SENATE BILL No. 1484

 

 

November 10, 2004, Introduced by Senator SWITALSKI and referred to the Committee on Gaming and Casino Oversight.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1972 PA 239, entitled                                             

                                                                                

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

                                                                                

    by amending sections 11, 12, and 25 (MCL 432.11, 432.12, and                

                                                                                

    432.25), section 11 as amended by 2004 PA 383, section 12 as                

                                                                                

    amended by 2002 PA 471, and section 25 as amended by 1998 PA                

                                                                                

    465.                                                                        

                                                                                

                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, 1969 PA              

                                                                                

3   306, MCL 24.201 to 24.328, as necessary to implement this act.              

                                                                                

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

                                                                                

5   of the following subject to subsection (4) and other requirements           

                                                                                

6   and limitations in this act:                                                

                                                                                

7       (a) The type of lottery to be conducted.                                    

                                                                                

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

                                                                                


                                                                                

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

                                                                                

2   or shares.                                                                  

                                                                                

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

                                                                                

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

                                                                                

5   tickets or shares.                                                          

                                                                                

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

                                                                                

7   tickets or shares.                                                          

                                                                                

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

                                                                                

9   locations at which tickets or shares may be sold.                           

                                                                                

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

                                                                                

11  except that a person's name, other than a name used in                      

                                                                                

12  advertising or a promotion under section 18(2), shall not be                

                                                                                

13  printed on the tickets or shares.                                           

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

17  sales agents necessary to provide for the adequate availability             

                                                                                

18  of tickets or shares to prospective buyers and for the                      

                                                                                

19  convenience of the public.                                                  

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

24  operation and administration of the lottery, including the                  

                                                                                

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

                                                                                

26  or contracts entered into for promotional, advertising,                     

                                                                                

27  consulting or operational services or for the purchase or lease             


                                                                                

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

                                                                                

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

                                                                                

3   the general fund.                                                           

                                                                                

4       (3) The commissioner may promulgate rules incorporating by                  

                                                                                

5   reference existing rules or regulations of any joint enterprise             

                                                                                

6   as required as a condition for participation in that joint                  

                                                                                

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

                                                                                

8   regulations of the joint enterprise may be adopted by the                   

                                                                                

9   commissioner through the promulgation of a rule.                            

                                                                                

10      (4) The commissioner may issue a statement of the terms of a                

                                                                                

11  lottery game.  A statement under this subsection may be issued by           

                                                                                

12  directive and is not required to be in the form of rules or                 

                                                                                

13  promulgated under the administrative procedures act of 1969, 1969           

                                                                                

14  PA 306, MCL 24.201 to 24.328.  A statement under this subsection            

                                                                                

15  may include 1 or more of the following:                                     

                                                                                

16      (a) A definition and delineation of the game.                               

                                                                                

17      (b) A game overview.                                                        

                                                                                

18      (c) A matrix of the game.                                                   

                                                                                

19      (d) Retailer requirements and prohibitions.                                 

                                                                                

20      (e) Eligibility restrictions.                                               

                                                                                

21      (f) Ticket responsibility.                                                  

                                                                                

22      (g) Price to play.                                                          

                                                                                

23      (h) The manner of determining prizewinners.                                 

                                                                                

24      (i) Winning ticket validation requirements.                                 

                                                                                

25      (j) Methods for claiming prizes.                                            

                                                                                

26      (k) Requirements related to income taxes.                                   

                                                                                

27                                                                               (l) Liabilities of winners.                                                         


                                                                                

1       (m) Dispute resolution.                                                     

                                                                                

2       (n) Governing law.                                                          

                                                                                

3       (o) Disclaimers.                                                            

                                                                                

4       (p) Game termination information.                                           

                                                                                

5       (q) Images or descriptions of tickets.                                      

                                                                                

6       (r) A definition for or provisions regarding 1 or more of the               

                                                                                

7   following:                                                                  

                                                                                

8                                                                                (i) Bar codes.                                                                      

                                                                                

9       (ii) Game books.                                                             

                                                                                

10      (iii) Ticket numbers.                                                        

                                                                                

11      (iv) Images.                                                                 

