House Introduced Bill 6520

HOUSE BILL No. 6520

November 13, 2002, Introduced by Reps. Sheltrown, Scranton and Plakas and referred to the Committee on Agriculture and
Resource Management.

A bill to amend 1972 PA 239, entitled

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

by amending the title and sections 3, 11, 23, and 32 (MCL 432.3,

432.11, 432.23, and 432.32), the title as amended by 1996 PA 95,

sections 3, 11, and 23 as amended by 1996 PA 167, and section 32

as amended by 1996 PA 13, and by adding article 2.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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TITLE

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

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state participation in certain lottery-related joint enterprises

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with other sovereignties; TO ALLOW AND REGULATE THE OPERATION OF

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VIDEO LOTTERY GAMES AT LICENSED HORSE RACETRACKS IN THIS STATE;

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to create a bureau of state lottery and to prescribe its powers

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and duties; to prescribe certain powers and duties of other state

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departments and agencies; TO PROVIDE FOR THE PROMULGATION OF

07899'02 ** TDR 2

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RULES; to license and regulate certain LOTTERY sales agents AND

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MANUFACTURERS AND SERVICE TECHNICIANS OF VIDEO LOTTERY MACHINES

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AND RELATED EQUIPMENT; to create the state lottery fund; TO

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IMPOSE FEES; to provide for the distribution of lottery revenues

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and earnings for certain purposes; to provide for an appropria-

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tion; and to provide for remedies and penalties.

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ARTICLE 1

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Sec. 3. As used in this act:

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(a) "Bureau" means the bureau of state lottery created by

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this act IN SECTION 5.

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(b) "Commissioner" means the OR "commissioner of state

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lottery" MEANS THE HEAD OF THE BUREAU.

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(c) "Joint enterprise" means any A lottery activity in

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which the bureau participates pursuant to a written agreement

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between the state of Michigan THIS STATE and any state, terri-

16
tory, country, or other sovereignty as executed by the

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commissioner. Joint enterprise does not include the state A

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lottery created pursuant to UNDER this act.

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(d) "Lottery" or "state lottery" means the A lottery

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created pursuant to UNDER this act and operated exclusively by

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or under the exclusive control of the bureau of state lottery.

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(E) "STATE LOTTERY" MEANS THE LOTTERY CREATED IN ARTICLE 1.

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

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ant to the administrative procedures act of 1969, Act No. 306 of

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the Public Acts of 1969, being sections 24.201 to 24.328 of the

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Michigan Compiled Laws 1969 PA 306, MCL 24.201 TO 24.328, as

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necessary to implement this act.

07899'02 ** 3

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

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of the following:

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(a) The type of lottery to be conducted subject to section

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9(2).

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

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

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or shares.

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

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(e) The manner of payment of prizes to the holders of win-

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ning tickets or shares, subject to section 32.

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

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tickets or shares.

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

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tions at which tickets or shares may be sold subject to section

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23(10) 23(8).

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

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except that a person's name shall not be printed on the tickets

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or shares.

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

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

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

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licensed sales agents necessary to provide for the adequate

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availability of tickets or shares to prospective buyers and for

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the convenience of the public.

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(k) The apportionment of the total annual revenues accruing

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

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sources for the payment of prizes to the holders of winning

07899'02 ** 4

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

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operation and administration of the lottery, including the

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expenses of the bureau and the costs resulting from any contract

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or contracts entered into for promotional, advertising,

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consulting, or operational services or for the purchase or lease

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of lottery equipment and materials, for the repayment of the

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

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the general fund.

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(3) The commissioner may promulgate rules incorporating by

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reference existing rules or regulations of any joint enterprise

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as required as a condition for participation in that joint

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enterprise. Any subsequent changes or additions to the rules or

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regulations of the joint enterprise may be adopted by the commis-

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sioner through the promulgation of a rule.

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

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rules that sections 45 and 46 of the administrative procedures

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act of 1969, Act No. 306 of the Public Acts of 1969, being sec-

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tions 24.245 and 24.246 of the Michigan Compiled Laws 1969 PA

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306, MCL 24.245 AND 24.246, are unconstitutional and a statute

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requiring legislative review of administrative rules is not

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enacted within 90 days after the Michigan supreme court ruling.

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Nothing in this subsection invalidates rules that have been

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promulgated prior to the effective date of the amendatory act

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that added this subsection. RULES PROMULGATED BEFORE APRIL 17,

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1996 ARE NOT INVALIDATED BY THIS SUBSECTION.

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Sec. 23. (1) A THE COMMISSIONER SHALL NOT ISSUE A license

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as an agent to sell lottery tickets or shares shall not be

07899'02 ** 5

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issued to any person to engage in business exclusively as a

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lottery sales agent. Before issuing a license TO A PERSON TO ACT

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AS A LOTTERY SALES AGENT, the commissioner shall consider factors

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such as the financial responsibility and security of the person

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and his or her business or activity, the accessibility of his or

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her place of business or activity to the public, the sufficiency

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of existing licenses to serve the public convenience, and the

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volume of expected sales.

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(2) As used in this section, "person" means an individual,

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association, corporation, club, trust, estate, society, company,

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joint stock company, receiver, trustee, referee, any other person

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acting in a fiduciary or representative capacity who is appointed

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by a court, or any combination of individuals. Person includes

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any department, commission, agency, or instrumentality of the

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state, including any county, city, village, or township and any

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agency or instrumentality thereof.

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(2) (3) Notwithstanding any other provision of law, a

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person licensed pursuant to this act may act as a lottery sales

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agent MAY SELL LOTTERY TICKETS AND SHARES. A person lawfully

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engaged in nongovernmental business on state property may be

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licensed as a lottery sales agent.

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(3) (4) A LOTTERY SALES AGENT license is not assignable or

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transferable.

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(4) (5) A licensed LOTTERY SALES agent or his or her

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employee may sell lottery tickets or shares only on the premises

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stated in the license of the LOTTERY SALES agent. Effective July

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1, 1996, a licensed LOTTERY SALES agent who violates this

07899'02 ** 6

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subsection is, at the commissioner's discretion, subject to 1 or

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more of the following:

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(a) Probation for not more than 2 years.

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(b) A fine of not more than $1,000.00.

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(c) Removal of his or her lottery terminal.

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(6) The commissioner may issue temporary licenses upon con-

7
ditions as he or she considers necessary for a term which shall

8
not extend beyond 1 year after the effective date of this act.

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(5) (7) The commissioner may require a bond from any

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licensed LOTTERY SALES agent in an amount as provided in
the

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rules PROMULGATED UNDER THIS ACT.

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(6) (8) A licensed LOTTERY SALES agent shall display his

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or her license or a copy thereof OF THE LICENSE conspicuously

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in accordance with the rules PROMULGATED UNDER THIS ACT.

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(7) (9) The commissioner may suspend or revoke the license

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of any A LOTTERY SALES agent who violates this act or a rule

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promulgated pursuant to UNDER this act.

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(8) (10) For purposes of terminal placement, the commis-

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sioner shall take into account with equal emphasis both of the

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following:

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(a) The total instant game sales for the 3 months immedi-

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ately preceding a market evaluation.

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(b) The need to maximize net lottery revenues from the total

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number of terminals placed.

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(9) AS USED IN THIS SECTION, "PERSON" MEANS AN INDIVIDUAL,

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ASSOCIATION, CORPORATION, CLUB, TRUST, ESTATE, SOCIETY, COMPANY,

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JOINT STOCK COMPANY, RECEIVER, TRUSTEE, REFEREE, ANY OTHER PERSON

07899'02 ** 7

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ACTING IN A FIDUCIARY OR REPRESENTATIVE CAPACITY WHO IS APPOINTED

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BY A COURT, OR ANY COMBINATION OF INDIVIDUALS. PERSON INCLUDES

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ANY DEPARTMENT, COMMISSION, AGENCY, OR INSTRUMENTALITY OF THE

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STATE, INCLUDING ANY COUNTY, CITY, VILLAGE, OR TOWNSHIP AND ANY

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AGENCY OR INSTRUMENTALITY OF A COUNTY, CITY, VILLAGE, OR

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TOWNSHIP.

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Sec. 32. (1) Before payment UNDER THIS ARTICLE of a prize

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of $1,000.00 or more, the bureau shall determine whether the

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department of treasury records show that a lottery winner has a

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current liability to this state or a support arrearage. The

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department of treasury shall provide the bureau with a list or

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computer access to a compilation of persons known to the depart-

13
ment to have a current liability to this state, including A

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delinquent accounts ACCOUNT of amounts due and owing MONEY

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DUE to a court that have HAS been assigned to the state for

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collection, or a support arrearage. The information shall be

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updated not less than once a month. If a liability to this state

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or support arrearage is identified, the bureau shall ascertain

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the amount owed from the department of treasury and first apply

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the amount of the prize FIRST to the A liability to the
state

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other than the amount of any AN assigned delinquent account of

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amounts due and owing MONEY DUE to a court, next to the A

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support arrearage, and next to the AN assigned delinquent

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accounts of amounts due and owing ACCOUNT OF MONEY DUE to a

25
court. , and the THE excess, if any, shall be paid to the lot-

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tery winner.

07899'02 ** 8

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(2) A lottery winner shall receive notice and an opportunity

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for a hearing before the department of treasury or its designee

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with respect to the liability to which the prize is to be applied

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where UNDER THIS SECTION, IF the liability has not been reduced

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to judgment or has not been finalized under statutory review pro-

6
visions of the statute under which the liability arose. The

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notice shall be made GIVEN by regular mail. The lottery winner

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may request a hearing within 15 days of the date of the notice by

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making a written request to the revenue commissioner.

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(3) An amount MONEY applied to pay a support
arrearage

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UNDER THIS SECTION shall be paid by the bureau to the department

12
of treasury which shall pay the amount MONEY to the office of

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the friend of the court for the appropriate judicial circuit in

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the same manner as is prescribed for a payment pursuant to
an

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order of income withholding under section 9 of the support and

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parenting time enforcement act, Act No. 295 of the Public Acts

17
of 1982, being section 552.609 of the Michigan Compiled Laws

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1982 PA 295, MCL 552.609.

