House panel refers bill to let veterans groups use gambling proceeds for building repairs

The Minnesota House Veterans and Military Affairs Division voted to refer House File 753 to the Commerce and Finance Committee after lawmakers and veterans' representatives said the bill would allow veterans organizations to use charitable gambling proceeds to repair and improve their properties.

The bill’s sponsor, Chair Robbins, told the committee the change would expand allowable uses of charitable gambling proceeds for veterans organizations so they can fund building repairs, HVAC work, security upgrades and pavement for Americans with Disabilities Act accessibility. Robbins said the measure has bipartisan support and has been carried in prior sessions.

Sheriff Barry Henriksen, adjutant quartermaster for the Department of Minnesota Veterans of Foreign Wars, testified that many posts are struggling financially and closing. "So far this year we've already had 5 consolidations," Henriksen said, describing audits showing some posts with limited reserves and warning that closures remove community resources that provide food-shelf donations and other local support. Henriksen said allowing posts to use gambling proceeds for repairs would help maintain gathering places that provide services for veterans.

Tim Engstrom, gambling manager for Bloomington American Legion Post 550 and communications director for the American Legion Department of Minnesota, told the committee about specific tax burdens and closures. He said a post in Waite Park reported a roughly $60,000 tax burden, and listed other communities where posts have closed or been repurposed. "They're very important to our mission," Engstrom said, urging support so posts can remain functional gathering places.

Committee paperwork noted that Joe Herzog submitted written testimony in support but did not appear in person.

After testimony, a committee member moved that House File 753 be re-referred to the Commerce and Finance Committee. The committee approved the referral by voice vote; no roll-call tally was recorded in the transcript.

The bill would amend the list of allowable expenditures for charitable gambling proceeds for veterans organizations only to include property repairs and improvements. Committee members and witnesses described the measure as having no direct cost to taxpayers because it changes how organizations may spend their existing gambling proceeds rather than creating a new appropriation.

The referral sends the measure to the Commerce and Finance Committee for further consideration and potential amendment.