HOUSE BILL No. 5077

 

September 25, 2003, Introduced by Reps. Hardman, McConico, Stallworth, Hager, Caswell, Plakas, Waters, Clack and Murphy 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 9 and 11 (MCL 432.9 and 432.11), as amended            

                                                                                

    by 1996 PA 167.                                                             

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 9.  (1) The commissioner shall initiate, establish, and                

                                                                                

2   operate a state lottery at the earliest feasible and practicable            

                                                                                

3   time.  The lottery shall produce the maximum amount of net                  

                                                                                

4   revenues for the state consonant with the general welfare of the            

                                                                                

5   people.  The commissioner shall solicit bids from financially               

                                                                                

6   responsible vendors of data processing equipment and services for           

                                                                                

7   the operation of the lottery and may contract with the approval             

                                                                                

8   of the state administrative board.                                          

                                                                                

9       (2) The commissioner shall not conduct a lottery based upon                 

                                                                                

10  an activity that utilizes the mechanical, physical, or mental               

                                                                                


                                                                                

1   skills of the participant and that is traditionally regarded as a           

                                                                                

2   sporting event.                                                             

                                                                                

3       (3) The commissioner shall not allow the sale of lottery                    

                                                                                

4   tickets or draw winning lottery tickets on Easter Sunday.                   

                                                                                

5       (4)  (3)  The commissioner may participate in joint                         

                                                                                

6   enterprises with other sovereignties  so long as  if the                    

                                                                                

7   commissioner determines that the joint enterprise is designed to            

                                                                                

8   produce the maximum amount of net revenues for the state                    

                                                                                

9   consonant with the general welfare of the people.  The                      

                                                                                

10  commissioner shall only participate in a joint enterprise                   

                                                                                

11  agreement that provides that the commissioner may discontinue               

                                                                                

12  participation in the agreement if he or she determines it to be             

                                                                                

13  necessary.  The commissioner shall report to the legislature                

                                                                                

14  every 6 months on the progress of the joint enterprise                      

                                                                                

15  agreement.                                                                  

                                                                                

16      (4) The commissioner shall submit a proposal to develop a                   

                                                                                

17  program for the education and treatment of compulsive gamblers to           

                                                                                

18  the legislature within 6 months after the effective date of this            

                                                                                

19  amendatory act.                                                             

                                                                                

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

                                                                                

21  pursuant to the administrative procedures act of 1969,  Act                 

                                                                                

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

                                                                                

23  24.328 of the Michigan Compiled Laws  1969 PA 306, MCL 24.201 to            

                                                                                

24  24.328, as necessary to implement this act.                                 

                                                                                

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

                                                                                

26  of the following, subject to requirements and limitations                   

                                                                                

27  expressed in this act:                                                      


                                                                                

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

                                                                                

2   section 9(2).                                                               

                                                                                

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

                                                                                

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

                                                                                

5   or shares.                                                                  

                                                                                

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

                                                                                

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

                                                                                

8   tickets or shares.  , subject to section 32.                                

                                                                                

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

                                                                                

10  tickets or shares.                                                          

                                                                                

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

                                                                                

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

                                                                                

13  section 23(10).                                                             

                                                                                

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

                                                                                

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

                                                                                

16  or shares.                                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

20  sales agents necessary to provide for the adequate availability             

                                                                                

21  of tickets or shares to prospective buyers and for the                      

                                                                                

22  convenience of the public.                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

27  operation and administration of the lottery, including the                  


                                                                                

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

                                                                                

2   or contracts entered into for promotional, advertising,                     

                                                                                

3   consulting, or operational services or for the purchase or lease            

                                                                                

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

                                                                                

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

                                                                                

6   the general fund.                                                           

                                                                                

7       (3) The commissioner may promulgate rules incorporating by                  

                                                                                

8   reference existing rules or regulations of any joint enterprise             

                                                                                

9   as required as a condition for participation in that joint                  

                                                                                

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

                                                                                

11  regulations of the joint enterprise may be adopted by the                   

                                                                                

12  commissioner through the promulgation of a rule.                            

                                                                                

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

                                                                                

14  rules that sections 45 and 46 of the administrative procedures              

                                                                                

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

                                                                                

16  sections 24.245 and 24.246 of the Michigan Compiled Laws                    

                                                                                

17  1969 PA 306, MCL 24.245 and 24.246, are unconstitutional and a              

                                                                                

18  statute requiring legislative review of administrative rules is             

                                                                                

19  not enacted within 90 days after the Michigan supreme court                 

                                                                                

20  ruling.   Nothing in this subsection invalidates rules that have            

                                                                                

21  been promulgated prior to the effective date of the amendatory              

                                                                                

22  act that added this subsection.  Rules promulgated before                   

                                                                                

23  April 17, 1996 are not invalidated by this subsection.