January 16, 2019, Introduced by Senator VANDERWALL 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 section 25 (MCL 432.25), as amended by 1998 PA 465.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 25. (1) The bureau shall give a prizewinner in the
Michigan
lotto game the option of receiving his or her the prize
in
a
single payment or in installments. This option shall must 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
shall be is discharged of from all further liability
upon
on payment of a prize pursuant to under this
section.
(3)
Payment of any a prize drawn may be made to a person
pursuant
to an appropriate judicial under
a properly issued court
order.
(4)
Payment of any a prize drawn may be made to the this state
pursuant
to under section 32.
(5) If a prizewinner dies before collecting the full amount of
his or her prize drawn from the state lottery, the bureau 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 no surviving spouse, or
living
children child, or other designated beneficiaries,
beneficiary of the prizewinner, the bureau shall pay the remaining
prize
payments shall be made to the prizewinner's estate.
(6)
Except as provided in subsection (11), (12), payment of
any
prize drawn may be made to any a
person pursuant to under 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 an
appropriate judicial under a
properly
issued order of a court of competent
jurisdiction located
in either the county in which the assignor resides or the county in
which the bureau is located. An order approving the assignment and
directing the commissioner 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 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 had
the opportunity to appear and
take
action that is in the best interests of the bureau 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 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 shall established
under this subsection must reflect the direct and indirect costs
associated with processing the assignments.
(9) Except as otherwise provided by state or federal law, the
commissioner or an officer or employee of the bureau shall not
disclose the name, address, or any other personal information
concerning a winner of a prize greater than $10,000.00 drawn from
the
state lottery, unless the winner of a the prize 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), Except
as otherwise
provided by state or federal law, the commissioner or an officer or
employee
of the bureau may shall
not 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.unless
the winner of the prize agrees
in writing to allow the disclosure.
(11) Information protected against disclosure under
subsections (9) and (10) is exempt from disclosure under the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(12) (11)
If at any time the federal internal
revenue service
Internal Revenue Service or a court of competent jurisdiction
issues a determination letter, revenue ruling, other public ruling
of
the internal revenue service, 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 shall immediately file a copy
of that letter, ruling, or published decision with the secretary of
state 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.