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(4) In regard to the information provided by the department

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of treasury to the bureau under this section, the bureau is

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subject to the confidentiality restrictions and penalties pro-

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vided in section 28(1)(f) and (2) of Act No. 122 of the Public

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Acts of 1941, being section 205.28 of the Michigan Compiled Laws

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1941 PA 122, MCL 205.28.

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(5) Until October 1, 1995 each office of the friend of the

26
court may report to the department of treasury the names of

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persons who have a current support arrearage. Beginning October

07899'02 ** 9

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1, 1995 each THE office of the friend of the court shall report

2
to the office of child support the names of persons who have a

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current support arrearage and the office of child support shall

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provide that information to the department of treasury.

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(6) As used in this section:

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(a) "Office of the friend of the court" means an agency cre-

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ated in section 3 of the friend of the court act, Act No. 294 of

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the Public Acts of 1982, being section 552.503 of the Michigan

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Compiled Laws 1982 PA 294, MCL 552.503.

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(b) "Support" means that term as defined in section 31 of

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Act No. 294 of the Public Acts of 1982, being section 552.531 of

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the Michigan Compiled Laws 2A OF THE FRIEND OF THE COURT ACT,

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1982 PA 294, MCL 552.502A.

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ARTICLE 2

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SEC. 50. AS USED IN THIS ARTICLE:

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(A) "ADMINISTRATIVE COSTS" MEANS THE COSTS AND EXPENSES

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INCURRED BY THE BUREAU IN ADMINISTERING VIDEO LOTTERY AT THE

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RACETRACK OF A LICENSE HOLDER, INCLUDING, BUT NOT LIMITED TO,

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EXPENSES INCURRED BY THE BUREAU IN PERFORMING AN INVESTIGATION OF

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AN APPLICANT FOR A LICENSE OR A LICENSE HOLDER.

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(B) "APPLICANT" MEANS A PERSON APPLYING FOR A LICENSE OR

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PERMIT.

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(C) "ASSOCIATED EQUIPMENT" MEANS HARDWARE LOCATED AT THE

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RACETRACK OF A LICENSE HOLDER THAT IS CONNECTED TO THE CENTRAL

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CONTROL SYSTEM FOR COMMUNICATION, VALIDATION, OR OTHER PURPOSES.

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ASSOCIATED EQUIPMENT DOES NOT INCLUDE A VIDEO LOTTERY TERMINAL OR

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THE COMMUNICATION FACILITIES OF A REGULATED PUBLIC UTILITY.

07899'02 ** 10

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(D) "CENTRAL CONTROL SYSTEM" MEANS A COMPUTER OR COMPUTER

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SYSTEM PROVIDED TO AND CONTROLLED BY THE BUREAU THAT COMMUNICATES

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WITH VIDEO LOTTERY TERMINALS TO RETRIEVE INFORMATION AND ACTIVATE

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AND DISABLE THE TERMINALS.

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(E) "DISABLE" MEANS THE PROCESS OF EXECUTING A SHUTDOWN COM-

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MAND FROM THE CENTRAL CONTROL SYSTEM THAT CAUSES A VIDEO LOTTERY

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TERMINAL TO CEASE FUNCTIONING.

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(F) "DISPLAY" MEANS THE VISUAL PRESENTATION OF VIDEO LOTTERY

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GAME FEATURES ON A VIDEO LOTTERY TERMINAL IN THE FORM OF VIDEO

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IMAGES, ACTUAL SYMBOLS, OR BOTH.

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(G) "GROSS TERMINAL INCOME" MEANS THE TOTAL AMOUNT OF CASH,

12
VOUCHERS, AND TOKENS INSERTED INTO THE VIDEO LOTTERY TERMINALS

13
OPERATED BY A LICENSE HOLDER, MINUS THE TOTAL VALUE OF COINS AND

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TOKENS WON BY PLAYERS AND GAME CREDITS CLEARED FROM THE VIDEO

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LOTTERY TERMINALS IN EXCHANGE FOR WINNING REDEMPTION TICKETS.

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(H) "LICENSE" MEANS AUTHORIZATION GRANTED BY THE BUREAU TO A

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PERSON THAT HOLDS A TRACK LICENSE UNDER THE HORSE RACING LAW OF

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1995, 1995 PA 279, MCL 431.301 TO 431.336, PERMITTING THE PERSON

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TO OPERATE VIDEO LOTTERY TERMINALS REGISTERED AND APPROVED BY THE

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BUREAU.

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(I) "MANUFACTURER" MEANS A PERSON HOLDING A PERMIT ISSUED BY

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THE BUREAU TO ENGAGE IN THE BUSINESS OF DESIGNING, BUILDING, CON-

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STRUCTING, ASSEMBLING, OR MANUFACTURING VIDEO LOTTERY TERMINALS,

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THE ELECTRONIC COMPUTER COMPONENTS OF VIDEO LOTTERY TERMINALS,

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THE RANDOM NUMBER GENERATOR OF VIDEO LOTTERY TERMINALS, OR CABI-

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NETS IN WHICH VIDEO LOTTERY TERMINALS ARE HOUSED, WHOSE PRODUCTS

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ARE INTENDED FOR SALE, LEASE, OR OTHER TRANSFER TO LICENSE

07899'02 ** 11

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HOLDERS IN THIS STATE, AND WHO CONTRACTS DIRECTLY WITH THE

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LICENSE HOLDER FOR THE SALE, LEASE, OR OTHER TRANSFER OF THE

3
PRODUCT.

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(J) "NET TERMINAL INCOME" MEANS GROSS TERMINAL INCOME MINUS

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AN AMOUNT DEDUCTED BY THE BUREAU FOR ADMINISTRATIVE COSTS. COSTS

6
AND EXPENSES OF A LICENSE HOLDER RELATED TO THE OPERATION OF

7
VIDEO LOTTERY GAMES SHALL NOT BE DEDUCTED FROM GROSS TERMINAL

8
INCOME TO DETERMINE NET TERMINAL INCOME.

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(K) "NONCASH PRIZE" MEANS MERCHANDISE A PLAYER MAY BE GIVEN

10
THE OPTION OF RECEIVING INSTEAD OF CASH IN EXCHANGE FOR A WINNING

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REDEMPTION TICKET. A NONCASH PRIZE SHALL BE ASSIGNED A REDEMP-

12
TION VALUE EQUAL TO THE ACTUAL COST OF THE MERCHANDISE TO THE

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LICENSE HOLDER.

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(l) "PERMIT" MEANS AUTHORIZATION GRANTED BY THE BUREAU TO A

15
PERSON TO FUNCTION AS A MANUFACTURER OR SERVICE TECHNICIAN.

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(M) "PERSON" MEANS AN INDIVIDUAL, CORPORATION, ASSOCIATION,

17
PARTNERSHIP, LIMITED PARTNERSHIP, OR OTHER LEGAL ENTITY.

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(N) "PLAYER" MEANS A PERSON WHO PLAYS A VIDEO LOTTERY GAME

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ON A VIDEO LOTTERY TERMINAL AT A RACETRACK OF A LICENSE HOLDER.

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(O) "RACETRACK" MEANS A FACILITY WHERE LICENSED RACE MEET-

21
INGS ARE HELD AND THE PARI-MUTUEL SYSTEM OF WAGERING IS CONDUCTED

22
AS AUTHORIZED UNDER THE HORSE RACING LAW OF 1995, 1995 PA 279,

23
MCL 431.301 TO 431.336.

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(P) "RACING COMMISSIONER" MEANS THE RACING COMMISSIONER CRE-

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ATED BY SECTION 3 OF THE HORSE RACING LAW OF 1995, 1995 PA 279,

26
MCL 431.303.

07899'02 ** 12

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(Q) "SERVICE TECHNICIAN" MEANS AN INDIVIDUAL EMPLOYED BY A

2
LICENSE HOLDER WHO HOLDS A PERMIT ISSUED BY THE BUREAU AND WHO

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PERFORMS SERVICE, MAINTENANCE, AND REPAIR ON VIDEO LOTTERY TERMI-

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NALS OF LICENSE HOLDERS IN THIS STATE.

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(R) "VIDEO LOTTERY" MEANS A LOTTERY THAT ALLOWS A GAME TO BE

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PLAYED USING AN ELECTRONIC COMPUTER AND AN INTERACTIVE COMPUTER

7
TERMINAL DEVICE, EQUIPPED WITH A VIDEO SCREEN AND KEYS, A KEY-

8
BOARD, OR OTHER EQUIPMENT ALLOWING INPUT BY A PLAYER, INTO WHICH

9
THE PLAYER INSERTS COINS, CURRENCY, VOUCHERS, OR TOKENS AS CON-

10
SIDERATION IN ORDER FOR PLAY TO BE AVAILABLE, AND THROUGH WHICH

11
TERMINAL DEVICE THE PLAYER MAY RECEIVE FREE GAMES, COINS, TOKENS,

12
OR CREDIT THAT CAN BE REDEEMED FOR CASH, ANNUITIZED PAYMENTS OVER

13
TIME, A NONCASH PRIZE, OR NOTHING AS DETERMINED WHOLLY OR PREDOM-

14
INANTLY BY CHANCE. VIDEO LOTTERY DOES NOT INCLUDE A LOTTERY GAME

15
THAT MERELY USES AN ELECTRONIC COMPUTER AND A VIDEO SCREEN TO

16
OPERATE A LOTTERY GAME AND COMMUNICATE THE RESULTS OF THE GAME

17
AND THAT DOES NOT USE AN INTERACTIVE ELECTRONIC TERMINAL DEVICE

18
ALLOWING INPUT BY A PLAYER.

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(S) "VIDEO LOTTERY GAME" MEANS A BUREAU-APPROVED, ELECTRONI-

20
CALLY SIMULATED GAME OF CHANCE THAT IS DISPLAYED ON A VIDEO LOT-

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TERY TERMINAL AND TO WHICH ALL OF THE FOLLOWING APPLY:

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(i) THE VIDEO LOTTERY TERMINAL ON WHICH THE GAME IS DIS-

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PLAYED IS CONNECTED TO THE CENTRAL CONTROL SYSTEM BY AN ON-LINE

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OR DIAL-UP COMMUNICATION SYSTEM.

