language to be deleted (2) new language
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 shallmay require that eacha 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, orrefusal 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.