HOUSE BILL No. 4479
March 12, 1997, Introduced by Reps. DeHart, LaForge, Kelly, Schauer, Cherry, Martinez, Goschka, Schermesser, McBryde, Hanley, Brewer, Hale and Parks and referred to the Committee on Appropriations. A bill to amend 1972 PA 239, entitled "McCauley-Traxler-Law-Bowman-McNeely lottery act," by amending section 41 (MCL 432.41), as amended by 1996 PA 167, and by adding section 41a. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 41. (1) A special fund to be known as the "state lot- 2 tery fund" is created in the department of treasury. Except as 3 provided in subsection (3), the state lottery fund consists of 4 all revenues received from the sale of state lottery tickets or 5 shares and all other money credited or transferred to the fund 6 from any other fund or sources pursuant to law including interest 7 earnings on common cash attributable to the state lottery fund. 8 Revenue derived from the sale of tickets or shares of any joint 9 enterprise shall be treated in the manner provided for in the 10 joint enterprise participation agreement executed by the 00774'97 VPW 2 1 commissioner. The commissioner shall deposit net revenue from 2 any joint enterprise in the state lottery fund. Earnings result- 3 ing from installment payment of any lottery prizes shall be used 4 for payment of prizes to lottery winners and the prize structure 5 formulated pursuant to sections 11 and 12 shall be established 6 accordingly. 7 (2) The investment authority of the state treasurer with 8 regard to the state lottery fund shall be the same as his or her 9 investment authority with regard to retirement system funds. To 10 assure a continuing availability of money with which to pay state 11 lottery prize installments and to compensate for variations in 12 the yield on investments, every 6 months the commissioner and the 13 state treasurer shall review the status of the installment prize 14 investments and shall agree on an amount to be restricted out of 15 the total revenues of the state lottery fund as a reserve against 16 a drop in yield. If the commissioner and the state treasurer 17 fail to agree on the amount to be reserved, the matter shall be 18 referred to the state administrative board for a decision on the 19 amount to be reserved. 20 (3) After the payment of prizes to the holders of winning 21 state lottery tickets or shares or the payment pursuant to 22 section 32 of the liabilities to this state of holders of winning 23 state lottery tickets or shares, and the payment of the reason- 24 able expenses of the bureau in its operation of the lottery, the 25 net revenue in the state lottery fund and any money or interest 26 generated by the state lottery fund and share of common cash 27 shall be deposited in the state school aid LOTTERY PRESERVATION 00774'97 3 1 fund CREATED IN SECTION 41A and shall be distributed as provided 2 by law. 3 (4) EACH YEAR, THE LEGISLATURE SHALL APPROPRIATE TO THE 4 STATE SCHOOL AID FUND FROM THE GENERAL FUND AN AMOUNT EQUAL TO 5 THE AMOUNT DEPOSITED IN THE LOTTERY PRESERVATION FUND. 6 SEC. 41A. (1) THE LOTTERY PRESERVATION FUND IS CREATED 7 WITHIN THE STATE TREASURY. 8 (2) THE STATE TREASURER MAY RECEIVE MONEY OR OTHER ASSETS 9 FROM ANY SOURCE FOR DEPOSIT INTO THE LOTTERY PRESERVATION FUND. 10 THE STATE TREASURER SHALL DIRECT THE INVESTMENT OF THE LOTTERY 11 PRESERVATION FUND. THE STATE TREASURER SHALL CREDIT TO THE LOT- 12 TERY PRESERVATION FUND INTEREST AND EARNINGS FROM FUND 13 INVESTMENTS. 14 (3) MONEY IN THE LOTTERY PRESERVATION FUND AT THE CLOSE OF 15 THE FISCAL YEAR SHALL REMAIN IN THE FUND AND SHALL NOT LAPSE TO 16 THE GENERAL FUND. 17 (4) MONEY IN THE FUND SHALL BE APPROPRIATED ONLY FOR K-12 18 EDUCATION TO AUGMENT FUNDING FOR SCHOOL DISTRICTS. AN APPROPRIA- 19 TION FROM THE FUND SHALL NOT RESULT IN A DIMINUTION IN THE AMOUNT 20 OF MONEY APPROPRIATED FOR K-12 EDUCATION FROM OTHER SOURCES. 00774'97 Final page. VPW