SF 406

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to the state lottery; establishing a lottery 
  1.3             board; amending Minnesota Statutes 2004, sections 
  1.4             349A.01, by adding a subdivision; 349A.08, subdivision 
  1.5             7; 349A.11; 349A.14; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 349A. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2004, section 349A.01, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 1a.  [BOARD.] "Board" means the State Lottery Board. 
  1.11     Sec. 2.  [349A.011] [LOTTERY BOARD.] 
  1.12     Subdivision 1.  [ESTABLISHED.] There is created a State 
  1.13  Lottery Board comprised of seven members appointed by the 
  1.14  governor with the advice and consent of the senate. 
  1.15     Subd. 2.  [BOARD MEMBERS.] Board members must be residents 
  1.16  of Minnesota and at least three members must reside outside the 
  1.17  Twin Cities seven-county metropolitan area.  At least one member 
  1.18  must be an attorney licensed to practice law in Minnesota, at 
  1.19  least one member must have demonstrable experience in marketing 
  1.20  or advertising, at least one member must be a licensed certified 
  1.21  public accountant who is qualified as a financial expert, at 
  1.22  least one member must have demonstrable management experience in 
  1.23  retail business, and the remaining three members must have 
  1.24  demonstrable experience in managing complex business enterprises 
  1.25  or have policy making experience in the public sector.  No 
  1.26  person may be a member of the board who has been convicted of a 
  2.1   felony, a crime involving fraud or misrepresentation, or a 
  2.2   gambling-related offense. 
  2.3      Subd. 3.  [TERMS; COMPENSATION.] The terms, removal, and 
  2.4   compensation of board members shall be as provided in section 
  2.5   15.0575, except that board members shall serve a term of three 
  2.6   years. 
  2.7      Subd. 4.  [BOARD ORGANIZATION.] (a) The board shall elect 
  2.8   from their membership a chair and vice-chair at the first 
  2.9   meeting following the beginning of each fiscal year. 
  2.10     (b) The board shall meet at least quarterly or at such 
  2.11  other times at the call of the chair of the board. 
  2.12     (c) Notwithstanding chapter 13D, meetings of the board or 
  2.13  any committee of the board that relate to the lottery's 
  2.14  security, information security, or to evaluate the performance 
  2.15  of the director may be closed to the public. 
  2.16     (d) The operating expenses of the board relating to its 
  2.17  responsibilities under subdivision 5 shall be paid by the 
  2.18  lottery from the lottery operations account and must be publicly 
  2.19  reported by the board.  
  2.20     Subd. 5.  [BOARD RESPONSIBILITIES.] The board has the 
  2.21  responsibility to review the overall operation and performance 
  2.22  of the lottery and make recommendations to the director 
  2.23  regarding the operation of the lottery including identifying 
  2.24  potential improvements that will assist the lottery in 
  2.25  maximizing proceeds to the state and ensuring the integrity and 
  2.26  public confidence in the lottery.  The responsibilities of the 
  2.27  board include, but are not limited to: 
  2.28     (1) reviewing the annual budget of the lottery; 
  2.29     (2) reviewing proposed lottery rules; 
  2.30     (3) conducting an annual performance review of the 
  2.31  director; and 
  2.32     (4) reviewing the financial affairs of the lottery. 
  2.33     Sec. 3.  Minnesota Statutes 2004, section 349A.08, 
  2.34  subdivision 7, is amended to read: 
  2.35     Subd. 7.  [PAYMENTS PROHIBITED.] (a) No prize may be paid 
  2.36  to the director or an employee of the lottery, member of the 
  3.1   board, or a member of their families residing in the same 
  3.2   household of the member, director, or employee.  No prize may be 
  3.3   paid to an officer or employee of a vendor which at the time the 
  3.4   game or drawing was being conducted was involved with providing 
  3.5   goods or services to the lottery under a lottery procurement 
  3.6   contract. 
  3.7      (b) No prize may be paid for a stolen, altered, or 
  3.8   fraudulent ticket. 
  3.9      Sec. 4.  Minnesota Statutes 2004, section 349A.11, is 
  3.10  amended to read: 
  3.11     349A.11 [CONFLICT OF INTEREST.] 
  3.12     Subdivision 1.  [LOTTERY TICKET; RETAILER.] The director, 
  3.13  an employee of the lottery, a board member, a member of the 
  3.14  immediate family of the director or, employee, or board member 
  3.15  residing in the same household may not: 
  3.16     (1) purchase a lottery ticket; or 
  3.17     (2) have any personal pecuniary interest in any vendor 
  3.18  holding a lottery procurement contract, or in any lottery 
  3.19  retailer; or 
  3.20     (3) receive any gift, gratuity, or other thing of value, 
  3.21  excluding food or beverage, from any lottery vendor or lottery 
  3.22  retailer, or person applying to be a retailer or vendor, in 
  3.23  excess of $100 in any calendar year.  
  3.24     Subd. 2.  [GIFTS.] The director or, an employee of the 
  3.25  lottery in the unclassified service, or a board member may not 
  3.26  accept a gift the acceptance of which by an official would be 
  3.27  prohibited by section 10A.071. 
  3.28     Subd. 3.  [PENALTY.] A violation of subdivision 1, clause 
  3.29  (1), is a misdemeanor.  A violation of subdivision 1, clause 
  3.30  (2), is a gross misdemeanor.  A violation of subdivision 1, 
  3.31  clause (3), is a misdemeanor unless the gift, gratuity, or other 
  3.32  item of value received has a value in excess of $500, in which 
  3.33  case a violation is a gross misdemeanor.  
  3.34     Subd. 4.  [FUTURE EMPLOYMENT.] The director or, an 
  3.35  unclassified employee of the lottery, or a board member may not, 
  3.36  within two years of terminating employment with the lottery or 
  4.1   terminating membership on the board, represent any person, 
  4.2   corporation, or entity before the lottery.  A violation of 
  4.3   this paragraph subdivision is a misdemeanor. 
  4.4      Sec. 5.  Minnesota Statutes 2004, section 349A.14, is 
  4.5   amended to read: 
  4.6      349A.14 [AUDIT.] 
  4.7      The director board shall contract for an annual certified 
  4.8   audit of all accounts and transactions of the lottery, including 
  4.9   but not limited to an audit of the lottery's information 
  4.10  security.  The audit must be conducted by a certified public 
  4.11  accountant in accordance with generally accepted accounting 
  4.12  standards.  The director board shall file a copy of each audit 
  4.13  report of the lottery with the governor and, the legislature, 
  4.14  and the director.  The board shall cooperate fully with any 
  4.15  audit, evaluation, or investigation initiated by the legislative 
  4.16  auditor. 
  4.17     Sec. 6.  [APPOINTMENT OF INITIAL LOTTERY BOARD MEMBERS.] 
  4.18     Of the initial members of the State Lottery Board, three 
  4.19  shall serve a term of three years, two shall serve a term of two 
  4.20  years, and two shall serve a term of one year.  The governor 
  4.21  shall select the initial chair of the board who shall serve as 
  4.22  the chair until the board elects the chair. 
  4.23     Sec. 7.  [EFFECTIVE DATE.] 
  4.24     This act is effective July 1, 2005.