1.1 	A bill for an act
1.2 	relating to the State Lottery; requiring the State Lottery to conduct special scratch 
1.3 	games for the benefit of the arts, historic preservation, and conservation; creating 
1.4 	an arts fund and a historic preservation fund; appropriating money;amending 
1.5 	Minnesota Statutes 2006, section 349A.10, subdivision 5; proposing coding for 
1.6 	new law in Minnesota Statutes, chapters 129D; 138; 349A.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. [129D.17] ARTS FUND.
1.9 	The arts fund consists of lottery proceeds credited under section 349A.10, 
1.10 	subdivision 5. Money in the fund may be spent, as appropriated by law, for support of the 
1.11 	arts.

1.12 	Sec. 2. [138.771] HISTORIC PRESERVATION FUND.
1.13 	The historic preservation fund consists of lottery proceeds credited under section 
1.14 	349A.10, subdivision 5. Money in the fund may be spent, as appropriated by law, for 
1.15 	support of historic preservation.

1.16 	Sec. 3. [349A.045] SPECIAL GAMES.
1.17 	The State Lottery shall conduct scratch games, the proceeds of which are dedicated 
1.18 	to the extent possible under section 349A.10, subdivision 5, as follows: three games per 
1.19 	year for the arts; three games per year for historic preservation; and three games per year 
1.20 	entirely for the Minnesota environment and natural resources trust fund, one-half of which 
1.21 	shall be reserved for parks and trails and one-half reserved for wildlife habitat.

1.22 	Sec. 4. Minnesota Statutes 2006, section 349A.10, subdivision 5, is amended to read:
2.1 		Subd. 5.Deposit of net proceeds. (a) Within 30 days after the end of each month, 
2.2 	the director shall deposit in the state treasury the net proceeds of the lottery, which is the 
2.3 	balance in the lottery fund after transfers to the lottery prize fund and credits to the lottery 
2.4 	operations account. Of the net proceeds, 40 percent must be credited to the Minnesota 
2.5 	environment and natural resources trust fund and except for proceeds from dedicated 
2.6 	scratch games under section 349A.045, the remainder must be credited to the general fund.
2.7 	(b) For games created under section 349A.045, after 40 percent of net proceeds are 
2.8 	credited to the Minnesota environment and natural resources trust fund, the remainder 
2.9 	must be credited as follows: (1) to the arts fund created under section 129D.17, for 
2.10 	games created to benefit the arts; (2) to the historic preservation fund created under 
2.11 	section 138.771, for games created to benefit historic preservation; or (3) entirely to the 
2.12 	Minnesota environment and natural resources trust fund, for games created to benefit 
2.13 	trails and wildlife habitat.