                                                                                

12      (v) Legends.                                                                

                                                                                

13      (vi) Play symbols.                                                           

                                                                                

14      (vii) Retailers.                                                             

                                                                                

15      (viii) Tickets.                                                               

                                                                                

16      (ix) Universal product codes.                                               

                                                                                

17      (x) Validation codes.                                                       

                                                                                

18      (xi) Validation numbers.                                                    

                                                                                

19      Sec. 12.  (1) Except as otherwise provided in subsection                    

                                                                                

20  (3)  (2),  as nearly as is practicable, until January 1, 2007,             

                                                                                

21  not less than 45% of the total annual revenue accruing from the             

                                                                                

22  sale of lottery tickets or shares shall be apportioned for                  

                                                                                

23  payment of prizes to the holders of winning tickets or shares.              

                                                                                

24      (2) On or after January 1, 2007, 45% of the total revenue                   

                                                                                

25  shall be apportioned for payment of prizes.                                 

                                                                                

26      (2)  (3)  Notwithstanding  subsections (1) and (2)                          

                                                                                

27  subsection (1), the prize money from the sale of tickets or                 


                                                                                

1   shares of any joint enterprise is that percentage of the total              

                                                                                

2   annual revenue accrued from that game as prescribed by the joint            

                                                                                

3   enterprise participation agreement executed by the commissioner.            

                                                                                

4       Sec. 25.  (1) The bureau shall give a prizewinner in the                    

                                                                                

5   Michigan lotto game the option of receiving his or her prize in a           

                                                                                

6   single payment or in installments.  This option shall be made               

                                                                                

7   available to and exercised by the purchaser of a Michigan lotto             

                                                                                

8   game ticket at the point of purchase.  As used in this                      

                                                                                

9   subsection, "Michigan lotto game" means a game administered by              

                                                                                

10  the bureau in which the matrix is 6 out of 49 numbers drawn.                

                                                                                

11      (2) The right of any person to a prize drawn from the state                 

                                                                                

12  lottery is not assignable, except as provided in this section.              

                                                                                

13  The commissioner shall be discharged of all further liability               

                                                                                

14  upon payment of a prize pursuant to this section.                           

                                                                                

15      (3) Payment of any prize drawn may be made to a person                      

                                                                                

16  pursuant to an appropriate judicial order.                                  

                                                                                

17      (4) Payment of any prize drawn may be made to the state                     

                                                                                

18  pursuant to section 32.                                                     

                                                                                

19      (5) If a prizewinner dies before collecting the full amount                 

                                                                                

20  of his or her prize drawn from the state lottery, the bureau                

                                                                                

21  shall continue to make the remaining prize payments  to  as                 

                                                                                

22  directed by the prizewinner.  If the prizewinner does not direct            

                                                                                

23  otherwise, the remaining prize payments shall be made in the                

                                                                                

24  following order:                                                            

                                                                                

25      (a) To the prizewinner's surviving spouse.  and                             

                                                                                

26      (b) If there is not a surviving spouse, to the prizewinner's                

                                                                                

27  living children, in equal proportions, unless otherwise directed            


                                                                                

1   by the prizewinner.                                                         

                                                                                

2       (c) If there is not a surviving spouse or living children,                  

                                                                                

3   or other designated beneficiaries, the remaining prize payments            

                                                                                

4   shall be made  to the prizewinner's estate.                                 

                                                                                

5       (6) Except as provided in subsection (11), payment of any                   

                                                                                

6   prize drawn may be made to any person pursuant to a voluntary               

                                                                                

7   assignment of the right to receive future prize payments, in                

                                                                                

8   whole or in part, if the assignment is made to a person or entity           

                                                                                

9   designated pursuant to an appropriate judicial order of a court             

                                                                                

10  of competent jurisdiction located in either the county in which             

                                                                                

11  the assignor resides or the county in which the bureau is                   

                                                                                

12  located.  An order approving the assignment and directing the               

                                                                                

13  commissioner to pay the assignee all or a part of future prize              

                                                                                

14  payments is properly issued if the court finds that all of the              

                                                                                

15  following circumstances exist:                                              

                                                                                

