<a id="pl.1.3"></a><var>1.3</var>commission; clarifying certain prize provisions of the lottery; providing for certain
         <br/>
<a id="pl.1.4"></a><var>1.4</var>budget and expenses of the State Lottery; providing standing appropriations;<br/>
<a id="pl.1.5"></a><var>1.5</var>amending Minnesota Statutes 2016, sections 240.15, subdivision 6; 240.155, <br/>
<a id="pl.1.6"></a><var>1.6</var>subdivision 1; 349A.08, subdivision 2; 349A.10, subdivision 6; proposing coding <br/>
<a id="pl.1.7"></a><var>1.7</var>for new law in Minnesota Statutes, chapter 240; repealing Minnesota Statutes <br/>
<a id="pl.1.8"></a><var>1.8</var>2016, section 349A.08, subdivision 3.<br/>
<a id="pl.1.9"></a><var>1.9</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.10"></a><var>1.10</var>    Section 1. Minnesota Statutes 2016, section 240.15, subdivision 6, is amended to read:<br/>
<a id="pl.1.11"></a><var>1.11</var>    Subd. 6. <b>Disposition of proceeds; account.</b> The commission shall distribute all money <br/>
<a id="pl.1.12"></a><var>1.12</var>received under this section, and, except as provided otherwise by section 
         <statute_ref>240.131</statute_ref>, all money <br/>
<a id="pl.1.13"></a><var>1.13</var>received from license fees, regulatory fees, and fines it collects, according to this subdivision. <br/>
<a id="pl.1.14"></a><var>1.14</var>All money designated for deposit in the Minnesota breeders fund must be paid into
         that <br/>
<a id="pl.1.15"></a><var>1.15</var>fund for distribution under section 
         <statute_ref>240.18</statute_ref> except that all money generated by simulcasts <br/>
<a id="pl.1.16"></a><var>1.16</var>must be distributed as provided in section 
         <statute_ref>240.18, subdivisions 2, paragraph (d)</statute_ref>, clauses <br/>
<a id="pl.1.17"></a><var>1.17</var>(1), (2), and (3); and 3. Revenue from an admissions tax imposed under subdivision
         1 must <br/>
<a id="pl.1.18"></a><var>1.18</var>be paid to the local unit of government at whose request it was imposed, at times
         and in a <br/>
<a id="pl.1.19"></a><var>1.19</var>manner the commission determines. Taxes received under this section must be paid to
         the <br/>
<a id="pl.1.20"></a><var>1.20</var>commissioner of management and budget for deposit in the general fund. All revenues
         from <br/>
<a id="pl.1.21"></a><var>1.21</var>licenses and other fees imposed by the commission must be deposited in the state treasury
         <br/>
<a id="pl.1.22"></a><var>1.22</var>and credited to a racing and card playing regulation account in the special revenue
         fund. <br/>
<a id="pl.1.23"></a><var>1.23</var>Receipts in this account are available for the operations of the commission up to
         the amount <br/>
<a id="pl.1.24"></a><var>1.24</var>authorized in biennial appropriations from the legislature. If a fiscal biennium ends without <br/>
<a id="pl.1.25"></a><var>1.25</var>the enactment of an appropriation to the commission for the following biennium, receipts
         <br/>
<a id="pl.2.1"></a><var>2.1</var>in this account are annually appropriated to the commission for the operations of
         the <br/>
<a id="pl.2.2"></a><var>2.2</var>commission up to the amount authorized in the second year of the most recently enacted
         <br/>
<a id="pl.2.3"></a><var>2.3</var>biennial appropriation, until a biennial appropriation is enacted.<br/>
<a id="pl.2.4"></a><var>2.4</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.2.5"></a><var>2.5</var>    Sec. 2. Minnesota Statutes 2016, section 240.155, subdivision 1, is amended to read:<br/>
<a id="pl.2.6"></a><var>2.6</var>    Subdivision 1. <b>Reimbursement account credit.</b> Money received by the commission as <br/>
<a id="pl.2.7"></a><var>2.7</var>reimbursement for the costs of services provided by veterinarians, stewards, and medical <br/>
<a id="pl.2.8"></a><var>2.8</var>testing of horses, and fees received by the commission in the form of fees for regulatory <br/>
<a id="pl.2.9"></a><var>2.9</var>services must be deposited in the state treasury and credited to a racing reimbursement <br/>
<a id="pl.2.10"></a><var>2.10</var>account in the special revenue fund, except as provided under subdivision 2. Receipts are <br/>
<a id="pl.2.11"></a><var>2.11</var>appropriated, within the meaning of article XI, section 1, of the Minnesota Constitution, to <br/>
<a id="pl.2.12"></a><var>2.12</var>the commission to pay the costs of providing the services and all other costs necessary to <br/>
<a id="pl.2.13"></a><var>2.13</var>allow the commission to fulfill its regulatory oversight duties required by chapter
         240 and <br/>
<a id="pl.2.14"></a><var>2.14</var>commission rule. If the major appropriation bills needed to finance state government
         are <br/>
<a id="pl.2.15"></a><var>2.15</var>not enacted by the beginning of a fiscal biennium, the commission shall continue operations
         <br/>
<a id="pl.2.16"></a><var>2.16</var>as required by chapter 240 and commission rule.<br/>
<a id="pl.2.17"></a><var>2.17</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.2.18"></a><var>2.18</var>    Sec. 3. <b>[240.1561] APPROPRIATION FOR FUNCTIONS SUPPORTING ONGOING </b><br/>
<a id="pl.2.19"></a><var>2.19</var><b>OPERATION OF THE RACING COMMISSION.</b><br/>
