ACM Legislative Update on ACM Gaming bills that would impact licensed charities
Policy Bill SF229/HF374: ACM policy bill authored by Representatives Sanders, Anzelc, Bernardy, Daudt, Davids, Halvorson, Hoppe, Lillie, Newton, Poppe and Senators Koenen, Chamberlain, Rest, Skoe, Torres Ray. This is the bill that was passed overwhelmingly by both bodies, but vetoed by the Governor in 2014. The bill is on the floor in both bodies. Our expectation is that the bill will again be passed by large margins in both bodies. Our hope is that the Governor will let this bill become law, with or without his signature.
Policy Bill SF1786/HF1519: ACM policy bill authored by Representatives Swedzinski, Anzelc, Atkins, Christensen, Hoppe, Lillie, Sanders and Senators Eaton, Eken, Petersen B. Bill is on the floor in the House. Bill is headed to the Senate Finance committee due to the bill being amended in the Senate State and Local Government committee. Modifications were made to the bill that were agreed to by ACM from both the GCB and the League of Cities. This bill would allow an interim gambling manager for up to 120 days at a second licensed organization. Waiting time for being a GM to be a member is reduced from six months to 90 days. Allows for a random number generator to be used instead of a manual selection process of winning tickets if approved by the GCB. Raises bingo prize limits from $200 to $500 for single games, $1000 to $2000 for cover all games for the session and for the session from $2800 to $5000 without a coverall, $3800 to $7000 with a coverall. Cities that take 10% of the net would be required to acknowledge publicly where the money comes from.
Tax Bill SF1227/HF1176: ACM Tax relief authored by Representatives Hoppe, Atkins, Davids, Dettmer, Hoppe, Lucero, Poppe and Senators Skoe, Gazelka, Metzen, Senjem, Stumpf. The bill was heard in the House tax committee for possible inclusion in the House Omnibus tax bill, which is the best outcome that we could have at this point. The companion bill is in the Senate Tax committee and will hopefully be heard in the next few weeks, with the expectation of the same result as in the House. The bill reduces state taxes by 30%. First $50,000 each fiscal year of gross net receipts (sales minus prizes) would be exempt from state tax. Raises the combined receipt triggers from their current rates to $100,000, $200,000 and $300,000. Changes electronic linked bingo from the combined receipt tax to the fixed rate tax of 8.5%, the same as paper bingo. An annual outside audit would be required for organizations that have $750,000 in gross net receipts (sales minus prizes) in a given year. If approved as written, this bill would save charities $14 million dollars annually in state tax.
Tax Bill SF963/HF1185: Tax relief authored by Representatives Atkins, Newton, Lillie and Senator Metzen. The bill cuts existing combined receipt rates in half. This was not an ACM initiated bill, but is very much welcomed into the mix. Heard for possible inclusion in the Omnibus House tax bill by the House tax committee, which is the best outcome that we could have at this point. In the Senate the bill is still in the State and Local Government committee. No deadline for tax bills. A combination of this bill and SF1227/HF1176 is a possibility.
You contacting your elected representatives is imperative in getting these bills passed. The local perspective from licensed organizations along with the recipients of those mission dollars increases the chances of these bills passing.
Please keep making the contacts, it does make a difference. ACM is working at the capitol to show each and every elected official what you do in their districts and how you each make a difference. You adding context to the work ACM does at the capitol is making an impact with the elected officials. Please keep up the great work.
Please visit the new ACM website @ www.alliedcharitiesofminnesota.wildapricot.org for copies of the bills as they currently stand and for updates as they occur.
Your help is greatly appreciated.
Allied Charities of Minnesota