1.1.................... moves to amend H.F. No. 5247, the second engrossment, as follows:
1.2Page 113, after line 28, insert:
1.3 "Sec. .... Minnesota Statutes 2023 Supplement, section 349.12, subdivision 25, is amended
1.4to read:
1.5 Subd. 25.
Lawful purpose. (a) "Lawful purpose" means one or more of the following:
1.6 (1) any expenditure by or contribution to a 501(c)(3) or festival organization, as
defined
1.7in subdivision 15c, provided that the organization and expenditure or contribution
are in
1.8conformity with standards prescribed by the board under section
349.154, which standards
1.9must apply to both types of organizations in the same manner and to the same extent;
1.10 (2) a contribution to or expenditure for goods and services for an individual or family
1.11suffering from poverty, homelessness, or disability, which is used to relieve the
effects of
1.12that suffering;
1.13 (3) a contribution to a program recognized by the Minnesota Department of Human
1.14Services for the education, prevention, or treatment of problem gambling;
1.15 (4) a contribution to or expenditure on a public or private nonprofit educational
institution
1.16registered with or accredited by this state or any other state;
1.17 (5) a contribution to an individual, public or private nonprofit educational institution
1.18registered with or accredited by this state or any other state, or to a scholarship
fund of a
1.19nonprofit organization whose primary mission is to award scholarships, for defraying
the
1.20cost of education to individuals where the funds are awarded through an open and fair
1.21selection process;
1.22 (6) activities by an organization or a government entity which recognize military
service
1.23to the United States, the state of Minnesota, or a community, subject to rules of
the board,
2.1provided that the rules must not include mileage reimbursements in the computation
of the
2.2per diem reimbursement limit and must impose no aggregate annual limit on the amount
of
2.3reasonable and necessary expenditures made to support:
2.4 (i) members of a military marching or color guard unit for activities conducted within
2.5the state;
2.6 (ii) members of an organization solely for services performed by the members at funeral
2.7services;
2.8 (iii) members of military marching, color guard, or honor guard units may be reimbursed
2.9for participating in color guard, honor guard, or marching unit events within the
state or
2.10states contiguous to Minnesota at a per participant rate of up to $50 per diem; or
2.11 (iv) active military personnel and their immediate family members in need of support
2.12services;
2.13 (7) recreational, community, and athletic facilities and activities, intended primarily
for
2.14persons under age 21, provided that such facilities and activities do not discriminate
on the
2.15basis of gender and the organization complies with section
349.154, subdivision 3a;
2.16 (8) payment of local taxes authorized under this chapter, including local gambling
taxes
2.17authorized under section
349.213, subdivision 3, taxes imposed by the United States on
2.18receipts from lawful gambling, the taxes imposed by section
297E.02, subdivisions 1 and
2.196, and the tax imposed on unrelated business income by section
290.05, subdivision 3;
2.20 (9) payment of real estate taxes and assessments on permitted gambling premises owned
2.21by the licensed organization paying the taxes, or wholly leased by a licensed veterans
2.22organization under a national charter recognized under section 501(c)(19) of the Internal
2.23Revenue Code;
2.24 (10) a contribution to the United States, this state or any of its political subdivisions,
or
2.25any agency or instrumentality thereof other than a direct contribution to a law enforcement
2.26or prosecutorial agency;
2.27 (11) a contribution to or expenditure by a nonprofit organization which is a church
or
2.28body of communicants gathered in common membership for mutual support and edification
2.29in piety, worship, or religious observances;
2.30 (12) an expenditure for citizen monitoring of surface water quality by individuals
or
2.31nongovernmental organizations that is consistent with section
115.06, subdivision 4, and
2.32Minnesota Pollution Control Agency guidance on monitoring procedures, quality assurance
2.33protocols, and data management, provided that the resulting data is submitted to the
3.1Minnesota Pollution Control Agency for review and inclusion in the state water quality
3.2database;
3.3 (13) a contribution to or expenditure on projects or activities approved by the
3.4commissioner of natural resources for:
3.5 (i) wildlife management projects that benefit the public at large;
3.6 (ii) grant-in-aid trail maintenance and grooming established under sections
84.83 and
3.784.927, and other trails open to public use, including purchase or lease of equipment for
3.8this purpose; and
3.9 (iii) supplies and materials for safety training and educational programs coordinated
by
3.10the Department of Natural Resources, including the Enforcement Division;
3.11 (14) conducting nutritional programs, food shelves, and congregate dining programs
3.12primarily for persons who are age 62 or older or disabled;
3.13 (15) a contribution to a community arts organization, or an expenditure to sponsor
arts
3.14programs in the community, including but not limited to visual, literary, performing,
or
3.15musical arts;
3.16 (16) an expenditure by a licensed fraternal organization or a licensed veterans organization
3.17for payment of water, fuel for heating, electricity, and sewer costs for:
3.18(i) up to 100 percent for a building wholly owned or wholly leased by and used as
the
3.19primary headquarters of the licensed veteran or fraternal organization; or
3.20(ii) a proportional amount subject to approval by the director and based on the portion
3.21of a building used as the primary headquarters of the licensed veteran or fraternal
3.22organization;
3.23 (17) expenditure by a licensed veterans organization of up to $5,000 in a calendar
year
3.24in net costs to the organization for meals and other membership events, limited to
members
3.25and spouses, held in recognition of military service. No more than $5,000 can be expended
3.26in total per calendar year under this clause by all licensed veterans organizations
sharing
3.27the same veterans post home;
3.28 (18) payment of fees authorized under this chapter imposed by the state of Minnesota
3.29to conduct lawful gambling in Minnesota;
3.30 (19) a contribution or expenditure to honor an individual's humanitarian service as
3.31demonstrated through philanthropy or volunteerism to the United States, this state,
or local
3.32community;
4.1(20) a contribution by a licensed organization to another licensed organization with
prior
4.2board approval, with the contribution designated to be used for one or more of the
following
4.3lawful 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
prior
4.7board approval for the contribution that will be used for a program that meets one
or more
4.8of the lawful purposes under subdivision 7a;
4.9(22) an expenditure for the repair, maintenance, or improvement of real property and
4.10capital assets owned by an organization, or for the replacement of a capital asset
that can
4.11no longer be repaired, with a fiscal year limit of five percent of gross profits from
the
4.12previous fiscal year, with no carryforward of unused allowances. The fiscal year is
July 1
4.13through June 30. Total expenditures for the fiscal year may not exceed the limit unless
the
4.14board has specifically approved the expenditures that exceed the limit due to extenuating
4.15circumstances beyond the organization's control. An expansion of a building or bar-related
4.16expenditures 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, and 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
owns
4.22into compliance with the Americans with Disabilities Act.