<a id="pl.2.20"></a><var>2.20</var>If, by July 1 of an odd-numbered year, legislation has not been enacted to appropriate
         <br/>
<a id="pl.2.21"></a><var>2.21</var>money for the next biennium to the commissioner of management and budget for central
         <br/>
<a id="pl.2.22"></a><var>2.22</var>accounting, procurement, payroll, and human resources functions, amounts necessary
         to <br/>
<a id="pl.2.23"></a><var>2.23</var>operate those functions associated with operation of the Racing Commission under chapter
         <br/>
<a id="pl.2.24"></a><var>2.24</var>240 are appropriated for the next biennium from the general fund to the commissioner
         of <br/>
<a id="pl.2.25"></a><var>2.25</var>management and budget. As necessary, the commissioner may transfer a portion of this
         <br/>
<a id="pl.2.26"></a><var>2.26</var>appropriation to other state agencies to support carrying out these functions. Any
         subsequent <br/>
<a id="pl.2.27"></a><var>2.27</var>appropriation to the commissioner of management and budget for a biennium in which
         this <br/>
<a id="pl.2.28"></a><var>2.28</var>section has been applied shall supersede and replace the funding authorized in this
         section.<br/>
<a id="pl.2.29"></a><var>2.29</var><b>EFFECTIVE DATE.</b>This section is effective July 1, 2018.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.2.30"></a><var>2.30</var>    Sec. 4. Minnesota Statutes 2016, section 349A.08, subdivision 2, is amended to read:<br/>
<a id="pl.2.31"></a><var>2.31</var>    Subd. 2. <b>Prizes not assignable.</b> A prize in the state lottery is not assignable except as <br/>
<a id="pl.2.32"></a><var>2.32</var>provided in subdivision 3 and except that:<br/>
<a id="pl.3.1"></a><var>3.1</var>(1) if a prize winner dies before the prize is paid, the director shall pay the prize
         to the <br/>
<a id="pl.3.2"></a><var>3.2</var>prize winner's estate; and<br/>
<a id="pl.3.3"></a><var>3.3</var>(2) the director may pay a prize to a person other than the winner of that prize under
         an <br/>
<a id="pl.3.4"></a><var>3.4</var>appropriate court order.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.3.5"></a><var>3.5</var>    Sec. 5. Minnesota Statutes 2016, section 349A.10, subdivision 6, is amended to read:<br/>
<a id="pl.3.6"></a><var>3.6</var>    Subd. 6. <b>Budget; plans.</b> (a) The director shall prepare and submit a biennial budget plan <br/>
<a id="pl.3.7"></a><var>3.7</var>to the commissioner of management and budget. The governor shall recommend the <br/>
<a id="pl.3.8"></a><var>3.8</var>maximum amount available for the lottery in the budget the governor submits to the
         <br/>
<a id="pl.3.9"></a><var>3.9</var>legislature under section 
         <statute_ref>16A.11</statute_ref>. The maximum amount available to the lottery for operating <br/>
<a id="pl.3.10"></a><var>3.10</var>expenses and capital expenditures shall be determined by law. In addition, the director shall <br/>
<a id="pl.3.11"></a><var>3.11</var>appear at least once each fiscal year before the senate and house of representatives
         committees <br/>
<a id="pl.3.12"></a><var>3.12</var>having jurisdiction over gambling policy to present and explain the lottery's plans
         for future <br/>
<a id="pl.3.13"></a><var>3.13</var>games and the related advertising and promotions and spending plans for the next fiscal
         <br/>
<a id="pl.3.14"></a><var>3.14</var>year.<br/>
<a id="pl.3.15"></a><var>3.15</var>(b) For purposes of this section, operating expenses shall not include:<br/>
<a id="pl.3.16"></a><var>3.16</var>(1) expenses that are a direct function of lottery sales, which include the cost of lottery
         <br/>
<a id="pl.3.17"></a><var>3.17</var>prizes, amounts paid to lottery retailers as sales commissions or other compensation,
         amounts <br/>
<a id="pl.3.18"></a><var>3.18</var>paid to produce and deliver scratch lottery games, and amounts paid to an outside
         vendor <br/>
<a id="pl.3.19"></a><var>3.19</var>to operate and maintain an online gaming system. In addition, the director shall appear at <br/>
<a id="pl.3.20"></a><var>3.20</var>least once each fiscal year before the senate and house of representatives committees
         having <br/>
<a id="pl.3.21"></a><var>3.21</var>jurisdiction over gambling policy to present and explain the lottery's plans for future
         games <br/>
<a id="pl.3.22"></a><var>3.22</var>and the related advertising and promotions and spending plans for the next fiscal
         year.; and<br/>
<a id="pl.3.23"></a><var>3.23</var>(2) expenses related solely to the noncash year-end adjustment required for government
         <br/>
<a id="pl.3.24"></a><var>3.24</var>agencies to adjust the net actuarially determined pension liability which includes
         deferred <br/>
<a id="pl.3.25"></a><var>3.25</var>inflows, deferred outflows, noncash pension expense, unrestricted net deficit, and
         net pension <br/>
<a id="pl.3.26"></a><var>3.26</var>liability, in accordance with Statement 68 of the Governmental Accounting Standards
         Board.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.3.27"></a><var>3.27</var>    Sec. 6. <b> REPEALER.</b><br/>
<a id="pl.3.28"></a><var>3.28</var>Minnesota Statutes 2016, section 349A.08, subdivision 3, is repealed.<br/>