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.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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
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
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
the processing of the application, and that application,
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
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
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
"Person" means an
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