Bill Text: MN HF73 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Lawful gambling audit amounts adjusted for organizations, and clarifying and technical changes made.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Introduced - Dead) 2013-01-14 - Introduction and first reading, referred to Commerce and Consumer Protection Finance and Policy [HF73 Detail]
Download: Minnesota-2013-HF73-Introduced.html
1.2relating to lawful gambling; adjusting audit amounts for organizations; making
1.3clarifying and technical changes;amending Minnesota Statutes 2012, sections
1.4297E.06, subdivision 4; 349.19, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 297E.06, subdivision 4, is amended to read:
1.7 Subd. 4. Annual audit, certified inventory, and cash count. (a) An organization
1.8licensed under chapter 349 with gross receipts from lawful gambling of more than
1.9$500,000 $1,000,000 in any year must have an annual financial audit of its lawful
1.10gambling activities and funds for that year.
1.11 (b) The commissioner may require a financial audit of the lawful gambling activities
1.12and funds of an organization licensed under chapter 349, with gross receipts less than
1.13$500,000 $1,000,000 annually, when an organization has:
1.14 (1) failed to timely file required gambling tax returns;
1.15 (2) failed to timely pay the gambling tax or regulatory fee;
1.16 (3) filed fraudulent gambling tax returns;
1.17 (4) failed to take corrective actions required by the commissioner; or
1.18 (5) failed to otherwise comply with this chapter.
1.19 (c) Audits under this subdivision must be performed by an independent accountant
1.20licensed in accordance with chapter 326A.
1.21 (d) An organization licensed under chapter 349 must perform an annual certified
1.22inventory and cash count at the end of its fiscal year and submit the report to the
1.23commissioner within 30 days after the end of its fiscal year. The report shall be on a form
1.24prescribed by the commissioner.
2.1 (e) The commissioner of revenue shall prescribe standards for the audits, certified
2.2inventory, and cash count reports required under this subdivision. The standards may
2.3vary based on the gross receipts of the organization. The standards must incorporate and
2.4be consistent with standards prescribed by the American Institute of Certified Public
2.5Accountants. A complete, true, and correct copy of the audits, certified inventory, and
2.6cash count report must be filed as prescribed by the commissioner.
2.7 Sec. 2. Minnesota Statutes 2012, section 349.19, subdivision 2, is amended to read:
2.8 Subd. 2. Accounts. (a) Gross receipts from lawful gambling by each organization
2.9must be segregated from all other revenues of the conducting organization and placed in a
2.10separate gambling bank account.
2.11(b) All expenditures for allowable expenses, taxes, and lawful purposes must be
2.12made from the separate account except (1) in the case of expenditures previously approved
2.13by the organization's membership for emergencies as defined by board rule, (2) as provided
2.14in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment
2.15of taxes for the organization as a whole, the organization may transfer the amount of taxes
2.16related to the conduct of gambling to the general account at the time when due and payable.
2.17(c) The name and address of the bank, the account number for the separate account,
2.18and the names of organization members authorized as signatories on the separate account
2.19must be provided to the board when the application is submitted. Changes in the
2.20information must be submitted to the board at least ten days before the change is made.
2.21(d)Except for gambling receipts from electronic pull-tab games and linked
2.22electronic bingo games, All gambling receipts must be deposited into the gambling bank
2.23account within four business days of completion of the bingo occasion, deal, or game from
2.24which they are received.
2.25(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of
2.26the deal is sold or the organization does not continue the play of the deal during the next
2.27scheduled period of time in which the organization will conduct pull-tabs.
2.28(2) A tipboard game is considered complete when the seal on the game flare is
2.29uncovered or the organization does not continue the play of the deal during the next
2.30scheduled period of time in which the organization will conduct tipboards.
2.31(e) Gambling receipts from all electronic pull-tab games and all linked electronic
2.32bingo games must be recorded on a daily basis and deposited into the gambling bank
2.33account within two business days.
