Allied Charities of Minnesota Newsletter - April/May/June 1999

Governor Signs Tax & Gambling Bills

1999 Chartiable Gambling Legislative Review


 During the 1999 Minnesota Legislative Session four bills which dealt
with Charitable Gambling were passed by the Legislature and signed into
law by the Governor. The bills are highlighted below.

1999 Omnibus Tax Bill

On Tuesday, May 25, 1999 Governor Ventura signed into law Chapter No.
243 H.F. 2420. This bill, authored by Representative Ron Abrams of
Minnetonka & Senator Doug Johnson of Tower, makes the following changes
in law:

Article 7 -  Sections 5, 7, & 8

 * Reduces Net Receipts Tax on bingo, paddlewheels, & raffles from 9.5%
to 9.0% - includes elimination of net receipts tax on interest,
dividends, and other miscellaneous income.

 * Reduces Ideal Gross Tax on pull-tabs & tipboards from 1.9% to 1.8%.

 * Reduces Combined Receipts Tax on pull-tabs & tipboards from
1.9%-3.8%-5.7% to 1.8%-3.6%-5.4%.

Article 7 - Sections 4 & 6

 * Changes due date for distributors to pay Ideal Gross Tax on pull-tabs
& tipboards to or before the last business day of the month following
the month in which the taxable sale was made and adds definition of
business day.

 Section 4 is effective August 1, 1999. Section 5, 7, & 8 are effective
July 1, 1999. Section 6 is effective for taxes first becoming due on or
after August 1, 1999.

1999 Omnibus Gambling Bill

On Monday, May 24, 1999 Governor Ventura signed into law Chapter No.
206 H.F. 1825. This bill, authored by Representative Mike Oskopp of Lake
City & Senator Jim Vickerman of Tracy, makes the following changes in
law:

 * Authorizes the operation of a card club at the Canterbury Park
racetrack. Card games would be played in the unbanked format, meaning
that players play against each other rather than against the house, and
the operator would derive revenue from table charges, deducting a
percentage of wagers, or other means. The operator would pay a fee of
$10,000 per year to operate the club, and a percentage of its revenues
would be dedicated to horse racing purses. The card club would be
regulated by the Minnesota racing commission.

 * Allows pull-tab dispensing devices to be placed in establishments
licensed for off-sale of intoxicating liquor, other than food stores and
drug stores.

 * Allows the gambling control board to permit by rule tipboard games
with multipleseals. Allows the board to adopt rules for cumulative or
carryover tipboard prizes. Sets the maximum prize for a tipboard ticket
at $500, and $2,500 for cumulative or carryover prizes in tipboard games
if rules adopted.

 * Requires raffle tickets to list at least the three most expensive
prizes in the raffle. Requires raffle tickets to contain a notice to the
effect that a list of other prizes is available on request. Allows
raffle tickets for raffles exempt or excluded from licensing to use
tickets that have only a number and no other information, if the
organization makes a list of prizes and other relevant information
required by rule, and if the tickets are sold on the day of the event.

 * Increases from $100 to $200 the maximum amount of a consolation prize
in a progressive bingo game (a game where prizes not won can be carried
over to a subsequent session).

 These provisions went into effect Tuesday, May 25 1999 the day
following final enactment.

Dice Bill

On Friday, May 21, 1999 Governor Jesse Ventura signed into law Chapter
No. 187 S.F 2044. This bill, authored by Senator Jim Vickerman of Tracy
& Representative Steve Dehler of St Joseph, makes the following change
in law:

 * Authorizes dice games in retail establishments licensed to sell
alcoholic beverages provided the wagers or prizes for the dice games are
limited to food or beverages and the retail establishment does not
organize or participate financially in the games.

 This provision went into effect Saturday, May 22, 1999 the day
following final enactment.

Senior Bingo Bill

On Thursday, May 6, 1999 Governor Jesse Ventura signed into law Chapter
No. 128 H.F. 132. This bill, authored by Representative Bob Ness of
Dassel & Senator Steve Dille of Dassel, makes the following change in
law:

 * Allows excluded bingo conducted within nursing homes, senior citizen
housing projects, or by a senior citizen organization to be exempt from
sections 349.11 to 349.23.

 This provision is effective August 1, 1999.

Complete copies of Chapter No. 128 H.F. 132,  Chapter No. 187 S.F 2044,
Chapter No. 206 H.F. 1825, and the charitable gambling parts of Chapter
No. 243 H.F. 2420 are printed on the 24 page yellow insert in this ACM
Newsletter.