HB-5999, As Passed Senate, September 10, 2008

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5999

     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 1997 PA 72.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 41. (1) A special fund to be known as the "state The

state lottery fund" fund is created in the department of treasury.

Except as provided in subsection (3), the state lottery fund

consists of all revenues money 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 source

pursuant to law including interest earnings on common cash

attributable to the state lottery fund. Revenue Money 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 is the same as his or her

investment authority with regard to retirement system funds. The

state treasurer shall comply with the divestment from terror act,

2008 PA 234, MCL 129.291 to 129.301, in making investments under

this act. 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 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 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 more than $1,000,000.00 shall be deposited

in the compulsive gaming prevention fund created in section 3 of

the compulsive gaming prevention act, 1997 PA 70, MCL 432.253.