Michigan Compiled Laws
Act 239 of 1972 - Mccauley-Traxler-Law-Bowman-Mcneely Lottery Act (432.1 - 432.47)
Section 432.11 - Rules.

Sec. 11.
(1) The commissioner shall promulgate rules pursuant to the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, as necessary to implement this act.
(2) The rules authorized under this section may include any of the following, subject to requirements and limitations in this act:
(a) The type of lottery to be conducted.
(b) The price of tickets or shares in the lottery.
(c) The number and size of the prizes on the winning tickets or shares.
(d) The manner of selecting the winning tickets or shares.
(e) The manner of payment of prizes to the holders of winning tickets or shares.
(f) The frequency of the drawings or selections of winning tickets or shares.
(g) Without limit as to number, the type or types of locations at which tickets or shares may be sold.
(h) The method to be used in selling tickets or shares, except that a person's name, other than a name used in advertising or a promotion under section 18(2) or (3), shall not be printed on the tickets or shares.
(i) The licensing of agents to sell tickets or shares, but a person under the age of 18 shall not be licensed as an agent.
(j) The manner and amount of compensation to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public.
(k) The apportionment of the total annual revenues accruing from the sale of lottery tickets or shares and from all other sources for the payment of prizes to the holders of winning tickets or shares, for the payment of costs incurred in the operation and administration of the lottery, including the expenses of the bureau and the costs resulting from any contract or contracts entered into for promotional, advertising, consulting or operational services or for the purchase or lease of lottery equipment and materials, for the repayment of the money appropriated to the state lottery fund, and for transfer to the general fund.
(3) The commissioner may promulgate rules incorporating by reference existing rules or regulations of any joint enterprise as required as a condition for participation in that joint enterprise. Any subsequent changes or additions to the rules or regulations of the joint enterprise may be adopted by the commissioner through the promulgation of a rule.
History: 1972, Act 239, Imd. Eff. Aug. 1, 1972 ;-- Am. 1973, Act 86, Imd. Eff. Aug. 5, 1973 ;-- Am. 1987, Act 55, Imd. Eff. June 22, 1987 ;-- Am. 1991, Act 165, Imd. Eff. Dec. 19, 1991 ;-- Am. 1996, Act 95, Eff. Mar. 31, 1997 ;-- Am. 1996, Act 167, Imd. Eff. Apr. 17, 1996 ;-- Am. 2004, Act 272, Imd. Eff. July 23, 2004 ;-- Am. 2004, Act 383, Imd. Eff. Oct. 12, 2004 ;-- Am. 2012, Act 293, Imd. Eff. Aug. 1, 2012 Compiler's Notes: In separate opinions, the Michigan Supreme Court held that Section 45(8), (9), (10), and (12) and the second sentence of Section 46(1) (“An agency shall not file a rule ... until at least 10 days after the date of the certificate of approval by the committee or after the legislature adopts a concurrent resolution approving the rule.”) of the Administrative Procedures Act of 1969, in providing for the Legislature's reservation of authority to approve or disapprove rules proposed by executive branch agencies, did not comply with the enactment and presentment requirements of Const 1963, Art 4, and violated the separation of powers provision of Const 1963, Art 3, and, therefore, were unconstitutional. These specified portions were declared to be severable with the remaining portions remaining effective. Blank v Department of Corrections, 462 Mich 103 (2000).For transfer of the Bureau of State Lottery from the Department of Management and Budget to be an autonomous entity within the Department of Treasury, see E.R.O. No. 1991-2, compiled at MCL 12.161 of the Michigan Compiled Laws.Popular Name: Lottery ActAdmin Rule: R 432.1 et seq. of the Michigan Administrative Code.

Structure Michigan Compiled Laws

Michigan Compiled Laws

Chapter 432 - Gaming

Act 239 of 1972 - Mccauley-Traxler-Law-Bowman-Mcneely Lottery Act (432.1 - 432.47)

Section 432.1 - Short Title.

