August 15, 2012, Introduced by Senators ROCCA, JONES and BIEDA 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
lotto game the option of receiving
his or her the prize
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
shall be is discharged of from all further liability
on payment of a prize pursuant to under this
any a prize drawn may be made to a person
to an appropriate judicial under
a properly issued court
any a prize drawn may be made to the this state
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
the prizewinner's each
living children child
of the prizewinner, in equal proportions, unless otherwise directed
the prizewinner. If there is
not a no surviving spouse, or
children child, or other designated beneficiaries,
beneficiary of the prizewinner, the remaining prize payments shall
be made to the prizewinner's estate.
Except as provided in subsection
(11) (12), payment of any
drawn may be made to
person pursuant to under a
voluntary assignment of the right to receive future prize payments,
whole or in part, if the assignment is made to a person
designated pursuant to an
appropriate judicial under a
issued order of a court
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
and dates of any payments that
shall will be given in
exchange for the assignment.
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
or her legal counsel, and understands and agrees that
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.
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
not less than 5 days after
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
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
that is in the best interests of the bureau and this
(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.
is authorized to may establish a
reasonable fee to defray the cost of any administrative expenses
with assignments made
pursuant to under this section,
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 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
state lottery, unless the winner of
a the prize agrees in
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.
Notwithstanding subsection (9), Except
provided by state or federal law, the commissioner or an officer or
of the bureau
not disclose the name, address, or
any other personal information concerning a winner of a prize
under a game played pursuant to a joint enterprise,
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.
If at any time the federal internal
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 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.