Bill Text: MI HB6341 | 2009-2010 | 95th Legislature | Introduced
Bill Title: Gaming; lottery; general amendments to the McCauley-Traxler-Law-Bowman-McNeely lottery act; provide for. Amends title & secs. 3, 5, 7, 9, 11, 12, 13, 15, 16, 17, 18, 19, 20, 23, 25, 27, 29, 30, 31, 32, 33, 35, 39, 41, 43 & 47 of 1972 PA 239 (MCL 432.3 et seq.) & adds sec. 2. TIE BAR WITH: HB 6336'10, HB 6337'10, HB 6338'10, HB 6339'10
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2010-07-28 - Printed Bill Filed 07/22/2010 [HB6341 Detail]
Download: Michigan-2009-HB6341-Introduced.html
HOUSE BILL No. 6341
July 21, 2010, Introduced by Reps. Johnson, Slezak, Kandrevas and Durhal 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 sections 3, 5, 7, 9, 11, 12, 13, 15, 16,
17, 18, 19, 20, 23, 25, 27, 29, 30, 31, 32, 33, 35, 39, 41, 43, and
47 (MCL 432.3, 432.5, 432.7, 432.9, 432.11, 432.12, 432.13, 432.15,
432.16, 432.17, 432.18, 432.19, 432.20, 432.23, 432.25, 432.27,
432.29, 432.30, 432.31, 432.32, 432.33, 432.35, 432.39, 432.41,
432.43, and 432.47), the title as amended by 1996 PA 95, sections
3, 9, 30, and 33 as amended by 1996 PA 167, section 5 as amended by
1987 PA 62, sections 11 and 18 as amended by 2004 PA 383, section
12 as amended by 2006 PA 625, sections 16 and 43 as amended by 1997
PA 72, section 23 as amended by 2008 PA 142, section 25 as amended
by 1998 PA 465, section 32 as amended by 1996 PA 13, section 35 as
amended by 1997 PA 40, section 41 as amended by 2009 PA 25, and
section 47 as amended by 1992 PA 57, and by adding section 2.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to establish and operate a state lottery, to authorize
lottery games, and to allow state participation in certain lottery-
related joint enterprises with other sovereignties; to create a
bureau
of state education lottery corporation and to prescribe its
powers
and duties; to prescribe certain provide for the powers and
duties
of other state departments and agencies governmental
officers and entities; to authorize the promulgation of rules; to
license
and regulate certain lottery sales agents retailers; to
authorize a fee for certain payments of prizes; to create the state
lottery fund; to provide for the distribution of lottery revenues
and earnings for certain purposes; to provide for an appropriation;
and to provide for remedies and penalties.
Sec. 2. (1) The legislature finds and determines all of the
following:
(a) Under section 41 of article IV of the state constitution
of 1963, the legislature may authorize lotteries and permit the
sale of lottery tickets in the manner provided by law.
(b) Under section 3 of the Michigan gaming control and revenue
act, 1996 IL 1, MCL 432.203, the Michigan gaming control and
revenue act, 1996 IL 1, MCL 432.201 to 432.226, does not apply to
lottery games authorized under this act.
(c) The legislature has authorized numerous lottery games
under this act before January 1, 2004.
(d) Under section 41 of article IV of the state constitution
of 1963, after January 1, 2004, a new state lottery game utilizing
a table game or player-operated mechanical device may not be
established without the approval of a majority of electors voting
in a statewide general election.
(e) All lottery games conducted under this act before January
1, 2004 constitute the operation of a lottery or lotteries
authorized under section 41 of article IV of the state constitution
of 1963 and also constitute a form of gambling authorized by
section 41 of article IV of the state constitution of 1963.
(2) Consistent with the findings and determinations under
subsection (1), it is the intent and purpose of the legislature
that pursuant to section 3 of the Michigan gaming control and
revenue act, 1996 IL 1, MCL 432.203, the Michigan gaming control
and revenue act, 1996 IL 1, MCL 432.201 to 432.226, does not apply
to lottery games authorized under this act.
(3) Consistent with the findings and determinations under
subsection (1), it is not the intent or purpose of the legislature
by enacting the amendatory act that added this section to amend the
Michigan gaming control and revenue act, 1996 IL 1, MCL 432.201 to
432.226, or to authorize any new state lottery games utilizing
table games or player-operated mechanical or electronic devices.
(4) Consistent with the findings and determinations under
subsection (1), it is the intent of the legislature that this act
not be construed to restrict a lottery game conducted before
January 1, 2004 from being conducted utilizing a table game or
player-operated mechanical or electronic device and that section 41
of article IV of the state constitution of 1963 should be
interpreted to authorize a lottery game conducted prior to January
1, 2004 to be conducted under this act utilizing a table game or
player-operated mechanical or electronic device without further
approval by the electors of this state.
Sec. 3. As used in this act:
(a)
"Bureau" means the bureau of state lottery created by this
act.
(a) (b)
"Commissioner" "Chief
executive officer" or "CEO"
means
the commissioner of state lottery head of the corporation
appointed under section 7.
