February 21, 2012, Introduced by Rep. Womack and referred to the Committee on Regulatory Reform.
A bill to amend 1972 PA 239, entitled
"McCauley-Traxler-Law-Bowman-McNeely lottery act,"
by amending the title and sections 3, 11, 12, 15, 17, 19, and 23
(MCL 432.3, 432.11, 432.12, 432.15, 432.17, 432.19, and 432.23),
the title as amended by 1996 PA 95, section 3 as amended by 1996 PA
167, section 11 as amended by 2004 PA 383, section 12 as amended by
2011 PA 279, and section 23 as amended by 2008 PA 142, and by
adding a heading for article 1 and adding article 2.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to establish and operate a state lottery and to allow
state participation in certain lottery-related joint enterprises
with other sovereignties; to create a bureau of state lottery and
to prescribe its powers and duties; to provide for the
establishment and operation of a lottery in certain cities; to
provide for referenda; to provide for the creation and powers and
duties of city lottery bureaus and city lottery commissioners; to
prescribe
certain provide for the powers and duties of other
certain
state departments and agencies; and local governmental
officers and entities; to license and regulate certain sales
agents; to create the state lottery fund; to provide for the
distribution of lottery revenues and earnings for certain purposes;
to provide for an appropriation; and to provide for remedies and
penalties.
ARTICLE 1 STATE LOTTERY
Sec.
3. As used in this act article:
(a)
"Bureau" means the bureau of state lottery created by this
act
in section 5.
(b) "Commissioner" means the commissioner of state lottery.
(c) "Joint enterprise" means any lottery activity in which the
bureau participates pursuant to a written agreement between the
state of Michigan and any state, territory, country, or other
sovereignty as executed by the commissioner. Joint enterprise does
not include the state lottery or a city lottery created pursuant to
this act.
(d) "Lottery" or "state lottery" means the lottery created
pursuant
to this act article and operated exclusively by or under
the exclusive control of the bureau of state lottery.
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 article.
(2) The rules authorized under this section may include any of
the
following subject to requirements and limitations in this act
article:
(a) The type of lottery to be conducted.
(b) The price of tickets or shares in the state 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), 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 state 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 state 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 state 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.
Sec. 12. (1) Except as otherwise provided in subsection (2),
as nearly as is practicable, not less than 45% of the total annual
revenue accruing from the sale of state lottery tickets or shares
shall be apportioned for payment of prizes to the holders of
winning state lottery tickets or shares.
(2) Notwithstanding subsection (1), the prize money from the
sale of tickets or shares of any joint enterprise is that
percentage of the total annual revenue accrued from that game as
prescribed by the joint enterprise participation agreement executed
by the commissioner.
Sec. 15. (1) The commissioner shall report immediately to the
governor, the state treasurer, and the legislature any matters that
require immediate changes in the laws of this state in order to
prevent
abuses or evasions of this act article
or rules promulgated
hereunder
under this article or to rectify undesirable conditions
in connection with the administration or operation of the state
lottery.
(2) The commissioner shall make a continuous study and
investigation of the state lottery to do all of the following:
(a)
To ascertain any defects in this act article or in the
rules
by reason whereof any that
could result in abuses in the
administration and operation of the lottery or any evasion of this
act
article or the rules. may arise or be practiced.
(b)
To formulate recommendations for changes in this act
article and the rules.
(c)
To guard against the use of this act article and the rules
as a cloak for the carrying on of organized gambling and crime.
(d)
To insure that this act article
and the rules are in a
form
and are administered as to serve the true purposes of this act
article.
(3) The commissioner shall make a continuous study and
investigation of the operation and the administration of similar
laws
which may be in effect in other states or countries, any
literature
on the subject which may be that
is published or
available,
any federal laws which that
may affect the operation of
the state lottery, and the reaction of citizens to existing and
potential features of the state lottery with a view to recommending
or effecting changes that will tend to serve the purposes of this
act
article.
Sec. 17. The commissioner shall do all of the following:
(a) Supervise and administer the operation of the state
lottery
in accordance with this act article
and the rules.