4.23(iii) An organization may apply the amount that is allowed under item (ii) to the
erection
4.24or acquisition of a replacement building that is in compliance with the Americans
with
4.25Disabilities Act if the board has specifically approved the amount. The cost of the
erection
4.26or acquisition of a replacement building may not be made from gambling proceeds, except
4.27for 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
purposes
4.30under 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;
5.1(25) an expenditure, including a mortgage payment or other debt service payment, for
5.2the erection or acquisition of a comparable building to replace an organization-owned
5.3building that was destroyed or made uninhabitable by fire or catastrophe or to replace
an
5.4organization-owned building that was taken or sold under an eminent domain proceeding.
5.5The expenditure may be only for that part of the replacement cost not reimbursed by
5.6insurance for the fire or catastrophe or compensation not received from a governmental
unit
5.7under the eminent domain proceeding, if the board has first specifically authorized
the
5.8expenditure;
or
5.9(26) a contribution to a 501(c)(19) organization that does not have an organization
license
5.10under section
349.16 and is not affiliated with the contributing organization, and whose
5.11owned or leased property is not a permitted premises under section
349.165. The 501(c)(19)
5.12organization may only use the contribution for lawful purposes under this subdivision
or
5.13for the organization's primary mission. The 501(c)(19) organization may not use the
5.14contribution for expansion of a building or for bar-related expenditures. A contribution
may
5.15not be made to a statewide organization representing a consortia of 501(c)(19) organizations
.;
5.16or
5.17(27)(i) an expenditure for the repair, maintenance, or improvement of real property
and
5.18capital assets owned by the following organizations, or for the replacement of a capital
asset
5.19that can no longer be repaired:
5.20(A) American Legion;
5.21(B) Veterans of Foreign Wars of the United States (VFW);
5.22(C) Jewish War Veterans of the United States of America;
5.23(D) Military Order of the Purple Heart;
5.24(E) AMVETS;
5.25(F) Marine Corps League;
5.26(G) Paralyzed Veterans of America; or
5.27(H) Disabled American Veterans.
5.28 (ii) The expenditure is limited to 50 percent of gross profits from the previous fiscal
5.29year. The fiscal year is July 1 through June 30. Any unused allowances may carry forward
5.30for one fiscal year. Any organization carrying forward funds must identify the planned
5.31project for which the funds will be used prior to carrying forward the unused allowances.
6.1 (iii) Total expenditures for the fiscal year may not exceed the limit imposed under
item
6.2(ii) unless the board has specifically approved the expenditures that exceed the limit
due to
6.3extenuating circumstances beyond the organization's control. An expansion of a building
6.4or any capital improvements within the building regardless of use of the improvement
are
6.5allowed under this provision. This provision applies only to capital improvements
to the
6.6existing building square footage and does not apply to the new construction of a new
or
6.7replacement building.
6.8(b) Expenditures authorized by the board under paragraph (a), clauses (24) and (25),
6.9must be 51 percent completed within two years of the date of board approval; otherwise
the
6.10organization must reapply to the board for approval of the project. "Fifty-one percent
6.11completed" means that the work completed must represent at least 51 percent of the
value
6.12of the project as documented by the contractor or vendor.
6.13 (c) Notwithstanding paragraph (a), "lawful purpose" does not include:
6.14 (1) any expenditure made or incurred for the purpose of influencing the nomination
or
6.15election of a candidate for public office or for the purpose of promoting or defeating
a ballot
6.16question;
6.17 (2) any activity intended to influence an election or a governmental decision-making
6.18process;
6.19 (3) a contribution to a statutory or home rule charter city, county, or town by a
licensed
6.20organization with the knowledge that the governmental unit intends to use the contribution
6.21for a pension or retirement fund; or
6.22(4) a contribution to a 501(c)(3) organization or other entity with the intent or
effect of
6.23not complying with lawful purpose restrictions or requirements.
6.24EFFECTIVE DATE.This section is effective the day following final enactment."
6.25Renumber the sections in sequence and correct the internal references
6.26Amend the title accordingly