SB-0855, As Passed Senate, January 17, 2008


















October 25, 2007, Introduced by Senators THOMAS, HUNTER, KUIPERS, JACOBS, JANSEN, ANDERSON, BASHAM, BARCIA, OLSHOVE, BROWN, SANBORN, GILBERT, GLEASON, PAPPAGEORGE, JELINEK, VAN WOERKOM, CLARKE, BRATER and SCHAUER and referred to the Committee on Homeland Security and Emerging Technologies.




     A bill to amend 1972 PA 239, entitled


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


by amending section 41 (MCL 432.41), as amended by 1997 PA 72.




     Sec. 41. (1) A special fund to be known as the "state The


state lottery fund" fund is created in the department of treasury.


Except as provided in subsection (3), the state lottery fund


consists of all revenues 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 sources source


pursuant to law including interest earnings on common cash


attributable to the state lottery fund. Revenue 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. The


commissioner 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 shall be is the same as his or her


investment authority with regard to retirement system funds. The


state treasurer shall comply with the divestment from terror act 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 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 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




     (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 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 to exceed 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.


     Enacting section 1. This amendatory act does not take effect


unless Senate Bill No. 846                                    


            of the 94th Legislature is enacted into law.