SF1891

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

1. 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."

2. 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.

3. 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.

4. 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.

5. 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.