1.1                          A bill for an act
  1.2             relating to the state lottery; prohibiting the lottery 
  1.3             from adopting advertising intended to induce 
  1.4             participation in the lottery; prohibiting advertising 
  1.5             the lottery as a form of entertainment; reducing the 
  1.6             percentage of gross revenues that the lottery may 
  1.7             spend on advertising; amending Minnesota Statutes 
  1.8             1996, sections 349A.09, subdivision 2; and 349A.10, 
  1.9             subdivision 3. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1996, section 349A.09, 
  1.12  subdivision 2, is amended to read: 
  1.13     Subd. 2.  [CONTENT OF ADVERTISING.] (a) Advertising and 
  1.14  promotional materials for the lottery adopted or published by 
  1.15  the director must be consistent with the dignity of the state 
  1.16  and may only: 
  1.17     (1) present information on how lottery games are played, 
  1.18  prizes offered, where and how tickets may be purchased, when 
  1.19  drawings are held, and odds on the games advertised; 
  1.20     (2) identify state programs supported by lottery net 
  1.21  revenues; or 
  1.22     (3) present the lottery as a form of entertainment; or 
  1.23     (4) state the winning numbers or identity of winners of 
  1.24  lottery prizes.  
  1.25     (b) The director may not adopt or publish any advertising 
  1.26  for the lottery which: 
  1.27     (1) presents directly or indirectly any lottery game as a 
  2.1   potential means of relieving any person's financial 
  2.2   difficulties; 
  2.3      (2) is specifically targeted with the intent to exploit a 
  2.4   person, a specific group or economic class of people, or a 
  2.5   religious holiday by use of a religious theme or symbol; 
  2.6      (3) presents the purchase of a lottery ticket as a 
  2.7   financial investment or a way to achieve financial security; 
  2.8      (4) uses the name or picture of a current elected state 
  2.9   official to promote a lottery game; 
  2.10     (5) exhorts the public to bet by directly or indirectly 
  2.11  misrepresenting a person's chance of winning a prize; or 
  2.12     (6) denigrates a person who does not buy a lottery ticket 
  2.13  or unduly praises a person who does buy a ticket; or 
  2.14     (7) is intended to induce persons to participate in the 
  2.15  lottery or buy a lottery ticket. 
  2.16     Sec. 2.  Minnesota Statutes 1996, section 349A.10, 
  2.17  subdivision 3, is amended to read: 
  2.18     Subd. 3.  [LOTTERY OPERATIONS.] (a) The director shall 
  2.19  establish a lottery operations account in the lottery fund.  The 
  2.20  director shall pay all costs of operating the lottery, including 
  2.21  payroll costs or amounts transferred to the state treasury for 
  2.22  payroll costs, but not including lottery prizes, from the 
  2.23  lottery operating account.  The director shall credit to the 
  2.24  lottery operations account amounts sufficient to pay the 
  2.25  operating costs of the lottery. 
  2.26     (b) The director may not credit in fiscal year 1993 amounts 
  2.27  to the lottery operations account which when totaled exceed 14.5 
  2.28  percent of gross revenue to the lottery fund.  The director may 
  2.29  not credit in any fiscal year thereafter amounts to the lottery 
  2.30  operations account which when totaled exceed 15 percent of gross 
  2.31  revenue to the lottery fund in that fiscal year.  In computing 
  2.32  total amounts credited to the lottery operations account under 
  2.33  this paragraph the director shall disregard amounts transferred 
  2.34  to or retained by lottery retailers as sales commissions or 
  2.35  other compensation. 
  2.36     (c) The director of the lottery may not expend after July 
  3.1   1, 1991, more than 2-3/4 1.5 percent of gross revenues in a 
  3.2   fiscal year for contracts for the preparation, publication, and 
  3.3   placement of advertising. 
  3.4      (d) Except as the director determines, the lottery is not 
  3.5   subject to chapter 16A relating to budgeting, payroll, and the 
  3.6   purchase of goods and services. 
  3.7      Sec. 3.  [EFFECTIVE DATE.] 
  3.8      Sections 1 and 2 are effective July 1, 1997.