(b) "Corporation", unless the context clearly indicates
otherwise, means the Michigan education lottery corporation created
under section 5.
(c)
"Joint enterprise" means any a lottery activity in which
the
bureau participates pursuant to a written agreement between the
state
of Michigan this
state and any state, territory,
country, or
other
sovereignty as executed by the commissioner CEO.
Joint
enterprise
does not include the state lottery created pursuant to
authorized under this act.
(d) "Lottery" or "state lottery" means the lottery created
pursuant
to under this act and operated exclusively by or under the
exclusive
control of the bureau of state lottery corporation.
Lottery or state lottery includes all games other than a joint
enterprise that are authorized, approved, and operated under this
act, including any lottery game conducted before January 1, 2004
utilizing a table game or player-operated mechanical or electronic
device.
(e) "Ticket" means a lottery ticket, share, or interest issued
by the corporation, including a printed, paper, or electronic
ticket.
Sec.
5. (1) A bureau is created to be known as the bureau of
state
lottery. The bureau of state lottery created by this act in
1972,
with all its authority, powers, duties, and functions,
records,
personnel, property, unexpended balances of
appropriations,
allocations, or other funds, including the
functions
of budgeting and procurement and management related
functions,
is transferred to and The
Michigan education lottery
corporation is created as a public body corporate and politic
within the department of treasury. The corporation shall be an
autonomous
entity in within the department of management and budget
treasury and shall exercise its prescribed statutory powers,
duties, and functions independently of the state treasurer. The
statutory authority, powers, duties, functions, records, personnel,
property, unexpended balances of appropriations, allocations, and
other funds of the former bureau of state lottery, including the
functions of budgeting, procurement, personnel, and management-
related functions, shall be retained by the corporation, and the
corporation shall be an autonomous entity within the department of
treasury in the same manner as the Michigan employment security
commission is designated an autonomous entity within the Michigan
department of labor under section 379 of the executive organization
act of 1965, 1965 PA 380, MCL 16.479.
(2)
The head of the bureau corporation
is the commissioner
chief
executive officer. The commissioner CEO shall
be exempt from
not be a member of the state classified civil service. It is the
intent
of the legislature that the commissioner CEO should be
responsible directly to the governor to ensure accountability and
integrity
of the bureau corporation
and the lottery and accordingly
should
be 1 of the positions within the department of management
and
budget which treasury that is exempt from the classified state
civil service.
Sec.
7. The commissioner chief
executive officer shall be
qualified by training and experience to direct the work of the
bureau
corporation. The commissioner CEO shall
be appointed by the
governor, by and with the advice and consent of the senate, and
shall serve at the pleasure of the governor. A vacancy occurring in
the
office of the commissioner CEO
shall be filled in the same
manner
as the original appointment. The commissioner CEO shall
devote his or her entire time and attention to the duties of his or
her office and shall not be engaged in any other profession or
occupation.
He The CEO shall receive a salary as provided by annual
appropriation.
Sec.
9. (1) The commissioner CEO
shall initiate, establish,
and
operate a the state
lottery. at the earliest feasible and
practicable
time. The lottery shall be operated so as to produce
the
maximum amount of net revenues for the this state consonant
with the general welfare of the people.
(2) The commissioner shall solicit bids from CEO may enter
into
contracts with financially responsible
vendors of data
processing
equipment and other products and services for related to
the
operation of the lottery, and may contract with the including
contracts
for the promotion of the lottery, subject to approval of
by the state administrative board. The corporation shall solicit
competitive bids from the private sector whenever practicable to
efficiently and effectively meet the needs of operating the
lottery. The CEO shall first determine that competitive
solicitation of bids in the private sector is not appropriate
before the CEO authorizes any other procurement method for an
acquisition. The CEO shall make all discretionary decisions
concerning the solicitation, award, amendment, cancellation, and
appeal of contracts necessary for the operation of the lottery. The
corporation shall utilize competitive solicitation for all
purchases authorized under this act unless 1 or more of the
following apply:
(a) The procurement of goods or services is necessary for the
imminent protection of public health or safety or the integrity of
the lottery or to mitigate an imminent threat to public health or
safety or the integrity of the lottery, as determined by the CEO.
(b) The procurement of goods or services is for emergency
repair or construction caused by unforeseen circumstances if the
repair or construction is necessary to protect life or property or
the integrity of the lottery.
(c) The procurement of goods or services is in response to a
declared state of emergency or state of disaster under the
emergency management act, 1976 PA 390, MCL 30.401 to 30.421.
(d) The procurement of goods or services is in response to a
declared state of emergency under 1945 PA 302, MCL 10.31 to 10.33.
(e) The procurement of goods or services is in response to a
declared state of energy emergency under 1982 PA 191, MCL 10.81 to
10.89.
(2)
The commissioner shall not conduct a lottery based upon an
activity
that utilizes the mechanical, physical, or mental skills
of
the participant and that is traditionally regarded as a sporting
event.
