HOUSE BILL NO. 6022

April 14, 2022, Introduced by Reps. Eisen, Tisdel, Markkanen, Bezotte, Cambensy, Steenland, Garza, Mueller, Outman and Coleman and referred to the Committee on Regulatory Reform.

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

by amending sections 12, 33, and 41 (MCL 432.12, 432.33, and 432.41), section 12 as amended by 2011 PA 279, section 33 as amended by 1996 PA 167, and section 41 as amended by 2009 PA 25, and by adding sections 10 and 44.

the people of the state of michigan enact:

Sec. 10. (1) The commissioner shall establish a separate lottery game named the "road rally 50/50" to fund the county road commissions in this state.

(2) The commissioner shall promulgate rules under section 11 to implement a separate lottery game under this section.

(3) All of the following requirements apply to the separate lottery game established under this section:

(a) Tickets cost $1.00 each.

(b) Tickets are sold on a monthly basis with 1 winning ticket randomly chosen on the last day of each month.

(c) Each individual who wins a prize from the lottery established under this section has 30 days to claim his or her prize. If the prize is not claimed within 30 days, the winnings roll over into the prize to be awarded in the following month.

(d) The total annual revenue accruing from the sale of lottery tickets or shares must be apportioned as follows:

(i) Forty-five percent for the payment of prizes to the holders of winning tickets or shares.

(ii) No more than 5% for the payment of the reasonable expenses of the bureau in its operation of the separate lottery game established under this section.

(iii) Five percent to the state school aid fund to be distributed as provided by law.

(iv) The balance, not to be less than 45%, to be paid annually in an equal amount to each county road commission.

(4) All lottery sales agents that sell tickets for the state lottery shall sell tickets or shares of a separate lottery game established under this section.

(5) Money from the sale of tickets or shares of a separate lottery game established under this section must be deposited in the road rally 50/50 lottery fund created in section 44.

(6) Except as specifically provided otherwise, the provisions of this act that are generally applicable to the conduct of the state lottery apply to the conduct of a separate lottery game established under this section.

Sec. 12. (1) Except as otherwise provided in subsection (2), as As nearly as is practicable, not less than 45% of the total annual revenue accruing from the sale of lottery tickets or shares shall must be apportioned for payment of prizes to the holders of winning tickets or shares.

(2) Notwithstanding 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.

(3) Notwithstanding subsection (1), revenue from the sale of lottery tickets or shares to a separate lottery game established under section 10 must be apportioned for payment of prizes as provided in section 10.

Sec. 33. (1) Unclaimed Except as provided in section 10, the commissioner shall retain unclaimed prize money for the prize on a winning ticket or share of the state lottery shall be retained by the commissioner for the person entitled to the prize money for 1 year after the drawing in which the prize was won. If a claim is not made for the prize money within the year, the commissioner shall deposit the prize money shall be deposited in the state school aid fund and distributed for distribution pursuant to law.

(2) Unclaimed prize money for the prize on a winning ticket or share of any joint enterprise shall must be treated in the manner provided for in the joint enterprise participation agreement executed by the commissioner. To the extent that the state of Michigan this state is entitled to any unclaimed prize money, that the money received shall must be deposited into the state school aid fund and distributed pursuant to law.

Sec. 41. (1) The state lottery fund is created in the department of treasury. Except as provided in section 10 and subsection (3), the state lottery fund consists of all 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 source pursuant to law including interest earnings on common cash attributable to the state lottery fund. Money derived from the sale of tickets or shares of any joint enterprise shall must 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 must be used for payment of prizes to lottery winners and the prize structure formulated pursuant to under sections 11 and 12 shall must be established accordingly.

(2) The investment authority of the state treasurer with regard to the state lottery fund is the same as his or her investment authority with regard to retirement system funds. The state treasurer may also invest all or part of the money in the state lottery fund in obligations issued by this state pursuant to under section 14, 15, or 16 of article IX of the state constitution of 1963 if the treasurer determines that the obligations are full faith and credit obligations of this state and provide a rate of return at the time of investment that is not less than the rate of return at the time of investment on United States treasury Treasury obligations of comparable maturity. 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 must be referred to the state administrative board for a decision on the amount to be reserved.

(3) Except as provided in section 10 and subsection (4), after the payment of prizes to the holders of winning state lottery tickets or shares or the payment pursuant to under 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 must 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 more than $1,000,000.00 shall must be deposited in the compulsive gaming prevention fund created in section 3 of the compulsive gaming prevention act, 1997 PA 70, MCL 432.253.

Sec. 44. (1) The road rally 50/50 lottery fund is created in the state treasury.

(2) The state treasurer shall deposit money and other assets received from the sale of tickets or shares in the separate lottery game established under section 10 or from any other source in the road rally 50/50 lottery fund. The state treasurer shall direct the investment of money in the road rally 50/50 lottery fund and credit interest and earnings from the investments to the fund.

(3) The department of transportation is the administrator of the road rally 50/50 lottery fund for audits of that fund.

(4) The department of transportation shall expend money from the road rally 50/50 lottery fund only for 1 or more of the following purposes:

(a) For the payment of prizes in the separate lottery game established under section 10 in accordance with this act and the rules promulgated by the commissioner under this act.

(b) For payment under section 32 of liabilities to this state of holders of winning tickets or shares in the separate lottery game established under section 10.

(c) As appropriated, for the payment of the reasonable expenses of the bureau in its operation of the separate lottery game established under section 10, not to exceed 5% of the total annual revenue accruing from the sale of lottery tickets or shares of the separate lottery game established under section 10.

(d) For the payment of 5% of the total annual revenue accruing from the sale of lottery tickets or shares of the separate lottery game established under section 10 to the state school aid fund.

(e) The balance, not to be less than 45% of the total annual revenue accruing from the sale of lottery tickets or shares of the separate lottery game established under section 10, paid annually in an equal amount to each county road commission in this state.