PROMOTIONAL LOTTERIES

House Bill 6488

Sponsor: Rep. James Koetje

Committee: Gaming and Casino Oversight

Complete to 11-8-02

A SUMMARY OF HOUSE BILL 6488 AS INTRODUCED 1-7-02

The bill would amend a provision in the Michigan Penal Code (Public Act 328 of 1931) that pertains to promotional lotteries or gift enterprises. Under the Penal Code, a person is prohibited from establishing, engaging, or conducting a lottery or gift enterprise, except as provided by law. However, the code states that the prohibition does not apply to a lottery or gift enterprise conducted by a person as a promotional activity that is occasional and ancillary to the primary business of that person.

The bill would amend this provision to specify that the prohibition would not apply to a lottery or gift enterprise conducted by a person as a promotional activity for not more than 60 days in a calendar year (and, again, ancillary to the primary business of that person).

In addition, the bill would delete a provision that states that a "promotional activity" does not include a lottery or gift enterprise that may be entered by purchasing a product or service for substantially more than its fair market value.

Finally, the bill would add that the prohibition applies to a lottery or gift enterprise regardless of whether a purchase is required to participate in the lottery or gift enterprise.

MCL 750.372

 

Analyst: M. Wolf

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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.