1.1A bill for an act1.2relating to state government; providing for ongoing operations of the racing 1.3commission; clarifying certain prize provisions of the lottery; providing for certain
         1.4budget and expenses of the State Lottery; providing standing appropriations;1.5amending Minnesota Statutes 2016, sections 240.15, subdivision 6; 240.155, 1.6subdivision 1; 349A.08, subdivision 2; 349A.10, subdivision 6; proposing coding 1.7for new law in Minnesota Statutes, chapter 240; repealing Minnesota Statutes 1.82016, section 349A.08, subdivision 3.1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.10    Section 1. Minnesota Statutes 2016, section 240.15, subdivision 6, is amended to read:1.11    Subd. 6. Disposition of proceeds; account. The commission shall distribute all money 1.12received under this section, and, except as provided otherwise by section 
         240.131, all money 1.13received from license fees, regulatory fees, and fines it collects, according to this subdivision. 1.14All money designated for deposit in the Minnesota breeders fund must be paid into
         that 1.15fund for distribution under section 
         240.18 except that all money generated by simulcasts 1.16must be distributed as provided in section 
         240.18, subdivisions 2, paragraph (d), clauses 1.17(1), (2), and (3); and 3. Revenue from an admissions tax imposed under subdivision
         1 must 1.18be paid to the local unit of government at whose request it was imposed, at times
         and in a 1.19manner the commission determines. Taxes received under this section must be paid to
         the 1.20commissioner of management and budget for deposit in the general fund. All revenues
         from 1.21licenses and other fees imposed by the commission must be deposited in the state treasury
         1.22and credited to a racing and card playing regulation account in the special revenue
         fund. 1.23Receipts in this account are available for the operations of the commission up to
         the amount 1.24authorized in biennial appropriations from the legislature. If a fiscal biennium ends without 1.25the enactment of an appropriation to the commission for the following biennium, receipts
         2.1in this account are annually appropriated to the commission for the operations of
         the 2.2commission up to the amount authorized in the second year of the most recently enacted
         2.3biennial appropriation, until a biennial appropriation is enacted.2.4EFFECTIVE DATE.This section is effective the day following final enactment.2.5    Sec. 2. Minnesota Statutes 2016, section 240.155, subdivision 1, is amended to read:2.6    Subdivision 1. Reimbursement account credit. Money received by the commission as 2.7reimbursement for the costs of services provided by veterinarians, stewards, and medical 2.8testing of horses, and fees received by the commission in the form of fees for regulatory 2.9services must be deposited in the state treasury and credited to a racing reimbursement 2.10account in the special revenue fund, except as provided under subdivision 2. Receipts are 2.11appropriated, within the meaning of article XI, section 1, of the Minnesota Constitution, to 2.12the commission to pay the costs of providing the services and all other costs necessary to 2.13allow the commission to fulfill its regulatory oversight duties required by chapter
         240 and 2.14commission rule. If the major appropriation bills needed to finance state government
         are 2.15not enacted by the beginning of a fiscal biennium, the commission shall continue operations
         2.16as required by chapter 240 and commission rule.2.17EFFECTIVE DATE.This section is effective the day following final enactment.2.18    Sec. 3. [240.1561] APPROPRIATION FOR FUNCTIONS SUPPORTING ONGOING 2.19OPERATION OF THE RACING COMMISSION.2.20If, by July 1 of an odd-numbered year, legislation has not been enacted to appropriate
         2.21money for the next biennium to the commissioner of management and budget for central
         2.22accounting, procurement, payroll, and human resources functions, amounts necessary
         to 2.23operate those functions associated with operation of the Racing Commission under chapter
         2.24240 are appropriated for the next biennium from the general fund to the commissioner
         of 2.25management and budget. As necessary, the commissioner may transfer a portion of this
         2.26appropriation to other state agencies to support carrying out these functions. Any
         subsequent 2.27appropriation to the commissioner of management and budget for a biennium in which
         this 2.28section has been applied shall supersede and replace the funding authorized in this
         section.2.29EFFECTIVE DATE.This section is effective July 1, 2018.2.30    Sec. 4. Minnesota Statutes 2016, section 349A.08, subdivision 2, is amended to read:2.31    Subd. 2. Prizes not assignable. A prize in the state lottery is not assignable except as 2.32provided in subdivision 3 and except that:3.1(1) if a prize winner dies before the prize is paid, the director shall pay the prize
         to the 3.2prize winner's estate; and3.3(2) the director may pay a prize to a person other than the winner of that prize under
         an 3.4appropriate court order.3.5    Sec. 5. Minnesota Statutes 2016, section 349A.10, subdivision 6, is amended to read:3.6    Subd. 6. Budget; plans.(a) The director shall prepare and submit a biennial budget plan 3.7to the commissioner of management and budget. The governor shall recommend the 3.8maximum amount available for the lottery in the budget the governor submits to the
         3.9legislature under section 
         16A.11. The maximum amount available to the lottery for operating 3.10expenses and capital expenditures shall be determined by law. In addition, the director shall 3.11appear at least once each fiscal year before the senate and house of representatives
         committees 3.12having jurisdiction over gambling policy to present and explain the lottery's plans
         for future 3.13games and the related advertising and promotions and spending plans for the next fiscal
         3.14year.3.15(b) For purposes of this section, operating expenses shall not include:3.16(1) expenses that are a direct function of lottery sales, which include the cost of lottery
         3.17prizes, amounts paid to lottery retailers as sales commissions or other compensation,
         amounts 3.18paid to produce and deliver scratch lottery games, and amounts paid to an outside
         vendor 3.19to operate and maintain an online gaming system. In addition, the director shall appear at 3.20least once each fiscal year before the senate and house of representatives committees
         having 3.21jurisdiction over gambling policy to present and explain the lottery's plans for future
         games 3.22and the related advertising and promotions and spending plans for the next fiscal
         year.; and3.23(2) expenses related solely to the noncash year-end adjustment required for government
         3.24agencies to adjust the net actuarially determined pension liability which includes
         deferred 3.25inflows, deferred outflows, noncash pension expense, unrestricted net deficit, and
         net pension 3.26liability, in accordance with Statement 68 of the Governmental Accounting Standards
         Board.3.27    Sec. 6.  REPEALER.3.28Minnesota Statutes 2016, section 349A.08, subdivision 3, is repealed.