Purpose

This bill would shift how Minnesota’s lottery is governed by giving the director more authority to create and use rules. The rules would cover how many and what kinds of lottery retailer locations exist, who can become a retailer, how retailer contracts are applied for and reviewed, how decisions to deny, suspend, or cancel contracts are handled, how retailers are compensated, and how lottery revenues are handled. It would also repeal a specific existing statutory section.

Main Provisions

• Amends Minnesota Statutes 2024 section 349A.05 to add a focus on “RULES.”
• Authorizes the director to adopt rules under chapter 14 that cover:
  • The number and types of lottery retailer locations
  • Qualifications of lottery retailers and how retailer contracts are applied for
  • Investigation of lottery retailer applicants
  • Appeal procedures for denial, suspension, or cancellation of retailer contracts
  • Compensation of lottery retailers, in line with another statute (section 349A.17)
  • How lottery revenues are accounted for and deposited by retailers
  • Procedures for issuing lottery procurement contracts and examining bidders
  • Payment of prizes
  • Procedures to ensure the lottery’s integrity and security
  • Other rules the director finds necessary for efficient operation
• Provides for the repeal of Minnesota Statutes 2024 section 349A.16.1.6.

What this would change about the law

• Establishes a formal rulemaking framework under the director to govern all major aspects of how the lottery operates and how retailers are managed and compensated.
• Directs alignment of retailer compensation with section 349A.17.
• Removes or supersedes the specific previously stated provision in section 349A.16.1.6 by repealing that section.

Status and process

• The bill was read for the first time and referred to the Committee on State Government Finance and Policy.

Potential implications (plain language)

• Lottery operations could see more centralized control over where retailers can operate, how retailers are chosen, and how they are paid.
• Rules could affect how prizes are paid and how revenue is handled by retailers.
• The changes could affect how bidders are evaluated for contracts and how procurement contracts for the lottery are awarded.

Relevant terms - RULES, director, chapter 14 - Minnesota Statutes 2024 section 349A.05 - 349A.17 (retailer compensation alignment) - 349A.16.1.6 (repealed section) - number and types of lottery retailer locations - qualifications of lottery retailers - application procedures for lottery retailer contracts - investigation of lottery retailer applicants - appeal procedures for denial, suspension, or cancellation of lottery retailer contracts - compensation of lottery retailers - accounting for and deposit of lottery revenues by lottery retailers - procedures for issuing lottery procurement contracts - investigation of bidders on procurement contracts - payment of prizes - integrity and security of the lottery