March 5, 2015, Introduced by Senator JONES and referred to the Committee on Regulatory Reform.
A bill to amend 1972 PA 382, entitled
"Traxler-McCauley-Law-Bowman bingo act,"
by amending sections 2, 3, 3a, 4, 4a, 8, 9, 10, 11b, 12, 13, 14,
15, 16, and 19 (MCL 432.102, 432.103, 432.103a, 432.104,
432.104a, 432.108, 432.109, 432.110, 432.111b, 432.112, 432.113,
432.114, 432.115, 432.116, and 432.119), sections 2 and 9 as
amended by 2008 PA 401, sections 3, 4a, and 12 as amended by 2012
PA 189, sections 3a, 8, 10, and 11b as amended by 2006 PA 427,
sections 4, 13, 14, 15, and 16 as amended by 1999 PA 108, and
section 19 as amended by 1995 PA 263, and by adding article 2; to
designate sections 1 to 20 as article 1; and to repeal acts and
parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 ARTICLE 1
2 Sec. 2. As used in this act:
1 (a) "Active service" and "active state service" mean those
2 terms as defined in section 105 of the Michigan military act,
3 1967 PA 150, MCL 32.505.
4 (b) "Advertising" means all printed matter, handouts,
5 flyers, radio broadcasts, television
broadcasts, advertising
6 signs, billboards, and other media used to promote an event.
7 licensed under this act.
8 (c) "Bingo" means a game of chance commonly known as bingo
9 in which prizes are awarded on the basis of designated numbers or
10 symbols conforming to numbers or symbols selected at random.
11 (d) "Board" means the Michigan gaming control board created
12 by section 4 of the Michigan gaming control and revenue act, 1996
13 IL 1, MCL 432.204.
14 (e) (d) "Bureau"
means the bureau of state lottery as
15 created by section 5 of the McCauley-Traxler-Law-Bowman-McNeely
16 lottery act, 1972 PA 239, MCL 432.5.
17 (f) (e) "Charity
game" means the random resale of a series
18 of charity game tickets.
19 (g) (f) "Charity
game ticket" means a ticket commonly
20 referred to as a break-open ticket or pull-tab that is approved
21 and acquired by the bureau and is distributed and sold by the
22 bureau or a licensed supplier to a qualified organization, a
23 portion of which is removed to discover whether the ticket is a
24 winning ticket. and whether the purchaser may be awarded a
prize.
25 (h) (g) "Commissioner"
means the commissioner of state
26 lottery appointed under section 7 of the McCauley-Traxler-Law-
27 Bowman-McNeely lottery act, 1972 PA 239, MCL 432.7.
1 (i) (h) "Coverall
pattern" means a pattern required to win a
2 bingo game in which all numbers on a bingo card are required to
3 be called.
4 (j) "Educational organization" means an organization in this
5 state that is organized not for pecuniary profit, whose primary
6 purpose is educational in nature and designed to develop the
7 capabilities of individuals by instruction in any public or
8 private elementary or secondary school that complies with the
9 revised school code, 1976 PA 451, MCL 380.1 to 380.1852, or any
10 private or public college or university that is organized not for
11 pecuniary profit and that is approved by the state board of
12 education.
13 (k) "Equipment" means the objects and mechanical,
14 electromechanical, or electronic devices used to determine or
15 assist in determining the winners of prizes at an event.
16 (l) "Event" means, in article 1, an occasion of bingo games,
17 a raffle, a charity game, or a numeral game conducted under a
18 license issued under article 1, and in article 2, an occasion of
19 a millionaire party conducted under a license issued under
20 article 2.
21 (m) "Executive director" means the executive director of the
22 board, appointed under section 4 of the Michigan gaming control
23 and revenue act, 1996 IL 1, MCL 432.204.
24 (n) "Fraternal organization" means an organization in this
25 state, other than a college fraternity or sorority, that meets
26 all of the following criteria:
27 (i) Is organized not for pecuniary profit.
1 (ii) Is a branch, lodge, or chapter of a national or state
2 organization or, only for the purpose of conducting a small
3 raffle or a large raffle under this act, if not a branch, lodge,
4 or chapter of a national or state organization, is exempt from
5 taxation under section 501(c) of the internal revenue code of
6 1986, 26 USC 501.
7 (iii) Exists for the common purpose, brotherhood, or other
8 interests of its members.
9 Sec. 3. As used in this act:
10 (a) "Educational organization" means an organization
within
11 this state that is organized not for pecuniary profit, whose
12 primary purpose is educational in nature and designed to develop
13 the capabilities of individuals by instruction in any public or
14 private elementary or secondary school that complies with the
15 revised school code, 1976 PA 451, MCL 380.1 to 380.1852, or any
16 private or public college or university that is organized not for
17 pecuniary profit and that is approved by the state board of
18 education.
19 (b) "Fraternal organization" means an organization
within
20 this state, other than a college fraternity or sorority, that
21 meets all of the following criteria:
22 (i) Is
organized not for pecuniary profit.
