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HF1867 (Legislative Session 94 (2025-2026))

State lottery; retailer contract provisions modified.

Related bill: SF1891

AI Generated Summary

This bill proposes changes to Minnesota's state lottery regulations, specifically regarding retailer contracts. The key amendments include:

  1. Definition of "Responsible Lottery Official": The bill adds a definition for "responsible lottery official," which includes officers, directors, or owners overseeing lottery ticket sales.

  2. Retailer Qualifications:

    • The director may not contract with a retailer who is:
      • Under 18 years old.
      • Solely in business to sell lottery tickets.
      • Owing $500 or more in delinquent taxes.
      • Convicted of a felony, fraud, misrepresentation, or gambling-related offense in the past five years.
      • An immediate family member of the lottery director or lottery employees.
      • Lacking financial stability or responsibility.
      • A currency exchange.
  • Similar restrictions apply to organizations, firms, partnerships, or corporations with responsible lottery officials who meet the disqualification criteria.
  1. Contract Cancellation, Suspension, and Refusal to Renew:
    • Mandatory cancellation for lottery retailers whose responsible lottery official has been convicted of certain crimes, committed fraud, or acted in a way that damages public trust.
    • Discretionary suspension or non-renewal for reasons such as failing to report ticket sales, violating laws, failing to maintain sales volume, or repeated alcohol law violations.
    • Temporary suspensions without notice are allowed, provided a hearing is conducted within seven days if requested. If no hearing is requested within 30 days, the suspension becomes permanent.

These changes aim to strengthen the integrity of the lottery system by tightening regulations on who can sell lottery tickets and enforcing stricter penalties for violations.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 04, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy
March 12, 2025HouseFloorActionCommittee report, to adopt
March 12, 2025HouseFloorActionSecond reading

Citations

 
[
  {
    "analysis": {
      "added": [
        "A new subdivision defining 'Responsible lottery official'."
      ],
      "removed": [],
      "summary": "The bill modifies definitions within section 349A.01 related to the state lottery.",
      "modified": [
        "Clarifies roles and requirements for individuals overseeing lottery ticket sales."
      ]
    },
    "citation": "349A.01"
  },
  {
    "analysis": {
      "added": [
        "Criteria disqualifying individuals based on financial instability or legal history."
      ],
      "removed": [],
      "summary": "Amendments to section 349A.06 address qualifications and regulations for lottery retailers.",
      "modified": [
        "Adjustments to qualifications and conditions under which a lottery retailer's contract can be canceled, suspended, or not renewed."
      ]
    },
    "citation": "349A.06"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Reference to existing tax delinquency definitions applicable to lottery retailer qualifications under Minnesota tax law.",
      "modified": [
        "Incorporates tax delinquency criteria for disqualifying potential lottery retailers."
      ]
    },
    "citation": "270C.72"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Definition of 'currency exchange' under section 53A.01 included in lottery retailer qualifications.",
      "modified": [
        "References existing definitions affecting eligibility of currency exchanges as lottery retailers."
      ]
    },
    "citation": "53A.01"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Violations related to alcohol permit suspensions specified under section 340A.503 impact lottery retailer contracts.",
      "modified": [
        "Includes criteria where violations of certain alcohol-related laws affect lottery contracts."
      ]
    },
    "citation": "340A.503"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Inclusion of the contested case procedures applicable to lottery contract disputes.",
      "modified": [
        "Specifies the use of contested case procedures for resolving lottery retailer contract issues."
      ]
    },
    "citation": "14.57 to 14.69"
  }
]

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