Bill Text: MI SB0415 | 2009-2010 | 95th Legislature | Introduced
Bill Title: State financing and management; funds; investment of money in state lottery fund; modify. Amends sec. 41 of 1972 PA 239 (MCL 432.41).
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2009-03-31 - Referred To Committee On Appropriations [SB0415 Detail]
Download: Michigan-2009-SB0415-Introduced.html
SENATE BILL No. 415
March 31, 2009, Introduced by Senator SWITALSKI and referred to the Committee on Appropriations.
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 2008 PA 274.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
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 (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 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.
