Relating to the state lotteryARTICLE 1 VIDEO LOTTERYAuthorizing the director of the state lottery to enter into contracts with certain on-sale alcoholic beverage retailers for the placement of video lottery terminals on the premises; defining certain terms; providing for inspection of the terminals; authorizing contracted retailers to retain a certain percentage of net income from the terminals; requiring and providing for director contracts for maintenance of the terminals, specifying certain restrictions; specifying certain lottery terminal specification requirements, limiting the amount allowed to be played and specifying a maximum prize amount; providing for testing and examination of the terminals; authorizing the director to deactivate the terminals without notice for certain retailer violations; providing for the payment of video lottery credit receipts, requiring retailer payment of unclaimed prizes to the state lottery; excluding winnings from tax or debt withholding requirements; requiring display on the terminals of the approximate odds of winning; specifying the win percentage; limiting the amount of net terminal income allowed to be spent for operation of the terminals; requiring crediting of net proceeds from the terminals to the general fund to be used for state and local infrastructure needs; prohibiting certain conflicts of interest; prohibiting play by minors; expanding the crime of state lottery fraud to certain credit receipt violations and to tampering with the terminals; exempting gross receipts from operation of the terminals from sales and in lieu taxes ARTICLE 2 LOCAL AUTHORITYAuthorizing cities or counties to adopt more stringent regulation of the state lottery including prohibiting the sale of lottery tickets and the operation of video lottery terminals or games; authorizing local retailer licensing, setting a maximum fee (mk)