16      (a) The assignment is in writing, executed by the assignor in               

                                                                                

17  accordance with the laws of this state, and the terms of the                

                                                                                

18  assignment are disclosed, including the identity of the assignee,           

                                                                                

19  the portion or portions of prize payments to be assigned, and the           

                                                                                

20  amounts and dates of any payments that shall be given in exchange           

                                                                                

21  for the assignment.                                                         

                                                                                

22      (b) The assignor provides a sworn affidavit to the court                    

                                                                                

23  attesting that the assignor is of sound mind, is not acting under           

                                                                                

24  duress, has been advised regarding the assignment by his or her             

                                                                                

25  legal counsel, and understands and agrees that the state and the            

                                                                                

26  commissioner will have no further liability or responsibility to            

                                                                                

27  make prize payments to the assignor.                                        


                                                                                

1       (c) The proposed assignment does not include or cover                       

                                                                                

2   payments or portions of payments that are subject to section 32.            

                                                                                

3       (d) Not less than 5 days after filing a petition for a                      

                                                                                

4   judicial order that approves a voluntary assignment under this              

                                                                                

5   subsection and not less than 10 days before a hearing on the                

                                                                                

6   petition, the petitioner  shall cause  served a copy of the                 

                                                                                

7   petition and notice of hearing on the petition  to be served                

                                                                                

8   upon  on the attorney general.  The attorney general or his or              

                                                                                

9   her assistant shall be permitted to appear and take action that             

                                                                                

10  is in the best interests of the bureau and this state.                      

                                                                                

11      (7) Soliciting or offering rights to lottery prize payments,                

                                                                                

12  either by assignment or through pledge as collateral for a loan,            

                                                                                

13  shall not be considered selling or offering for sale lottery                

                                                                                

14  tickets or shares under this act.                                           

                                                                                

15      (8) The commissioner is authorized to establish a reasonable                

                                                                                

16  fee to defray the cost of any administrative expenses associated            

                                                                                

17  with assignments made pursuant to this section, including the               

                                                                                

18  cost of a processing fee that may be imposed by a private annuity           

                                                                                

19  provider.  The amount of the fee shall reflect the direct and               

                                                                                

20  indirect costs associated with processing the assignments.                  

                                                                                

21      (9) Except as otherwise provided by state or federal law, the               

                                                                                

22  commissioner or an officer or employee of the bureau shall not              

                                                                                

23  disclose the name, address, or any other personal information               

                                                                                

24  concerning a winner of a prize greater than $10,000.00 drawn from           

                                                                                

25  the state lottery, unless the winner of a prize agrees in writing           

                                                                                

26  to allow the disclosure.  Subject to subsection (10), the                   

                                                                                

27  information protected against disclosure under this section is              


                                                                                

1   exempt from disclosure under the freedom of information act, 1976           

                                                                                

2   PA 442, MCL 15.231 to 15.246.                                               

                                                                                

3       (10) Notwithstanding subsection (9), the commissioner or an                 

                                                                                

4   officer or employee of the bureau may disclose the name, address,           

                                                                                

5   or any other personal information concerning a winner of a prize            

                                                                                

6   awarded under a game played pursuant to a joint enterprise to the           

                                                                                

7   extent required under the joint enterprise participation                    

                                                                                

8   agreement executed by the commissioner.                                     

                                                                                

9       (11) If at any time the federal internal revenue service or a               

                                                                                

10  court of competent jurisdiction issues a determination letter,              

                                                                                

11  revenue ruling, other public ruling of the internal revenue                 

                                                                                

12  service, or published decision to any state lottery or state                

                                                                                

13  lottery prizewinner declaring that the voluntary assignment of              

                                                                                

14  prizes will affect the federal income tax treatment of                      

                                                                                

15  prizewinners who do not assign their prizes, the commissioner               

                                                                                

16  shall immediately file a copy of that letter, ruling, or                    

                                                                                

17  published decision with the secretary of state and the office of            

                                                                                

18  the state court administrator.  A court shall not issue a                   

                                                                                

19  voluntary assignment order under subsection (6) after the date              

                                                                                

20  the ruling, letter, or published decision is filed.