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(ii) THE GAME IS INITIATED BY A PLAYER'S INSERTION OF COINS,

26
CURRENCY, VOUCHERS, OR TOKENS INTO A VIDEO LOTTERY TERMINAL,

27
WHICH CAUSES GAME PLAY CREDITS TO BE DISPLAYED ON THE VIDEO

07899'02 ** 13

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LOTTERY TERMINAL, EACH GAME PLAY CREDIT ENTITLING A PLAYER TO

2
CHOOSE 1 OR MORE SYMBOLS OR NUMBERS OR TO CAUSE THE VIDEO LOTTERY

3
TERMINAL TO RANDOMLY SELECT SYMBOLS OR NUMBERS.

4
(iii) THE GAME ALLOWS A PLAYER TO WIN ADDITIONAL GAME PLAY

5
CREDITS, COINS, OR TOKENS BASED UPON GAME RULES THAT ESTABLISH

6
THE RANDOM SELECTION OF WINNING COMBINATIONS OF SYMBOLS, NUMBERS,

7
OR BOTH AND THE NUMBER OF GAME PLAY CREDITS, COINS, OR TOKENS TO

8
BE AWARDED FOR EACH WINNING COMBINATION OF SYMBOLS, NUMBERS, OR

9
BOTH.

10
(iv) THE GAME IS BASED ON COMPUTER-GENERATED RANDOM SELEC-

11
TION OF WINNING COMBINATIONS PRODUCED TOTALLY OR PREDOMINANTLY BY

12
CHANCE.

13
(v) IF THE VIDEO LOTTERY GAME ALLOWS THE PLAYER AN OPTION TO

14
SELECT REPLACEMENT SYMBOLS OR NUMBERS OR ADDITIONAL SYMBOLS OR

15
NUMBERS AFTER THE GAME IS INITIATED AND IN THE COURSE OF PLAY,

16
THE GAME DOES 1 OF THE FOLLOWING BEFORE THE OPTIONAL SELECTION BY

17
THE PLAYER OF RANDOMLY GENERATED REPLACEMENT OR ADDITIONAL SYM-

18
BOLS OR NUMBERS:

19
(A) SIGNALS THE PLAYER WHICH SYMBOLS OR NUMBERS SHOULD BE

20
RETAINED BY THE PLAYER TO PRESENT THE BEST CHANCE, BASED ON PROB-

21
ABILITIES, THAT THE PLAYER MAY SELECT A WINNING COMBINATION.

22
(B) SIGNALS THE PLAYER WHETHER ADDITIONAL SELECTION PRESENTS

23
THE BEST CHANCE, BASED ON PROBABILITIES, THAT THE PLAYER MAY

24
SELECT A WINNING COMBINATION.

25
(C) RANDOMLY GENERATES ADDITIONAL OR REPLACEMENT SYMBOLS AND

26
NUMBERS FOR THE PLAYER AFTER AUTOMATICALLY SELECTING THE SYMBOLS

27
AND NUMBERS THAT SHOULD BE RETAINED TO PRESENT THE BEST CHANCE,

07899'02 ** 14

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BASED ON PROBABILITIES, FOR A WINNING COMBINATION, SO THAT THE

2
PLAYER IS NOT PERMITTED TO BENEFIT FROM PERSONAL SKILL, BASED ON

3
A KNOWLEDGE OF PROBABILITIES, BEFORE DECIDING WHICH OPTIONAL NUM-

4
BERS OR SYMBOLS TO CHOOSE IN THE COURSE OF VIDEO LOTTERY GAME

5
PLAY.

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(vi) THE GAME ALLOWS A PLAYER AT ANY TIME TO SIMULTANEOUSLY

7
CLEAR ALL GAME PLAY CREDITS AND PRINT A REDEMPTION TICKET ENTITL-

8
ING THE PLAYER TO RECEIVE THE CASH VALUE OF THE GAME PLAY CREDITS

9
CLEARED FROM THE VIDEO LOTTERY TERMINAL.

10
(vii) THE GAME DOES NOT DISPLAY ROULETTE, DICE, OR BACCARAT

11
CARD GAME THEMES COMMONLY ASSOCIATED WITH CASINO GAMBLING. THE

12
GAME MAY DISPLAY SYMBOLS THAT APPEAR TO ROLL ON DRUMS TO SIMULATE

13
A CLASSIC CASINO SLOT MACHINE OR MAY DISPLAY OTHER CARD GAME OR

14
KENO GAME THEMES.

15
(T) "VIDEO LOTTERY TERMINAL" MEANS A BUREAU-APPROVED INTER-

16
ACTIVE ELECTRONIC TERMINAL DEVICE THAT IS CONNECTED TO THE CEN-

17
TRAL CONTROL SYSTEM AND USED TO PLAY VIDEO LOTTERY GAMES AUTHO-

18
RIZED BY THE BUREAU. A VIDEO LOTTERY TERMINAL MAY SIMULATE THE

19
PLAY OF 1 OR MORE VIDEO LOTTERY GAMES.

20
(U) "WAGER" MEANS A SUM OF MONEY OR THING OF VALUE RISKED ON

21
AN UNCERTAIN OCCURRENCE.

22
SEC. 51. (1) THE BUREAU MAY IMPLEMENT AND OPERATE VIDEO

23
LOTTERY GAMES AT RACETRACKS IN THIS STATE IN ACCORDANCE WITH THIS

24
ARTICLE.

25
(2) ARTICLE 1 APPLIES TO VIDEO LOTTERY OPERATIONS UNDER THIS

26
ARTICLE, BUT A PROVISION OF THIS ARTICLE SUPERSEDES A CONFLICTING

27
OR INCONSISTENT PROVISION OF ARTICLE 1.

07899'02 ** 15

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SEC. 52. (1) A MANUFACTURER SHALL NOT SELL OR LEASE A VIDEO

2
LOTTERY TERMINAL FOR PLACEMENT AT A RACETRACK IN THIS STATE

3
UNLESS THE BUREAU HAS APPROVED THE TERMINAL. ONLY A MANUFACTURER

4
WITH A PERMIT MAY APPLY FOR APPROVAL OF A VIDEO LOTTERY TERMINAL

5
OR ASSOCIATED EQUIPMENT. TO APPLY FOR APPROVAL, A MANUFACTURER

6
SHALL SUBMIT 2 COPIES OF TERMINAL ILLUSTRATIONS, SCHEMATICS,

7
BLOCK DIAGRAMS, CIRCUIT ANALYSIS, TECHNICAL AND OPERATION MANU-

8
ALS, AND ANY OTHER INFORMATION REQUESTED BY THE BUREAU TO ALLOW

9
ANALYSIS AND TESTING OF THE VIDEO LOTTERY TERMINAL OR ASSOCIATED

10
EQUIPMENT.

11
(2) THE BUREAU MAY REQUIRE THAT 2 WORKING MODELS OF A VIDEO

12
LOTTERY TERMINAL BE TRANSPORTED TO A LOCATION DESIGNATED BY THE

13
BUREAU FOR TESTING, EXAMINATION, AND ANALYSIS. THE MANUFACTURER

14
SHALL PAY ALL COSTS OF TESTING, EXAMINATION, ANALYSIS, AND TRANS-

15
PORTATION OF THE VIDEO LOTTERY TERMINAL MODELS. THE TESTING,

16
EXAMINATION, AND ANALYSIS OF A VIDEO LOTTERY TERMINAL MODEL MAY

17
REQUIRE DISMANTLING THE TERMINAL, AND SOME TESTS MAY RESULT IN

18
DAMAGE OR DESTRUCTION TO 1 OR MORE ELECTRONIC COMPONENTS OF THE

19
MODEL. THE BUREAU MAY REQUIRE THE MANUFACTURER TO PROVIDE SPE-

20
CIALIZED EQUIPMENT OR PAY FOR THE SERVICES OF AN INDEPENDENT

21
TECHNICAL EXPERT TO TEST THE TERMINAL.

22
(3) THE MANUFACTURER SHALL PAY THE COST OF TRANSPORTING 2

23
VIDEO LOTTERY TERMINALS TO BUREAU HEADQUARTERS. THE BUREAU SHALL

24
CONDUCT A TEST AT BUREAU HEADQUARTERS TO DETERMINE TERMINAL FUNC-

25
TIONS AND CENTRAL CONTROL SYSTEM COMPATIBILITY. IF THE VIDEO

26
LOTTERY TERMINAL FAILS THE TEST CONDUCTED BY THE BUREAU UNDER

07899'02 ** 16

1
THIS SUBSECTION, THE MANUFACTURER SHALL MAKE ALL MODIFICATIONS

2
REQUIRED BY THE BUREAU.

