HOUSE BILL No. 4748


     May 8, 2001, Introduced by Reps. Phillips, Daniels, Kilpatrick, Rison, Quarles, Plakas, Hale, Lipsey, Williams, Hardman, Reeves, Waters,
Stallworth, Clarke, Clark, Thomas, Murphy, Garza, McConico and Lemmons and referred to the Committee on Appropriations.


        A bill to amend 1972 PA 239, entitled

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

   by amending sections 33 and 41 (MCL 432.33 and 432.41), section

   33 as amended by 1996 PA 167 and section 41 as amended by 1997 PA

   72.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 33.  (1) Unclaimed prize money for the prize on a win-

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      ning ticket or share of the state lottery shall be retained by

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      the commissioner for the person entitled to the prize money for 1

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      year after the drawing in which the prize was won.  If a claim is

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      not made for the prize money within the year, the prize money

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      shall be deposited in the state school aid fund  and distributed

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      pursuant to law  ESTABLISHED UNDER SECTION 11 OF ARTICLE IX OF

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      THE STATE CONSTITUTION OF 1963 AND ONLY SHALL BE EXPENDED IN THE

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      MANNER PRESCRIBED IN SECTION 41(3).


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           (2) Unclaimed prize money for the prize on a winning ticket

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      or share of any joint enterprise shall be treated in the manner

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      provided for in the joint enterprise participation agreement exe-

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      cuted by the commissioner.  To the extent that the state of

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      Michigan is entitled to any unclaimed prize money, that money

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      received shall be deposited into the state school aid fund  and

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      distributed pursuant to law  ESTABLISHED UNDER SECTION 11 OF

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      ARTICLE IX OF THE STATE CONSTITUTION OF 1963 AND ONLY SHALL BE

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      EXPENDED IN THE MANNER PRESCRIBED IN SECTION 41(3).

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

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      tery fund" is created in the department of treasury.  Except as

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      provided in subsection (3), the state lottery fund consists of

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      all revenues received from the sale of state lottery tickets or

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      shares and all other money credited or transferred to the fund

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      from any other fund or sources pursuant to law including interest

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      earnings on common cash attributable to the state lottery fund.

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      Revenue derived from the sale of tickets or shares of any joint

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      enterprise shall be treated in the manner provided for in the

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      joint enterprise participation agreement executed by the

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      commissioner.  The commissioner shall deposit net revenue from

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      any joint enterprise in the state lottery fund.  Earnings result-

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      ing from installment payment of any lottery prizes shall be used

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      for payment of prizes to lottery winners and the prize structure

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      formulated pursuant to sections 11 and 12 shall be established

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      accordingly.

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           (2) The investment authority of the state treasurer with

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      regard to the state lottery fund shall be the same as his or her



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      investment authority with regard to retirement system funds.  To

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      assure a continuing availability of money with which to pay state

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      lottery prize installments and to compensate for variations in

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      the yield on investments, every 6 months the commissioner and the

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      state treasurer shall review the status of the installment prize

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      investments and shall agree on an amount to be restricted out of

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      the total revenues of the state lottery fund as a reserve against

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      a drop in yield.  If the commissioner and the state treasurer

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      fail to agree on the amount to be reserved, the matter shall be

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      referred to the state administrative board for a decision on the

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      amount to be reserved.

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           (3) Except as provided in subsection (4), after the payment

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      of prizes to the holders of winning state lottery tickets or

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      shares or the payment pursuant to section 32 of the liabilities

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      to this state of holders of winning state lottery tickets or

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      shares, and the payment of the reasonable expenses of the bureau

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      in its operation of the lottery, the net revenue in the state

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      lottery fund and any money or interest generated by the state

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      lottery fund and share of common cash shall be deposited in A

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      SEPARATE ACCOUNT IN the state school aid fund ESTABLISHED UNDER

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      SECTION 11 OF ARTICLE IX OF THE STATE CONSTITUTION OF 1963 and

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      shall  be distributed as provided by law  ONLY BE EXPENDED TO

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      SCHOOL DISTRICTS AND INTERMEDIATE SCHOOL DISTRICTS IN AN AMOUNT

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      THAT IS PROPORTIONATE TO THE AMOUNT OF LOTTERY REVENUE GENERATED

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      BY LOTTERY SALES WITHIN THE SCHOOL DISTRICT OR INTERMEDIATE

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      SCHOOL DISTRICT DURING THE PRECEDING FISCAL YEAR.





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           (4) Ten percent of each year's state lottery advertising

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      budget but not to exceed $1,000,000.00 shall be deposited in the

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      compulsive gaming prevention fund created in SECTION 3 OF the

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      compulsive gaming prevention act, 1997 PA 70, MCL 432.253.

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           Enacting section 1.  This amendatory act does not take

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      effect unless Senate Bill No. _____ or House Bill No. 4749

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      (request no. 03348'01 a) of the 91st Legislature is enacted into

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      law.








































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