SENATE BILL No. 1220

 

 

May 13, 2004, Introduced by Senator JOHNSON and referred to the Committee on Economic Development, Small Business and Regulatory Reform.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1972 PA 239, entitled                                             

                                                                                

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

                                                                                

    by amending sections 11 and 23 (MCL 432.11 and 432.23), as                  

                                                                                

    amended by 1996 PA 167.                                                     

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 11.  (1) The commissioner shall promulgate rules                       

                                                                                

2   pursuant to the administrative procedures act of 1969,  Act                 

                                                                                

3   No. 306 of the Public Acts of 1969, being sections 24.201 to                

                                                                                

4   24.328 of the Michigan Compiled Laws  1969 PA 306, MCL 24.201 to            

                                                                                

5   24.328, as necessary to implement this act.                                 

                                                                                

6       (2) The rules authorized under this section may include any                 

                                                                                

7   of the following subject to requirements and limitations in this            

                                                                                

8   act:                                                                        

                                                                                

9       (a) The type of lottery to be conducted.  subject to section                

                                                                                

10  9(2).                                                                       

                                                                                


                                                                                

1       (b) The price of tickets or shares in the lottery.                          

                                                                                

2       (c) The number and size of the prizes on the winning tickets                

                                                                                

3   or shares.                                                                  

                                                                                

4       (d) The manner of selecting the winning tickets or shares.                  

                                                                                

5       (e) The manner of payment of prizes to the holders of winning               

                                                                                

6   tickets or shares.  , subject to section 32.                                

                                                                                

7       (f) The frequency of the drawings or selections of winning                  

                                                                                

8   tickets or shares.                                                          

                                                                                

9       (g) Without limit as to number, the type or types of                        

                                                                                

10  locations at which tickets or shares may be sold.   subject to              

                                                                                

11  section 23(10).                                                             

                                                                                

12      (h) The method to be used in selling tickets or shares,                     

                                                                                

13  except that a person's name shall not be printed on the tickets             

                                                                                

14  or shares.                                                                  

                                                                                

15      (i) The licensing of agents to sell tickets or shares, but a                

                                                                                

16  person under the age of 18 shall not be licensed as an agent.               

                                                                                

17      (j) The manner and amount of compensation to be paid licensed               

                                                                                

18  sales agents necessary to provide for the adequate availability             

                                                                                

19  of tickets or shares to prospective buyers and for the                      

                                                                                

20  convenience of the public.                                                  

                                                                                

21      (k) The apportionment of the total annual revenues accruing                 

                                                                                

22  from the sale of lottery tickets or shares and from all other               

                                                                                

23  sources for the payment of prizes to the holders of winning                 

                                                                                

24  tickets or shares, for the payment of costs incurred in the                 

                                                                                

25  operation and administration of the lottery, including the                  

                                                                                

26  expenses of the bureau and the costs resulting from any contract            

                                                                                

27  or contracts entered into for promotional, advertising,                     


                                                                                

1   consulting or operational services or for the purchase or lease             

                                                                                

2   of lottery equipment and materials, for the repayment of the                

                                                                                

3   money appropriated to the state lottery fund, and for transfer to           

                                                                                

4   the general fund.                                                           

                                                                                

5       (3) The commissioner may promulgate rules incorporating by                  

                                                                                

6   reference existing rules or regulations of any joint enterprise             

                                                                                

7   as required as a condition for participation in that joint                  

                                                                                

8   enterprise.  Any subsequent changes or additions to the rules or            

                                                                                

9   regulations of the joint enterprise may be adopted by the                   

                                                                                

10  commissioner through the promulgation of a rule.                            

                                                                                

11      (4) This section is repealed if the Michigan supreme court                  

                                                                                

12  rules that sections 45 and 46 of the administrative procedures              

                                                                                

13  act of 1969,  Act No. 306 of the Public Acts of 1969, being                 

                                                                                

14  sections 24.245 and 24.246 of the Michigan Compiled Laws  1969 PA           

                                                                                

15  306, MCL 24.245 and 24.246, are unconstitutional and a statute              

                                                                                

16  requiring legislative review of administrative rules is not                 

                                                                                

17  enacted within 90 days after the Michigan supreme court ruling.             

                                                                                

18  Nothing in this subsection invalidates rules that have been                

                                                                                

19  This subsection does not invalidate rules promulgated prior to              

                                                                                

20  the effective date of the amendatory act that added this                   

                                                                                

21  subsection  April 17, 1996.                                                 

                                                                                

22      Sec. 23.  (1)  A license as an agent to sell lottery tickets                

                                                                                

23  or shares shall not be issued to any  The commissioner shall not            

                                                                                

24  issue a license to a person to engage in business exclusively as            

                                                                                

25  a lottery sales agent.  Before issuing a lottery sales license,             

                                                                                

26  the commissioner shall consider factors such as the financial               

                                                                                

27  responsibility and security of the person and his or her business           


                                                                                

1   or activity, the accessibility of his or her place of business or           

                                                                                

2   activity to the public, the sufficiency of existing licenses to             

                                                                                

3   serve the public convenience, and the volume of expected sales.             