3
(4) AFTER THE COMPLETION OF TESTING UNDER THIS SECTION, THE

4
BUREAU SHALL PROVIDE THE TERMINAL MANUFACTURER WITH A REPORT CON-

5
TAINING FINDINGS, CONCLUSIONS, AND PASS OR FAIL RESULTS. THE

6
REPORT MAY CONTAIN RECOMMENDATIONS FOR MODIFICATION OF THE VIDEO

7
LOTTERY TERMINAL TO BRING THE TERMINAL INTO COMPLIANCE WITH THIS

8
ARTICLE. BEFORE APPROVING A PARTICULAR TERMINAL MODEL, THE

9
BUREAU MAY REQUIRE A TRIAL PERIOD OF NOT MORE THAN 60 DAYS FOR A

10
LICENSE HOLDER TO TEST THE TERMINAL. THE MANUFACTURER SHALL NOT

11
MAKE ANY MODIFICATIONS TO THE TERMINAL MODEL DURING THE TRIAL

12
PERIOD UNLESS THE BUREAU APPROVES THE MODIFICATIONS.

13
(5) A VIDEO MANUFACTURER AND A LICENSE HOLDER ARE JOINTLY

14
RESPONSIBLE FOR THE ASSEMBLY AND INSTALLATION OF A VIDEO LOTTERY

15
TERMINAL AND ASSOCIATED EQUIPMENT. A MANUFACTURER OR A LICENSE

16
HOLDER SHALL NOT MODIFY THE ASSEMBLY OR OPERATIONAL FUNCTIONS OF

17
A VIDEO TERMINAL APPROVED FOR PLACEMENT IN THIS STATE UNLESS THE

18
BUREAU FIRST APPROVES A REQUEST FOR THE MODIFICATION. A REQUEST

19
FOR MODIFICATION OF AN APPROVED VIDEO TERMINAL MODEL SHALL CON-

20
TAIN A DETAILED DESCRIPTION OF THE TYPE OF CHANGE, THE REASONS

21
FOR THE CHANGE, AND TECHNICAL DOCUMENTATION OF THE CHANGE.

22
(6) A VIDEO LOTTERY TERMINAL APPROVED FOR PLACEMENT AT A

23
RACETRACK SHALL CONFORM TO THE EXACT SPECIFICATIONS OF THE VIDEO

24
LOTTERY TERMINAL MODEL TESTED AND APPROVED BY THE BUREAU. THE

25
BUREAU SHALL SEIZE AND DESTROY A VIDEO LOTTERY TERMINAL OR MODI-

26
FICATION TO A VIDEO LOTTERY TERMINAL THAT HAS NOT BEEN APPROVED

27
BY THE BUREAU AND SHALL SUSPEND THE LICENSE OF A LICENSE HOLDER

07899'02 ** 17

1
OR PERMIT OF A MANUFACTURER THAT OPERATES OR MANUFACTURES A VIDEO

2
LOTTERY TERMINAL OR MODIFICATION TO A VIDEO LOTTERY TERMINAL THAT

3
HAS NOT BEEN APPROVED BY THE BUREAU.

4
SEC. 53. (1) A VIDEO LOTTERY TERMINAL APPROVED FOR PLACE-

5
MENT IN THIS STATE SHALL MEET ALL OF THE FOLLOWING HARDWARE

6
SPECIFICATIONS:

7
(A) ELECTRICAL AND MECHANICAL PARTS AND DESIGN PRINCIPLES

8
SHALL NOT SUBJECT A PLAYER TO PHYSICAL HAZARDS OR INJURY.

9
(B) A SURGE PROTECTOR SHALL BE INSTALLED ON THE ELECTRICAL

10
POWER SUPPLY LINE TO THE VIDEO LOTTERY TERMINAL. A BATTERY OR

11
EQUIVALENT POWER BACKUP FOR ELECTRONIC METERS CAPABLE OF MAIN-

12
TAINING ACCURACY OF ALL ACCOUNTING RECORDS AND TERMINAL STATUS

13
REPORTS FOR A TIME ESTABLISHED BY THE BUREAU SHALL BE LOCATED

14
WITHIN THE LOCKED LOGIC BOARD COMPARTMENT OF THE VIDEO LOTTERY

15
TERMINAL.

16
(C) AN ON-OFF SWITCH THAT CONTROLS THE ELECTRICAL CURRENT

17
USED IN THE OPERATION OF THE VIDEO LOTTERY TERMINAL SHALL BE

18
LOCATED IN AN ACCESSIBLE PLACE WITHIN THE INTERIOR OF THE

19
TERMINAL.

20
(D) STATIC DISCHARGE OR OTHER ELECTROMAGNETIC INTERFERENCE

21
SHALL NOT ADVERSELY AFFECT THE OPERATION OF THE VIDEO LOTTERY

22
TERMINAL.

23
(E) AT LEAST 1 ELECTRONIC OR MECHANICAL COIN ACCEPTOR OR

24
OTHER METHOD TO ACCURATELY AND EFFICIENTLY ESTABLISH CREDITS

25
SHALL BE INSTALLED ON EACH VIDEO LOTTERY TERMINAL. THE VIDEO

26
LOTTERY TERMINAL MAY ALSO CONTAIN A BILL ACCEPTOR CAPABLE OF

27
ACCEPTING CURRENCY IN DENOMINATIONS AS DETERMINED BY THE BUREAU

07899'02 ** 18

1
IF THE BUREAU HAS APPROVED THE BILL ACCEPTOR FOR USE ON THE VIDEO

2
LOTTERY TERMINAL.

3
(F) ACCESS TO THE INTERIOR OF THE VIDEO LOTTERY TERMINAL

4
SHALL BE CONTROLLED THROUGH A SERIES OF LOCKS AND SEALS.

5
(G) THE MAIN LOGIC BOARDS SHALL BE LOCATED IN A SEPARATE

6
LOCKED AND SEALED AREA WITHIN THE VIDEO LOTTERY TERMINAL.

7
(H) THE CASH COMPARTMENT SHALL BE LOCATED IN A SEPARATE

8
LOCKED AREA WITHIN OR ATTACHED TO THE VIDEO LOTTERY TERMINAL.

9
(I) HARDWARE SWITCHES, JUMPERS, WIRE POSTS, OR OTHER MEANS

10
OF MANIPULATION THAT ALTER THE PAY TABLES OR PAYOUT PERCENTAGES

11
IN THE OPERATION OF A GAME SHALL NOT BE INSTALLED IN THE VIDEO

12
LOTTERY TERMINAL. THE BUREAU MAY APPROVE HARDWARE SWITCHES ON A

13
VIDEO LOTTERY TERMINAL TO CONTROL THE TERMINAL'S GRAPHIC ROU-

14
TINES, SPEED OF PLAY, SOUND, AND OTHER PURELY COSMETIC FEATURES.

15
(J) THE VIDEO LOTTERY TERMINAL SHALL CONTAIN A SINGLE PRINT-

16
ING MECHANISM CAPABLE OF PRINTING AN ORIGINAL TICKET AND RETAIN-

17
ING AN EXACT LEGIBLE COPY WITHIN THE VIDEO LOTTERY TERMINAL OR

18
OTHER MEANS OF ELECTRONICALLY CAPTURING AND RETAINING THE TICKET

19
DATA AS APPROVED BY THE BUREAU. ALL OF THE FOLLOWING INFORMATION

20
SHALL BE PRINTED ON THE TICKET WHEN CREDITS ACCRUED ON THE VIDEO

21
LOTTERY TERMINAL ARE CLEARED:

22
(i) THE NUMBER OF CREDITS ACCRUED.

23
(ii) THE VALUE OF THE CREDITS IN DOLLARS AND CENTS DISPLAYED

24
IN NUMBERS AND WORDS.

25
(iii) THE DATE AND TIME.

26
(iv) THE VALIDATION NUMBER.

07899'02 ** 19

1
(v) ANY OTHER INFORMATION REQUIRED BY THE BUREAU.

2
(K) THE VIDEO LOTTERY TERMINAL SHALL HAVE A PERMANENTLY

3
AFFIXED IDENTIFICATION PLATE ON THE EXTERIOR CONTAINING ALL OF

4
THE FOLLOWING FOR THE VIDEO LOTTERY TERMINAL:

5
(i) THE MANUFACTURER.

6
(ii) THE SERIAL NUMBER.

7
(iii) THE MODEL NUMBER.

8
(l) A VIDEO LOTTERY TERMINAL REGISTERED WITH AND APPROVED BY

9
THE BUREAU FOR USE AT A RACETRACK SHALL ONLY ALLOW THE PLAY OF

10
VIDEO LOTTERY GAMES REGULATED AND CONTROLLED BY THE BUREAU UNDER

11
THIS SECTION THAT USE SPECIFIC GAME RULES PROMULGATED BY THE

12
BUREAU PURSUANT TO THE ADMINISTRATIVE PROCEDURES ACT OF 1969,

13
1969 PA 306, MCL 24.201 TO 24.328.