(b)
License as agents to sell state lottery tickets such
persons
whom he deems that the
commissioner determines will best
serve the public convenience and promote the sale of tickets or
shares.
Sec. 19. (1) The commissioner shall employ personnel as
necessary
to implement this act article
at least 2 of whom shall
not be in the classified service.
(2) The departments, boards, commissions or other governmental
subdivisions of this state shall provide assistance to the bureau
upon the bureau's request.
Sec. 23. (1) The commissioner shall not issue a license to a
person to engage in business exclusively as a state lottery sales
agent. Before issuing a state lottery sales license, the
commissioner shall consider factors such as the financial
responsibility and security of the person and his or her business
or activity, the accessibility of his or her place of business or
activity to the public, the sufficiency of existing licenses to
serve the public convenience, and the volume of expected sales.
(2) The commissioner shall issue an initial or renewal state
lottery sales license not later than 90 days after the applicant
files a completed application. Receipt of the application is
considered the date the application is received by any agency or
department of this state. If the commissioner determines that the
application is incomplete, the commissioner shall notify the
applicant in writing, or make information electronically available,
within 30 days after receipt of the incomplete application,
describing the deficiency and requesting the additional
information. The 90-day period is tolled upon notification by the
commissioner of a deficiency until the date the requested
information is received by the commissioner. The determination of
the completeness of an application does not operate as an approval
of the application for the license and does not confer eligibility
of an applicant determined otherwise ineligible for issuance of a
license.
(3) If the commissioner fails to issue or deny a state lottery
sales license within the time required by this section, the
commissioner shall return the license fee and shall reduce the
license fee for the applicant's next renewal application, if any,
by 15%. The failure to issue a state lottery sales license within
the time required under this section does not allow the
commissioner to otherwise delay the processing of the application,
and that application, upon completion, shall be placed in sequence
with other completed applications received at that same time. The
commissioner shall not discriminate against an applicant in the
processing of the application based upon the fact that the license
fee was refunded or discounted under this subsection.
(4) The commissioner shall submit a report by December 1 of
each year to the standing committees and appropriations
subcommittees of the senate and house of representatives concerned
with gaming issues. The commissioner shall include all of the
following information in the report concerning the preceding fiscal
year:
(a) The number of initial and renewal applications the
commissioner received and completed within the 90-day time period
described in subsection (2).
(b) The number of applications denied.
(c) The number of applicants not issued a license within the
90-day time period and the amount of money returned to licensees
and applicants under subsection (3).
(5) Notwithstanding any other provision of law, a person
licensed as a state lottery sales agent may sell state lottery
tickets and shares. A person lawfully engaged in nongovernmental
business on state property may be licensed as a state lottery sales
agent.
(6) A state lottery sales license is not assignable or
transferable.
(7) A licensed agent or his or her employee may sell state
lottery tickets or shares only on the premises stated in the state
lottery sales license. A licensed agent who violates this
subsection is, at the commissioner's discretion, subject to 1 or
more of the following:
(a) Probation for not more than 2 years.
(b) A fine of not more than $1,000.00.
(c) Removal of his or her lottery terminal.
(8) The commissioner may require a bond from a licensed agent
in
an amount provided in rules promulgated under this act article.
(9) A licensed agent shall display his or her license or a
copy of the license conspicuously in accordance with rules
promulgated
under this act article.
(10) The commissioner may suspend or revoke the license of an
agent
who violates this act article
or a rule promulgated under
this
act article.
(11) For purposes of terminal placement, the commissioner
shall take into account with equal emphasis both of the following:
(a) The total instant game sales for the 3 months immediately
preceding a market evaluation.
(b) The need to maximize net lottery revenues from the total
number of terminals placed.
(12) A licensed state lottery sales agent shall not offer to
give or give any money or other thing of value to the holder of a
state lottery ticket or share for winning the state lottery, other
than the prize if payment of the prize by the agent is authorized
by the commissioner.