(3) A contract awarded or entered into by the CEO shall not be
assigned by another person without the specific written approval of
the CEO.
(4) (3)
The commissioner corporation may participate in joint
enterprises
with other sovereignties so long as if the commissioner
CEO determines that the joint enterprise is designed to produce the
maximum
amount of net revenues for the this
state consonant with
the
general welfare of the people. The commissioner corporation
shall
only not participate in a joint enterprise agreement that
unless
the agreement provides that the commissioner
CEO may
discontinue participation in the agreement if he or she determines
it
to be necessary. The commissioner CEO shall report to the
legislature
every 6 months annually on the progress of the a joint
enterprise agreement.
(4)
The commissioner shall submit a proposal to develop a
program
for the education and treatment of compulsive gamblers to
the
legislature within 6 months after the effective date of this
amendatory
act.
Sec.
11. (1) The commissioner shall CEO
may promulgate rules
pursuant to the administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328, as necessary to implement this act.
(2) The rules authorized under this section may include any of
the following subject to requirements and limitations in this act:
(a) The type and number of lottery games to be conducted.
(b) The price or prices of tickets or shares in the lottery.
(c) The number and size of the prizes on the winning tickets
or shares.
(d) The manner of selecting the winning tickets or shares.
(e) The manner of payment of prizes to the holders of winning
tickets or shares.
(f) The frequency of the drawings or selections of winning
tickets or shares.
(g) Without limit as to number, the type or types of locations
at which tickets or shares may be sold.
(h) The method to be used in selling tickets or shares, except
that a person's name, other than a name used in advertising or a
promotion
under section 18(2) 18, shall not be printed on the
tickets or shares.
(i)
The licensing of agents lottery
sales retailers to sell
tickets or shares, but a person under the age of 18 shall not be
licensed
as an agent a lottery
sales retailer.
(j) The manner and amount of compensation to be paid licensed
lottery
sales agents retailers necessary to provide for the
adequate availability of tickets or shares to prospective buyers
and for the convenience of the public.
(k) The apportionment of the total annual revenues accruing
from the sale of lottery tickets or shares and from all other
sources for the payment of prizes to the holders of winning tickets
or shares, for the payment of costs incurred in the operation and
administration
of the lottery games, including the expenses of the
bureau
corporation and the costs resulting from any contract or
contracts entered into for promotional, advertising, consulting, or
operational services or for the purchase or lease of lottery
equipment and materials, for the repayment of the money
appropriated to the state lottery fund, and for transfer to the
general fund or state school aid fund.
(3)
The commissioner may promulgate rules incorporating by
reference
existing rules or regulations of any joint enterprise as
required
as a condition for participation in that joint enterprise.
Any
subsequent changes or additions to the rules or regulations of
the
joint enterprise may be adopted by the commissioner through the
promulgation
of a rule.
(3) The CEO may issue, alter, or rescind administrative and
procedural directives as determined by the CEO to be necessary for
the effective administration of this act. A directive issued under
this subsection is exempt from the definition of a rule pursuant to
section 7 of the administrative procedures act of 1969, 1969 PA
306, MCL 24.207. A directive takes effect on written approval of
the CEO unless a later date is specified. A directive authorized
under this subsection may establish standards for lottery sales
retailers and specific standards, requirements, and procedures
related to lottery games, including any of the following:
(a) Lottery game contract provisions, terms, definitions,
prohibitions, restrictions, winner liability, dispute resolution,
governing law, disclaimers, and termination.
(b) Lottery game names.
(c) Lottery game prices.
(d) Lottery game prizes and prize matrices.
(e) Determination of prize winners.
(f) Procedures for claiming prizes and ticket validation
requirements and use of bar codes, universal product codes,
validation codes, and validation numbers.
(g) Requirements related to satisfaction of tax obligations.
(h) Other information related to lottery game play such as
rules of play, images, game books, legends, and play symbols.
(i) Rules or regulations of any joint enterprise as required
as a condition for participation in the joint enterprise.
Sec.
12. (1) Except as otherwise provided in subsection (3)
(2), as nearly as is practicable, until January 1, 2012, not less
than
the CEO shall apportion 45% or
more of the total annual
revenue
accruing from the sale of lottery tickets or shares shall
be
apportioned for payment of prizes
to the holders of winning
tickets or shares.
(2)
On or after January 1, 2012, 45% of the total revenue
shall
be apportioned for payment of prizes.
(2) (3)
Notwithstanding subsections subsection (1), and (2),
the prize money from the sale of tickets or shares of any joint
enterprise is that percentage of the total annual revenue accrued
from that game as prescribed by the joint enterprise participation
agreement
executed by the commissioner CEO.
(3) The CEO shall apportion 1% or more of total annual revenue
accruing from the sale of lottery tickets, including revenue from
joint enterprise games, for advertising or promotion of the
lottery.
Sec.
13. The commissioner corporation
shall make produce a
monthly
report to the governor, the state treasurer and the
legislature.
The monthly report shall include that
includes the
total lottery revenues, prize disbursements, and other expenses of
the
corporation for the preceding month.
