05/20/2023
Dear Senators of Tax Conference Committee,
Minnesotans demand inclusion, openness and accountability in government.
Since the taxes conference committee started its work last week, there has been no contact from anyone on the committee with our groups.
The secrecy and lack of transparency displayed by the taxes conference committee over the last few days is outrageous.
The committee has been meeting behind closed doors with no discussion, no agenda, no inclusion, and no process in place for concerned citizens who wish to have their voices heard.
Drastic changes to electronic gaming that would crush local charities, bars and restaurants and state and local government budgets are being discussed in secret with Minnesotans left entirely in the dark.
When Rep. Davids pressed you, Chair Rest, last night about the changes proposed to e-pull tabs, you refused to provide any further details. The committee is literally doing its work at the last minute, behind closed doors, with no transparency.
A provision in House File 1938 would make all current e-pull tab games illegal. It is an existential threat to thousands of Minnesota charities and their small business partners that administer the games.
Cutting a last-minute deal behind closed doors to gut e-pull tabs after no debate is completely unacceptable. Minnesota charitable gaming generated $131 million for our state's local charities and $180 million in tax revenue in fiscal year 2022 but the stakeholders with so much to lose can’t get a seat at the table.
In 2021, the fiscal note for HF 2366 stated that “all existing electronic pull-tab and linked bingo games will be prohibited under the proposed language. Therefore, all revenue [$1.3 billion per year] will be eliminated on those games.” The note detailed that "Local bars selling electronic games will lose revenue [estimated $29.25 million annually]. …" and "Local wages for those conducting lawful gambling will be reduced [estimated $35.75 million annually]" and "Available funds for lawful [charitable] purposes will be reduced [estimated $33 million annually]. …"
In 2023, there is not even a fiscal note.
Depending on the yet undisclosed bill language, changes to e-pull tabs could cost the state over $100 million in lost tax revenue per year. That means that the tax relief that has been proposed to the charities will nowhere near make up for the loss in revenues from the damaging changes to e-tab games.
Despite the claims of some at the Capitol, a February 2023 Minnesota Court of Appeals did not rule that existing e-pull tab games that utilized “open all” features were illegal or needed to be changed. This was confirmed by Assistant Attorney General Leah Hedman who spoke at the March Gambling Control Board meeting. During the March GCB meeting, Hedman said that e-pull tabs games could continue to be approved in the manner they have been approved since September 2012.
With so much at stake for our local communities, our veterans, volunteer firefighters, and youth sports teams have a right to know what is happening behind closed doors.
Minnesotans deserve better.
We must put a stop to these secret negotiations and let the people into the process.
Please oppose any changes to e-pull tabs.
Sincerely,
Kristy Janigo
Legislative Chair, American Legion Department of Minnesota
Rachel Jenner
Executive Director, Allied Charities of Minnesota
Keith Franke
Executive Director, Protect Our Charities
Allied Charities of Minnesota
American Legion Department of Minnesota
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