April 26, 2017, Introduced by Rep. Kosowski 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 the title and section 23 (MCL 432.23), the title as


amended by 2012 PA 293 and section 23 as amended by 2008 PA 142.






     An act to establish and operate a state lottery and to allow


state participation in certain lottery-related joint enterprises


with other sovereignties; to create a bureau of state lottery and


to prescribe its powers and duties; to prescribe certain powers and


duties of other state departments and agencies; to license and


regulate certain sales agents; to create funds; to provide for the


distribution of lottery revenues and earnings for certain purposes;


to provide for an appropriation; to allow sports betting at lottery


terminals; to provide for a referenda; and to provide for remedies

and penalties.




     Sec. 23. (1) The commissioner shall not issue a license to a


person to engage in business exclusively as a lottery sales agent.


Before issuing a lottery sales license, the commissioner shall


consider factors such as the financial responsibility and security


of the person and his or her business or activity, the


accessibility of his or her place of business or activity to the


public, the sufficiency of existing licenses to serve the public


convenience, and the volume of expected sales.


     (2) The commissioner shall issue an initial or renewal lottery


sales license not later than 90 days after the applicant files a


completed application. Receipt of the application is considered the


date the application is received by any an agency or department of


this state. If the commissioner determines that the application is


incomplete, the commissioner shall notify the applicant in writing,


or make information electronically available, within 30 days after


receipt of the incomplete application, describing the deficiency


and requesting the additional information. The 90-day period is


tolled upon notification by the commissioner of a deficiency until


the date the requested information is received by the commissioner.


The determination of the completeness of an application does not


operate as an approval of the application for the license and does


not confer eligibility of an applicant determined otherwise


ineligible for issuance of a license.


     (3) If the commissioner fails to issue or deny a lottery sales


license within the time required by this section, the commissioner


shall return the license fee and shall reduce the license fee for


the applicant's next renewal application, if any, by 15%. The


failure to issue a lottery sales license within the time required


under this section does not allow the commissioner to otherwise


delay the processing of the application, and that application, upon


on completion, shall must be placed in sequence with other


completed applications received at that same time. The commissioner


shall not discriminate against an applicant in the processing of


the application based upon on the fact that the license fee was


refunded or discounted under this subsection.


     (4) The commissioner shall submit a report by December 1 of


each year to the standing committees and appropriations


subcommittees of the senate and house of representatives concerned


with gaming issues. The commissioner shall include all of the


following information in the report concerning the preceding fiscal




     (a) The number of initial and renewal applications the


commissioner received and completed within the 90-day time period


described in subsection (2).


     (b) The number of applications denied.


     (c) The number of applicants not issued a license within the


90-day time period and the amount of money returned to licensees


and applicants under subsection (3).


     (5) Notwithstanding any other provision of law, a person


licensed as a lottery sales agent may sell lottery tickets and


shares. A person lawfully engaged in nongovernmental business on


state property may be licensed as a lottery sales agent.

     (6) A lottery sales license is not assignable or transferable.


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


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


license. A licensed agent who violates this subsection is, at the


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


     (a) Probation for not more than 2 years.


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


     (c) Removal of his or her lottery terminal.


     (8) The commissioner may require a bond from a licensed agent


in an amount provided in rules promulgated under this act.


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


copy of the license conspicuously in accordance with rules


promulgated under this act.


     (10) The commissioner may suspend or revoke the license of an


agent who violates this act or a rule promulgated under this act.


     (11) For purposes of terminal placement, the commissioner


shall take into account with equal emphasis both of the following:


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


preceding a market evaluation.


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


number of terminals placed.


     (12) A licensed lottery sales agent shall not offer to give or


give any money or other thing of value to the holder of a lottery


ticket or share for winning the lottery, other than the prize if


payment of the prize by the agent is authorized by the




     (13) A person licensed as a lottery sales agent that is also a

sports betting agent may accept parlay wagers on sporting events. A


person licensed as a lottery sales agent that is also a sports


betting agent may accept parlay wagers on sporting events only on


the premises stated in the lottery sales license.


     (14) The bureau shall work with the Michigan gaming control


board to develop a system that allows parlay wagers at lottery




     (15) (13) As used in this section:


     (a) "Completed application" means an application complete on


its face and submitted with any applicable licensing fees and any


other information, records, approval, security, or similar item


required by law or rule from a local unit of government, a federal


agency, or a private entity but not from another department or


agency of this state.


     (b) "Michigan gaming control board" means the Michigan gaming


control board created under section 4 of the Michigan gaming


control and revenue act, 1996 IL 1, MCL 432.204.


     (c) "Parlay wager" means that term as defined in section 9e of


the Michigan gaming control and revenue act, 1996 IL 1, MCL




     (d) (b) "Person" means an individual, association,


corporation, club, trust, estate, society, company, joint stock


company, receiver, trustee, referee, or other person acting in a


fiduciary or representative capacity who is appointed by a court,


or any combination of individuals. Person includes a department,


commission, agency, or instrumentality of the state, including a


county, city, village, or township and an agency or instrumentality

of the county, city, village, or township.


     (e) "Sports betting agent" means an individual licensed to


facilitate parlay wagers in this state under section 9e of the


Michigan gaming control and revenue act, 1996 IL 1, MCL 432.209e.


     Enacting section 1. This amendatory act shall be submitted as


provided by the Michigan election law, 1954 PA 116, MCL 168.1 to


168.992, to the qualified electors of this state at the next


general election held after the effective date of this amendatory


act. This amendatory act does not take effect unless it is approved


by both of the following at that election:


     (a) A majority of the electors of this state voting on the




     (b) A majority of the electors voting on the question in the


township or city where gambling as authorized under this amendatory


act will take place.


     Enacting section 2. If approved by the electors under enacting


section 1, this amendatory act takes effect 10 days after the date


of the official declaration of the vote.


     Enacting section 3. This amendatory act does not take effect


unless House Bill No. 4261 of the 99th Legislature is enacted into