2.34(f) (e) Deposit records must be sufficient to allow determination of deposits made
2.35from each bingo occasion, deal, or game at each permitted premises.
3.1(g) (f) The person who accounts for gambling gross receipts and profits may not be
3.2the same person who accounts for other revenues of the organization.
3.3 Sec. 3. EFFECTIVE DATE.
3.4Sections 1 and 2 are effective the day following final enactment.
1.3clarifying and technical changes;amending Minnesota Statutes 2012, sections
1.4297E.06, subdivision 4; 349.19, subdivision 2.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 297E.06, subdivision 4, is amended to read:
1.7 Subd. 4. Annual audit, certified inventory, and cash count. (a) An organization
1.8licensed under chapter 349 with gross receipts from lawful gambling of more than
1.9
1.10gambling activities and funds for that year.
1.11 (b) The commissioner may require a financial audit of the lawful gambling activities
1.12and funds of an organization licensed under chapter 349, with gross receipts less than
1.13
1.14 (1) failed to timely file required gambling tax returns;
1.15 (2) failed to timely pay the gambling tax or regulatory fee;
1.16 (3) filed fraudulent gambling tax returns;
1.17 (4) failed to take corrective actions required by the commissioner; or
1.18 (5) failed to otherwise comply with this chapter.
1.19 (c) Audits under this subdivision must be performed by an independent accountant
1.20licensed in accordance with chapter 326A.
1.21 (d) An organization licensed under chapter 349 must perform an annual certified
1.22inventory and cash count at the end of its fiscal year and submit the report to the
1.23commissioner within 30 days after the end of its fiscal year. The report shall be on a form
1.24prescribed by the commissioner.
2.1 (e) The commissioner of revenue shall prescribe standards for the audits, certified
2.2inventory, and cash count reports required under this subdivision. The standards may
2.3vary based on the gross receipts of the organization. The standards must incorporate and
2.4be consistent with standards prescribed by the American Institute of Certified Public
2.5Accountants. A complete, true, and correct copy of the audits, certified inventory, and
2.6cash count report must be filed as prescribed by the commissioner.
2.7 Sec. 2. Minnesota Statutes 2012, section 349.19, subdivision 2, is amended to read:
2.8 Subd. 2. Accounts. (a) Gross receipts from lawful gambling by each organization
2.9must be segregated from all other revenues of the conducting organization and placed in a
2.10separate gambling bank account.
2.11(b) All expenditures for allowable expenses, taxes, and lawful purposes must be
2.12made from the separate account except (1) in the case of expenditures previously approved
2.13by the organization's membership for emergencies as defined by board rule, (2) as provided
2.14in subdivision 2a, or (3) when restricted to one electronic fund transaction for the payment
2.15of taxes for the organization as a whole, the organization may transfer the amount of taxes
2.16related to the conduct of gambling to the general account at the time when due and payable.
2.17(c) The name and address of the bank, the account number for the separate account,
2.18and the names of organization members authorized as signatories on the separate account
2.19must be provided to the board when the application is submitted. Changes in the
2.20information must be submitted to the board at least ten days before the change is made.
2.21(d)
2.22
2.23account within four business days of completion of the bingo occasion, deal, or game from
2.24which they are received.
2.25(1) A deal of paper pull-tabs is considered complete when either the last pull-tab of
2.26the deal is sold or the organization does not continue the play of the deal during the next
2.27scheduled period of time in which the organization will conduct pull-tabs.
2.28(2) A tipboard game is considered complete when the seal on the game flare is
2.29uncovered or the organization does not continue the play of the deal during the next
2.30scheduled period of time in which the organization will conduct tipboards.
2.31
2.32
2.33
2.34
2.35from each bingo occasion, deal, or game at each permitted premises.
3.1
3.2the same person who accounts for other revenues of the organization.
3.3 Sec. 3. EFFECTIVE DATE.
3.4Sections 1 and 2 are effective the day following final enactment.
