January 12, 2005, Introduced by Senator BROWN 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 12 and 41 (MCL 432.12 and 432.41), section 12
as amended by 2002 PA 471 and section 41 as amended by 1997 PA 72.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec.
12. (1) Except as otherwise provided in subsection (3)
(2), as nearly as is practicable, until January 1, 2007, not less
not more than 45% of the total annual revenue accruing from the
sale of lottery tickets or shares shall be apportioned for payment
of prizes to the holders of winning tickets or shares.
(2)
On or after January 1, 2007, 45% of the total revenue
shall
be apportioned for payment of prizes.
(2) (3)
Notwithstanding subsections
(1) and (2) subsection
(1), the prize money from the sale of tickets or shares of any
joint enterprise is that percentage of the total annual revenue
accrued from that game as prescribed by the joint enterprise
participation agreement executed by the commissioner.
Sec. 41. (1) A special fund to be known as the "state lottery
fund" is created in the department of treasury. Except as provided
in subsection (3), the state lottery fund consists of all revenues
received from the sale of state lottery tickets or shares and all
other money credited or transferred to the fund from any other fund
or sources pursuant to law, including interest earnings on common
cash attributable to the state lottery fund. Revenue derived from
the sale of tickets or shares of any joint enterprise shall be
treated in the manner provided for in the joint enterprise
participation agreement executed by the commissioner. The
commissioner shall deposit net revenue from any joint enterprise in
the state lottery fund. Earnings resulting from installment payment
of any lottery prizes shall be used for payment of prizes to
lottery winners and the prize structure formulated pursuant to
sections 11 and 12 shall be established accordingly.
(2) The investment authority of the state treasurer with
regard to the state lottery fund shall be the same as his or her
investment authority with regard to retirement system funds. To
assure a continuing availability of money with which to pay state
lottery prize installments and to compensate for variations in the
yield on investments, every 6 months the commissioner and the state
treasurer shall review the status of the installment prize
investments and shall agree on an amount to be restricted out of
the total revenues of the state lottery fund as a reserve against a
drop in yield. If the commissioner and the state treasurer fail to
agree on the amount to be reserved, the matter shall be referred to
the state administrative board for a decision on the amount to be
reserved.
(3) Except as provided in subsection (4), after the payment of
prizes to the holders of winning state lottery tickets or shares or
the payment pursuant to section 32 of the liabilities to this state
of holders of winning state lottery tickets or shares, and, subject
to subsection (5), the payment of the reasonable expenses of the
bureau in its operation of the lottery, the net revenue in the
state lottery fund and any money or interest generated by the state
lottery fund and share of common cash, but in no case less than 50%
of the net revenue and money or interest generated, shall be
deposited
in the state school aid fund and shall be distributed
as provided by law.
(4) Ten percent of each year's state lottery advertising
budget but not to exceed $1,000,000.00 shall be deposited in the
compulsive gaming prevention fund created in the compulsive gaming
prevention act.
(5) Not more than 5% of the total annual revenue accruing from
the sale of lottery tickets or shares in this state shall be
apportioned for payment of expenses of the bureau in its operation
of the lottery, including, but not limited to, expenses for
advertising and for compulsive gaming prevention.