The commissioner CEO shall
make
submit an annual report to the governor, the state
treasurer,
and the legislature. The annual report may be transmitted in an
electronic format. The annual report shall include a full and
complete statement of lottery revenues, prize disbursements, and
other expenses of the corporation and recommendations for changes
in
this act as the commissioner CEO
deems necessary or desirable.
The corporation shall make a report required by this section
available to the public on the corporation's internet website.
Sec.
15. (1) The commissioner CEO
shall report immediately to
the
governor , the state treasurer and the legislature any matters
that
require immediate changes in the laws of this state in order
to prevent abuses or evasions of this act or rules promulgated
hereunder
under this act or to rectify undesirable conditions in
connection
with related to the administration or operation of the
lottery.
(2)
The commissioner CEO shall make a continuous study and
investigation of the lottery for all of the following purposes:
(a)
To ascertain any defects in this act or in the rules by
reason
whereof any abuses promulgated
under this act that could
result in an abuse in the administration and operation of the
lottery
or any an evasion of this act or the rules. may
arise or be
practiced.
(b) To formulate recommendations for changes in this act and
the rules promulgated under this act.
(c) To guard against the use of this act and the rules
promulgated
under this act as a cloak for the
carrying on of
organized gambling not authorized under the laws of this state and
crime.
(d)
To insure ensure that this act and the rules promulgated
under this act are in a form and are administered so as to serve
the true purposes of this act.
(3)
The commissioner CEO shall make a continuous study and
investigation of the operation and the administration of similar
laws
which may be in effect in of
other states or countries, any
literature
on the subject which may be that
is published or
available,
any federal laws which may affect affecting the
operation of the lottery, and the reaction of citizens of this
state to existing and potential features of the lottery with a view
to recommending or effecting changes that will tend to serve the
purposes of this act and maximize net revenue consistent with the
general welfare of this state.
Sec.
16. (1) The commissioner shall conduct a study of
compulsive
gambling and the extent to which persons with compulsive
gambling
disorders participate in gambling activities. The
commissioner
shall submit a written summary of the findings of the
study
to the clerk of the house of representatives and the
secretary
of the senate not later than 1 year after the effective
date
of this section.
(2)
The A toll-free compulsive gaming helpline telephone
number and, if practicable, a compulsive gaming internet website
address shall be printed on all lottery tickets, printed
advertisements, and promotional materials and posted at each
location where lottery tickets are sold.
Sec.
17. (1) The commissioner CEO shall do both of the
following:
(a) Supervise and administer the operation of the lottery in
accordance with this act and the rules promulgated under this act.
(b)
License as agents retailers
to sell lottery tickets such
for
lottery games persons whom he deems the CEO determines will
best serve the public convenience and promote the sale of tickets
or
shares consistent with this
act.
(2) A license granted under this act is a privilege personal
to the licensee and is not a legal right. A license granted or
renewed under this act shall not be transferred or assigned to
another person or be pledged as collateral.
Sec.
18. (1) The commissioner, subject to the applicable laws
relating
to public contracts, may enter into contracts for the
operation
of the lottery, or any part of the lottery, and into
contracts
for the promotion of the lottery. A contract awarded or
entered
into by the commissioner shall not be assigned by the other
contracting
party except by specific approval of the commissioner.
(1)
(2) The commissioner CEO may
contract with 1 or more
persons to allow the placement of advertising or promotional
material, including, but not limited to, the placement of discount
coupons for retail goods and NASCAR logos, images, and drivers'
pictures and names, on lottery tickets, shares, and other available
media
under the control of the bureau corporation. However, except
for advertising that promotes responsible consumption of alcoholic
beverages,
the commissioner CEO shall not allow the placement of
advertising for the promotion of the consumption of alcoholic
beverages or tobacco products on lottery tickets under the control
of
the bureau corporation.
(2) (3)
As used in this section,
"NASCAR" means the national
association for stock car auto racing, inc.
Sec.
19. (1) The commissioner CEO
shall employ personnel as
necessary
to implement this act. at least 2 of whom shall not be in
the
classified service.
(2)
The departments, boards, commissions, or agencies,
officers, and other governmental subdivisions of this state shall
provide
assistance to the bureau upon corporation
on the bureau's
corporation's request. The governor may issue executive directives
as necessary to assure compliance with this subsection and this act
by a state department or agency.
Sec.
20. The circuit court upon petition of the commissioner
after
a hearing may issue subpoenas to compel the attendance of
witnesses
and the production of documents, papers, books, records
and
other evidence before it in any matter over which it has
jurisdiction,
control or supervision. If a person subpoenaed to
attend
in any such proceeding or hearing fails to obey the command
of
the subpoena without reasonable cause, or if a person in
attendance
in any such proceeding or hearing refuses, without
lawful
cause, to be examined or to answer a legal or pertinent
question
or to exhibit any book, account, record or other document
when
ordered to do so by the court may be punished as a contempt of
the
court.
