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.

 

     (c) The number of applicants not issued a license within the

 

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.

 

     (c) Removal of his or her lottery terminal.

 

     (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

 


or representative capacity who is appointed by a court, or any

 

combination of individuals. Person includes a department,

 

commission, agency, or instrumentality of the state, including a

 

county, city, village, or township and an agency or instrumentality

 

of the county, city, village, or township.