8 PROPOSED ADMINISTRATIVE RULES

 

SOAHR 2008-020 DEPARTMENT OF TREASURY

COMMISSIONER OF THE BUREAU OF STATE LOTTERY LOTTERY

Filed with the Secretary of State on

 

These rules become effective immediately upon filing with the Secretary of State unless adopted under sections 33, 44, 45a(6), or 48 of 1969 PA 306. Rules adopted under these sections become effective 7 days after filing with the Secretary of State.

 

(By authority conferred on the commissioner of Bureau of State Lottery by section 11 of 1972 PA 239, MCL 432.11)

Draft 09/05/08

 

R432.5, R 432.16, R 432.18 of the Michigan Administrative Code are amended as follows:

 

R 432.5    License fee.

Rule 5. (1) The commissioner shall determine the fee for a license as a retailer. The fee is payable at the time of license issuance.

(2)   A license renewal fee may be charged annually in an amount determined by the commissioner.

(3)   These The fees in subrules (21) and (32) of this rule shall not exceed the actual cost to the bureau.

 

R 432.16    Claiming of prizes.

Rule 16. (1) The commissioner shall designate claim centers for the lottery program and advertise their locations.

(2)   The processing of winning tickets shall be in accordance with directives and instructions issued by the commissioner. If a special drawoff is required to determine the exact amount won, then the bureau shall notify the claimant when and where to appear for the drawoff and where to present his or her winning ticket for validation.

(3) A claimant shall enter a claim in the name of a single legal entity as claimant, either 1 individual or 1 organization. A claimant may enter a claim in the name of an organization only if the organization  possesses a federal employer's identification number (FEIN) issued by the internal revenue service and the number is shown on the claim form. Groups, family units, organizations or clubs that do not possess  a federal employer's identification number shall designate 1 individual in whose name the claim is to be entered.

(43) Mutilated tickets shall be validated only if adequate portions of the ticket remain reasonably intact to ensure the authenticity of the ticket.

(54) A claimant shall fill out a claim form, present the form with the winning ticket, and receive a copy of the claim form as his or her receipt.

 

 

(65) Upon validation of a winning ticket, payment of the amount due shall be forwarded to the claimant in accordance with bureau procedures. If a claim is not validated as proper, then the bureau shall deny the claim and promptly notify the claimant.

(7) Winning tickets from pulltab games shall be claimed at the retailer location where the ticket was  purchased. Only the selling retailer may pay winnings from pulltab tickets and only for tickets sold by  that retailer. The retailer shall pay the winnings from pulltab tickets sold at the retailer’s location.

 

R 432.18    Payment of prizes.

Rule 18. (1) The bureau shall make payment of prizes as soon as reasonably possible after the claim has been filed, verified, and the claimant identified to the satisfaction of the commissioner.

(2)   The commissioner shall establish a schedule for payment of certain major prizes in installments rather than a lump sum.

(3)   The bureau shall make payment of prizes by mail, when applicable, to the claimant at the address that the claimant entered on the claim form.

(4)   When a drawing or ceremony is conducted, winners shall receive payment in full, or if applicable, the first installment of a prize, at the drawing or ceremony an appointment scheduled with the bureau as soon as practicable after the drawing. The bureau shall make payment by state treasurer's warrant, special check, or in any other manner determined by the commissioner in advance of the drawing.

(5) The bureau shall make payment of prizes only to the single claimant in whose name the claim was  originally entered. Multiple payees are not permitted. If a claim is erroneously entered with multiple claimants, then the claimants shall designate 1 of them as the individual recipient of the prize. If the claimants fail to designate an individual recipient, then the bureau may designate any 1 of the claimants  as the sole recipient. In either case, the claim shall then be considered as originally entered in the name  of the designated individual, and the bureau shall make payment of any prize won only to the designated single individual.

(65) The agents, officers, and employees of the state and the bureau are discharged of all liability upon payment of a prize to a claimant.

(76) Upon the death of a prize winner who has not yet collected the full amount of his or her minimum guaranteed prize, the bureau shall continue payment in the manner specified by law. Unless specifically provided for by law, the bureau shall not accelerate payment of prize money before its normal date of payment because of the death of the prize winner. The amount paid will not exceed the minimum prize guarantee as indicated in the game directive.

(8) Winning tickets from pulltab games shall be paid only by the retailer who sold the winning ticket. The bureau shall be deemed to have paid all winning tickets upon sale of a box of tickets, also referred to as a “deal,” to a retailer and shall have no further liability for prizes contained within that deal.