(1) Consistent with this act and rules promulgated under this
act, the CEO may conduct investigative hearings and issue subpoenas
for witnesses and the production of documents, papers, books,
records, and other things.
(2) The CEO may summon witnesses and administer oaths or
affirmations to exercise and discharge his or her powers and duties
under this act. A person who fails to appear before the CEO at the
time and place specified in a summons from the CEO or refuses to
testify, without just cause, in answer to a summons from the CEO is
guilty of a misdemeanor punishable by imprisonment for not more
than 6 months or a fine of not more than $1,000.00, or both.
Sec.
23. (1) The commissioner CEO
shall not issue a license to
a
person to engage in business exclusively as a lottery sales agent
retailer. Before issuing a lottery sales license, the commissioner
CEO shall consider factors such as the financial responsibility and
security
of the person and his or her the
person's business or
activity,
the accessibility of his or her the
person's 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 CEO shall issue an initial or renewal
lottery
sales license not later than 90 days after the applicant
files
date the corporation receives
a completed application.
Receipt
of the application is considered the date the application
is
received by any agency or department of this state. If the
commissioner
CEO determines that the application is incomplete, the
commissioner
CEO shall notify the applicant in writing, or make
information
electronically available, within 30 days after receipt
of
the corporation receives the incomplete application, describing
the deficiency and requesting the additional information. The 90-
day
period is tolled upon notification by the commissioner CEO of
a
deficiency until the date the requested information is received by
the
commissioner CEO. 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 CEO fails to issue or deny a lottery
sales license within the time required by this section, the
commissioner
CEO 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
CEO to otherwise delay the processing of the application, and that
application, upon completion, shall be placed in sequence with
other completed applications received at that same time. The
commissioner
CEO shall not discriminate against an applicant in the
processing of the application based upon the fact that the license
fee was refunded or discounted under this subsection.
(4)
The commissioner CEO 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 annual report concerning the preceding
fiscal
year of the corporation:
(a) The number of initial and renewal lottery sales license
applications
the commissioner corporation
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 A person
licensed
as a lottery sales agent retailer
may sell lottery tickets
and shares. A person lawfully engaged in nongovernmental business
on
state government property may be licensed as a lottery sales
agent
retailer.
(6) A lottery sales retailer license is not assignable or
transferable.
(7)
A licensed agent lottery
sales retailer or his or her an
employee of the retailer may sell lottery tickets or shares only on
the premises stated in the lottery sales retailer license. A
licensed
agent lottery sales retailer
who violates this subsection
is,
at the commissioner's CEO'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 the
retailer's lottery terminal.
(8)
The commissioner CEO may require a bond from a licensed
agent
lottery sales retailer in an amount provided in rules
promulgated under this act.
(9)
A licensed agent lottery
sales retailer shall display his
or
her the retailer's license or a copy of the license
conspicuously in accordance with rules promulgated under this act.
(10)
The commissioner CEO may suspend or revoke the license of
an
agent a lottery sales
retailer who violates this act or a
rule
promulgated under this act.
(11)
For purposes of terminal placement, the commissioner CEO
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 the need to maximize net lottery revenues from the
total number of terminals placed consistent with the general
welfare of this state.
(12)
A licensed lottery sales agent retailer
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 retailer is authorized
by
the commissioner CEO.
(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) "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, authority, or instrumentality of the state,
including a county, city, village, or township and an agency,
authority, or instrumentality of the county, city, village, or
township.
Sec.
25. (1) The bureau corporation
shall give a prizewinner
in
the Michigan lotto game lottery games designated by the CEO the
option of receiving his or her prize in a single payment or in
installments.
This option shall be made available to and exercised
by
the purchaser of a Michigan lotto game ticket at the point of
purchase.
As used in this subsection, "Michigan lotto game" means a
game
administered by the bureau in which the matrix is 6 out of 49
numbers
drawn.
(2) The right of any person to a prize drawn from the state
lottery is not assignable, except as provided in this section. The
commissioner
corporation shall be discharged of all further
liability upon payment of a prize pursuant to this section.
(3) Payment of any prize drawn may be made to a person
pursuant to an appropriate judicial order.
(4)
Payment of any prize drawn may be made to the this state
pursuant to section 32.
(5) If a prizewinner dies before collecting the full amount of
his
or her prize drawn from the state lottery, the bureau
corporation shall continue to make the remaining prize payments to
the
prizewinner's surviving spouse and the prizewinner's each
living
children child of the
prizewinner, in equal proportions,
unless otherwise directed by the prizewinner. If there is not a
surviving
spouse, or a
living children child, or
other another
designated
beneficiaries beneficiary, the remaining prize payments
shall be made to the prizewinner's estate. As used in this
subsection, "beneficiary" and "child" mean those terms as defined
in section 1103 and "estate" means that term as defined in section
1104 of the estates and protected individuals code, 1998 PA 386,
MCL 700.1103 and 700.1104. For purposes of this subsection, a
spouse is a surviving spouse according to the definition of
"survive" in section 1107 of the estates and protected individuals
code, 1998 PA 386, MCL 700.1107.