(13) As used in this section:
(a) "Completed application" means an application complete on
its face and submitted with any applicable licensing fees and any
other information, records, approval, security, or similar item
required by law or rule from a local unit of government, a federal
agency, or a private entity but not from another department or
agency of this state.
(b) "Person" means an individual, association, corporation,
club, trust, estate, society, company, joint stock company,
receiver, trustee, referee, or other person acting in a fiduciary
or representative capacity who is appointed by a court, or any
combination of individuals. Person includes a department,
commission, agency, or instrumentality of the state, including a
county, city, village, or township and an agency or instrumentality
of the county, city, village, or township.
ARTICLE 2 CITY LOTTERIES
Sec. 51. As used in this article:
(a) "City" means a city with a population of 300,000 or more.
(b) "City lottery" means a city lottery created and operated
under this article.
(c) "City lottery operator" means a person who has contracted
with a city to operate a city lottery under this article.
(d) "Person" means an individual, association, partnership,
corporation, limited liability company, governmental entity, or
other legal entity.
Sec. 53. (1) A legislative body of a city may resolve to
establish a city lottery. The city lottery shall not be established
or operated unless approved by the electors of the city under this
section.
(2) If the legislative body of a city has resolved to
establish a city lottery, the city clerk shall submit the question
of whether the city should establish a city lottery to the electors
of the city at the next general election or special election called
for that purpose. The election shall be conducted in accordance
with the Michigan election law, 1954 PA 116, MCL 168.1 to 168.992.
(3) The question to be submitted to the voters under
subsection (2) shall be, subject to the election laws of this
state, substantially as follows:
"Should the city of [name] establish a city lottery?
Yes ( )
No ( )".
(4) If a majority of the electors voting on the question
submitted under subsection (2) approve, the city shall proceed to
establish a city lottery in the manner provided in this article.
Sec. 55. (1) To establish a city lottery that has been
approved by the electors of the city, the legislative body of the
city shall contract with a financially responsible person to act as
city lottery operator. A contract with a city lottery operator
shall comply with this article and applicable state and federal
law. The contract may include the following:
(a) The type of lottery to be conducted.
(b) The licensing of persons to sell tickets.
(c) The locations at which tickets may be sold.
(d) The price of tickets in the city lottery.
(e) The method to be used in selling tickets.
(f) The frequency of the drawings or selections of winning
tickets.
(g) The manner of selecting the winning tickets.
(h) The number and size of the prizes on the winning tickets.
(i) The manner of payment of prizes to the holders of winning
tickets.
(j) The compensation to be paid to persons licensed to sell
tickets.
(k) A requirement that the city lottery operator post a bond
or provide other security in an amount approved by the legislative
body of the city.
(2) A city lottery shall be conducted to produce the maximum
amount of net revenue for the city consonant with the general
welfare of the people of the city.
(3) A contract with a city lottery operator under this section
shall not be assigned by the city lottery operator unless the
legislative body of the city specifically approves the assignment.
(4) The legislative body of a city that has established a city
lottery may adopt resolutions and enact ordinances that are
necessary to operate the city lottery.
Sec. 57. A city lottery shall not be based on an activity that
uses the mechanical, physical, or mental skills of the participant
and that is traditionally regarded as a sporting event.
Sec. 59. (1) A city lottery operator shall issue licenses to
persons to sell city lottery tickets. A license to sell city
lottery tickets shall only be issued to a person who is licensed to
sell state lottery tickets or shares under article 1 in the city.
(2) A license to sell city lottery tickets is not assignable
or transferable.
(3) A city lottery operator may require a bond or other
security from a person licensed to sell city lottery tickets in an
amount required by the city lottery operator. A bond or other
security given under this subsection shall be for the benefit of
the city, the city lottery operator, or any other person required
by the city lottery operator.
(4) The city lottery may suspend or revoke the license of a
person licensed to sell city lottery tickets if the person violates
this article or the license or contract for the operation of the
city lottery.
Sec. 61. (1) A person licensed to sell city lottery tickets
shall only sell city lottery tickets in the city from the premises
stated in the license. A person who violates this subsection is
subject to 1 or both of the following:
(a) A civil fine payable to the city of not more than
$1,000.00.