14
(M) THE RULES OF PLAY FOR EACH VIDEO LOTTERY GAME SHALL BE

15
DISPLAYED ON THE VIDEO LOTTERY TERMINAL SCREEN. THE BUREAU MAY

16
REJECT ANY RULES OF PLAY THAT ARE INCOMPLETE, CONFUSING, MISLEAD-

17
ING, OR INCONSISTENT WITH GAME RULES APPROVED BY THE BUREAU.

18
EACH VIDEO LOTTERY GAME SHALL HAVE A DISPLAY DETAILING THE CRED-

19
ITS AWARDED FOR THE OCCURRENCE OF EACH POSSIBLE WINNING COMBINA-

20
TION OF NUMBERS OR SYMBOLS. ALL INFORMATION REQUIRED BY THIS

21
SUBDIVISION SHALL BE DISPLAYED UNDER GLASS OR ANOTHER TRANSPARENT

22
SUBSTANCE. NO STICKERS OR OTHER REMOVABLE DEVICES SHALL BE

23
PLACED ON THE VIDEO LOTTERY TERMINAL SCREEN WITHOUT THE PRIOR

24
APPROVAL OF THE BUREAU.

25
(N) THE VIDEO LOTTERY TERMINAL SHALL HAVE COMMUNICATION

26
EQUIPMENT AND DEVICES INSTALLED THAT ENABLE IT TO COMMUNICATE

27
WITH THE CENTRAL CONTROL SYSTEM USING A COMMUNICATIONS PROTOCOL

07899'02 ** 20

1
THAT THE BUREAU SHALL PROVIDE TO EACH MANUFACTURER, INCLUDING

2
INFORMATION RETRIEVAL AND TERMINAL ACTIVATION AND DISABLING

3
PROGRAMS.

4
(O) THE VIDEO LOTTERY TERMINAL SHALL HAVE A SECURITY SYSTEM

5
THAT TEMPORARILY DISABLES THE GAMING FUNCTION OF THE TERMINAL

6
WHILE OPENED.

7
(2) A VIDEO LOTTERY TERMINAL SHALL USE A RANDOM NUMBER GEN-

8
ERATOR TO DETERMINE RANDOMLY THE OCCURRENCE OF EACH SPECIFIC

9
SYMBOL OR NUMBER USED IN A VIDEO LOTTERY GAME. A DETERMINATION

10
PROCESS IS RANDOM IF IT MEETS ALL OF THE FOLLOWING STATISTICAL

11
CRITERIA:

12
(A) EACH SYMBOL OR NUMBER SATISFIES THE 99% CONFIDENCE LIMIT

13
USING THE STANDARD CHI-SQUARE STATISTICAL ANALYSIS OF THE DIFFER-

14
ENCE BETWEEN THE EXPECTED RESULT AND THE OBSERVED RESULT.

15
(B) EACH SYMBOL OR NUMBER DOES NOT PRODUCE A SIGNIFICANT

16
STATISTIC WITH REGARD TO PRODUCING PATTERNS OF OCCURRENCES. EACH

17
SYMBOL OR NUMBER IS RANDOM IF IT MEETS THE 99% CONFIDENCE LEVEL

18
WITH REGARD TO THE RUNS TEST FOR THE EXISTENCE OF RECURRING PAT-

19
TERNS WITHIN A SET OF DATA.

20
(C) EACH PAIR OF SYMBOLS OR NUMBERS MEETS THE 99% CONFIDENCE

21
LEVEL USING STANDARD CORRELATION ANALYSIS TO DETERMINE WHETHER

22
EACH SYMBOL OR NUMBER IS INDEPENDENTLY CHOSEN WITHOUT REGARD TO

23
ANOTHER SYMBOL OR NUMBER WITHIN A SINGLE GAME PLAY.

24
(D) EACH SYMBOL OR NUMBER MEETS THE 99% CONFIDENCE LEVEL

25
USING STANDARD SERIAL CORRELATION ANALYSIS TO DETERMINE WHETHER

26
EACH SYMBOL OR NUMBER IS INDEPENDENTLY CHOSEN WITHOUT REFERENCE

27
TO THE SAME SYMBOL OR NUMBER IN A PREVIOUS GAME.

07899'02 ** 21

1
(3) A VIDEO LOTTERY TERMINAL SHALL MEET THE FOLLOWING

2
THEORETICAL PAYOUT PERCENTAGES:

3
(A) A MINIMUM OF 80% OF THE AMOUNT WAGERED DURING THE

4
EXPECTED LIFETIME OF THE TERMINAL, DETERMINED USING STANDARD

5
METHODS OF PROBABILITY THEORY.

6
(B) A MAXIMUM OF 95% OF THE AMOUNT WAGERED DURING THE

7
EXPECTED LIFETIME OF THE TERMINAL, DETERMINED USING STANDARD

8
METHODS OF PROBABILITY THEORY, UNLESS THE BUREAU APPROVES A

9
REQUEST BY THE MANUFACTURER TO PROGRAM THE VIDEO LOTTERY TERMINAL

10
FOR A PAYOUT GREATER THAN 95% OF THE AMOUNT WAGERED. A MANUFAC-

11
TURER SHALL OBTAIN BUREAU APPROVAL BEFORE APPLYING FOR TESTING OF

12
A HIGH PAYOUT TERMINAL.

13
(C) A PROBABILITY GREATER THAN 1 IN 17,000,000 OF OBTAINING

14
THE MAXIMUM PAYOUT FOR EACH PLAY.

15
(4) A VIDEO LOTTERY TERMINAL SHALL BE CAPABLE OF CONTINUING

16
THE CURRENT GAME WITH ALL CURRENT GAME FEATURES AFTER A MALFUNC-

17
TION OF THE TERMINAL IS CLEARED. IF A VIDEO LOTTERY TERMINAL

18
BECOMES TOTALLY INOPERABLE DURING A GAME, THE CURRENT WAGER AND

19
ALL CREDITS APPEARING ON THE VIDEO LOTTERY TERMINAL DISPLAY

20
BEFORE THE MALFUNCTION SHALL BE RETURNED TO THE PLAYER.

21
(5) A VIDEO LOTTERY TERMINAL SHALL MAINTAIN ELECTRONIC

22
ACCOUNTING AT ALL TIMES REGARDLESS OF WHETHER THE TERMINAL IS

23
BEING SUPPLIED WITH ELECTRICAL POWER. THE ELECTRONIC METER OF A

24
VIDEO LOTTERY TERMINAL SHALL RECORD ALL OF THE FOLLOWING

25
INFORMATION:

26
(A) THE NUMBER OF COINS INSERTED BY PLAYERS OR THE COIN

27
EQUIVALENT IF A BILL ACCEPTOR, TOKENS, OR VOUCHERS ARE USED.

07899'02 ** 22

1
(B) THE NUMBER OF CREDITS WAGERED.

2
(C) THE NUMBER OF TOTAL CREDITS, COINS, AND TOKENS WON.

3
(D) THE NUMBER OF CREDITS PAID OUT BY A PRINTED TICKET.

4
(E) THE NUMBER OF COINS OR TOKENS WON, IF APPLICABLE.

5
(F) THE NUMBER OF TIMES THE LOGIC AREA HAS BEEN ACCESSED.

6
(G) THE NUMBER OF TIMES THE CASH DOOR HAS BEEN ACCESSED.

7
(H) THE NUMBER OF CREDITS WAGERED IN THE CURRENT GAME.

8
(I) THE NUMBER OF CREDITS WON IN THE LAST COMPLETE VIDEO

9
LOTTERY GAME.

10
(J) THE NUMBER OF CUMULATIVE CREDITS REPRESENTING MONEY

11
INSERTED BY A PLAYER AND CREDITS FOR VIDEO LOTTERY GAMES WON BUT

12
NOT COLLECTED.

13
(6) A VIDEO LOTTERY TERMINAL SHALL NOT HAVE A MECHANISM THAT

14
ALLOWS THE ELECTRONIC ACCOUNTING METERS TO CLEAR AUTOMATICALLY.

15
A PERSON SHALL NOT CLEAR AN ELECTRONIC ACCOUNTING METER WITHOUT

16
THE PRIOR APPROVAL OF THE BUREAU. BOTH BEFORE AND AFTER AN ELEC-

17
TRONIC ACCOUNTING METER IS CLEARED, ALL METER READINGS SHALL BE

18
RECORDED IN THE PRESENCE OF A BUREAU EMPLOYEE.

19
(7) THE BUREAU HAS PRIMARY RESPONSIBILITY FOR THE CONTROL

20
AND REGULATION OF A VIDEO LOTTERY GAME OR VIDEO LOTTERY TERMINAL

21
OPERATED UNDER THIS ARTICLE.

22
(8) THE BUREAU SHALL, DIRECTLY OR THROUGH A CONTRACT WITH A

23
THIRD PARTY VENDOR OTHER THAN A LICENSE HOLDER, MAINTAIN A CEN-

24
TRAL CONTROL SYSTEM TO MONITOR LOTTERY TERMINALS USING AN ON-LINE

25
OR DIAL-UP COMMUNICATION METHOD. THE CENTRAL CONTROL SYSTEM

26
SHALL BE CAPABLE OF MONITORING THE OPERATION OF AND IMMEDIATELY

27
DISABLING EACH VIDEO LOTTERY TERMINAL. THE BUREAU MAY REQUIRE A

07899'02 ** 23

1
LICENSE HOLDER TO PAY THE COST OF A CENTRAL CONTROL SYSTEM AS

2
PART OF THE LICENSE HOLDER'S LICENSING REQUIREMENT.

3
SEC. 54. THE BUREAU SHALL NOT GRANT A LICENSE OR A PERMIT

4
UNLESS IT HAS DETERMINED THAT THE APPLICANT SATISFIES ALL OF THE

5
FOLLOWING QUALIFICATIONS:

6
(A) IF APPLYING FOR A LICENSE, THE APPLICANT HOLDS A VALID

7
TRACK LICENSE UNDER THE HORSE RACING LAW OF 1995, 1995 PA 279,

8
MCL 431.301 TO 431.336.

9
(B) THE APPLICANT HAS GOOD CHARACTER AND INTEGRITY.

