Minnesota Legislature
HF 1867
as introduced - 94th Legislature (2025 - 2026) Posted on 03/13/2025 03:54pm
Bill Text Versions
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| Introduction | Posted on 03/04/2025 |
Current Version - as introduced
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A bill for an act
relating to the state lottery; modifying provisions relating to retailer contracts;
amending Minnesota Statutes 2024, sections 349A.01, by adding a subdivision;
349A.06, subdivisions 2, 11.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 349A.01, is amended by adding a subdivision
to read:
new text begin Subd. 13a. new text end
new text begin Responsible lottery official. new text end
new text begin
"Responsible lottery official" means the officers,
directors, or owners of an organization, firm, partnership, or corporation that have oversight
of lottery ticket sales.
new text end
Sec. 2.
Minnesota Statutes 2024, section 349A.06, subdivision 2, is amended to read:
Subd. 2.
Qualifications.
(a) The director may not contract with a deleted text begin retailerdeleted text end new text begin sole proprietornew text end
who:
(1) is under the age of 18;
(2) is in business solely as a seller of lottery tickets;
(3) owes $500 or more in delinquent taxes as defined in section 270C.72;
(4) has been convicted within the previous five years of a felony or gross misdemeanor,
any crime involving fraud or misrepresentation, or a gambling-related offensenew text begin in any
jurisdiction in the United Statesnew text end ;
(5) is a member of the immediate family, residing in the same household, as the director
or any employee of the lottery;
(6) in the director's judgment does not have the financial stability or responsibility to
act as a lottery retailer, or whose contracting as a lottery retailer would adversely affect the
public health, welfare, and safety, or endanger the security and integrity of the lottery; or
(7) is a currency exchange, as defined in section 53A.01.
deleted text begin
A contract entered into before August 1, 1990, which violates clause (7) may continue
in effect until its expiration but may not be renewed.
deleted text end
(b) new text begin The director may not contract with an organization, firm, partnership, or corporation
that:
new text end
new text begin
(1) has a responsible lottery official who: (i) is under the age of 18; (ii) owes $500 or
more in delinquent taxes as defined in section 270C.72; or (iii) has been convicted within
the previous five years of a felony or gross misdemeanor, any crime involving fraud or
misrepresentation, or a gambling-related offense in any jurisdiction in the United States;
new text end
new text begin (2) new text end deleted text begin An organization, firm, partnership, or corporation thatdeleted text end has a stockholder who owns
more than five percent of the business or the stock of the corporation,new text begin a responsible lottery
official,new text end an officer, ornew text begin anew text end director, that deleted text begin does not meet the requirements of paragraph (a), clause
(4), is not eligible to be a lottery retailer under this sectiondeleted text end new text begin is a member of the immediate
family, residing in the same household, as the director or any employee of the lottery; or
new text end
new text begin (3)(i) is in the business solely as a seller of lottery tickets; (ii) in the director's judgment
does not have the financial stability or responsibility to act as a lottery retailer, or whose
contracting as a lottery retailer would adversely affect the public health, welfare, and safety,
or endanger the security and integrity of the lottery; or (iii) is a currency exchange, as defined
in section 53A.01new text end .
deleted text begin
(c) The restrictions under paragraph (a), clause (4), do not apply to an organization,
partnership, or corporation if the director determines that the organization, partnership, or
firm has terminated its relationship with the individual whose actions directly contributed
to the disqualification under this subdivision.
deleted text end
Sec. 3.
Minnesota Statutes 2024, section 349A.06, subdivision 11, is amended to read:
Subd. 11.
Cancellation, suspension, and refusal to renew contracts or locations.
(a)
The director shall cancel the contract of any lottery retailer or prohibit a lottery retailer from
selling lottery tickets at a business location who:
(1) hasnew text begin a sole proprietor or responsible lottery official that hasnew text end been convicted of a felony
or gross misdemeanornew text begin in any jurisdiction in the United Statesnew text end ;
(2) hasnew text begin a sole proprietor or responsible lottery official that has new text end committed deleted text begin fraud,
misrepresentation, or deceitdeleted text end new text begin any crime involving fraud or misrepresentation, or a
gambling-related offense in any jurisdiction in the United Statesnew text end ;
(3) has provided false or misleading information to the lottery; or
(4) has acted in a manner prejudicial to public confidence in the integrity of the lottery.
(b) The director may cancel, suspend, or refuse to renew the contract of any lottery
retailer or prohibit a lottery retailer from selling lottery tickets at a business location who:
(1) changes business location;
(2) fails to account for lottery tickets received or the proceeds from tickets sold;
(3) fails to remit funds to the director in accordance with the director's rules;
(4) violates a law or a rule or order of the director;
(5) fails to comply with any of the terms in the lottery retailer's contract;
(6) fails to file a bond, securities, or a letter of credit as required under subdivision 3;
(7) in the opinion of the director fails to maintain a sufficient sales volume to justify
continuation as a lottery retailer; or
(8) has violated section 340A.503, subdivision 2, clause (1), two or more times within
a two-year period.
(c) The director may also cancel, suspend, or refuse to renew a lottery retailer's contract
or prohibit a lottery retailer from selling lottery tickets at a business location if there is a
material change in any of the factors considered by the director under subdivision 2.
(d) A contract cancellation, suspension, refusal to renew, or prohibiting a lottery retailer
from selling lottery tickets at a business location under this subdivision is a contested case
under sections 14.57 to 14.69 and is in addition to any criminal penalties provided for a
violation of law or rule.
(e) The director may temporarily suspend a contract or temporarily prohibit a lottery
retailer from selling lottery tickets at a business location without notice for any of the reasons
specified in this subdivision provided that a hearing is conducted within seven days after a
request for a hearing is made by a lottery retailer. Within 20 days after receiving the
administrative law judge's report, the director shall issue an order vacating the temporary
suspension or prohibition or making any other appropriate order. If no hearing is requested
within 30 days of the temporary suspension or prohibition taking effect, the suspension or
prohibition becomes permanent unless the director vacates or modifies the order.