(6) Except as provided in subsection (11), payment of any
prize
drawn may be made to any person pursuant to a voluntary
assignment of the right to receive future prize payments, in whole
or in part, if the assignment is made to a person or entity
designated
pursuant to under an appropriate judicial order of a
court
of competent jurisdiction located in either the county in
which
the assignor resides or the county in which the bureau
corporation is located. An order approving the assignment and
directing
the commissioner CEO to pay the assignee all or a part of
future prize payments is properly issued if the court finds that
all of the following circumstances exist:
(a) The assignment is in writing, executed by the assignor in
accordance with the laws of this state, and the terms of the
assignment are disclosed, including the identity of the assignee,
the portion or portions of prize payments to be assigned, and the
amounts
and dates of any payments that shall will be given in
exchange for the assignment.
(b)
The assignor provides has
provided a sworn affidavit to
the court attesting that the assignor is of sound mind, is not
acting under duress, has been advised regarding the assignment by
his
or her legal counsel, and understands and agrees that the this
state
and the commissioner corporation
will have no further
liability or responsibility to make prize payments to the assignor.
(c) The proposed assignment does not include or cover payments
or portions of payments that are subject to section 32.
(d)
Not A copy of the
complaint or motion for the approval of
the voluntary assignment under this subsection and a notice of
hearing on the complaint or motion has been served on the attorney
general
not less than 5 days after filing a
petition for a judicial
order
that approves a voluntary assignment under this subsection
the complaint or motion was filed and not less than 10 days before
a
the hearing on the petition ,
the petitioner shall cause a copy
of
the petition and notice of hearing on the petition to be served
upon
the attorney general. The and
the attorney general or his or
her
assistant shall be permitted to had
the opportunity to appear
and
take action that is in the best interests of the bureau
corporation and this state.
(7) Soliciting or offering rights to lottery prize payments,
either by assignment or through pledge as collateral for a loan,
shall not be considered selling or offering for sale lottery
tickets or shares under this act.
(8)
The commissioner is authorized to CEO may establish a
reasonable fee to defray the cost of any administrative expenses
associated
with assignments made pursuant to under this section,
including
the cost of a any processing fee that may be imposed by a
private annuity provider. The amount of the fee established under
this subsection shall reflect the direct and indirect costs
associated with processing the assignments.
(9)
Except as otherwise provided by state or federal law, the
commissioner
by claiming a prize, a
prizewinner grants the CEO or
an
officer or employee of the bureau corporation the right to use
the name and city, township, or village of residence of the
prizewinner to publicize the winnings of the prizewinner. The name
and city, township, or village of residence of a prizewinner is
public
information. The corporation shall not
disclose the name,
street address, telephone number, electronic mail address, or any
other
personal information concerning a winner of a prize greater
than
$10,000.00 drawn from the state lottery prizewinner not
authorized
to be disclosed under this section,
unless the winner of
a
prize prizewinner agrees in writing to allow the disclosure.
Subject to subsection (10), the information protected against
disclosure under this section is exempt from disclosure under the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(10)
Notwithstanding subsection (9), the commissioner CEO or
an
officer or employee of the bureau corporation may disclose the
name, address, or any other personal information concerning a
winner of a prize awarded under a game played pursuant to a joint
enterprise to the extent required under the joint enterprise
participation
agreement executed by the commissioner CEO.
(11) If at any time the federal internal revenue service or a
court of competent jurisdiction issues a determination letter,
revenue ruling, other public ruling of the internal revenue
service, or published decision to any state lottery or state
lottery prizewinner declaring that the voluntary assignment of
prizes will affect the federal income tax treatment of prizewinners
who
do not assign their prizes, the commissioner CEO shall
immediately file a copy of that letter, ruling, or published
decision
with the secretary of state office
of the great seal and
the office of the state court administrator. A court shall not
issue a voluntary assignment order under subsection (6) after the
date the ruling, letter, or published decision is filed.
Sec. 27. (1) A person shall not sell a ticket or share at a
price
greater than that fixed by rule of the commissioner the
corporation under this act. A person other than a licensed lottery
sales
agent retailer shall not sell lottery tickets or shares. This
section shall not be construed to prevent a person from giving
lottery tickets or shares to another as a gift.
(2) A person violating this section is guilty of a
misdemeanor.
Sec.
29. A ticket or share shall not be sold to any a person
under
the age of 18 who is less
than 18 years of age. This section
does not prohibit the purchase of a ticket or share for the purpose
of making a gift by a person 18 years of age or older to a person
less
than age 18 years of age. A licensee who knowingly sells or
offers
to sell a lottery ticket or share to a person under the age
of
18 who is less than 18 years
of age is guilty of a misdemeanor.
Sec. 30. (1) A person, with the intent to defraud, shall not
falsely make, alter, forge, utter, pass, or counterfeit a state
lottery ticket or share.
(2) A person, with the intent to defraud, shall not falsely
make, alter, forge, utter, pass, or counterfeit a ticket or share
of
any joint enterprise entered into by the commissioner CEO.
