3.4quality database;
3.5 (13) a contribution to or expenditure on projects or activities approved by the
3.6commissioner of natural resources for:
3.7 (i) wildlife management projects that benefit the public at large;
3.8 (ii) grant-in-aid trail maintenance and grooming established under sections
3.10for this purpose; and
3.11 (iii) supplies and materials for safety training and educational programs coordinated
3.12by the Department of Natural Resources, including the Enforcement Division;
3.13 (14) conducting nutritional programs, food shelves, and congregate dining programs
3.14primarily for persons who are age 62 or older or disabled;
3.15 (15) a contribution to a community arts organization, or an expenditure to sponsor
3.16arts programs in the community, including but not limited to visual, literary, performing,
3.17or musical arts;
3.18 (16) an expenditure by a licensed fraternal organization or a licensed veterans
3.19organization for payment of water, fuel for heating, electricity, and sewer costs for:
3.20(i) up to 100 percent for a building wholly owned or wholly leased by and used as
3.21the primary headquarters of the licensed veteran or fraternal organization; or
3.22(ii) a proportional amount subject to approval by the director and based on the
3.23portion of a building used as the primary headquarters of the licensed veteran or fraternal
3.24organization;
3.25 (17) expenditure by a licensed veterans organization of up to $5,000 in a calendar
3.26year in net costs to the organization for meals and other membership events, limited to
3.27members and spouses, held in recognition of military service. No more than $5,000 can be
3.28expended in total per calendar year under this clause by all licensed veterans organizations
3.29sharing the same veterans post home;
3.30 (18) payment of fees authorized under this chapter imposed by the state of Minnesota
3.31to conduct lawful gambling in Minnesota;
3.32 (19) a contribution or expenditure to honor an individual's humanitarian service
3.33as demonstrated through philanthropy or volunteerism to the United States, this state,
3.34or local community;
4.1(20) a contribution by a licensed organization to another licensed organization with
4.2prior board approval, with the contribution designated to be used for one or more of the
4.3following lawful purposes under this section: clauses (1) to (7), (11) to (15), (19), and (25);
4.4(21) an expenditure that is a contribution to a parent organization, if the parent
4.5organization: (i) has not provided to the contributing organization within one year of the
4.6contribution any money, grants, property, or other thing of value, and (ii) has received
4.7prior board approval for the contribution that will be used for a program that meets one or
4.8more of the lawful purposes under subdivision 7a;
4.9(22) an expenditure for the repair, maintenance, or improvement of real property
4.10and capital assets owned by an organization, or for the replacement of a capital asset that
4.11can no longer be repaired, with a fiscal year limit of five percent of gross profits from
4.12the previous fiscal year, with no carryforward of unused allowances. The fiscal year is
4.13July 1 through June 30. Total expenditures for the fiscal year may not exceed the limit
4.14unless the board has specifically approved the expenditures that exceed the limit due to
4.15extenuating circumstances beyond the organization's control. An expansion of a building
4.16or bar-related expenditures are not allowed under this provision.
4.17(i) The expenditure must be related to the portion of the real property or capital asset
4.18that must be made available for use free of any charge to other nonprofit organizations,
4.19community groups, or service groups, or is used for the organization's primary mission or
4.20headquarters.
4.21(ii) An expenditure may be made to bring an existing building that the organization
4.22owns into compliance with the Americans with Disabilities Act.
4.23(iii) An organization may apply the amount that is allowed under item (ii) to the
4.24erection or acquisition of a replacement building that is in compliance with the Americans
4.25with Disabilities Act if the board has specifically approved the amount. The cost of
4.26the erection or acquisition of a replacement building may not be made from gambling
4.27proceeds, except for the portion allowed under this item;
4.28(23) an expenditure for the acquisition or improvement of a capital asset with a cost
4.29greater than $2,000, excluding real property, that will be used exclusively for lawful
4.30purposes under this section if the board has specifically approved the amount;
4.31(24) an expenditure for the acquisition, erection, improvement, or expansion of real
4.32property, if the board has first specifically authorized the expenditure after finding that the
4.33real property will be used exclusively for lawful purpose under this section; or
4.34(25) an expenditure, including a mortgage payment or other debt service payment,
4.35for the erection or acquisition of a comparable building to replace an organization-owned
4.36building that was destroyed or made uninhabitable by fire or catastrophe or to replace an
5.1organization-owned building that was taken or sold under an eminent domain proceeding.
5.2The expenditure may be only for that part of the replacement cost not reimbursed by
5.3insurance for the fire or catastrophe or compensation not received from a governmental
5.4unit under the eminent domain proceeding, if the board has first specifically authorized
5.5the expenditure.
5.6(b) Expenditures authorized by the board under clauses (24) and (25) must be
5.751 percent completed within two years of the date of board approval; otherwise the
5.8organization must reapply to the board for approval of the project. "Fifty-one percent
5.9completed" means that the work completed must represent at least 51 percent of the value
5.10of the project as documented by the contractor or vendor.
5.11 (c) Notwithstanding paragraph (a), "lawful purpose" does not include:
5.12 (1) any expenditure made or incurred for the purpose of influencing the nomination
5.13or election of a candidate for public office or for the purpose of promoting or defeating a
5.14ballot question;
5.15 (2) any activity intended to influence an election or a governmental decision-making
5.16process;
5.17 (3) a contribution to a statutory or home rule charter city, county, or town by a
5.18licensed organization with the knowledge that the governmental unit intends to use the
5.19contribution for a pension or retirement fund; or
5.20(4) a contribution to a 501(c)(3) organization or other entity with the intent or effect
5.21of not complying with lawful purpose restrictions or requirements.