10
(C) THE APPLICANT'S BACKGROUND, INCLUDING CRIMINAL RECORD,

11
REPUTATION, AND ASSOCIATIONS, DOES NOT POSE A THREAT TO THE

12
SECURITY AND INTEGRITY OF THE LOTTERY OR TO THE PUBLIC INTEREST

13
OF THIS STATE. AN APPLICANT FOR A NEW LICENSE OR FOR THE RENEWAL

14
OF A LICENSE SHALL FURNISH FINGERPRINTS FOR A CRIMINAL BACKGROUND

15
CHECK BY THE DEPARTMENT OF STATE POLICE AND THE FEDERAL BUREAU OF

16
INVESTIGATION. THE FINGERPRINTS SHALL BE FURNISHED BY EACH INDI-

17
VIDUAL REQUIRED TO BE NAMED IN THE APPLICATION, AND EACH INDIVID-

18
UAL SHALL PROVIDE A SIGNED AUTHORIZATION FOR THE RELEASE OF

19
INFORMATION BY THE DEPARTMENT OF STATE POLICE AND THE FEDERAL

20
BUREAU OF INVESTIGATION. A PERSON WHO HAS BEEN CONVICTED OF A

21
CRIME RELATED TO BRIBERY OR GAMBLING OR INVOLVING MORAL TURPITUDE

22
IS NOT ELIGIBLE FOR A LICENSE OR PERMIT. THE BUREAU SHALL REVOKE

23
THE LICENSE OR PERMIT OF A PERSON WHO, AFTER A LICENSE OR PERMIT

24
IS GRANTED, IS CONVICTED OF A CRIME RELATED TO BRIBERY OR GAMBL-

25
ING OR INVOLVING MORAL TURPITUDE.

07899'02 ** 24

1
(D) THE APPLICANT DEMONSTRATES THE BUSINESS ABILITY AND

2
EXPERIENCE NECESSARY TO ESTABLISH, OPERATE, AND MAINTAIN THE

3
BUSINESS FOR WHICH APPLICATION IS MADE.

4
(E) THE APPLICANT HAS SECURED ADEQUATE FINANCING FOR THE

5
BUSINESS FOR WHICH APPLICATION IS MADE. THE BUREAU SHALL DETER-

6
MINE WHETHER FINANCING IS FROM A SOURCE THAT MEETS THE QUALIFICA-

7
TIONS OF THIS SECTION AND IS ADEQUATE TO SUPPORT THE SUCCESSFUL

8
PERFORMANCE OF THE DUTIES AND RESPONSIBILITIES OF THE APPLICANT.

9
AN APPLICANT FOR A LICENSE SHALL DISCLOSE ALL FINANCING OR REFI-

10
NANCING ARRANGEMENTS FOR THE PURCHASE, LEASE, OR OTHER ACQUISI-

11
TION OF VIDEO LOTTERY TERMINALS AND ASSOCIATED EQUIPMENT IN THE

12
DEGREE OF DETAIL REQUESTED BY THE BUREAU. A LICENSE HOLDER SHALL

13
REQUEST BUREAU APPROVAL OF ANY CHANGE IN FINANCING OR LEASE

14
ARRANGEMENTS AT LEAST 30 DAYS BEFORE THE EFFECTIVE DATE OF THE

15
CHANGE.

16
SEC. 55. (1) A LICENSE OR PERMIT HOLDER SHALL DO ALL OF THE

17
FOLLOWING:

18
(A) REPORT TO THE BUREAU PROMPTLY ANY FACTS OR CIRCUMSTANCES

19
RELATED TO VIDEO LOTTERY OPERATIONS THAT CONSTITUTE A VIOLATION

20
OF STATE OR FEDERAL LAW.

21
(B) CONDUCT ALL VIDEO LOTTERY ACTIVITIES AND FUNCTIONS IN A

22
MANNER THAT DOES NOT POSE A THREAT TO THE PUBLIC HEALTH, SAFETY,

23
OR WELFARE OF THE CITIZENS OF THIS STATE, AND THAT DOES NOT

24
ADVERSELY AFFECT THE SECURITY OR INTEGRITY OF THE LOTTERY.

25
(C) HOLD THE BUREAU AND THIS STATE HARMLESS FROM AND DEFEND

26
AND PAY FOR THE DEFENSE OF A CLAIM ASSERTED AGAINST A LICENSE

27
HOLDER, THE BUREAU, THE STATE, OR AN EMPLOYEE OF A LICENSE

07899'02 ** 25

1
HOLDER, THE BUREAU, OR THE STATE, ARISING FROM THE LICENSE

2
HOLDER'S PARTICIPATION IN VIDEO LOTTERY.

3
(D) ASSIST THE BUREAU IN MAXIMIZING VIDEO LOTTERY REVENUES.

4
(E) MAINTAIN ALL RECORDS REQUIRED BY THE BUREAU.

5
(F) UPON REQUEST BY THE BUREAU, PROVIDE THE BUREAU ACCESS TO

6
ALL RECORDS AND THE PHYSICAL PREMISES OF THE BUSINESS OR BUSI-

7
NESSES WHERE THE LICENSE OR PERMIT HOLDER'S VIDEO LOTTERY ACTIVI-

8
TIES OCCUR SO THAT THE BUREAU MAY MONITOR OR INSPECT THE LICENSE

9
OR PERMIT HOLDER'S ACTIVITIES AND THE VIDEO LOTTERY GAMES, VIDEO

10
LOTTERY TERMINALS, AND ASSOCIATED EQUIPMENT.

11
(G) KEEP CURRENT IN ALL PAYMENTS AND OBLIGATIONS TO THE

12
BUREAU.

13
(2) A MANUFACTURER SHALL DO ALL OF THE FOLLOWING:

14
(A) MANUFACTURE TERMINALS AND ASSOCIATED EQUIPMENT FOR

15
PLACEMENT IN THIS STATE IN ACCORDANCE WITH THE SPECIFICATIONS AND

16
PROCEDURES OF SECTIONS 52 AND 53.

17
(B) MANUFACTURE TERMINALS AND ASSOCIATED EQUIPMENT TO ENSURE

18
TIMELY DELIVERY TO RACETRACKS OF LICENSE HOLDERS.

19
(C) MAINTAIN AND PROVIDE AN INVENTORY OF SPARE PARTS TO

20
ASSURE THE TIMELY REPAIR AND CONTINUOUS OPERATION OF VIDEO LOT-

21
TERY TERMINALS OF LICENSE HOLDERS IN THIS STATE.

22
(D) PROVIDE TECHNICAL ASSISTANCE AND TRAINING IN THE SERVICE

23
AND REPAIR OF VIDEO LOTTERY TERMINALS AND ASSOCIATED EQUIPMENT TO

24
LICENSE HOLDERS AND SERVICE TECHNICIANS TO ASSURE THE CONTINUOUS

25
OPERATION OF THE VIDEO LOTTERY TERMINALS.

26
(E) OBTAIN CERTIFICATION OF COMPLIANCE UNDER 47 C.F.R. PART

27
15 FOR ALL VIDEO LOTTERY TERMINALS PLACED IN THIS STATE.

07899'02 ** 26

1
(3) A LICENSE HOLDER SHALL DO ALL OF THE FOLLOWING:

2
(A) ACQUIRE VIDEO LOTTERY TERMINALS BY PURCHASE, LEASE, OR

3
OTHER TRANSFER AND PROVIDE A SECURE LOCATION FOR THE PLACEMENT,

4
OPERATION, AND PLAY OF THE VIDEO LOTTERY TERMINALS.

5
(B) PAY FOR THE INSTALLATION AND OPERATION OF

6
BUREAU-APPROVED TELEPHONE LINES TO PROVIDE DIRECT DIAL-UP OR

7
ON-LINE COMMUNICATION BETWEEN EACH VIDEO LOTTERY TERMINAL AND THE

8
CENTRAL CONTROL SYSTEM.

9
(C) NOT PERMIT A PERSON TO TAMPER OR INTERFERE WITH THE

10
OPERATION OF A VIDEO LOTTERY TERMINAL.

11
(D) ENSURE THAT TELEPHONE LINES FROM THE CENTRAL CONTROL

12
SYSTEM TO THE VIDEO LOTTERY TERMINALS LOCATED AT THE RACETRACK OF

13
THE LICENSE HOLDER ARE CONNECTED AT ALL TIMES AND PREVENT ANY

14
PERSON FROM TAMPERING OR INTERFERING WITH THE OPERATION OF THE

15
TELEPHONE LINES.

16
(E) ENSURE THAT A VIDEO LOTTERY TERMINAL IS WITHIN THE SIGHT

17
AND CONTROL OF A DESIGNATED EMPLOYEE OF THE LICENSE HOLDER WHEN

18
THE TERMINAL IS AVAILABLE FOR PLAY.

19
(F) ENSURE THAT A VIDEO LOTTERY TERMINAL IS PLACED AND

20
REMAINS IN THE SPECIFIC LOCATION OR LOCATIONS AT THE RACETRACK OF

21
THE LICENSE HOLDER THAT HAVE BEEN APPROVED BY THE BUREAU, UNLESS

22
THE BUREAU FIRST APPROVES THE RELOCATION OF THE VIDEO LOTTERY

23
TERMINAL.

24
(G) MONITOR A VIDEO LOTTERY TERMINAL TO PREVENT ACCESS TO OR

25
PLAY AT THE TERMINAL BY AN INDIVIDUAL WHO IS UNDER 18 YEARS OF

26
AGE OR VISIBLY INTOXICATED.

07899'02 ** 27

1
(H) MAINTAIN SUFFICIENT CURRENCY AND COINS AT ALL TIMES IN

2
THE DENOMINATIONS ACCEPTED BY THE VIDEO LOTTERY TERMINALS.

3
(I) NOT DO ANY OF THE FOLLOWING:

