relating to state government; providing for ongoing operations of the racing
commission; clarifying certain prize provisions of the lottery; providing for certain
budget and expenses of the State Lottery; providing standing appropriations;
amending Minnesota Statutes 2016, sections 240.15, subdivision 6; 240.155,
subdivision 1; 349A.08, subdivision 2; 349A.10, subdivision 6; proposing coding
for new law in Minnesota Statutes, chapter 240; repealing Minnesota Statutes
2016, section 349A.08, subdivision 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1. Minnesota Statutes 2016, section 240.15, subdivision 6, is amended to read:
Subd. 6. Disposition of proceeds; account.
The commission shall distribute all money
received under this section, and, except as provided otherwise by section
, all money
received from license fees, regulatory fees,
and fines it collects, according to this subdivision.
All money designated for deposit in the Minnesota breeders fund must be paid into
fund for distribution under section
except that all money generated by simulcasts
must be distributed as provided in section
240.18, subdivisions 2, paragraph (d)
(1), (2), and (3); and 3. Revenue from an admissions tax imposed under subdivision
be paid to the local unit of government at whose request it was imposed, at times
and in a
manner the commission determines. Taxes received under this section must be paid to
commissioner of management and budget for deposit in the general fund. All revenues
licenses and other fees imposed by the commission must be deposited in the state treasury
and credited to a racing and card playing regulation account in the special revenue
Receipts in this account are available for the operations of the commission up to
authorized 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
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.
Sec. 2. Minnesota Statutes 2016, section 240.155, subdivision 1, is amended to read:
Subdivision 1. Reimbursement account credit.
Money received by the commission as
reimbursement for the costs of services provided by veterinarians, stewards,
testing of horses, and fees received by the commission in the form of fees for regulatory
must be deposited in the state treasury and credited to a racing reimbursement
account in the special revenue fund
, except as provided under subdivision 2. Receipts are
appropriated, within the meaning of article XI, section 1, of the Minnesota Constitution,
the 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
2.14commission rule. If the major appropriation bills needed to finance state government
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.
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
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
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
2.27appropriation to the commissioner of management and budget for a biennium in which
2.28section has been applied shall supersede and replace the funding authorized in this
2.29EFFECTIVE DATE.This section is effective July 1, 2018.
Sec. 4. Minnesota Statutes 2016, section 349A.08, subdivision 2, is amended to read:
Subd. 2. Prizes not assignable.
A prize in the state lottery is not assignable
2.32 provided in subdivision 3 and
(1) if a prize winner dies before the prize is paid, the director shall pay the prize
prize winner's estate; and
(2) the director may pay a prize to a person other than the winner of that prize under
appropriate court order.
Sec. 5. Minnesota Statutes 2016, section 349A.10, subdivision 6, is amended to read:
Subd. 6. Budget; plans. (a)
The director shall prepare and submit a biennial budget plan
to the commissioner of management and budget. The governor shall recommend the
maximum amount available for the lottery in the budget the governor submits to the
legislature under section
. The maximum amount available to the lottery for operating
expenses 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
3.12having jurisdiction over gambling policy to present and explain the lottery's plans
3.13games and the related advertising and promotions and spending plans for the next fiscal
3.15(b) For purposes of this section,
operating expenses shall not include:
expenses that are a direct function of lottery sales, which include the cost of lottery
prizes, amounts paid to lottery retailers as sales commissions or other compensation,
paid to produce and deliver scratch lottery games, and amounts paid to an outside
to operate and maintain an online gaming system
. In addition, the director shall appear at
3.20 least once each fiscal year before the senate and house of representatives committees
3.21 jurisdiction over gambling policy to present and explain the lottery's plans for future
3.22 and the related advertising and promotions and spending plans for the next fiscal
3.23(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
3.25inflows, deferred outflows, noncash pension expense, unrestricted net deficit, and
3.26liability, in accordance with Statement 68 of the Governmental Accounting Standards
Sec. 6. REPEALER.
3.28Minnesota Statutes 2016, section 349A.08, subdivision 3, is repealed.