1.1 	A bill for an act
1.2 	relating to the state lottery; abolishing the state
1.3 	lottery; repealing Minnesota Statutes 2004, sections
1.4 	349A.01; 349A.02; 349A.04; 349A.05; 349A.06; 349A.07;
1.5 	349A.08; 349A.09; 349A.10; 349A.11; 349A.12; 349A.13;
1.6 	349A.14; 349A.15; 349A.16; Minnesota Rules, parts
1.7 	7856.1000; 7856.1010; 7856.1020; 7856.2010; 7856.2020;
1.8 	7856.3010; 7856.3011; 7856.3020; 7856.3030; 7856.4010;
1.9 	7856.4020; 7856.4030; 7856.4050; 7856.5010; 7856.5020;
1.10 	7856.6010; 7856.7010; 7856.7020; 7856.7030; 7856.7040;
1.11 	7856.7050; 7856.7060; 7856.7070; 7857.2000; 7857.2010;
1.12 	7857.3000; 7857.3010; 7857.4000; 7857.4010; 7857.4020;
1.13 	7857.4030; 7857.4040; 7857.4041; 7857.4050; 7857.5000;
1.14 	7857.5010; 7857.6000; 7857.6020; 7857.7000.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	Section 1. STATE LOTTERY ABOLISHED.
 1.17 	(a) The director of the state lottery shall not enter into
1.18 	any new retailer or procurement contracts that extend beyond
1.19 	June 30, 2006.  The director shall not adopt rules or game
1.20 	procedures for any new lottery games.  The director must arrange
1.21 	for the withdrawal of the state from any joint lotteries by July
1.22 	1, 2006.
1.23 	(b) Lottery retailers shall not sell tickets for the state
1.24 	lottery after June 30, 2006.  The director must make
1.25 	arrangements with retailers for the return of any unsold lottery
1.26 	tickets, on-line terminal equipment, advertising and promotional
1.27 	materials, or any other property of the state to the
1.28 	commissioner of administration by August 1, 2006.
1.29 	(c) The commissioner of administration shall assist with
1.30 	the placement, transfer, and assignment of permanent and regular
2.1 	employees of the state lottery, to other state agencies, to the
2.2 	extent practicable.

2.3 	Sec. 2. LOTTERY FUND.
 2.4 	(a) The director of the state lottery shall transfer all
2.5 	money in the state lottery fund to the state treasury by June
2.6 	30, 2006.  The commissioner of finance shall establish one or
2.7 	more separate accounts or funds in the state treasury from which
2.8 	to make payments required, if any, of prizes, accounts payable,
2.9 	payroll, bonus payments, or any other outstanding financial
2.10 	obligations of the lottery.  The commissioner of finance shall
2.11 	make arrangements for the collection of any outstanding balances
2.12 	due the state lottery.  Minnesota Statutes, section 16B.38,
2.13 	applies to the abolishment of the state lottery under this act.
2.14 	(b) When the commissioner of finance determines that all
2.15 	accounts of the lottery have been settled, the commissioner
2.16 	shall prepare a report to the governor and the legislature on
2.17 	the balance remaining, if any, of money transferred under
2.18 	paragraph (a).  Forty percent of the net proceeds of the
2.19 	lottery, as determined by the commissioner of finance, must be
2.20 	credited to the environment and natural resources trust fund.

2.21 	Sec. 3. REPEALER.
 2.22 	(a) Minnesota Statutes 2004, sections 349A.01; 349A.02;
2.23 	349A.04; 349A.05; 349A.06; 349A.07; 349A.08; 349A.09; 349A.10;
2.24 	349A.11; 349A.12; 349A.13; 349A.14; 349A.15; and 349A.16, are
2.25 	repealed.
2.26 	(b) Minnesota Rules, parts 7856.1000; 7856.1010; 7856.1020;
2.27 	7856.2010; 7856.2020; 7856.3010; 7856.3011; 7856.3020;
2.28 	7856.3030; 7856.4010; 7856.4020; 7856.4030; 7856.4050;
2.29 	7856.5010; 7856.5020; 7856.6010; 7856.7010; 7856.7020;
2.30 	7856.7030; 7856.7040; 7856.7050; 7856.7060; 7856.7070;
2.31 	7857.2000; 7857.2010; 7857.3000; 7857.3010; 7857.4000;
2.32 	7857.4010; 7857.4020; 7857.4030; 7857.4040; 7857.4041;
2.33 	7857.4050; 7857.5000; 7857.5010; 7857.6000; 7857.6020; and
2.34 	7857.7000, are repealed.

2.35 	Sec. 4. EFFECTIVE DATE.
 2.36 	Section 1 is effective the day following final enactment.
3.1 	Sections 2 and 3 are effective July 1, 2006.