SF 406

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to the State Lottery; establishing a lottery
board; amending Minnesota Statutes 2004, sections
349A.01, by adding a subdivision; 349A.08, subdivision
7; 349A.11; 349A.14; proposing coding for new law in
Minnesota Statutes, chapter 349A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 349A.01, is
amended by adding a subdivision to read:

new text begin Subd. 1a. new text end

new text begin Board. new text end

new text begin "Board" means the State Lottery Board.
new text end

Sec. 2.

new text begin [349A.011] LOTTERY BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Established. new text end

new text begin There is created a State
Lottery Board comprised of seven members appointed by the
governor with the advice and consent of the senate.
new text end

new text begin Subd. 2. new text end

new text begin Board members. new text end

new text begin Board members must be residents
of Minnesota and at least three members must reside outside the
Twin Cities seven-county metropolitan area. At least one member
must be an attorney licensed to practice law in Minnesota, at
least one member must have demonstrable experience in marketing
or advertising, at least one member must be a licensed certified
public accountant who is qualified as a financial expert, at
least one member must have demonstrable management experience in
retail business, and the remaining three members must have
demonstrable experience in managing complex business enterprises
or have policy making experience in the public sector. No
person may be a member of the board who has been convicted of a
felony, a crime involving fraud or misrepresentation, or a
gambling-related offense.
new text end

new text begin Subd. 3. new text end

new text begin Terms; compensation. new text end

new text begin The terms, removal, and
compensation of board members shall be as provided in section
15.0575, except that board members shall serve a term of three
years.
new text end

new text begin Subd. 4. new text end

new text begin Board organization. new text end

new text begin (a) The governor shall
select the chair of the board before the first meeting following
the beginning of each fiscal year.
new text end

new text begin (b) The board shall meet at least quarterly or at such
other times at the call of the chair of the board.
new text end

new text begin (c) Notwithstanding chapter 13D, meetings of the board or
any committee of the board that relate to the security of games
offered by the lottery or to evaluate the performance of the
director may be closed to the public. The board must comply
with the conditions under section 13D.05.
new text end

new text begin (d) The operating expenses of the board relating to its
responsibilities under subdivision 5 shall be paid by the
lottery from the lottery operations account and must be publicly
reported by the board.
new text end

new text begin Subd. 5. new text end

new text begin Board responsibilities. new text end

new text begin The board has the
responsibility to review the overall operation and performance
of the lottery and make recommendations to the director
regarding the operation of the lottery including identifying
potential improvements that will assist the lottery in
maximizing proceeds to the state and ensuring the integrity and
public confidence in the lottery. The responsibilities of the
board include, but are not limited to:
new text end

new text begin (1) reviewing the annual budget of the lottery;
new text end

new text begin (2) reviewing proposed lottery rules;
new text end

new text begin (3) conducting an annual performance review of the
director; and
new text end

new text begin (4) reviewing the financial affairs of the lottery.
new text end

new text begin The board shall present summaries of its reviews to the
legislature.
new text end

Sec. 3.

Minnesota Statutes 2004, section 349A.08,
subdivision 7, is amended to read:

Subd. 7.

Payments prohibited.

(a) No prize may be paid
to the director or an employee of the lottery, new text begin member of the
board, new text end or a member of their families residing in the same
household of the member, director, or employee. No prize may be
paid to an officer or employee of a vendor which at the time the
game or drawing was being conducted was involved with providing
goods or services to the lottery under a lottery procurement
contract.

(b) No prize may be paid for a stolen, altered, or
fraudulent ticket.

Sec. 4.

Minnesota Statutes 2004, section 349A.11, is
amended to read:

349A.11 CONFLICT OF INTEREST.

Subdivision 1.

Lottery ticket; retailer.

The director,
an employee of the lottery, new text begin a board member, new text end a member of the
immediate family of the director deleted text begin or deleted text end new text begin , new text end employee new text begin , or board member
new text end residing in the same household may not:

(1) purchase a lottery ticket; or

(2) have any personal pecuniary interest in any vendor
holding a lottery procurement contract, or in any lottery
retailer; or

(3) receive any gift, gratuity, or other thing of value,
excluding food or beverage, from any lottery vendor or lottery
retailer, or person applying to be a retailer or vendor, in
excess of $100 in any calendar year.

Subd. 2.

Gifts.

The director deleted text begin or deleted text end new text begin , new text end an employee of the
lottery in the unclassified service new text begin , or a board member new text end may not
accept a gift the acceptance of which by an official would be
prohibited by section 10A.071.

Subd. 3.

Penalty.

A violation of subdivision 1, clause
(1), is a misdemeanor. A violation of subdivision 1, clause
(2), is a gross misdemeanor. A violation of subdivision 1,
clause (3), is a misdemeanor unless the gift, gratuity, or other
item of value received has a value in excess of $500, in which
case a violation is a gross misdemeanor.

Subd. 4.

Future employment.

The director deleted text begin or deleted text end new text begin , new text end an
unclassified employee of the lottery new text begin , or a board member new text end may not,
within two years of terminating employment with the lottery new text begin or
terminating membership on the board new text end , represent any person,
corporation, or entity before the lottery. A violation of
this deleted text begin paragraph deleted text end new text begin subdivision new text end is a misdemeanor.

Sec. 5.

Minnesota Statutes 2004, section 349A.14, is
amended to read:

349A.14 AUDIT.

The deleted text begin director deleted text end new text begin board new text end shall contract for an annual certified
audit of all accounts and transactions of the lottery new text begin , including
but not limited to an audit of the lottery's information
security new text end . The audit must be conducted by a certified public
accountant in accordance with generally accepted accounting
standards. The deleted text begin director deleted text end new text begin board new text end shall file a copy of each audit
report of the lottery with the governor deleted text begin and deleted text end new text begin , new text end the legislature new text begin ,
and the director new text end . new text begin The board shall cooperate fully with any
audit, evaluation, or investigation initiated by the legislative
auditor.
new text end

Sec. 6. new text begin APPOINTMENT OF INITIAL LOTTERY BOARD MEMBERS.
new text end

new text begin Of the initial members of the State Lottery Board, three
shall serve a term of three years, two shall serve a term of two
years, and two shall serve a term of one year.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective July 1, 2005.
new text end