Senate Bill 0140 – Use of charity gaming proceeds. Prohibits the department of state revenue (department) from adopting a rule requiring a qualified organization to use a minimum percentage of its gross receipts from allowable events for its lawful purposes. Eliminates the department’s authority to set by rule the allowable expenditures of a qualified organization with respect to an allowable event. Sets forth the expenses that may be subtracted from gross receipts to determine a qualified organization’s net proceeds from an allowable event. Voids certain rules adopted by the department regarding the use of charity gaming proceeds.
I’ve read this bill a few times. I’ve read 45 IAC 18-3-7 & 8 (PDF document) which it repeals. And I just don’t understand it. Apparently the Senate did because it passed 43-6. There is evidently something about the term “lawful purposes” that is escaping me. It seems to me that all revenues received by a charity (from gaming proceeds or not) would have to be used for its lawful purposes. So that the Dept. of Revenue setting a minimum percentage to be used for lawful purposes would be boggling and the legislature doing anything but repealing the IAC provisions would be unnecessary. Just reporting my ignorance, I guess.
Update: The Palladium-Item has a brief note about the passage of the bill. It doesn’t sound like they understand it any better than I did:
A charitable gaming bill authored by Sen. Allen Paul (R-Richmond) passed through the Indiana Senate this week by a vote of 43-6.
The bill basically prohibits the Department of Revenue from making specific rules requiring charitable gaming establishments to give part of their revenues to charitable organizations. Currently, rules state that those establishments must give a minimum percentage of their revenue to charity.
Paul said in a press release that passing the bill would weed out the dependence charitable institutions have to gaming proceeds.
The bill now goes to the Indiana House of Representatives where Rep. Tom Saunders (R-Lewisville) will sponsor it.