(b) Revocation, suspension, or restriction of his or her
license.
(2) City lottery tickets may be sold on city property if the
person licensed to sell tickets is lawfully engaged in
nongovernmental business on city property.
(3) A person licensed to sell city lottery tickets shall
display his or her license or a copy of that license conspicuously.
Sec. 63. (1) A person shall not sell a city lottery ticket at
a price greater than that fixed by the city lottery operator. A
person who is not licensed to sell city lottery tickets or the
employee of a licensed person shall not sell city lottery tickets.
A person may give city lottery tickets to another as a gift.
(2) A person who violates this section is guilty of a
misdemeanor.
Sec. 65. (1) A city lottery ticket shall not be sold to a
person under the age of 18. This subsection does not prohibit the
purchase of a city lottery ticket by a person 18 years of age or
older to be given as a gift to a person less than 18 years of age.
(2) A person who knowingly sells or offers to sell a city
lottery ticket to a person under the age of 18 is guilty of a
misdemeanor.
(3) If allowed by its contract with the city, the city lottery
operator may contract with 1 or more persons to allow the placement
of advertising or promotional material on city lottery tickets and
other available media under the control of the city lottery
operator. However, except for advertising that promotes responsible
consumption of alcoholic beverages, the city lottery operator shall
not allow the placement of advertising for the promotion of the
consumption of alcoholic beverages or tobacco products on city
lottery tickets.
Sec. 67. A person who, with intent to defraud, falsely makes,
alters, forges, utters, passes, or counterfeits a city lottery
ticket is guilty of a felony punishable by imprisonment for not
more than 5 years or a fine of not more than $1,000.00, or both.
Sec. 69. A city lottery ticket shall not be purchased by and a
city lottery prize shall not be paid to an officer or employee of a
city lottery operator or to any spouse, child, brother, sister, or
parent residing as a member of the same household in the principal
residence of an officer or employee of a city lottery operator.
Sec. 71. (1) If the person entitled to a prize or any winning
city lottery ticket is under 18 years of age and the prize is more
than $1,000.00, a city lottery operator shall pay the prize to the
guardian of the minor with a check or draft payable to the order of
the guardian. If the prize is less than $1,000.00, the city lottery
operator may pay the prize to an adult member of the minor's family
who is legally responsible for the care and custody of the minor.
(2) The city and city lottery operator are discharged of all
further liability on payment of a prize in accordance with
subsection (1).
Sec. 73. (1) Before payment of a prize of more than $1,000.00,
a city lottery operator shall determine whether department of
treasury records show that the prizewinner has a current liability
to this state or a support arrearage. The department of treasury
shall provide each city lottery operator with a list or computer
access to a compilation of persons known to the department to have
a current liability to this state, including delinquent accounts of
amounts due and owing to a court that have been assigned to the
state for collection, or a support arrearage. The information shall
be updated not less than once a month. If a liability to this state
or a support arrearage is identified, a city lottery operator shall
first apply the amount of the prize to the liability to this state,
other than the amount of any assigned delinquent account of amounts
due and owing to a court, next to the support arrearage, and next
to the assigned delinquent account of amounts due and owing to a
court, and shall then pay the excess, if any, to the city lottery
winner.
(2) A city lottery winner shall be given notice of the
existence of liability and the intended payment under subsection
(1) and be given an opportunity for a hearing before the department
of treasury or its designee with respect to the liability if the
liability has not been reduced to judgment or has not been
finalized under statutory review provisions of the statute under
which the liability arose. Notice under this subsection shall be
sent by regular mail.
(3) A city lottery winner may request a hearing under
subsection (2) within 15 days of the date the notice was mailed by
making a written request to the state treasurer and sending a copy
of the request to the city lottery operator.
(4) An amount applied to pay a support arrearage under this
section shall be paid by the city lottery operator to the
department of treasury which shall pay the amount to the office of
the friend of the court for the appropriate judicial circuit in the
same manner as is prescribed for a payment pursuant to an order of
income withholding under section 9 of the support and parenting
time enforcement act, 1982 PA 295, MCL 552.609.
