Legislative Session number- 86

Bill Name: SF0508

Relating to the state lottery

ARTICLE 1 - VIDEO GAMING
TERMINALS

Authorizing and providing for the director of the state lottery to
enter into contracts with certain on-sale alcoholic beverage retailers for the
placement and maintenance of video lottery terminals on the premises, specifying
certain procedures, restrictions and authorizing inspections without notice;
defining or redefining certain terms; providing for the payment of investigation
and background check costs relating to owning and operating the terminals and
for retention of a certain percentage of net terminal income by lottery
retailers as commission, requiring transmission of a portion to the licensed
organizations conducting lawful gambling on the premises, restricting the
expenditure of money received by licensed organizations from net video lottery
terminal income to
lawful purposes; prohibiting local regulation; specifying
certain lottery
terminal specification requirements, limiting the amount
allowed to be played and specifying a maximum prize amount; providing for
testing and examination of the terminals; authorizing the director to deactivate
the terminals without notice for certain retailer violations; authorizing the
director to enter into a lease with the metropolitan airports commission for
placement of terminals within the Lindbergh and Humphrey terminals under certain
conditions, exemptions; providing for the payment of video lottery credit
receipts, requiring retailer payment of unclaimed prizes to the lottery;
excluding winnings from tax or debt withholding requirements; requiring display
on the terminals of the approximate odds of winning; specifying the win
percentage for lottery prize fund deposit purposes; limiting the amount of net
terminal income allowed to be spent for operation of the terminals, requiring
the director to remit a certain percentage of net terminal income from the
lottery operations account to be held in trust by the commissioner of human
services in a compulsive gambling trust account to be used after a certain date;
prohibiting play by minors; expanding the crime of state lottery fraud to
certain credit receipt violations and to tampering with the terminals; exempting
the terminals from the definition of gambling device for gambling crimes
purposes; exempting gross receipts from operation of the terminals from the in
lieu sales tax; requiring the lottery director to submit a budget for the
operation of video lottery terminals to the commissioner of finance; repealing
the pull tab and tipboard tax, the definition of gambling product, the combined
receipts tax and untaxed gambling product assessments

ARTICLE 2 - EDUCATION
FUNDING

Establishing the early childhood family education (ECFE) lottery
fund, the school lottery fund and the higher education fund in the state
treasury from video lottery terminals dedicated revenue, specifying certain fund
apportionment, use and appropriation requirements, specifying certain duties of
the commissioner of finance; establishing the Minnesota higher education lottery
scholarship program to provide scholarships to residents attending postsecondary
institutions to reward students for outstanding academic achievement, help
students complete their degrees and expand educational opportunities beyond high
school for students, specifying eligibility and application requirements,
regulating amount and use of scholarships
(je)