May 9, 2012, Introduced by Rep. Womack 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 sections 12, 33, and 41 (MCL 432.12, 432.33, and
432.41), section 12 as amended by 2011 PA 279, section 33 as
amended by 1996 PA 167, and section 41 as amended by 2009 PA 25,
and by adding sections 10 and 45.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10. (1) The commissioner may establish a separate city
lottery game.
(2) The commissioner may promulgate rules, including rules on
the topics listed in section 11, to implement a separate lottery
game established under this section. The rules may provide that
tickets or shares in the separate lottery game be sold under the
name of 1 or more cities receiving money from the city lottery fund
created in section 45. The rules shall be promulgated under the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328.
(3) Tickets or shares of a separate lottery game established
under this section shall be sold by all lottery agents that sell
tickets for the state lottery.
(4) Money from the sale of tickets or shares of a separate
lottery game established under this section shall be deposited in
the city lottery fund created in section 45.
(5) Except as specifically provided otherwise, the provisions
of this act that are generally applicable to the conduct of the
state lottery apply to the conduct of a separate lottery game
established under this section.
Sec.
12. (1) Except as otherwise provided in subsection (2),
as
As nearly as is practicable, not less than 45% of the
total
annual revenue accruing from the sale of lottery tickets or shares
shall be apportioned for payment of prizes to the holders of
winning tickets or shares.
(2) Notwithstanding subsection (1), the prize money from the
sale of tickets or shares of any joint enterprise is that
percentage of the total annual revenue accrued from that game as
prescribed by the joint enterprise participation agreement executed
by the commissioner.
(3) Notwithstanding subsection (1), revenue from the sale of
lottery tickets or shares to a separate lottery game established
under section 10 shall be apportioned for payment of prizes as
provided in rules promulgated by the commissioner under section 10.
Sec. 33. (1) Unclaimed prize money for the prize on a winning
ticket or share of the state lottery shall be retained by the
commissioner for the person entitled to the prize money for 1 year
after the drawing in which the prize was won. If a claim is not
made for the prize money within the year, the prize money shall be
deposited in the state school aid fund and distributed pursuant to
law.
(2) Unclaimed prize money for the prize on a winning ticket or
share of any joint enterprise shall be treated in the manner
provided for in the joint enterprise participation agreement
executed by the commissioner. To the extent that the state of
Michigan is entitled to any unclaimed prize money, that money
received shall be deposited into the state school aid fund and
distributed pursuant to law.
(3) Unclaimed prize money for the prize on a winning ticket or
share of a separate lottery game established under section 10 shall
be retained by the commissioner for the person entitled to the
prize money for 1 year after the drawing in which the prize was
won. If a claim is not made for the prize money within the year,
the prize money shall be deposited in the city lottery fund created
in section 45.
Sec. 41. (1) The state lottery fund is created in the
department of treasury. Except as provided in section 10 and
subsection (3), the state lottery fund consists of all 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 source pursuant to law including interest earnings on common
cash attributable to the state lottery fund. 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 is the same as his or her
investment authority with regard to retirement system funds. The
state treasurer may also invest all or part of the money in the
state lottery fund in obligations issued by this state pursuant to
section 14, 15, or 16 of article IX of the state constitution of
1963 if the treasurer determines that the obligations are full
faith and credit obligations of this state and provide a rate of
return at the time of investment that is not less than the rate of
return at the time of investment on United States treasury
obligations of comparable maturity. The state treasurer shall
comply with the divestment from terror act, 2008 PA 234, MCL
129.291 to 129.301, 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 under 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 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.
Sec. 45. (1) The city lottery fund is created within the state
treasury.
(2) The state treasurer may receive money or other assets from
the sale of tickets or shares in a separate lottery game
established under section 10 and from any other source for deposit
into the city lottery fund. The state treasurer shall direct the
investment of the city lottery fund. The state treasurer shall
credit to the city lottery fund interest and earnings from city
lottery fund investments.
(3) Money in the city lottery fund at the close of the fiscal
year shall remain in the city lottery fund and shall not lapse to
the general fund.
(4) The bureau shall be the administrator of the city lottery
fund for auditing purposes.
(5) The bureau shall expend money from the city lottery fund
as follows in the following order:
(a) For the payment of prizes in accordance with the rules
promulgated by the commissioner under section 10.
(b) For payment under section 32 of liabilities to this state
of holders of winning tickets or shares in the separate lottery
game established under section 10.
(c) As appropriated, for the payment of the reasonable
expenses of the bureau in its operation of the separate lottery
game.
(d) The commissioner shall distribute the balance in the city
lottery fund to cities in this state with populations of 600,000 or
more. If more than 1 city is entitled to distribution of money
under this subdivision, the money shall be distributed
proportionately according to population.