(5) Except for a disclosure pursuant to a judicial order, an
employee, authorized representative, or former employee or
authorized representative of a city lottery operator or anyone
connected with the city lottery operator shall not divulge the
information provided by the department of treasury to the city
lottery operator under this section.
(6) A person who violates subsection (5) is guilty of a
felony, punishable by a fine of not more than $5,000.00, or
imprisonment for not more than 5 years, or both, together with the
costs of prosecution.
(7) As used in this section:
(a) "Office of the friend of the court" means an agency
created in section 3 of the friend of the court act, 1982 PA 294,
MCL 552.503.
(b) "Support" means that term as defined in section 2a of the
friend of the court act, 1982 PA 294, MCL 552.502a.
Sec. 75. (1) The right to a prize drawn in a city lottery is
not assignable, except as provided in this section. The city and
city lottery operator are discharged of all further liability on
payment of a prize as provided in this section.
(2) A prize drawn in a city lottery may be paid to a person in
accordance with an appropriate judicial order.
(3) A prize drawn in a city lottery may be paid to this state
under section 73.
(4) If a prizewinner dies before collecting the full amount of
his or her prize, a city lottery operator shall continue to make
the remaining prize payments to the prizewinner's surviving spouse
and the prizewinner's living children, in equal proportions, unless
otherwise directed by the prizewinner. If there is no surviving
spouse or living children or other designated beneficiaries, the
remaining prize payments shall be made to the prizewinner's estate.
(5) Except as provided in subsection (8), payment of a prize
drawn in a city lottery may be made to a person in accordance with
a voluntary assignment of the right to receive future prize
payments, in whole or in part, approved by the circuit or district
court, whichever has jurisdiction over the amount of the
assignment, for the circuit or district in which the city is
located. A court shall enter an order approving an assignment under
this subsection if the court finds that all of the following
circumstances exist:
(a) The assignment is in writing, executed by the assignor in
accordance with the laws of this state, and the terms of the
assignment are disclosed, including the identity of the assignee,
the portion or portions of prize payments to be assigned, and the
amounts and dates of any payments given or to be given in exchange
for the assignment.
(b) The court has been provided with an affidavit of the
assignor attesting that the assignor is of sound mind, is not
acting under duress, has received advice about the assignment from
his or her legal counsel, and understands and agrees that the city
and the city lottery operator will have no further liability or
responsibility to make prize payments, to the extent of the
assignment, to the assignor.
(c) The proposed assignment does not include or cover payments
or portions of payments that are subject to section 73.
(d) Not less than 5 days after the petition to approve the
assignment was filed and not less than 10 days before the hearing
on the petition, the petitioner served a copy of the petition and
notice of hearing on the petition on the city attorney and the city
lottery operator. The city's attorney or his or her assistant may
appear in the action in behalf of the city. The city lottery
operator may appear and protect its interests.
(6) Soliciting or offering rights to city lottery prize
payments, either by assignment or through pledge as collateral for
a loan, does not constitute selling or offering city lottery
tickets for sale under this article.
(7) A city lottery operator is authorized to charge a
reasonable fee to defray the cost of any administrative expenses
associated with assignments made under this section, including the
cost of a processing fee that may be imposed by a private annuity
provider. The amount of the fee shall reflect the direct and
indirect costs associated with processing the assignments.
(8) If at any time the internal revenue service or a court of
competent jurisdiction issues a determination letter, revenue
ruling, other public ruling of the internal revenue service, or
published decision to a city lottery prizewinner declaring that the
voluntary assignment of prizes will affect the federal income tax
treatment of prizewinners who do not assign their prizes, the city
lottery operator shall immediately file a copy of that letter,
ruling, or published decision with the city clerk and the clerk of
each court described in subsection (5). A court shall not issue a
voluntary assignment order under subsection (5) after the date the
ruling, letter, or published decision is filed.