4
(i) PROVIDE PLAYERS ACCESS TO AN AUTOMATED TELLER MACHINE IN

5
THE AREA OF THE RACETRACK WHERE VIDEO LOTTERY GAMES ARE PLAYED.

6
(ii) ACCEPT A CREDIT CARD OR DEBIT CARD FROM A PLAYER FOR

7
THE EXCHANGE OR PURCHASE OF VIDEO LOTTERY GAME CREDITS OR FOR AN

8
ADVANCE OF COINS OR CURRENCY TO BE USED BY A PLAYER TO PLAY VIDEO

9
LOTTERY GAMES.

10
(iii) EXTEND CREDIT, IN ANY MANNER, TO A PLAYER TO ENABLE

11
THE PLAYER TO PLAY A VIDEO LOTTERY GAME.

12
(J) PAY FOR ALL CREDITS WON BY A PLAYER ON PRESENTMENT OF A

13
VALID WINNING VIDEO LOTTERY TICKET.

14
(K) REPORT A VIDEO LOTTERY TERMINAL MALFUNCTION PROMPTLY TO

15
THE MANUFACTURER AND THE BUREAU AND NOTIFY THE BUREAU OF THE

16
FAILURE OF A MANUFACTURER OR SERVICE TECHNICIAN TO PROVIDE PROMPT

17
SERVICE AND REPAIR OF THE MALFUNCTION OF A VIDEO LOTTERY TERMINAL

18
OR ASSOCIATED EQUIPMENT.

19
(l) INSTALL, POST, AND DISPLAY PROMINENTLY AT LOCATIONS AT

20
THE RACETRACK OF THE LICENSE HOLDER SIGNS, REDEMPTION INFORMA-

21
TION, AND OTHER PROMOTIONAL MATERIAL AS REQUIRED BY THE BUREAU.

22
(M) PERMIT VIDEO LOTTERY GAMES TO BE PLAYED ONLY DURING

23
HOURS ESTABLISHED AND APPROVED BY THE BUREAU.

24
(N) MAINTAIN GENERAL LIABILITY INSURANCE COVERAGE FOR ALL

25
VIDEO LOTTERY TERMINALS IN AN AMOUNT OF AT LEAST $2,000,000.00

26
PER CLAIM.

07899'02 ** 28

1
(O) PROMPTLY NOTIFY THE BUREAU IN WRITING OF ANY BREAKS OR

2
TEARS IN ANY LOGIC UNIT SEALS.

3
(P) ASSUME LIABILITY FOR MONEY LOST OR STOLEN FROM A VIDEO

4
LOTTERY TERMINAL.

5
(Q) SUBMIT AN AUDITED FINANCIAL STATEMENT ON A FORM THAT HAS

6
BEEN APPROVED BY THE BUREAU TO THE BUREAU WHEN INITIALLY APPLYING

7
FOR A LICENSE OR PERMIT AND, AFTER A LICENSE OR PERMIT HAS BEEN

8
GRANTED, ANNUALLY BEFORE THE TIME FOR RENEWAL.

9
SEC. 56. (1) THE BUREAU SHALL PROVIDE TO A MANUFACTURER, OR

10
AN APPLICANT APPLYING FOR A MANUFACTURER'S PERMIT, THE PROTOCOL

11
DOCUMENTATION DATA NECESSARY TO ENABLE THE MANUFACTURER'S VIDEO

12
LOTTERY TERMINALS TO COMMUNICATE WITH THE CENTRAL CONTROL SYSTEM

13
TO TRANSMIT AUDITING PROGRAM INFORMATION AND ACTIVATE AND DISABLE

14
THE VIDEO LOTTERY TERMINALS.

15
(2) A LICENSE HOLDER SHALL REMIT ITS GROSS TERMINAL INCOME

16
TO THE BUREAU BY ELECTRONIC TRANSFER OF FUNDS ON DATES ESTAB-

17
LISHED BY THE BUREAU. A LICENSE HOLDER SHALL FURNISH TO THE

18
BUREAU ALL INFORMATION AND BANK AUTHORIZATIONS REQUIRED TO FACIL-

19
ITATE THE TIMELY TRANSFER OF MONEY TO THE BUREAU. A LICENSE

20
HOLDER SHALL PROVIDE THE BUREAU AT LEAST 30 DAYS' ADVANCE NOTICE

21
OF ANY PROPOSED ACCOUNT CHANGES TO ENSURE THE UNINTERRUPTED ELEC-

22
TRONIC TRANSFER OF FUNDS. THE BUREAU SHALL DEDUCT FROM THE GROSS

23
TERMINAL INCOME REMITTED BY THE LICENSE HOLDER AN AMOUNT SUFFI-

24
CIENT TO REIMBURSE THE BUREAU FOR ADMINISTRATIVE COSTS. THE

25
BUREAU SHALL ANNUALLY RETURN ANY AMOUNT DEDUCTED FOR ADMINISTRA-

26
TIVE COSTS THAT EXCEEDS ACTUAL ADMINISTRATIVE COSTS TO EACH

07899'02 ** 29

1
LICENSE HOLDER IN PROPORTION TO THE ADMINISTRATIVE COSTS DEDUCTED

2
FROM THE LICENSE HOLDER'S GROSS TERMINAL INCOME.

3
(3) NET TERMINAL INCOME SHALL BE DIVIDED AS FOLLOWS:

4
(A) THIRTY-SEVEN AND FOUR-TENTHS PERCENT SHALL BE DEPOSITED

5
IN THE STATE SCHOOL AID FUND.

6
(B) SIXTY-TWO AND SIX-TENTHS PERCENT SHALL BE PAID TO THE

7
RACING COMMISSIONER TO BE DISTRIBUTED ACCORDING TO THE PROVISIONS

8
IN THE HORSE RACING LAW OF 1995, 1995 PA 279, MCL 431.301 TO

9
431.336, FOR THE DIVISION OF MONEY FROM THE OPERATION OF

10
PARI-MUTUEL CARD GAMES AND EVENTS AND SITE-ONLY SIMULCASTING,

11
EXCEPT THAT THE DEPOSIT OF MONEY UNDER SUBDIVISION (A) SUBSTI-

12
TUTES FOR THE DISTRIBUTION TO THE STATE UNDER THOSE PROVISIONS.

13
(4) A LICENSE HOLDER SHALL MAINTAIN IN THE BANK ACCOUNT OR

14
ACCOUNTS FROM WHICH FUNDS ARE TRANSFERRED TO THE BUREAU UNDER

15
SUBSECTION (2) AN AMOUNT EQUAL TO OR GREATER THAN THE GROSS TER-

16
MINAL INCOME FROM ITS OPERATION OF VIDEO LOTTERY GAMES. IF A

17
LICENSE HOLDER FAILS TO MAINTAIN THIS BALANCE, THE BUREAU MAY

18
DISABLE ALL OF THE LICENSE HOLDER'S VIDEO LOTTERY TERMINALS UNTIL

19
FULL PAYMENT OF ALL AMOUNTS DUE.

20
(5) THE CENTRAL CONTROL SYSTEM SHALL KEEP ACCURATE RECORDS

21
OF ALL INCOME GENERATED BY EACH VIDEO LOTTERY TERMINAL. THE

22
BUREAU SHALL PREPARE AND MAIL TO EACH LICENSE HOLDER A STATEMENT

23
REFLECTING THE GROSS TERMINAL INCOME GENERATED BY THE LICENSE

24
HOLDER'S VIDEO LOTTERY TERMINALS. A LICENSE HOLDER SHALL REPORT

25
TO THE BUREAU ANY DISCREPANCY BETWEEN THE BUREAU'S STATEMENT AND

26
A TERMINAL'S MECHANICAL AND ELECTRONIC METER READINGS. A LICENSE

27
HOLDER IS SOLELY RESPONSIBLE FOR RESOLVING AN INCOME DISCREPANCY

07899'02 ** 30

1
BETWEEN ACTUAL MONEY COLLECTED AND THE AMOUNT SHOWN ON THE

2
ACCOUNTING METERS OR ON THE BUREAU'S STATEMENT.

3
(6) THE BUREAU SHALL NOT MAKE A CREDIT ADJUSTMENT UNLESS AN

4
ACCOUNTING DISCREPANCY IS RESOLVED IN FAVOR OF A LICENSE HOLDER.

5
IF A VIDEO LOTTERY TERMINAL SHOWS A DISCREPANCY, THE LICENSE

6
HOLDER SHALL SUBMIT TO THE BUREAU THE MAINTENANCE LOG THAT

7
INCLUDES CURRENT MECHANICAL METER READINGS AND THE AUDIT TICKET

8
THAT CONTAINS ELECTRONIC METER READINGS GENERATED BY THE

9
TERMINAL'S SOFTWARE. IF THE METER READINGS AND THE BUREAU'S

10
RECORDS CANNOT BE RECONCILED, FINAL DISPOSITION OF THE MATTER

11
SHALL BE DETERMINED BY THE BUREAU. ANY ACCOUNTING DISCREPANCIES

12
THAT CANNOT BE OTHERWISE RESOLVED SHALL BE RESOLVED IN FAVOR OF

13
THE BUREAU.

14
(7) A LICENSE HOLDER SHALL REMIT PAYMENT BY MAIL IF THE

15
ELECTRONIC TRANSFER OF FUNDS UNDER SUBSECTION (2) IS NOT OPER-

16
ATIONAL OR THE BUREAU NOTIFIES THE LICENSE HOLDER THAT REMITTANCE

17
BY THIS METHOD IS REQUIRED. THE LICENSE HOLDER SHALL REPORT AN

18
AMOUNT EQUAL TO THE TOTAL AMOUNT OF CASH INSERTED INTO EACH VIDEO

19
LOTTERY TERMINAL OPERATED BY THE LICENSE HOLDER, MINUS THE TOTAL

20
VALUE OF GAME CREDITS WHICH ARE CLEARED FROM THE VIDEO LOTTERY

21
TERMINAL IN EXCHANGE FOR WINNING REDEMPTION TICKETS, AND REMIT

22
THE AMOUNT AS GENERATED FROM ITS TERMINALS DURING THE REPORTING

23
PERIOD. THE REMITTANCE SHALL BE SEALED IN A PROPERLY ADDRESSED

24
AND STAMPED ENVELOPE AND DEPOSITED IN THE UNITED STATES MAIL NO

25
LATER THAN 12 NOON ON THE DAY WHEN THE PAYMENT WOULD OTHERWISE BE

26
COMPLETED THROUGH ELECTRONIC FUNDS TRANSFER.

07899'02 ** 31

1
(8) THE BUREAU SHALL PROVIDE ADDITIONAL REPORTS OF PLAY

2
TRANSACTIONS FOR A LICENSE HOLDER'S VIDEO LOTTERY TERMINALS AND

3
OTHER MARKETING INFORMATION NOT CONSIDERED CONFIDENTIAL BY THE

4
BUREAU TO THE LICENSE HOLDER IF THE LICENSE HOLDER REQUESTS

5
THEM. THE BUREAU MAY CHARGE A REASONABLE FEE FOR THE COST OF

6
PRODUCING AND MAILING A REPORT OTHER THAN A STATEMENT UNDER SUB-

7
SECTION (5).

8
(9) THE BUREAU MAY EXAMINE ALL ACCOUNTS, BANK ACCOUNTS,

9
FINANCIAL STATEMENTS, AND RECORDS IN POSSESSION OR UNDER CONTROL

10
OF A LICENSE HOLDER, OR IN WHICH THE LICENSE HOLDER HAS AN

11
INTEREST. A LICENSE HOLDER SHALL AUTHORIZE A THIRD PARTY IN POS-

12
SESSION OR CONTROL OF AN ACCOUNT, STATEMENT, OR RECORD OF THE

13
LICENSE HOLDER TO ALLOW THE BUREAU TO EXAMINE THE ACCOUNT, STATE-

14
MENT, OR RECORD.

15
SEC. 57. (1) A PERSON SHALL NOT PLACE A VIDEO LOTTERY TER-

16
MINAL IN OPERATION IN THIS STATE UNTIL THE MANUFACTURER PROVIDES

17
TRAINING IN THE SERVICE AND REPAIR OF EACH APPROVED VIDEO LOTTERY

18
TERMINAL MODEL AND A SERVICE TECHNICIAN EMPLOYED BY THE LICENSE

19
HOLDER TO WHOM THE MACHINE IS TO BE SOLD, LEASED, OR TRANSFERRED

20
COMPLETES THE TRAINING. A MANUFACTURER SHALL SUBMIT TO THE

21
BUREAU ALL OF THE FOLLOWING INFORMATION ON EACH TRAINING PROGRAM

22
CONDUCTED:

23
(A) AN OUTLINE OF THE TRAINING CURRICULUM.

24
(B) A LIST OF THE INSTRUCTORS AND THEIR QUALIFICATIONS.

25
(C) INSTRUCTIONAL MATERIALS.

26
(D) THE TIME, DATE, AND LOCATION OF EACH TRAINING PROGRAM.

