SENATE BILL NO. 777


   September 30, 1999, Introduced by Senators LELAND, EMERSON,
        KOIVISTO, MC COTTER, EMMONS, NORTH, ROGERS, JOHNSON, 
        CHERRY, HAMMERSTROM, HART, A. SMITH, BYRUM, DE BEAUSSAERT,
        MURPHY, BENNETT, SCHUETTE, STEIL, DINGELL, DUNASKISS, 
        BULLARD, SHUGARS, PETERS, GOSCHKA, V. SMITH, SIKKEMA, 
        SCHWARZ, GAST, HOFFMAN and MC MANUS and referred to the
        Committee on Economic Development, International Trade and 
        Regulatory Affairs.



        A bill to amend 1972 PA 239, entitled

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

   by amending section 23 (MCL 432.23), as amended by 1996 PA 167.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

 2    or shares shall not be issued to  any  A person to
             engage in

 3    business exclusively as a lottery sales agent.  Before issuing a

 4    license the commissioner shall consider factors such as the

 5    financial responsibility and security of the person and his or

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

 7    of business or activity to the public, the sufficiency of exist-

 8    ing licenses to serve the public convenience, and the volume of

 9    expected sales.

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

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



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 1    joint stock company, receiver, trustee, referee,  any other
             

 2    ANOTHER person acting in a fiduciary or representative capacity

 3    who is appointed by a court, or  any  A combination
             of

 4    individuals.  Person includes  any  A department,
             commission,

 5    agency, or instrumentality of the state, including  any
              A

 6    county, city, village, or township and  any  AN
             agency or instru-

 7    mentality  thereof  OF 1 OF THESE.

 8         (3) Notwithstanding any other provision of law, a person

 9    licensed pursuant to this act may act as a lottery sales agent.

10    A person lawfully engaged in nongovernmental business on state

11    property may be licensed as a lottery sales agent.

12         (4) A license is not assignable or transferable.

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

14    tickets or shares only on the premises stated in the license of

15    the agent.  Effective July 1, 1996, a licensed agent who violates

16    this subsection is, at the commissioner's discretion, subject to

17    1 or more of the following:

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

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

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

21          (6) The commissioner may issue temporary licenses upon
             con-

22     ditions as he or she considers necessary for a term which
                       shall

23     not extend beyond 1 year after the effective date of this
                       act. 

24         (6)  (7)  The commissioner may require a bond
             from  any  A

25    licensed agent in an amount as provided in the rules.







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 1         (7)  (8)  A licensed agent shall display his
             or her license

 2    or a copy  thereof  OF THE LICENSE conspicuously in
             accordance

 3    with the rules.

 4         (8)  (9)  The commissioner may suspend or
             revoke the license

 5    of  any  AN agent who violates this act or a rule
             promulgated

 6    pursuant to this act.

 7         (9) THE COMMISSIONER SHALL SUSPEND FOR A PERIOD OF 5 YEARS

 8    THE LICENSE OF AN AGENT WHO IS CONVICTED OF A VIOLATION OF SEC-

 9    TION 300A OF THE MICHIGAN PENAL CODE, 1931 PA 328, MCL 750.300A.

10         (10) For purposes of terminal placement, the commissioner

11    shall take into account with equal emphasis both of the

12    following:

13         (a) The total instant game sales for the 3 months immedi-

14    ately preceding a market evaluation.

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

16    number of terminals placed.

17         Enacting section 1.  This amendatory act does not take

18    effect unless all of the following bills of the 90th Legislature

19    are enacted into law:

20         (a) Senate Bill No. 776.

21    

22         (b) Senate Bill No. 778.

23    

24         (c) Senate Bill No. 779.

25    







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