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Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

  
    
KEY: stricken = old language to be removed
     underscored = new language to be added
    
                            CHAPTER 288-S.F.No. 1936 
                  An act relating to the state lottery; providing that 
                  the director may permit a lottery retailer to sell 
                  tickets at more than one location; eliminating the 
                  requirement that lottery retailers post a bond with 
                  the lottery; amending Minnesota Statutes 1994, section 
                  349A.06, subdivisions 1, 3, and 11. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 349A.06, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [CONTRACTS.] The director shall sell 
        tickets for the lottery through lottery retailers with whom the 
        director contracts.  Contracts under this section are not 
        subject to the provisions of sections 16B.06 to 16B.102, and 
        16B.17, and are valid for a period of one year.  The director 
        may permit a retailer to sell tickets at more than one business 
        location under a contract entered into under this section. 
           Sec. 2.  Minnesota Statutes 1994, section 349A.06, 
        subdivision 3, is amended to read: 
           Subd. 3.  [BOND.] The director shall may require that each 
        a lottery retailer post a bond, securities, or an irrevocable 
        letter of credit, in an amount as the director deems necessary, 
        to protect the financial interests of the state.  If securities 
        are deposited or an irrevocable letter of credit filed, the 
        securities or letter of credit must be of a type or in the form 
        provided under section 349A.07, subdivision 5, paragraphs (b) 
        and (c).  
           Sec. 3.  Minnesota Statutes 1994, 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) has been convicted of a felony or gross misdemeanor; 
           (2) has committed fraud, misrepresentation, or deceit; 
           (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, or 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.  
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective the day following final 
        enactment. 
           Presented to the governor February 27, 1996 
           Signed by the governor February 28, 1996, 11:40 a.m.