23 (ii) Is a
branch, lodge, or chapter of a national or state
24 organization or, only for the purpose of conducting a small
25 raffle or a large raffle under this act, if not a branch, lodge,
26 or chapter of a national or state organization, is exempt from
27 taxation under section 501(c) of the internal revenue code of
1 1986, 26 USC 501.
2 (iii)
Exists for the common purpose, brotherhood, or other
3 interests of its members.
4 (a) "Large bingo" means a series of bingo occasions that
5 occur on a regular basis during which the total value of all
6 prizes awarded for bingo games at a single occasion does not
7 exceed $3,500.00 and the total value of all prizes awarded for 1
8 bingo game does not exceed $1,100.00, except that a prize awarded
9 through a Michigan progressive jackpot bingo game is not subject
10 to these limitations.
11 (b) "Large raffle" means an event where the total value of
12 all prizes awarded through raffle drawings exceeds $500.00 per
13 occasion.
14 (c) "Licensee" means a person, or
including a qualified
15 organization, licensed under this act.
16 (d) "Location" means a building, enclosure, part of a
17 building or enclosure, or a distinct portion of real property
18 that is used for the purpose of conducting an event. Location
19 includes all components or buildings that compose 1 architectural
20 entity or that serve a unified functional purpose.
21 (e) "Manufacturer" means a person licensed under section 11c
22 who manufactures numeral game tickets for sale to suppliers for
23 use in an event.
24 (f) (d) "Member"
means an individual who qualified for
25 membership in a qualified organization under its bylaws, articles
26 of incorporation, charter, rules, or other written statement.
27 (g) (e) "Michigan
national guard" and "military" mean those
1 terms as defined in section 105 of the Michigan military act,
2 1967 PA 150, MCL 32.505.
3 (f) "Person" means a natural person, firm, association,
4 corporation, or other legal entity.
5 (g) "Qualified organization" means, subject to
subdivision
6 (h), either of the following:
7 (i) A
bona fide religious, educational, service, senior
8 citizens, fraternal, or veterans' organization that operates
9 without profit to its members and that either has been in
10 existence continuously as an organization for a period of 5 years
11 or is exempt from taxation under section 501(c) of the internal
12 revenue code of 1986, 26 USC 501.
13 (ii) Only
for the purpose of conducting a small raffle or a
14 large raffle under this act, a component of the military or the
15 Michigan national guard whose members are in active service or
16 active state service.
17 (h) "Qualified organization" does not include a
candidate
18 committee, political committee, political party committee, ballot
19 question committee, independent committee, or any other committee
20 as defined by, and organized under, the Michigan campaign finance
21 act, 1976 PA 388, MCL 169.201 to 169.282.
22 (i) "Religious organization" means any of the
following:
23 (i) An
organization, church, body of communicants, or group
24 that is organized not for pecuniary profit and that gathers in
25 common membership for mutual support and edification in piety,
26 worship, and religious observances.
27 (ii) A
society of individuals that is organized not for
1 pecuniary profit and that unites for religious purposes at a
2 definite place.
3 (iii) A
church related private school that is organized not
4 for pecuniary profit.
5 (j) "Senior citizens organization" means an
organization
6 within this state that is organized not for pecuniary profit,
7 that consists of at least 15 members who are 60 years of age or
8 older, and that exists for their mutual support and for the
9 advancement of the causes of elderly or retired persons.
10 (k) "Service organization" means either of the
following:
11 (i) A
branch, lodge, or chapter of a national or state
12 organization that is organized not for pecuniary profit and that
13 is authorized by its written constitution, charter, articles of
14 incorporation, or bylaws to engage in a fraternal, civic, or
15 service purpose within the state.
16 (ii) A
local civic organization that is organized not for
17 pecuniary profit; that is not affiliated with a state or national
18 organization; that is recognized by resolution adopted by the
19 local governmental subdivision in which the organization conducts
20 its principal activities; whose constitution, charter, articles
21 of incorporation, or bylaws contain a provision for the
22 perpetuation of the organization as a nonprofit organization;
23 whose entire assets are used for charitable purposes; and whose
24 constitution, charter, articles of incorporation, or bylaws
25 contain a provision that all assets, real property, and personal
26 property shall revert to the benefit of the local governmental
27 subdivision that granted the resolution upon dissolution of the
1 organization.
2 (l)
"Veterans' organization" means an organization within
3 this state, or a branch, lodge, or chapter within this state of a
4 state organization or of a national organization chartered by the
5 congress of the United States, that is organized not for
6 pecuniary profit, the membership of which consists of individuals
7 who were members of the armed services or armed forces of the
8 United States. Veterans' organization includes an auxiliary of a
9 veterans' organization that is a national organization chartered
10 by the congress of the United States.
11 (h) "Michigan progressive jackpot" means a bingo game
12 conducted in conjunction with a licensed large bingo occasion in
13 which the value of the prize is carried forward to the next bingo
14 occasion if no player wins in a predetermined number of allowable
15 calls. Michigan progressive jackpot may include bingo games
16 conducted by more than 1 licensee that are linked together for
17 the purpose of a common jackpot prize and consolation prize as
18 prescribed by the commissioner.