(3) A person convicted of violating this section is guilty of
a felony punishable by imprisonment for not more than 5 years or by
a fine of not more than $1,000.00, or both.
Sec. 31. A ticket or share shall not be purchased by and a
prize
shall not be paid to an officer or employee of the bureau
corporation
or to any a spouse,
child, brother, sister, or parent
residing as a member of the same household in the principal place
of abode of an officer or employee of the corporation.
Sec. 32. (1) Before payment of a prize of $1,000.00 or more,
the
bureau corporation shall determine whether the department of
treasury
records show that a lottery winner the person who has the
winning lottery ticket or share has a current liability to this
state or a support arrearage. The department of treasury shall
provide
the bureau corporation with a list or computer access to a
compilation of persons known to the department to have a current
liability
to this state, including a delinquent accounts account of
amounts
due and owing money due to a court that have has been
assigned
to the this state for collection, or a support arrearage.
The information shall be updated not less than once a month. If a
liability to this state or support arrearage is identified, the
bureau
corporation shall ascertain the amount owed from the
department of treasury and first apply the amount of the prize to
the
any liability to the this state
other than the amount of any
assigned
delinquent account of amounts money
due and owing to a
court,
next to the any support arrearage, and next to the any
assigned
delinquent accounts account
of amounts money due
and owing
to
a court. , and the The excess, if any, shall be
paid to the
lottery
winner person who has the
winning lottery ticket or share.
(2)
A lottery winner The person
who has the winning lottery
ticket or share shall receive notice and an opportunity for a
hearing before the department of treasury or its designee with
respect
to the liability to which the prize is to be applied where
under this section if the liability has not been reduced to
judgment or has not been finalized under statutory review
provisions of the statute under which the liability arose. The
notice
shall be made sent by regular mail. The lottery winner
person who has the winning lottery ticket or share may request a
hearing
within 15 days of after the date of the notice by making a
written
request to the revenue commissioner state treasurer.
(3)
An amount Money applied to pay a support arrearage under
this
section shall be paid by the bureau corporation to the
department
of treasury which shall pay the amount money to the
office of the friend of the court for the appropriate judicial
circuit
in the same manner as is prescribed for a payment pursuant
to an order of income withholding under section 9 of the support
and
parenting time enforcement act, Act No. 295 of the Public Acts
of
1982, being section 552.609 of the Michigan Compiled Laws 1982
PA 295, MCL 552.609.
(4) In regard to the information provided by the department of
treasury
to the bureau corporation under this section, the bureau
corporation is subject to the confidentiality restrictions and
penalties
provided in section 28(1)(f) and (2) of Act No. 122 of
the
Public Acts of 1941, being section 205.28 of the Michigan
Compiled
Laws 1941 PA 122, MCL 205.28.
(5)
Until October 1, 1995 each office of the friend of the
court
may report to the department of treasury the names of persons
who
have a current support arrearage. Beginning October 1, 1995
each
Each office of the friend of the court shall report to
the
office of child support the names of persons who have a current
support arrearage and the office of child support shall provide
that information to the department of treasury.
(6) As used in this section:
(a) "Office of the friend of the court" means an agency
created
in section 3 of the friend of the court act, Act No. 294 of
the
Public Acts of 1982, being section 552.503 of the Michigan
Compiled
Laws 1982 PA 294, MCL 552.503.
(b)
"Support" means that term as defined in section 31 of Act
No.
294 of the Public Acts of 1982, being section 552.531 of the
Michigan Compiled Laws 2a of the friend of the court act, 1982 PA
294, MCL 552.502a.
Sec.
33. (1) Unclaimed prize money for the prize on a winning
ticket or share of the state lottery shall be retained by the
commissioner
corporation for the person entitled to the prize money
for
1 year 180 days after the drawing in which the prize was won.
If
a claim is not made for the prize money within the year 180
days, the prize money shall be deposited in the
state school aid
fund and distributed pursuant to law.
(2)
Unclaimed prize money for the prize on a winning ticket or
share of any joint enterprise shall be treated in the manner
provided for in the joint enterprise participation agreement
executed
by the commissioner CEO. To the extent that the this state
of
Michigan is
entitled to any unclaimed prize money, that money
received shall be deposited into the state school aid fund and
distributed pursuant to law.
(3) For instant games, pull-tab games, and similar games as
determined by the CEO, any prize must be claimed by the expiration
date of the particular game.
Sec.
35. (1) The commissioner CEO
shall require that all
moneys
money collected from the sale of lottery tickets or shares
be deposited in 1 or more financial institutions to the credit of
the
this state as designated by the state treasurer. Each
deposit
shall
be accompanied by a report of the agent's lottery sales
retailer's receipts and transactions in the sale of lottery tickets
or
shares and containing such any other information as required
by
the
commissioner may require CEO.
(2)
The commissioner CEO may make arrangements for a financial
institution to perform functions, activities, or services in
connection
with the operation of the lottery as he or she the CEO
considers advisable under this act and the functions, activities,
or services shall constitute lawful functions, activities and
services of the financial institution.
