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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 855

 

 

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.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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

 

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 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.