1.1.................... moves to amend H.F. No. 1485, the fourth engrossment, as follows:
1.2Page 11, after line 33, insert:

1.3    "Sec. .... Minnesota Statutes 2010, section 349.15, subdivision 1, as amended by Laws
1.42011, chapter 77, section 1, is amended to read:
1.5    Subdivision 1. Expenditure restrictions, requirements, and civil penalties.
1.6    (a) Gross profits from lawful gambling may be expended only for lawful purposes or
1.7allowable expenses as authorized by the membership of the conducting organization at a
1.8monthly meeting of the organization's membership.
1.9(b) Provided that no more than 70 percent 60 percent of the gross profit from bingo,
1.10and no more than 60 percent of the gross profit from other forms of lawful gambling, may
1.11be expended biennially during the term of the license for allowable expenses related to
1.12lawful gambling, except that for the period of July 1, 2008, to June 30, 2009, no more than
1.1375 percent of the gross profit from bingo, and no more than 65 percent of the gross profit
1.14from other forms of lawful gambling, may be expended for allowable expenses related to
1.15lawful gambling. This provision expires June 30, 2009.
1.16(c) For each 12-month period beginning July 1, 2009, a licensed organization will
1.17be evaluated by the board to determine a rating based on the percentage of annual lawful
1.18purpose expenditures when compared to available gross profits for the same period. The
1.19rating will be used to determine the organization's profitability percent and is not a rating
1.20of the organization's lawful gambling operation. An organization will be evaluated
1.21according to the following criteria:
1.22(1) an organization that expends 50 percent or more of gross profits on lawful
1.23purposes will receive a five-star rating;
1.24(2) an organization that expends 40 percent or more but less than 50 percent of gross
1.25profits on lawful purposes will receive a four-star rating;
2.1(3) an organization that expends less than 40 percent of gross profits on lawful
2.2purposes will receive a one-star rating 30 percent or more but less than 40 percent of gross
2.3profits on lawful purposes will receive a three-star rating;
2.4(4) an organization that expends 20 percent or more but less than 30 percent of gross
2.5profits on lawful purposes will receive a two-star rating; and
2.6(5) an organization that expends less than 20 percent of gross profits on lawful
2.7purposes will receive a one-star rating.
2.8(d) An organization that fails to expend a minimum of 30 percent 40 percent
2.9annually of gross profits on lawful purposes, or 20 percent annually for organizations
2.10that conduct lawful gambling in a location where the primary business is bingo, is
2.11automatically on probation effective July 1 for a period of one year. The organization must
2.12increase its rating to the required minimum or be subject to sanctions by the board. If an
2.13organization fails to meet the minimum after a one-year probation, the board may suspend
2.14the organization's license or impose a civil penalty as follows:
2.15(1) in determining any suspension or penalty for a violation of this paragraph, the
2.16board must consider any unique factors or extraordinary circumstances that caused the
2.17organization to not meet the minimum rate of profitability. Unique factors or extraordinary
2.18circumstances include, but are not limited to, the purchase of capital assets necessary to
2.19conduct lawful gambling; road or other construction causing impaired access to the lawful
2.20gambling premises; and flood, tornado, or other catastrophe that had a direct impact on the
2.21continuing lawful gambling operation; and
2.22(2) notwithstanding section 349.151, subdivision 4, paragraph (a), clause (10), the
2.23board may impose a civil penalty under this subdivision up to $10,000.
2.24EFFECTIVE DATE.This section is effective July 1, 2012, and applies to a
2.25licensee's next subsequent biennial period of licensing."
2.26Renumber the sections in sequence and correct the internal references
2.27Amend the title accordingly