Panel approves referral of bill letting veterans groups use gaming proceeds for building repairs

Chair Robbins opened discussion of House File 7 7 53 and the committee voted to refer the bill to the Commerce and Finance Committee after brief testimony from veterans-group representatives.

The bill would expand allowable uses of charitable gambling proceeds so veterans organizations could use those funds to “improve, repair their real property,” Chair Robbins said. He described the measure as long-standing and bipartisan: “This is a very simple bill that's been floating around here, for many years,” Robbins said.

The bill’s supporters told the committee veterans posts statewide are financially strained and cannot use charitable-gambling revenues for building repairs while paying sales taxes on that revenue. Barry Henriksen, adjutant quartermaster for the Department of Minnesota Veterans of Foreign Wars, said several posts have consolidated this year and that buildings are in poor condition. “So far this year we've already had 5 consolidations,” Henriksen said. He added that audits show some posts hold assets — he cited an audit line showing “posts have $510,000” — but still cannot use gaming proceeds for repairs. Henriksen said the change would cost taxpayers nothing and would help preserve post operations that support food shelves and local events.

Tim Engstrom, gambling manager for Bloomington American Legion Post 550 and communications director for the American Legion Department of Minnesota, gave similar testimony and described specific tax burdens. He told the committee that a post in Waite Park faced “a $60,000 tax burden,” and that closures have removed veteran gathering places across the state. “Having the ability to repair them and keep them and maintain them is crucial to Minnesota,” Engstrom said.

Committee discussion was limited and no member questions were recorded during the hearing. An unnamed committee member moved that “House File 7 53 is recommended to be re referred to the Commerce and Finance Committee.” Chair Robbins renewed the motion later in the item. The committee adopted the referral by voice vote; the clerk announced “All in favor say aye,” members said “Aye,” and the chair declared, “Motion carries and House File 7 53 is referred to Commerce.”

The written testimony of Joe Herzog was submitted for the record and included in the committee packet, but he did not appear to testify in person.

Why it matters: Supporters say the change would let veterans organizations use their own charitable-gambling revenues to maintain gathering spaces that provide community services and veteran support, while opponents or fiscal impacts were not recorded during this brief hearing. The referral sends the bill to the Commerce and Finance Committee for further consideration.