(3) As used in this section, "financial institution" means a
state or nationally chartered bank or a state or federally
chartered savings and loan association, savings bank, or credit
union whose deposits are insured by an agency of the United States
government and which maintains a principal office or branch office
located in this state under the laws of this state or the United
States.
Sec. 39. If the person entitled to a prize or any winning
ticket
is under the age of 18 years , and
the prize is more than
$1,000.00,
the commissioner CEO shall direct payment of the prize
by transfer to the guardian of the minor of a check or draft
payable to the order of the guardian. If the prize is less than
$1,000.00,
the commissioner CEO may direct payment of the prize to
the adult member of the minor's family who is legally responsible
for
the care and custody of the minor. The commissioner shall be
corporation is discharged of all further liability upon payment of
a prize to a minor pursuant to this section.
Sec. 41. (1) The state lottery fund is created in the
department of treasury. Except as provided in subsection (3), the
state lottery fund consists of all money received from the sale of
state lottery tickets or shares and all other money credited or
transferred to the fund from any other fund or source pursuant to
law including interest earnings on common cash attributable to the
state lottery fund. Money derived from the sale of tickets or
shares of any joint enterprise shall be treated in the manner
provided for in the joint enterprise participation agreement
executed
by the commissioner CEO. The commissioner CEO shall
deposit net revenue from any joint enterprise in the state lottery
fund. Earnings resulting from installment payment of any lottery
prizes shall be used for payment of prizes to lottery winners and
the prize structure formulated pursuant to sections 11 and 12 shall
be established accordingly.
(2) The investment authority of the state treasurer with
regard to the state lottery fund is the same as his or her
investment authority with regard to retirement system funds. The
state treasurer may also invest all or part of the money in the
state lottery fund in obligations issued by this state pursuant to
section 14, 15, or 16 of article IX of the state constitution of
1963 if the treasurer determines that the obligations are full
faith and credit obligations of this state and provide a rate of
return at the time of investment that is not less than the rate of
return at the time of investment on United States treasury
obligations of comparable maturity. The state treasurer shall
comply with the divestment from terror act, 2008 PA 234, MCL
129.291 to 129.301, in making investments under this act. To assure
a continuing availability of money with which to pay state lottery
prize installments and to compensate for variations in the yield on
investments,
every 6 months the commissioner CEO
and the state
treasurer shall review the status of the installment prize
investments and shall agree on an amount to be restricted out of
the total revenues of the state lottery fund as a reserve against a
drop
in yield. If the commissioner CEO
and the state treasurer fail
to agree on the amount to be reserved, the matter shall be referred
to the state administrative board for a decision on the amount to
be reserved.
(3) Except as provided in subsection (4), after the payment of
prizes to the holders of winning state lottery tickets or shares or
the payment pursuant to section 32 of the liabilities to this state
of holders of winning state lottery tickets or shares, and the
payment
of the reasonable expenses of the bureau corporation in its
operation of the lottery, the net revenue in the state lottery fund
and any money or interest generated by the state lottery fund and
share of common cash shall be deposited in the state school aid
fund and shall be distributed as provided by law.
(4) Ten percent of each year's state lottery advertising
budget but not more than $1,000,000.00 shall be deposited in the
compulsive gaming prevention fund created in section 3 of the
compulsive gaming prevention act, 1997 PA 70, MCL 432.253.
Sec. 43. Subject to section 41(1), the money in the state
lottery fund is appropriated only for the payment of prizes to the
holders of winning state lottery tickets or shares, for the payment
pursuant to section 32 of the liabilities to this state of holders
of winning state lottery tickets or shares, for reasonable expenses
of
the bureau corporation in its operation of the state lottery,
for deposit in the compulsive gaming prevention fund as provided in
section 41(4), and for deposit in the state school aid fund as
provided in section 41(3).
Sec. 47. The auditor general or an independent public
accounting
firm appointed employed by the auditor general shall may
conduct
biannual postaudits of all accounts and transactions of the
bureau
and other special postaudits as the auditor general or
legislature
deems necessary. postaudits
of financial transactions
and accounts of the corporation and performance postaudits of the
corporation to the extent authorized by section 53 of article IV of
the state constitution of 1963. The auditor general or his or her
agent
conducting an audit a
postaudit under this act shall have be
given
access to and authority to may examine
all records of the
bureau
corporation, its distributing agents or retailers, and its
licensees.
Enacting section 1. This amendatory act takes effect October
1, 2010.
Enacting section 2. This amendatory act does not take effect
unless all of the following bills of the 95th Legislature are
enacted into law:
(a) Senate Bill No.____ or House Bill No. 6339(request no.
07160'10 a).
(b) Senate Bill No.____ or House Bill No. 6337(request no.
07160'10 b).
(c) Senate Bill No.____ or House Bill No. 6336(request no.
07160'10 c).
(d) Senate Bill No.____ or House Bill No. 6338(request no.
07160'10 d).
