SB-1323, As Passed House, September 15, 2004                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                           HOUSE SUBSTITUTE FOR                                 

                                                                                

                           SENATE BILL NO. 1323                                 

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1972 PA 239, entitled                                             

                                                                                

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

                                                                                

    by amending sections 11 and 18 (MCL 432.11 and 432.18), section             

                                                                                

    11 as amended by 2004 PA 272.                                               

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 11.  (1) The commissioner shall promulgate rules                       

                                                                                

2   pursuant to the administrative procedures act of 1969, 1969 PA              

                                                                                

3   306, MCL 24.201 to 24.328, as necessary to implement this act.              

                                                                                

4       (2) The rules authorized under this section may include any                 

                                                                                

5   of the following subject to requirements and limitations in this            

                                                                                

6   act:                                                                        

                                                                                

7       (a) The type of lottery to be conducted.                                    

                                                                                

8       (b) The price of tickets or shares in the lottery.                          

                                                                                

9       (c) The number and size of the prizes on the winning tickets                

                                                                                

10  or shares.                                                                  

                                                                                


                                                                                

1       (d) The manner of selecting the winning tickets or shares.                  

                                                                                

2       (e) The manner of payment of prizes to the holders of winning               

                                                                                

3   tickets or shares.                                                          

                                                                                

4       (f) The frequency of the drawings or selections of winning                  

                                                                                

5   tickets or shares.                                                          

                                                                                

6       (g) Without limit as to number, the type or types of                        

                                                                                

7   locations at which tickets or shares may be sold.                           

                                                                                

8       (h) The method to be used in selling tickets or shares,                     

                                                                                

9   except that a person's name, other than a name used in                      

                                                                                

10  advertising or a promotion under section 18(2), shall not be                

                                                                                

11  printed on the tickets or shares.                                           

                                                                                

12      (i) The licensing of agents to sell tickets or shares, but a                

                                                                                

13  person under the age of 18 shall not be licensed as an agent.               

                                                                                

14      (j) The manner and amount of compensation to be paid licensed               

                                                                                

15  sales agents necessary to provide for the adequate availability             

                                                                                

16  of tickets or shares to prospective buyers and for the                      

                                                                                

17  convenience of the public.                                                  

                                                                                

18      (k) The apportionment of the total annual revenues accruing                 

                                                                                

19  from the sale of lottery tickets or shares and from all other               

                                                                                

20  sources for the payment of prizes to the holders of winning                 

                                                                                

21  tickets or shares, for the payment of costs incurred in the                 

                                                                                

22  operation and administration of the lottery, including the                  

                                                                                

23  expenses of the bureau and the costs resulting from any contract            

                                                                                

24  or contracts entered into for promotional, advertising,                     

                                                                                

25  consulting or operational services or for the purchase or lease             

                                                                                

26  of lottery equipment and materials, for the repayment of the                

                                                                                

27  money appropriated to the state lottery fund, and for transfer to           


     Senate Bill No. 1323 (H-1) as amended September 15, 2004

   

1   the general fund.                                                           

                                                                                

2       (3) The commissioner may promulgate rules incorporating by                  

                                                                                

3   reference existing rules or regulations of any joint enterprise             

                                                                                

4   as required as a condition for participation in that joint                  

                                                                                

5   enterprise.  Any subsequent changes or additions to the rules or            

                                                                                

6   regulations of the joint enterprise may be adopted by the                   

                                                                                

7   commissioner through the promulgation of a rule.                            

                                                                                

8       (4) This section is repealed if the Michigan supreme court                  

                                                                                

9   rules that sections 45 and 46 of the administrative procedures              

                                                                                

10  act of 1969, 1969 PA 306, MCL 24.245 and 24.246, are                        

                                                                                

11  unconstitutional and a statute requiring legislative review of              

                                                                                

12  administrative rules is not enacted within 90 days after the                

                                                                                

13  Michigan supreme court ruling.  This subsection does not                    

                                                                                

14  invalidate rules promulgated prior to April 17, 1996.                       

                                                                                

15      Sec. 18.  (1) The commissioner,  may,  subject to the                       

                                                                                

16  applicable laws relating to public contracts, may enter into                

                                                                                

17  contracts for the operation of the lottery, or any part  thereof            

                                                                                

18  of the lottery, and into contracts for the promotion of the                 

                                                                                

19  lottery.  A contract awarded or entered into by the commissioner            

                                                                                

20  shall not be assigned by the  holder thereof  other contracting             

                                                                                

21  party except by specific approval of the commissioner.                      

                                                                                

22      (2) The commissioner may contract with 1 or more persons to                 

                                                                                

23  allow the placement of advertising or promotional material,                 

                                                                                

24  including, but not limited to, the placement of discount coupons            

                                                                                

25  for retail goods and NASCAR logos, images, and drivers' pictures            

                                                                                

26  and names, on lottery tickets, shares, and other available media            

                                                                                

27  under the control of the bureau.  However, [except for advertising that promotes responsible consumption of alcoholic beverages,] the commissioner shall    


                                                                                

1   not allow the placement of advertising for the promotion of the             

                                                                                

2   consumption of alcoholic beverages or tobacco products on lottery           

                                                                                

3   tickets under the control of the bureau.                                    

                                                                                

4       (3) As used in this section, "NASCAR" means the national                    

                                                                                

5   association for stock car auto racing, inc.