Bill Text: MI HB4529 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Gaming; lottery; lottery agents; allow to accept sports betting. Amends title & sec. 23 of 1972 PA 239 (MCL 432.23).

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-04-27 - Bill Electronically Reproduced 04/26/2017 [HB4529 Detail]

Download: Michigan-2017-HB4529-Introduced.html

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HOUSE BILL No. 4529

 

 

April 26, 2017, Introduced by Rep. Kosowski and referred to the Committee on Regulatory Reform.

 

     A bill to amend 1972 PA 239, entitled

 

"McCauley-Traxler-Law-Bowman-McNeely lottery act,"

 

by amending the title and section 23 (MCL 432.23), the title as

 

amended by 2012 PA 293 and section 23 as amended by 2008 PA 142.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to establish and operate a state lottery and to allow

 

state participation in certain lottery-related joint enterprises

 

with other sovereignties; to create a bureau of state lottery and

 

to prescribe its powers and duties; to prescribe certain powers and

 

duties of other state departments and agencies; to license and

 

regulate certain sales agents; to create funds; to provide for the

 

distribution of lottery revenues and earnings for certain purposes;

 

to provide for an appropriation; to allow sports betting at lottery

 

terminals; to provide for a referenda; and to provide for remedies

and penalties.

 

 

 

     Sec. 23. (1) The commissioner shall not issue a license to a

 

person to engage in business exclusively as a lottery sales agent.

 

Before issuing a lottery sales license, the commissioner shall

 

consider factors such as the financial responsibility and security

 

of the person and his or her business or activity, the

 

accessibility of his or her place of business or activity to the

 

public, the sufficiency of existing licenses to serve the public

 

convenience, and the volume of expected sales.

 

     (2) The commissioner shall issue an initial or renewal lottery

 

sales license not later than 90 days after the applicant files a

 

completed application. Receipt of the application is considered the

 

date the application is received by any an agency or department of

 

this state. If the commissioner determines that the application is

 

incomplete, the commissioner shall notify the applicant in writing,

 

or make information electronically available, within 30 days after

 

receipt of the incomplete application, describing the deficiency

 

and requesting the additional information. The 90-day period is

 

tolled upon notification by the commissioner of a deficiency until

 

the date the requested information is received by the commissioner.

 

The determination of the completeness of an application does not

 

operate as an approval of the application for the license and does

 

not confer eligibility of an applicant determined otherwise

 

ineligible for issuance of a license.

 

     (3) If the commissioner fails to issue or deny a lottery sales

 

license within the time required by this section, the commissioner

 

shall return the license fee and shall reduce the license fee for

 

the applicant's next renewal application, if any, by 15%. The

 

failure to issue a lottery sales license within the time required

 

under this section does not allow the commissioner to otherwise

 

delay the processing of the application, and that application, upon

 

on completion, shall must be placed in sequence with other

 

completed applications received at that same time. The commissioner

 

shall not discriminate against an applicant in the processing of

 

the application based upon on the fact that the license fee was

 

refunded or discounted under this subsection.

 

     (4) The commissioner shall submit a report by December 1 of

 

each year to the standing committees and appropriations

 

subcommittees of the senate and house of representatives concerned

 

with gaming issues. The commissioner shall include all of the

 

following information in the report concerning the preceding fiscal

 

year:

 

     (a) The number of initial and renewal applications the

 

commissioner received and completed within the 90-day time period

 

described in subsection (2).

 

     (b) The number of applications denied.

 

     (c) The number of applicants not issued a license within the

 

90-day time period and the amount of money returned to licensees

 

and applicants under subsection (3).

 

     (5) Notwithstanding any other provision of law, a person

 

licensed as a lottery sales agent may sell lottery tickets and

 

shares. A person lawfully engaged in nongovernmental business on

 

state property may be licensed as a lottery sales agent.

     (6) A lottery sales license is not assignable or transferable.

 

     (7) A licensed agent or his or her employee may sell lottery

 

tickets or shares only on the premises stated in the lottery sales

 

license. A licensed agent who violates this subsection is, at the

 

commissioner's discretion, subject to 1 or more of the following:

 

     (a) Probation for not more than 2 years.

 

     (b) A fine of not more than $1,000.00.

 

     (c) Removal of his or her lottery terminal.

 

     (8) The commissioner may require a bond from a licensed agent

 

in an amount provided in rules promulgated under this act.

 

     (9) A licensed agent shall display his or her license or a

 

copy of the license conspicuously in accordance with rules

 

promulgated under this act.

 

     (10) The commissioner may suspend or revoke the license of an

 

agent who violates this act or a rule promulgated under this act.

 

     (11) For purposes of terminal placement, the commissioner

 

shall take into account with equal emphasis both of the following:

 

     (a) The total instant game sales for the 3 months immediately

 

preceding a market evaluation.

 

     (b) The need to maximize net lottery revenues from the total

 

number of terminals placed.

 

     (12) A licensed lottery sales agent shall not offer to give or

 

give any money or other thing of value to the holder of a lottery

 

ticket or share for winning the lottery, other than the prize if

 

payment of the prize by the agent is authorized by the

 

commissioner.

 

     (13) A person licensed as a lottery sales agent that is also a

sports betting agent may accept parlay wagers on sporting events. A

 

person licensed as a lottery sales agent that is also a sports

 

betting agent may accept parlay wagers on sporting events only on

 

the premises stated in the lottery sales license.

 

     (14) The bureau shall work with the Michigan gaming control

 

board to develop a system that allows parlay wagers at lottery

 

terminals.

 

     (15) (13) As used in this section:

 

     (a) "Completed application" means an application complete on

 

its face and submitted with any applicable licensing fees and any

 

other information, records, approval, security, or similar item

 

required by law or rule from a local unit of government, a federal

 

agency, or a private entity but not from another department or

 

agency of this state.

 

     (b) "Michigan gaming control board" means the Michigan gaming

 

control board created under section 4 of the Michigan gaming

 

control and revenue act, 1996 IL 1, MCL 432.204.

 

     (c) "Parlay wager" means that term as defined in section 9e of

 

the Michigan gaming control and revenue act, 1996 IL 1, MCL

 

432.209e.

 

     (d) (b) "Person" means an individual, association,

 

corporation, club, trust, estate, society, company, joint stock

 

company, receiver, trustee, referee, or other person acting in a

 

fiduciary or representative capacity who is appointed by a court,

 

or any combination of individuals. Person includes a department,

 

commission, agency, or instrumentality of the state, including a

 

county, city, village, or township and an agency or instrumentality

of the county, city, village, or township.

 

     (e) "Sports betting agent" means an individual licensed to

 

facilitate parlay wagers in this state under section 9e of the

 

Michigan gaming control and revenue act, 1996 IL 1, MCL 432.209e.

 

     Enacting section 1. This amendatory act shall be submitted as

 

provided by the Michigan election law, 1954 PA 116, MCL 168.1 to

 

168.992, to the qualified electors of this state at the next

 

general election held after the effective date of this amendatory

 

act. This amendatory act does not take effect unless it is approved

 

by both of the following at that election:

 

     (a) A majority of the electors of this state voting on the

 

question.

 

     (b) A majority of the electors voting on the question in the

 

township or city where gambling as authorized under this amendatory

 

act will take place.

 

     Enacting section 2. If approved by the electors under enacting

 

section 1, this amendatory act takes effect 10 days after the date

 

of the official declaration of the vote.

 

     Enacting section 3. This amendatory act does not take effect

 

unless House Bill No. 4261 of the 99th Legislature is enacted into

 

law.