SF1891

SF1891 (Legislative Session 94 (2025-2026))

Retailer contracts provisions modification

Related bill: HF1867

AI Generated Summary

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

Definition of a Responsible Lottery Official: The bill introduces a new definition, stating that individuals such as officers, directors, or owners of a business overseeing lottery ticket sales are considered "responsible lottery officials."
Eligibility Criteria for Lottery Retailers:
- Sole proprietors must be at least 18 years old, cannot owe over $500 in delinquent taxes, and must not have been convicted of felonies, gross misdemeanors, fraud, or gambling-related offenses within the last five years.
- Retailers must not solely sell lottery tickets as their primary business.
- Anyone residing in the same household as a lottery director or employee is ineligible.
- Currency exchanges are prohibited from being lottery retailers.
Restrictions for Organizations, Partnerships, or Corporations:
- They cannot be lottery retailers if any "responsible lottery official" is under 18, owes delinquent taxes, or has a disqualifying conviction.
- Any business where a significant owner, officer, or director does not meet eligibility criteria cannot be a lottery retailer.
- However, a company may maintain eligibility if it terminates a disqualified individual associated with it.
Grounds for Cancellation, Suspension, or Non-Renewal of Contracts:
- Contracts must be canceled if a lottery retailer or their responsible official commits fraud, misrepresentation, or other disqualifying offenses.
- The lottery director has discretionary authority to suspend or refuse renewal if a retailer changes business location, fails to account for tickets or proceeds, violates lottery rules, or does not meet sales volume expectations.
- A retailer can also lose eligibility for multiple violations of underage alcohol sales.
Procedures for Suspension and Hearings:
- Suspensions or prohibitions on selling tickets can be enacted without prior notice, but retailers have the right to a hearing within seven days.
- If no hearing is requested within 30 days, suspensions become permanent unless overturned by the director.

These changes aim to improve the integrity and oversight of lottery sales while setting clearer disqualification criteria for retailers.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 26, 2025	Senate	Floor	Action	Introduction and first reading
February 26, 2025	Senate	Floor	Action	Referred to	State and Local Government

Citations

[
  {
    "analysis": {
      "added": [
        "A new restriction on contracting with organizations whose responsible lottery officials owe delinquent taxes."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "This bill modifies provisions related to retailer contracts under section 349A.06, affecting qualifications and renewal of contracts.",
      "modified": [
        "Updated qualifications for lottery retailers to include new disqualifying factors.",
        "Changes to the procedures and conditions for the cancellation, suspension, or non-renewal of contracts."
      ]
    },
    "citation": "349A.06"
  },
  {
    "analysis": {
      "added": [
        "New criteria referencing section 270C.72 for assessing delinquent taxes owed by potential lottery retailers."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "This section is referenced in relation to definitions of delinquent taxes for the purpose of disqualifying lottery retailers.",
      "modified": [
        "Application of existing tax delinquency rules to the qualification criteria for lottery retailers."
      ]
    },
    "citation": "270C.72"
  },
  {
    "analysis": {
      "added": [
        "Incorporates reference to 53A.01 to define currency exchanges ineligibility for lottery retailer contracts."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "References the definition of a currency exchange for disqualification from lottery retailer contracts.",
      "modified": [
        "Clarifies the disqualification criteria related to currency exchange businesses."
      ]
    },
    "citation": "53A.01"
  },
  {
    "analysis": {
      "added": [
        "Clause related to repeated violations of section 340A.503 included as grounds for suspension or cancellation of a contract."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "This section is cross-referenced concerning violations by lottery retailers.",
      "modified": [
        "Strengthens enforcement by linking repeated offenses under 340A.503 with penalties affecting lottery retailer contracts."
      ]
    },
    "citation": "340A.503"
  },
  {
    "analysis": {
      "added": [
        "Provides mechanisms under sections 14.57 to 14.69 for handling contested cases regarding contract actions."
      ],
      "removed": [
        "N/A"
      ],
      "summary": "These sections are referenced in relation to procedural rules for contested cases involving lottery retailer contracts.",
      "modified": [
        "Establishes the administrative process for challenges to contract decisions using existing contested case procedures."
      ]
    },
    "citation": "14.57 to 14.69"
  }
]