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S.F. No. 512 - Electronic Paddlewheel Regulation - State Government Committee Report
 
Author: Senator Mark W. Koran
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
 
Date: May 7, 2020



 

Section 1 [Emergency Expenditures; Business Loans] Paragraph (a), authorizes veterans and fraternal organizations to loan lawful gambling funds to their own general accounts for certain emergency expenditures, with prior approval of the Gambling Control Board. Loans cannot be used for salaries or payroll expenses.

Paragraph (b) requires that loans be repaid to the gambling account within 12 months of the loan. Loans cannot be forgiven except by law.  The Gambling Control Board is not authorized to forgive loans.  As a condition of loan approval, the organization must agree to suspend the conduct of lawful gambling for one year from the loan date until the loan is repaid to the gambling fund.

Paragraph (c) sets a deadline for loan applications.

Paragraph (d) requires organizations that are terminating lawful gambling to provide for the loan repayment in their termination plan.

Paragraph (e) specifies that gambling funds cannot be used as loan collateral.

Section 1 is effective upon enactment.  Paragraphs (a) and (c) expire after the governor’s emergency executive authority expires.

Section 2 [Use of gross profits; Temporary Expenditure Requirements] extends the probation period for organizations that failed to meet certain thresholds for use of gross profits on lawful purposes for fiscal year 2019. This section is effective after enactment and expires June 30, 2021.

Section 3 [Temporary Sales on Credit Restriction] suspends a 30-day limit on credit for the sale of lawful gambling equipment, during the period that the governor’s emergency executive authority is in force. This section is effective the day after enactment and expires when the governor’s emergency executive authority expires.

Section 4 [Use of Gross Profits; Evaluation of Expenditures] waives requirements on the use of gross profits and the evaluation of expenditures (known as the star system) for the fiscal year ending June 30, 2020. This section is effective the day after enactment.

Section 5 [Extension of License Renewal Dates] extends licenses related to lawful gambling by two months, for licenses effective before April 1, 2020. This section is effective the day after enactment.

Section 6 [Exempt Activities] waives an application fee for the conduct of lawful gambling without a license and allows postponement of exempt activities for up to 400 days from the date originally planned for the event under the previously granted permit. This section is effective the day after enactment and expires when the governor’s emergency executive authority expires.

Section 7 [Training of Gambling Managers] extends the statutory time limit for gambling training by 60 days. This section is effective the day after enactment and expires when the governor’s emergency executive authority expires.

 

 

 
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