                                                                                

4       (2)  As used in this section, "person" means an individual,                 

                                                                                

5   association, corporation, club, trust, estate, society, company,            

                                                                                

6   joint stock company, receiver, trustee, referee, any other person           

                                                                                

7   acting in a fiduciary or representative capacity who is appointed           

                                                                                

8   by a court, or any combination of individuals.  Person includes             

                                                                                

9   any department, commission, agency, or instrumentality of the               

                                                                                

10  state, including any county, city, village, or township and any             

                                                                                

11  agency or instrumentality thereof.  If an application for a                 

                                                                                

12  lottery sales license is filed after the effective date of the              

                                                                                

13  amendatory act that added subsection (12), the commissioner shall           

                                                                                

14  grant or deny the application not later than 6 months after the             

                                                                                

15  applicant files a complete application.  If the commissioner                

                                                                                

16  determines that an application is incomplete, the commissioner              

                                                                                

17  shall notify the applicant in writing within 10 days after                  

                                                                                

18  receipt of the incomplete application, describing the deficiency            

                                                                                

19  and the documents or information required to make the application           

                                                                                

20  complete.  The 6-month period is tolled from the date the                   

                                                                                

21  commissioner notifies the applicant that the application is                 

                                                                                

22  incomplete until the date the additional documents or information           

                                                                                

23  is received by the commissioner.                                            

                                                                                

24      (3) If the commissioner fails to grant or deny an application               

                                                                                

25  within the time required by this section, the commissioner shall            

                                                                                

26  return the license fee and shall reduce the applicant's next                

                                                                                

27  license renewal fee by 15%.  The commissioner shall not process,            


                                                                                

1   investigate, or consider the application of an applicant whose              

                                                                                

2   license fee is returned under this subsection in a time or manner           

                                                                                

3   different than other applications.                                          

                                                                                

4       (4) Beginning January 31, 2005, the commissioner shall submit               

                                                                                

5   a report by January 31 of each year to the standing committees              

                                                                                

6   and appropriations subcommittees of the senate and house of                 

                                                                                

7   representatives concerned with gaming issues.  The commissioner             

                                                                                

8   shall include in the report all of the following information for            

                                                                                

9   the preceding calendar year:                                                

                                                                                

10      (a) The number of lottery sales license applications the                    

                                                                                

11  commissioner processed within 6 months and the number of                    

                                                                                

12  applications the commissioner did not process within 6 months.              

                                                                                

13      (b) The average length of time it took the commissioner to                  

                                                                                

14  grant or deny each application not processed within 6 months.               

                                                                                

15      (c) The number of lottery sales license applications the                    

                                                                                

16  commissioner denied, reported in summary form in categories                 

                                                                                

17  describing general reasons for denial.                                      

                                                                                

18      (d) The number of applications that required a request for                  

                                                                                

19  additional information.                                                     

                                                                                

20      (e) The average time for an applicant to respond to a request               

                                                                                

21  for additional information.                                                 

                                                                                

22      (f) The amount of money returned to applicants under                        

                                                                                

23  subsection (3).                                                             

                                                                                

24      (5)  (3)  Notwithstanding any other provision of law, a                     

                                                                                

25  person licensed  pursuant to this act may act  as a lottery sales           

                                                                                

26  agent may sell lottery tickets and shares.  A person lawfully               

                                                                                

27  engaged in nongovernmental business on state property may be                


                                                                                

1   licensed as a lottery sales agent.                                          

                                                                                

2       (6)  (4)  A lottery sales license is not assignable or                      

                                                                                

3   transferable.                                                               

                                                                                

4       (7)  (5)  A licensed agent or his or her employee may sell                  

                                                                                

5   lottery tickets or shares only on the premises stated in the                

                                                                                

6   lottery sales license.  of the agent.  Effective July 1, 1996, a            

                                                                                

7   A licensed agent who violates this subsection is, at the                    

                                                                                

8   commissioner's discretion, subject to 1 or more of the                      

                                                                                

9   following:                                                                  

                                                                                

10      (a) Probation for not more than 2 years.                                    

                                                                                

11      (b) A fine of not more than $1,000.00.                                      

                                                                                

12      (c) Removal of his or her lottery terminal.                                 

                                                                                

13      (6) The commissioner may issue temporary licenses upon                      

                                                                                

14  conditions as he or she considers necessary for a term which                

                                                                                

15  shall not extend beyond 1 year after the effective date of this             

                                                                                

16  act.                                                                        

                                                                                

17      (8)  (7)  The commissioner may require a bond from  any  a                  

                                                                                

18  licensed agent in an amount  as  provided in  the  rules                    

                                                                                

19  promulgated under this act.                                                 

                                                                                

20      (9)  (8)  A licensed agent shall display his or her license                 

                                                                                

21  or a copy  thereof  of the license conspicuously in accordance              

                                                                                

22  with  the  rules promulgated under this act.                                

                                                                                

23      (10)  (9)  The commissioner may suspend or revoke the license               

                                                                                

24  of  any  an agent who violates this act or a rule promulgated               

                                                                                

25  pursuant to  under this act.                                               

                                                                                

26      (11)  (10)  For purposes of terminal placement, the                         

                                                                                

27  commissioner shall take into account with equal emphasis both of            


                                                                                

1   the following:                                                              

                                                                                

2       (a) The total instant game sales for the 3 months immediately               

                                                                                

3   preceding a market evaluation.                                              

                                                                                

4       (b) The need to maximize net lottery revenues from the total                

                                                                                

5   number of terminals placed.                                                 

                                                                                

6       (12) As used in this section, "person" means an individual,                 

                                                                                

7   association, corporation, club, trust, estate, society, company,            

                                                                                

8   joint stock company, receiver, trustee, referee, or other person            

                                                                                

9   acting in a fiduciary or representative capacity who is appointed           

                                                                                

10  by a court, or any combination of individuals.  Person includes a           

                                                                                

11  department, commission, agency, or instrumentality of the state,            

                                                                                

12  including a county, city, village, or township and an agency or             

                                                                                

13  instrumentality of the county, city, village, or township.