HF 3623

as introduced - 90th Legislature (2017 - 2018) Posted on 04/09/2018 04:35pm

A bill for an act
relating to state government; setting compensation for lottery retailers in law;
amending Minnesota Statutes 2016, section 349A.05; proposing coding for new
law in Minnesota Statutes, chapter 349A; repealing Minnesota Statutes 2016,
section 349A.16.

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

Section 1.

Minnesota Statutes 2016, section 349A.05, is amended to read:

349A.05 RULES.

The director may adopt rules under chapter 14 governing the following elements of the
lottery:

(1) the number and types of lottery retailers' locations;

(2) qualifications of lottery retailers and application procedures for lottery retailer
contracts;

(3) investigation of lottery retailer applicants;

(4) appeal procedures for denial, suspension, or cancellation of lottery retailer contracts;

(5) compensation of lottery retailers new text begin consistent with section 349A.17 new text end ;

(6) accounting for and deposit of lottery revenues by lottery retailers;

(7) procedures for issuing lottery procurement contracts and for the investigation of
bidders on those contracts;

(8) payment of prizes;

(9) procedures needed to ensure the integrity and security of the lottery; and

(10) other rules the director considers necessary for the efficient operation and
administration of the lottery.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 2.

new text begin [349A.17] LOTTERY RETAILER COMMISSIONS.
new text end

new text begin (a) The director of the State Lottery shall pay a lottery retailer at least the following
amounts:
new text end

new text begin (1) 5.5 percent on the price of a ticket sold by the retailer for a lottery game for which
the winner is determined by a drawing;
new text end

new text begin (2) 6.25 percent on the price of a ticket sold by the retailer for a lottery game in which
the winner is determined without a drawing; and
new text end

new text begin (3) two percent of the amount of a winning ticket cashed by the retailer.
new text end

new text begin (b) The director of the State Lottery may adopt rules for retailer compensation or
commission that exceeds the amounts specified in this section. The director of the State
Lottery shall periodically review lottery ticket sales and make adjustments to lottery retailer
commission rates, consistent with this section, as deemed necessary to maintain appropriate
return to the state.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018, and applies to tickets
sold on or after that date.
new text end

Sec. 3. new text begin RULE CHANGE; TRANSITION.
new text end

new text begin (a) The director of the State Lottery shall amend Minnesota Rules, part 7856.4030, so
that the director compensates retailers consistent with Minnesota Statutes, section 349A.17.
new text end

new text begin (b) For tickets sold prior to August 1, 2018, the director of the State Lottery shall
compensate lottery retailers as provided by law or rule in effect on the date the ticket was
sold.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, section 349A.16, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2018.
new text end

APPENDIX

Repealed Minnesota Statutes: 18-6351

349A.16 LOTTERY RETAILER COMMISSIONS.

The director of the State Lottery shall: (1) increase commissions paid to lottery retailers in effect on January 1, 1998, by one-half percent on the price of each ticket sold by each retailer; and (2) provide that each lottery retailer receive a commission of at least one percent on the amount of each winning ticket cashed by that retailer. The director of the State Lottery shall periodically review lottery ticket sales and make such adjustments to lottery retailer commission rates as are deemed necessary to maintain appropriate return to the state.