(9) Except as otherwise provided by state or federal law, a
city, a city lottery operator, or an officer or employee of a city
or a city lottery operator shall not disclose the name or address
of or any other personal information about a winner of a prize
greater than $10,000.00 unless the winner of the prize agrees in
writing to the disclosure. The information protected against
disclosure under this section is exempt from disclosure under the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
Sec. 77. Unclaimed prize money for the prize on a winning city
lottery ticket shall be retained by a city lottery operator for the
person entitled to the prize money for 1 year after the drawing in
which the prize was won. If a claim is not made for the money
within the 1-year period, the prize money shall be deposited in the
city lottery fund.
Sec. 79. As nearly as is practicable, 50% of the total annual
revenue accruing from the sale of city lottery tickets shall be
apportioned for payment of prizes to the holders of winning
tickets.
Sec. 81. (1) The legislative body of a city that has
established a city lottery under this article shall establish a
city lottery fund. All money received from the sale of city lottery
tickets and all other money credited or transferred to the fund
from any other fund or sources shall be deposited in the fund.
(2) The treasurer of the city is responsible for the
management and investment of money in the city lottery fund. To
assure a continuing availability of money with which to pay city
lottery prize installments and to compensate for variations in the
yield on investments, the city lottery operator and the city
treasurer shall, every 6 months, review the status of the
installment prize investments and shall agree on an amount to be
restricted out of the total revenues of the city lottery fund as a
reserve against a drop in yield. If a city lottery operator and the
city treasurer fail to agree on the amount to be reserved, the
matter shall be referred to the legislative body of the city for
decision.
Sec. 83. (1) All money collected from the sale of city lottery
tickets shall be deposited in financial institutions as designated
by the city lottery operator in accordance with the contract under
section 55. At the time of each deposit, the licensed person shall
report all of his or her receipts and transactions in the sale of
city lottery tickets to the city lottery operator and provide any
other information required by the city lottery operator.
(2) As used in this section, "financial institution" means a
state or nationally chartered bank or a state or federally
chartered savings and loan association, savings bank, or credit
union whose deposits are insured by an agency of the United States
government and that maintains a principal office or branch office
located in this state under the laws of this state or the United
States.
Sec. 85. The legislative body of a city that has established a
city lottery shall appropriate money in the city lottery fund,
subject to section 79 and the reserve established under section 81,
only for the following purposes:
(a) Payment of prizes to the holders of winning city lottery
tickets.
(b) Payments required by section 73.
(c) Payment of reasonable expenses of the city lottery
operator in its operation of the city lottery.
(d) Economic development in the city.
(e) Funding of public education by school districts located in
the city.
Sec. 87. (1) A city lottery operator shall make a monthly
report to the city that includes the total city lottery revenue,
prize disbursements, and other expenses for the preceding month.
(2) A city lottery operator shall make an annual report to the
city that includes a full and complete statement of city lottery
revenues, prize disbursements, and other expenses and
recommendations for changes in the operation of the city lottery
that the city lottery operator considers necessary or desirable.
Sec. 89. A certified public accountant firm appointed by a
city shall conduct quarterly postaudits of all accounts and
transactions of the city lottery operator and other special
postaudits as the city considers necessary. The city or an
accountant or firm conducting an audit under this section shall
have access and authority to examine all records of the city
lottery operator, a person who has a contract with the city lottery
operator related to the conduct of the city lottery, and a person
licensed to sell city lottery tickets.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. ____ or House Bill No. ____ (request no.
04552'11 a) of the 96th Legislature is enacted into law.
Enacting section 2. This amendatory act shall be submitted as
provided by the Michigan election law, 1954 PA 116, MCL 168.1 to
168.992, to the qualified electors of this state at the next
general election after the date that this amendatory act is
enacted. This amendatory act does not take effect unless it is
approved by both of the following at that election:
(a) A majority of the electors of this state voting in the
election.
(b) A majority of the electors voting in the cities where
gambling as authorized under this amendatory act will take place.
Enacting section 3. If approved by the electors under enacting
section 2, this amendatory act takes effect 60 days after the date
of the official declaration of the vote.