Purpose of the Bill

This bill aims to establish guidelines for addressing situations where organizations involved in lawful gambling experience a loss of funds due to theft. It outlines the conditions under which fund loss requests can be submitted, reviewed, and potentially denied by the governing board.

Main Provisions

• Mandatory Approval for Theft-Related Losses: The board is required to approve fund loss requests when the loss is due to theft, provided the organization files timely reports with law enforcement and submits a fund loss request according to the existing rules.

• Conditions for Denial:

  • The board can deny a fund loss request if the organization has had two or more submissions in the past 12 months and if denial criteria specified by rule are met.
  • Denied requests must come with a written explanation and recommendations for preventive measures against future losses.

• No Reimbursement Requirement: Even if a request is denied, the board cannot compel organizations to reimburse their gambling accounts for theft-related losses from nongambling funds.

Significant Changes to Existing Law

The bill revises existing statutes by adding a subdivision which specifically outlines how fund loss requests due to theft should be handled, establishing a more defined process and criteria for approval and denial.

Relevant Terms

• Lawful gambling
• Fund loss request
• Theft
• Cash inventory
• Prizes
• Law enforcement
• Board
• Denial and approval process