07899'02 ** 32

1
(2) A MANUFACTURER SHALL NOTIFY EACH LICENSE HOLDER THAT HAS

2
PURCHASED OR LEASED THE MANUFACTURER'S VIDEO LOTTERY TERMINALS OF

3
ALL SCHEDULED TRAINING PROGRAMS. A MANUFACTURER SHALL SCHEDULE

4
TRAINING PROGRAMS AT CONVENIENT LOCATIONS IN THIS STATE TO FACIL-

5
ITATE ATTENDANCE BY SERVICE TECHNICIANS. A MANUFACTURER SHALL

6
INFORM EACH LICENSE HOLDER OF ALL NEW DEVELOPMENTS IN THE SERVICE

7
AND REPAIR OF VIDEO LOTTERY TERMINALS AND PROVIDE APPROPRIATE

8
SUBSEQUENT TRAINING PROGRAMS.

9
(3) A MANUFACTURER SHALL ISSUE A TRAINING CERTIFICATE TO A

10
PERSON AFTER THE PERSON SUCCESSFULLY COMPLETES A VIDEO LOTTERY

11
TRAINING PROGRAM. THE CERTIFICATE SHALL INCLUDE THE NAME OF THE

12
PERSON WHO COMPLETED THE TRAINING PROGRAM AND THE DATE AND LOCA-

13
TION OF THE TRAINING PROGRAM. A PERSON WHO SUCCESSFULLY COM-

14
PLETES TRAINING IS ELIGIBLE FOR A SERVICE TECHNICIAN'S PERMIT. A

15
PERSON SHALL NOT CONDUCT MAINTENANCE ON A VIDEO LOTTERY TERMINAL

16
OR ASSOCIATED EQUIPMENT UNLESS THE BUREAU HAS ISSUED A SERVICE

17
TECHNICIAN PERMIT TO THAT PERSON.

18
(4) A MANUFACTURER SHALL FILE ALL OF THE FOLLOWING INFORMA-

19
TION WITH THE BUREAU WITHIN 2 WEEKS AFTER THE COMPLETION OF A

20
TRAINING PROGRAM:

21
(A) THE NAME OF EACH PERSON THAT ATTENDED AND COMPLETED THE

22
TRAINING PROGRAM.

23
(B) THE NAME OF THE MANUFACTURER OFFERING THE PROGRAM.

24
(C) THE VIDEO LOTTERY TERMINAL MODELS FOR WHICH SERVICE AND

25
REPAIR TRAINING WERE PROVIDED.

26
(D) THE DATE AND LOCATION OF THE TRAINING PROGRAM.

07899'02 ** 33

1
(E) COPIES OF ALL CERTIFICATES OF COMPLETION.

2
(5) A LICENSE HOLDER SHALL KEEP A WRITTEN MAINTENANCE LOG

3
WITHIN THE MAIN CABINET ACCESS AREA IN EACH VIDEO LOTTERY

4
TERMINAL. EVERY PERSON, INCLUDING BUREAU PERSONNEL, WHO GAINS

5
ENTRY INTO AN INTERNAL SPACE OF A VIDEO LOTTERY TERMINAL SHALL

6
SIGN THE LOG, RECORD THE TIME AND DATE OF ENTRY, RECORD THE

7
MECHANICAL METER READINGS, AND LIST THE AREAS INSPECTED OR

8
REPAIRED. A LICENSE HOLDER SHALL RETAIN A MAINTENANCE LOG FOR 3

9
YEARS FROM THE DATE OF THE LAST ENTRY. A LICENSE HOLDER SHALL

10
MAKE A MAINTENANCE LOG AVAILABLE FOR INSPECTION ON REQUEST BY THE

11
BUREAU.

12
(6) A LICENSE HOLDER SHALL PROVIDE THE BUREAU WITH A MASTER

13
KEY FOR ACCESS INTO THE MAIN CABINET DOOR OF EACH VIDEO LOTTERY

14
TERMINAL PLACED IN OPERATION. THE BUREAU SHALL PROVIDE A LOGIC

15
BOX SEAL THAT BUREAU PERSONNEL SHALL AFFIX TO PREVENT UNAUTHO-

16
RIZED ACCESS TO THE VIDEO LOTTERY TERMINAL'S LOGIC UNIT.

17
SEC. 58. (1) A LICENSE HOLDER MAY INSTALL AND OPERATE UP TO

18
1,500 VIDEO LOTTERY TERMINALS AT THE LICENSE HOLDER'S RACETRACK.

19
A LICENSE HOLDER MAY APPLY TO THE BUREAU FOR AUTHORIZATION TO

20
INSTALL AND OPERATE MORE THAN 1,500 VIDEO LOTTERY TERMINALS. IF

21
THE BUREAU DETERMINES THAT IT IS IN THE BEST INTERESTS OF THE

22
LICENSE HOLDER, THE BUREAU, AND THE CITIZENS OF THIS STATE, THE

23
BUREAU MAY GRANT THE LICENSE HOLDER PERMISSION TO INSTALL AND

24
OPERATE THE ADDITIONAL VIDEO LOTTERY TERMINALS.

25
(2) A VIDEO LOTTERY TERMINAL SHALL BE PHYSICALLY LOCATED IN

26
AN AREA TO WHICH ALL OF THE FOLLOWING APPLY:

07899'02 ** 34

1
(A) THE AREA SHALL BE CONTINUOUSLY MONITORED BY A CLOSED

2
CIRCUIT TELEVISION SYSTEM CAPABLE OF RECORDING ACTIVITY FOR A

3
CONTINUOUS 24-HOUR PERIOD. ALL RECORDED VIDEOTAPES OR OTHER

4
MEDIA SHALL BE RETAINED FOR AT LEAST 30 DAYS.

5
(B) ACCESS TO THE AREA SHALL BE RESTRICTED TO PERSONS

6
LEGALLY ENTITLED BY AGE TO PLAY VIDEO LOTTERY GAMES.

7
(C) THE LICENSE HOLDER HAS SUBMITTED FOR BUREAU APPROVAL A

8
FLOOR PLAN OF THE AREA SHOWING THE LOCATIONS OF TERMINALS AND

9
SECURITY CAMERAS.

10
(D) THE AREA IS IN A BUILDING OR STRUCTURE LOCATED ON PROP-

11
ERTY CONTIGUOUS TO THE GRANDSTAND AREA OF THE RACETRACK.

12
(E) THE LICENSE HOLDER HAS DESIGNATED A PORTION OF THE AREA

13
AS A NO-SMOKING AREA AND PROHIBITS SMOKING IN THAT PORTION OF THE

14
AREA.

15
(F) THE AREA, OR THE AREA WHERE THE LICENSE HOLDER CONDUCTS

16
GAMING OTHER THAN HORSE RACING, HAS WINDOWS THAT ALLOW A VIEW OF

17
THE LICENSE HOLDER'S RACETRACK AND THAT ARE UNCOVERED DURING ALL

18
RACES HELD ON THE TRACK.

19
(G) THERE IS NO ELECTRONIC FUNDS TRANSFER TERMINAL WITHIN 50

20
FEET OF A VIDEO LOTTERY TERMINAL.

21
SEC. 59. PAYMENT FOR CREDITS AWARDED ON A VIDEO LOTTERY

22
TERMINAL SHALL NOT BE MADE UNLESS THE TICKET MEETS ALL OF THE

23
FOLLOWING REQUIREMENTS:

24
(A) THE TICKET IS FULLY LEGIBLE, PRINTED ON PAPER APPROVED

25
BY THE BUREAU, AND CONTAINS ALL INFORMATION REQUIRED BY THIS

26
ARTICLE.

07899'02 ** 35

1
(B) THE TICKET HAS NOT BEEN MUTILATED, ALTERED, MADE

2
UNREADABLE, OR TAMPERED WITH IN ANY MANNER.

3
(C) THE TICKET, OR ANY PART OF IT, IS NOT COUNTERFEIT.

4
(D) THE TICKET IS PRESENTED BY A PERSON AUTHORIZED TO PLAY

5
VIDEO LOTTERY UNDER THIS ARTICLE.

6
SEC. 60. THE BUREAU MAY PROMULGATE RULES TO IMPLEMENT THIS

7
ARTICLE PURSUANT TO THE ADMINISTRATIVE PROCEDURES ACT OF 1969,

8
1969 PA 306, MCL 24.201 TO 24.328.

9
SEC. 61. (1) THE COMMISSIONER MAY TAKE DISCIPLINARY ACTION

10
AGAINST A PERSON, AFTER A HEARING, FOR A VIOLATION OF THIS ARTI-

11
CLE OR THE ADMINISTRATIVE RULES ADOPTED UNDER THIS ARTICLE.

12
DISCIPLINARY ACTION INCLUDES SUSPENDING OR REVOKING A LICENSE

13
ISSUED UNDER THIS PART AND FINING, EXCLUDING, REPRIMANDING, OR

14
OTHERWISE PENALIZING A PERSON.

15
(2) UNLESS AUTHORIZED TO DO SO BY THE BUREAU, A PERSON WHO

16
MANIPULATES THE OUTCOME, PAYOFF, OR OPERATION OF A VIDEO LOTTERY

17
GAME WITH THE INTENT TO MANIPULATE THE OUTCOME, PAYOFF, OR OPERA-

18
TION OF THE VIDEO LOTTERY GAME IS GUILTY OF A FELONY PUNISHABLE

19
BY IMPRISONMENT FOR NOT MORE THAN 10 YEARS OR A FINE OF NOT LESS

20
THAN $10,000.00, OR BOTH. IF THE PERSON WHO MANIPULATES THE OUT-

21
COME, PAYOFF, OR OPERATION OF A VIDEO LOTTERY GAME UNDER THIS

22
SUBSECTION IS LICENSED UNDER THIS ARTICLE, THE BUREAU SHALL

23
REVOKE THE PERSON'S LICENSE.

24
Enacting section 1. This amendatory act does not take

25
effect unless all of the following bills of the 91st Legislature

26
are enacted into law:

07899'02 ** 36

1
(a) House Bill No. 5285.

2
(b) House Bill No. 5286.

3
(c) House Bill No. 5287.

4
(d) House Bill No. 5288.

5
(e) House Bill No. 6142.

07899'02 ** Final page. TDR