June 12, 2003, Introduced by Senators GARCIA, JOHNSON, SWITALSKI and McMANUS and referred to the Committee on Appropriations.
A bill to amend 1972 PA 239, entitled
"McCauley-Traxler-Law-Bowman-McNeely lottery act,"
by amending sections 11 and 23 (MCL 432.11 and 432.23), as
amended by 1996 PA 167.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 Sec. 11. (1) The commissioner shall promulgate rules
2 pursuant to the
administrative procedures act of 1969, Act
3 No. 306 of the Public
Acts of 1969, being sections 24.201 to
4 24.328 of the Michigan
Compiled Laws 1969 PA 306, MCL
24.201 to
5 24.328, as necessary to implement this act.
6 (2) The rules authorized under this section may include any
7 of the following, subject to requirements and limitations
8 expressed in this act:
9 (a) The type of
lottery to be conducted. subject to
10 section 9(2).
1 (b) The price of tickets or shares in the lottery.
2 (c) The number and size of the prizes on the winning tickets
3 or shares.
4 (d) The manner of selecting the winning tickets or shares.
5 (e) The manner of payment of prizes to the holders of winning
6 tickets or shares.
, subject to section 32.
7 (f) The frequency of the drawings or selections of winning
8 tickets or shares.
9 (g) Without limit as to number, the type or types of
10 locations at which
tickets or shares may be sold. subject to
11 section 23(10).
12 (h) The method to be used in selling tickets or shares,
13 except that a person's name shall not be printed on the tickets
14 or shares.
15 (i) The licensing of agents to sell tickets or shares but a
16 person under the age of 18 shall not be licensed as an agent.
17 (j) The manner and amount of compensation to be paid licensed
18 sales agents necessary to provide for the adequate availability
19 of tickets or shares to prospective buyers and for the
20 convenience of the public.
21 (k) The apportionment of the total annual revenues accruing
22 from the sale of lottery tickets or shares and from all other
23 sources for the payment of prizes to the holders of winning
24 tickets or shares, for the payment of costs incurred in the
25 operation and administration of the lottery, including the
26 expenses of the bureau and the costs resulting from any contract
27 or contracts entered into for promotional, advertising,
1 consulting, or operational services or for the purchase or lease
2 of lottery equipment and materials, for the repayment of the
3 money appropriated to the state lottery fund, and for transfer to
4 the general fund.
5 (3) The commissioner may promulgate rules incorporating by
6 reference existing rules or regulations of any joint enterprise
7 as required as a condition for participation in that joint
8 enterprise. Any subsequent changes or additions to the rules or
9 regulations of the joint enterprise may be adopted by the
10 commissioner through the promulgation of a rule.
11 (4) This section is repealed if the Michigan supreme court
12 rules that sections 45 and 46 of the administrative procedures
13 act of 1969, Act No.
306 of the Public Acts of 1969, being
14 sections 24.245 and
24.246 of the Michigan Compiled Laws
15 1969 PA 306, MCL 24.245 and 24.246, are unconstitutional and a
16 statute requiring legislative review of administrative rules is
17 not enacted within 90 days after the Michigan supreme court
18 ruling. Nothing in
this subsection invalidates rules that have
19 been promulgated prior
to the effective date of the amendatory
20 act that added this
subsection. Rules promulgated
before
21 April 17, 1996 are not invalidated by this subsection.
22 Sec. 23. (1) A The
commissioner shall not issue a license
23 as an agent to sell
lottery tickets or shares shall not be
24 issued to any a person to engage in business
exclusively as a
25 lottery sales agent. Before issuing a license to a person to act
26 as a lottery sales agent, the commissioner shall consider factors
27 such as the financial responsibility and security of the person
1 and his or her business or activity, the accessibility of his or
2 her place of business or activity to the public, the sufficiency
3 of existing licenses to serve the public convenience, and the
4 volume of expected sales.
5 (2) As used in
this section, "person" means an individual,
6 association,
corporation, club, trust, estate, society, company,
7 joint stock company,
receiver, trustee, referee, any other person
8 acting in a fiduciary
or representative capacity who is appointed
9 by a court, or any
combination of individuals. Person includes
10 any department,
commission, agency, or instrumentality of the
11 state, including any
county, city, village, or township and any
12 agency or
instrumentality thereof.
13 (2) A person that applies for a lottery sales agent license
14 shall pay, at the time of application, a fee of $200.00 for each
15 lottery sales agent license for which the person applies.
16 (3) Notwithstanding any other provision of law, a person
17 licensed pursuant to
this act may act as a lottery sales agent
18 may sell lottery tickets and shares. A person lawfully engaged
19 in nongovernmental business on state property may be licensed as
20 a lottery sales agent.
21 (4) A lottery sales agent license is not assignable or
22 transferable.
23 (5) A licensed lottery sales agent or his or her employee may
24 sell lottery tickets or shares only on the premises stated in the
25 license of the agent. Effective
July 1, 1996, a A
licensed
26 lottery sales agent who violates this subsection is, at the
27 commissioner's discretion, subject to 1 or more of the
1 following:
2 (a) Probation for not more than 2 years.
3 (b) A fine of not more than $1,000.00.
4 (c) Removal of his or her lottery terminal.
5 (6) The
commissioner may issue temporary licenses upon
6 conditions as he or
she considers necessary for a term which
7 shall not extend
beyond 1 year after the effective date of this
8 act.
9 (6) (7) The
commissioner may require a bond from any a
10 licensed lottery sales
agent in an amount as provided in the
11 rules promulgated under this act.
12 (7) (8) A
licensed lottery sales agent shall display his or
13 her license or a copy thereof
of the license conspicuously in
14 accordance with the rules
promulgated under this act.
15 (8) (9) The
commissioner may suspend or revoke the license
16 of any lottery sales agent who violates this act or a rule
17 promulgated pursuant
to under this act.
18 (9) (10) For
purposes of terminal placement, the
19 commissioner shall take into account with equal emphasis both of
20 the following:
21 (a) The total instant game sales for the 3 months immediately
22 preceding a market evaluation.
23 (b) The need to maximize net lottery revenues from the total
24 number of terminals placed.
25 (10) A lottery sales agent license is valid for 1 year from
26 the date it is issued. A licensed lottery sales agent may apply
27 to renew the license annually. A licensed lottery sales agent
1 shall pay a fee of $100.00 with each application for renewal of a
2 license under this subsection.
3 (11) As used in this section, "person" means an individual,
4 association, corporation, club, trust, estate, society, company,
5 joint stock company, receiver, trustee, referee, any other person
6 acting in a fiduciary or representative capacity who is appointed
7 by a court, or any combination of individuals. Person includes a
8 department, commission, agency, or instrumentality of this state,
9 including any county, city, village, or township and any agency
10 or instrumentality thereof.