Section 432.3 - Definitions.

Section 432.5 - Bureau of State Lottery; Creation; Transfer of Bureau to Department of Management and Budget as Autonomous Entity; Commissioner as Head of Bureau; Commissioner Exempt From Civil Service; Legislative Intent.

Section 432.7 - Commissioner; Qualifications; Appointment; Vacancy; Salary.

Section 432.9 - State Lottery; Establishment and Operation; Maximum Revenues; Bids and Contracts for Equipment and Services; Prohibited Activity; Joint Enterprises; Education and Treatment of Compulsive Gamblers.

Section 432.11 - Rules.

Section 432.12 - Apportionment of Revenue for Payment of Prizes; Percentage.

Section 432.13 - Reports; Monthly and Annual; Contents.

Section 432.15 - Reports, Studies, Investigations, and Recommendations.

Section 432.16 - Compulsive Gambling; Study; Toll-Free Compulsive Gaming Helpline Number.

Section 432.17 - Supervision and Administration of Lottery; Licensing of Lottery Sales Agents.

Section 432.18 - Contracts for Operation and Promotion of Lottery; Assignment; Limitations; Contracts for Advertising or Promotional Material Relating to Club Keno Game; "Nascar" Defined.

Section 432.19 - Personnel; Governmental Assistance.

Section 432.20 - Subpoenas.

Section 432.23 - License as Lottery Sales Agent; Issuance; Consideration of Factors; Receipt of Completed Application; Issuance of Certificate Within Certain Period of Time; Report; Nonassignable and Nontransferable; Bond; Display of License; Suspens...

Section 432.24 - Conviction or Administrative Disqualification of Person Holding Lottery Sales License; Transactions; Actions by Commissioner; Definitions.

Section 432.25 - Single Payment or Installments; Right to Prize Nonassignable; Discharge of Liability; Payment to Person Pursuant to Judicial Order; Payment to State Pursuant to MCL 432.32; Death of Prizewinner; Findings Required for Judicial Order;...

Section 432.27 - Price of Lottery Ticket; Sales by Person Other Than Licensed Agent; Lottery Ticket as Gift; Penalty.

Section 432.29 - Sale or Gift of Lottery Ticket to Minor; Penalty.

Section 432.30 - Falsely Making, Altering, Forging, Uttering, Passing, or Counterfeiting Lottery Ticket; Violation as Felony; Penalty.

Section 432.31 - Ineligibility of Bureau Officers, Employees, or Relatives Thereof.

Section 432.32 - Payment of Prize of $1,000.00 or More; Determination by Bureau; Compilation of Persons Having Current Liability to State; Application of Prize to Liability; Notice; Hearing; Application of Amount to Support Arrearage; Confidentiality...

Section 432.32a - Notification of Name and Identification Information to Department of Human Services.

Section 432.33 - Unclaimed Prize Money; Disposition.

Section 432.34 - Repealed. 1988, Act 516, Eff. Jan. 1, 1988.

Section 432.35 - Deposit of Moneys Collected From Sale of Lottery Tickets; Report; Lawful Functions, Activities, and Services; “Financial Institution” Defined.

Section 432.37 - Other Penalties or Disabilities Inapplicable.

Section 432.39 - Payment of Prize to Minor; Discharge of Liability.

Section 432.41 - State Lottery Fund; Creation; Payment of Prizes; Prize Structure; Investment Authority of State Treasurer; Review of Status of Installment Prize Investments; Reserves; Disposition of Earnings.

Section 432.43 - Appropriation of Money in State Lottery Fund.

Section 432.45 - Club Keno Advertising Fund; Creation; Receipt of Money or Other Assets; Money Remaining in Fund at Close of Fiscal Year; Bureau as Administrator; Distribution and Deposit of Money.

Section 432.47 - Biannual and Special Postaudits; Authority of Auditor General.