HF 2372

as introduced - 91st Legislature (2019 - 2020) Posted on 03/11/2019 02:53pm

A bill for an act
relating to the state lottery; establishing a K12 lottery game; creating the K12
lottery game fund and requiring deposit of the net proceeds in the school
endowment fund; amending Minnesota Statutes 2018, sections 127A.32; 349A.04;
349A.10, subdivisions 1, 5, by adding subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 127A.32, is amended to read:

127A.32 SCHOOL ENDOWMENT FUND; DESIGNATION.

For the purpose of aid to public schools, a school endowment fund is established.

The school endowment fund shall consist of the income from the permanent school fund new text begin
and deposits from the K12 lottery game fund new text end . The commissioner may accept for and on
behalf of the permanent school fund a donation of cash, marketable securities, or other
personal property. A noncash donation, other than a donation of marketable securities, must
be disposed of for cash as soon as the commissioner can obtain fair market value for the
donation. Marketable securities may be disposed of at the discretion of the State Board of
Investment consistent with sections 11A.16 and 11A.24. A cash donation and the cash
receipts from a donation disposed of for cash must be credited immediately to the permanent
school fund. Earnings from marketable securities are earnings of the permanent school fund.

Sec. 2.

Minnesota Statutes 2018, section 349A.04, is amended to read:

349A.04 LOTTERY GAME PROCEDURES.

new text begin (a) new text end The director may adopt game procedures governing the following elements of the
lottery:

(1) lottery games;

(2) ticket prices;

(3) number and size of prizes;

(4) methods of selecting winning tickets; and

(5) frequency and method of drawings.

new text begin (b) The director shall adopt or designate a scratch ticket game which will be identified
as the "K12 lottery game."
new text end

new text begin (c) new text end The adoption of lottery game procedures is not subject to chapter 14.

Sec. 3.

Minnesota Statutes 2018, section 349A.10, subdivision 1, is amended to read:

Subdivision 1.

State lottery fund.

The director shall establish a lottery fund outside the
state treasury, consisting of the gross revenues of the lottery and all other money credited
or transferred to it by law, except for money set aside and deposited in the lottery prize fund
under subdivision 2 new text begin and the K12 lottery game fund under subdivision 2a new text end .

Sec. 4.

Minnesota Statutes 2018, section 349A.10, is amended by adding a subdivision to
read:

new text begin Subd. 2a. new text end

new text begin K12 lottery game fund. new text end

new text begin (a) The director shall establish a K12 lottery game
fund outside the state treasury. The fund consists of the proceeds of the K12 lottery game
and all interest earned thereon.
new text end

new text begin (b) The director shall deposit in the lottery prize fund, from gross receipts from the sale
of the K12 lottery game, an amount sufficient to pay lottery prizes from the lottery prize
fund according to the provisions of subdivision 2.
new text end

new text begin (c) The director shall deposit in the lottery operations account, from gross receipts from
the sale of the K12 lottery game, an amount equal to the pro rata share of operating expenses.
new text end

Sec. 5.

Minnesota Statutes 2018, section 349A.10, subdivision 5, is amended to read:

Subd. 5.

Deposit of net proceeds.

Within 30 days after the end of each month, the
director shall deposit in the state treasury the net proceeds of the lottery, new text begin other than the
proceeds of the K12 lottery game fund, new text end which is the balance in the lottery fund after transfers
to the lottery prize fund and credits to the lottery operations account. Of the net proceeds,
40 percent must be credited to the Minnesota environment and natural resources trust fund
and the remainder must be credited to the general fund.

Sec. 6.

Minnesota Statutes 2018, section 349A.10, is amended by adding a subdivision to
read:

new text begin Subd. 5a. new text end

new text begin Deposit of net K12 lottery game proceeds. new text end

new text begin Semiannually, on the last Monday
in February and August in each year, the director shall deposit 40 percent of the net proceeds
of the K12 lottery game fund, which is the balance in the K12 lottery game fund after
transfers to the lottery prize fund and credits to the lottery operations account, in the state
treasury which must be credited to the Minnesota environment and natural resources trust
fund. The remainder of the net proceeds of the K12 lottery game fund shall be deposited in
the school endowment fund established under section 127A.32.
new text end