HB-5102, As Passed Senate, May 20, 2008

HOUSE BILL No. 5102

August 8, 2007, Introduced by Rep. Farrah 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 section 23 (MCL 432.23), as amended by 2004 PA 272.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 23. (1) The commissioner shall not issue a license to a

person to engage in business exclusively as a lottery sales agent.

Before issuing a lottery sales license, the commissioner shall

consider factors such as the financial responsibility and security

of the person and his or her business or activity, the

accessibility of his or her place of business or activity to the

public, the sufficiency of existing licenses to serve the public

convenience, and the volume of expected sales.

(2) ~~Beginning the effective date of the amendatory act that~~

~~added subsection (12), the~~ The commissioner shall issue an initial

or renewal lottery sales license not later than 90 days after the

applicant files a completed application. Receipt of the application

is considered the date the application is received by any agency or

department of this state. If the commissioner determines that the

application is ~~determined to be~~ incomplete, ~~by the commissioner,~~

the commissioner shall notify the applicant in writing, or make

information electronically available, within 30 days after receipt

of the incomplete application, describing the deficiency and

requesting the additional information. The 90-day period is tolled

upon notification by the commissioner of a deficiency until the

date the requested information is received by the commissioner. The

determination of the completeness of an application does not

operate as an approval of the application for the license and does

not confer eligibility of an applicant determined otherwise

ineligible for issuance of a license.

(3) If the commissioner fails to issue or deny a lottery sales

license within the time required by this section, the commissioner

shall return the license fee and shall reduce the license fee for

the applicant's next renewal application, if any, by 15%. The

failure to issue a lottery sales license within the time required

under this section does not allow the commissioner to otherwise

delay the processing of the application, and that application, upon

completion, shall be placed in sequence with other completed

applications received at that same time. The commissioner shall not

discriminate against an applicant in the processing of the

application based upon the fact that the license fee was refunded

or discounted under this subsection.

(4) ~~Beginning~~ ~~October 1, 2005, the~~ The commissioner shall

submit a report by December 1 of each year to the standing

committees and appropriations subcommittees of the senate and house

of representatives concerned with gaming issues. The commissioner

shall include all of the following information in the report

concerning the preceding fiscal year:

(a) The number of initial and renewal applications the

commissioner received and completed within the 90-day time period

described in subsection (2).

(b) The number of applications denied.

90-day time period and the amount of money returned to licensees

and applicants under subsection (3).

(5) Notwithstanding any other provision of law, a person

licensed as a lottery sales agent may sell lottery tickets and

shares. A person lawfully engaged in nongovernmental business on

state property may be licensed as a lottery sales agent.

(6) A lottery sales license is not assignable or transferable.

(7) A licensed agent or his or her employee may sell lottery

tickets or shares only on the premises stated in the lottery sales

license. A licensed agent who violates this subsection is, at the

commissioner's discretion, subject to 1 or more of the following:

(a) Probation for not more than 2 years.

(b) A fine of not more than $1,000.00.

(8) The commissioner may require a bond from a licensed agent

in an amount provided in rules promulgated under this act.

(9) A licensed agent shall display his or her license or a

copy of the license conspicuously in accordance with rules

promulgated under this act.

(10) The commissioner may suspend or revoke the license of an

agent who violates this act or a rule promulgated under this act.

(11) For purposes of terminal placement, the commissioner

shall take into account with equal emphasis both of the following:

(a) The total instant game sales for the 3 months immediately

preceding a market evaluation.

(b) The need to maximize net lottery revenues from the total

number of terminals placed.

(12) A licensed lottery sales agent shall not offer to give or

give any money or other thing of value to the holder of a lottery

ticket or share for winning the lottery, other than the prize if

payment of the prize by the agent is authorized by the

commissioner.

(13) ~~(12)~~ As used in this section:

(a) "Completed application" means an application complete on

its face and submitted with any applicable licensing fees and any

other information, records, approval, security, or similar item

required by law or rule from a local unit of government, a federal

agency, or a private entity but not from another department or

agency of this state.

(b) "Person" means an individual, association, corporation,

club, trust, estate, society, company, joint stock company,

receiver, trustee, referee, or other person acting in a fiduciary