Bill Text: MI HB5911 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Gaming; lottery; veteran's lottery fund; create, and provide funding from a special instant lottery game. Amends title & secs. 41 & 43 of 1972 PA 239 (MCL 432.41 & 432.43) & adds sec. 10.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2010-03-03 - Printed Bill Filed 03/03/2010 [HB5911 Detail]

Download: Michigan-2009-HB5911-Introduced.html

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HOUSE BILL No. 5911

 

March 2, 2010, Introduced by Reps. Haugh, Roy Schmidt, Roberts, LeBlanc and Polidori 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 the title and sections 41 and 43 (MCL 432.41 and

 

432.43), the title as amended by 1996 PA 95, section 41 as amended

 

by 2009 PA 25, and section 43 as amended by 1997 PA 72, and by

 

adding section 10.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to establish and operate a state lottery and to allow

 

state participation in certain lottery-related joint enterprises

 

with other sovereignties; to create a bureau of state lottery and

 

to prescribe its powers and duties; to prescribe certain powers and

 

duties of other state departments and agencies; to license and

 

regulate certain sales agents; to create the state lottery fund;

 

funds; to provide for the distribution of lottery revenues and

 

earnings for certain purposes; to provide for an appropriation; and

 

to provide for remedies and penalties.

 

     Sec. 10. (1) The commissioner shall conduct a special instant

 

lottery game for the benefit of Michigan veterans. The game shall

 

commence on January 1, 2011 or as soon after January 1, 2011 as the

 

commissioner determines is reasonably practical. The operation of

 

the game offered under this section shall be governed by this act

 

and any rules adopted by the commissioner. The bureau shall not

 

unreasonably diminish the efforts devoted to marketing other

 

instant lottery games because of the game offered under this

 

section.

 

     (2) The veterans assistance fund is created within the state

 

treasury.

 

     (3) The state treasurer shall deposit money paid from the

 

state lottery fund under section 41(5) and any money or other

 

assets received from gifts, grants, awards, or any other source

 

designated for the veterans assistance fund into the veterans

 

assistance fund. The state treasurer shall direct the investment of

 

the veterans assistance fund. The state treasurer shall credit to

 

the veterans assistance fund interest and earnings from veterans

 

assistance fund investments.

 

     (3) Money in the veterans assistance fund at the close of the

 

fiscal year shall remain in the veterans assistance fund and shall

 

not lapse to the general fund.

 

     (4) The department of military and veterans affairs shall be

 

the administrator of the fund for auditing purposes.

 

     (5) The department of military and veterans affairs shall

 

expend money from the fund, upon appropriation and pursuant to

 

subsection (16), only for making grants, funding services, or

 

conducting research projects relating to 1 or more of the

 

following:

 

     (a) Veterans' post-traumatic stress disorder.

 

     (b) Veterans' homelessness.

 

     (c) The health insurance costs of veterans. However, beginning

 

with money appropriated for the state fiscal year beginning October

 

1, 2013, not more than 20% of the money appropriated from the

 

veterans assistance fund shall be used for veterans' health

 

insurance costs.

 

     (d) Veterans' disability benefits, including disability

 

benefits provided by veterans service organizations and veterans

 

assistance commissions or centers.

 

     (e) The long-term care of veterans.

 

     (6) The veterans assistance fund advisory committee is created

 

within the department of military and veterans affairs.

 

     (7) The veterans assistance fund advisory committee shall

 

consist of 3 members, appointed by the head of the department of

 

military and veterans affairs.

 

     (8) A member of the veterans assistance fund advisory

 

committee shall serve until a successor is appointed by the head of

 

the department of military and veterans affairs.

 

     (9) If a vacancy occurs on the veterans assistance fund

 

advisory committee, the head of the department of military and

 

veterans affairs shall make an appointment for the vacant office in

 

the same manner as the original appointment.

 

     (10) The head of the department of military and veterans

 

affairs may remove a member of the veterans assistance fund

 

advisory committee for incompetency, dereliction of duty,

 

malfeasance, misfeasance, or nonfeasance in office, or any other

 

good cause.

 

     (11) The head of the department of military and veterans

 

affairs shall designate 1 of the members of the veterans assistance

 

fund advisory committee as chairperson of the committee. The

 

veterans assistance fund advisory committee shall meet at least

 

quarterly, or more frequently at the call of the chairperson or if

 

requested by 2 or more members.

 

     (12) Two of the members of the veterans assistance fund

 

advisory committee constitute a quorum for the transaction of

 

business at a meeting of the veterans assistance fund advisory

 

committee. The approval of 2 of the members of the veterans

 

assistance fund advisory committee are required for official action

 

of the veterans assistance fund advisory committee.

 

     (13) The business that the veterans assistance fund advisory

 

committee may perform shall be conducted at a public meeting of the

 

veterans assistance fund advisory committee held in compliance with

 

the open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     (14) A writing prepared, owned, used, in the possession of, or

 

retained by the veterans assistance fund advisory committee in the

 

performance of an official function is subject to the freedom of

 

information act, 1976 PA 442, MCL 15.231 to 15.246.

 

     (15) Members of the veterans assistance fund advisory

 

committee shall serve without compensation. However, members of the

 

veterans assistance fund advisory committee may be reimbursed for

 

their actual and necessary expenses incurred in the performance of

 

their official duties as members of the veterans assistance fund

 

advisory committee.

 

     (16) Beginning with money appropriated from the veterans

 

assistance fund for the state fiscal year that begins October 1,

 

2013, the veterans assistance fund advisory committee shall decide

 

how money from the veterans assistance fund shall be expended for

 

the purposes listed in subsection (5). A decision of the veterans

 

assistance fund advisory committee does not take effect until it is

 

approved by the head of the department of military and veterans

 

affairs.

 

     Sec. 41. (1) The state lottery fund is created in the

 

department of treasury. Except as provided in 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 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 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

 

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

 

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 be referred to

 

the state administrative board for a decision on the amount to be

 

reserved.

 

     (3) Except as provided in subsection subsections (4) and (5),

 

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 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.

 

     (5) The revenue in the state lottery fund attributable to the

 

sale of tickets for an instant game under section 10, after the

 

payment of prizes for the game and the reasonable expenses of the

 

bureau in its operation of the game, and any money or interest

 

generated by the state lottery fund attributable to the resulting

 

net revenue shall be deposited in the veterans assistance fund

 

created under section 10.

 

     Sec. 43. Subject to section 41(1), the money in the state

 

lottery fund is appropriated only for the payment of prizes to the

 

holders of winning state lottery tickets or shares, for the payment

 

pursuant to section 32 of the liabilities to this state of holders

 

of winning state lottery tickets or shares, for reasonable expenses

 

of the bureau in its operation of the state lottery, for deposit in

 

the compulsive gaming prevention fund as provided in section 41(4),

 

and for deposit in the state school aid fund as provided in section

 

41(3), and for deposit into the veterans assistance fund created in

 

section 10 as provided in section 41(5).