19 (i) "Millionaire party" means an event at which wagers are
20 placed on games of chance customarily associated with a gambling
21 casino through the use of imitation money or chips that have a
22 nominal value equal to or greater than the value of the currency
23 for which they can be exchanged.
24 (j) "Numeral game" means the random resale of a series of
25 numeral game tickets.
26 (k) "Numeral game ticket" means a paper strip on which
27 preprinted numerals are covered by folding the strip and banding
1 the folded strip with a separate piece of paper, so that on
2 breaking the paper that bands the folding strip the purchaser
3 discovers whether the ticket is a winning ticket.
4 (l) "Occasion" means a single day for which a license to
5 conduct games is issued under this act.
6 Sec. 3a. (1) "Equipment" means the objects and
mechanical or
7 electromechanical devices used to determine or assist in
8 determining the winners of prizes at events licensed under this
9 act.
10 (2) "Event" means each occasion of a bingo, millionaire
11 party, raffle, charity game, or numeral game licensed under this
12 act.
13 (3) "Large bingo" means a series of bingo occasions
that
14 occur on a regular basis during which the total value of all
15 prizes awarded through bingo at a single occasion does not exceed
16 $3,500.00 and the total value of all prizes awarded for 1 game
17 does not exceed $1,100.00, except that a prize awarded through a
18 Michigan progressive jackpot bingo game is not subject to these
19 limitations.
20 (4) "Large raffle" means an event where the total value
of
21 all prizes awarded through raffle drawings exceed $500.00 per
22 occasion.
23 (5) "Location" means a building, enclosure, part of a
24 building or enclosure, or a distinct portion of real estate that
25 is used for the purpose of conducting events licensed under this
26 act. Location also means all components or buildings that
27 comprise 1 architectural entity or that serve a unified
1 functional purpose.
2 (6) "Manufacturer" means a person licensed under
section 11c
3 who manufactures numeral game tickets for sale to suppliers for
4 use in an event.
5 (7) "Michigan progressive jackpot" means a bingo game
6 conducted in conjunction with a licensed large bingo occasion,
7 where the value of the prize is carried forward to the next bingo
8 occasion if no player bingos in a predetermined number of
9 allowable calls. Michigan progressive jackpot may include bingo
10 games conducted by more than 1 licensee that are linked together
11 for the purpose of a common jackpot prize and consolation prize
12 as prescribed by the commissioner.
13 (8) "Millionaire party" means an event at which wagers
are
14 placed upon games of chance customarily associated with a
15 gambling casino through the use of imitation money or chips that
16 have a nominal value equal to or greater than the value of the
17 currency for which they can be exchanged.
18 (9) "Numeral game" means the random resale of a series
of
19 numeral game tickets by a qualified organization under a numeral
20 game license or in conjunction with a licensed millionaire party
21 or large raffle.
22 (10) "Numeral game ticket" means a paper strip on which
23 preprinted numerals are covered by folding the strip and banding
24 the folded strip with a separate piece of paper, if upon breaking
25 the paper strip that bands the ticket, the purchaser discovers
26 whether the ticket is a winning ticket and the purchaser may be
27 awarded a merchandise prize.
1 (11) "Occasion" means the hours of the day for which a
2 license is issued.As
used in this act:
3 (a) "Person" means an individual, firm, association,
4 corporation, or other legal entity.
5 (b) (12) "Principal
officer" means the highest ranking
6 officer of the qualified organization according to its written
7 constitution, charter, articles of incorporation, or bylaws.
8 (c) (13) "Prize"
means anything of value, including, but not
9 limited to, money or merchandise that is given to a player for
10 attending or winning a game at an event. A nonmonetary item is
11 valued at its retail value. Prize does not include advertising
12 material given away by a
qualified organization in accordance
13 with rules promulgated under this act.
14 (14) "Single gathering" means 1 scheduled assembly or
15 meeting with a specified beginning and ending time that is
16 conducted or sponsored by the qualified organization. Single
17 gathering does not include the regular operating hours of a club
18 or similar facility and does not include a meeting conducted
19 solely for the purpose of conducting a raffle.
20 (d) "Qualified organization" means, subject to subdivision
21 (e), either of the following:
22 (i) A bona fide religious, educational, service, senior
23 citizens, fraternal, or veterans' organization that operates
24 without profit to its members and that either has been in
25 existence continuously as an organization for a period of 5 years
26 or is exempt from taxation under section 501(c) of the internal
27 revenue code of 1986, 26 USC 501(c).
1 (ii) Only for the purpose of conducting a small raffle or a
2 large raffle under this act, a component of the military or the
3 Michigan national guard whose members are in active service or
4 active state service.
5 (e) "Qualified organization" does not include a candidate
6 committee, political committee, political party committee, ballot
7 question committee, independent committee, or any other committee
8 as defined by, and organized under, the Michigan campaign finance
9 act, 1976 PA 388, MCL 169.201 to 169.282.
10 (f) "Raffle" means an event for which raffle tickets are
11 sold and at which a winner or winners are determined, either by
12 randomly selecting stubs from all of the raffle tickets sold for
13 an event or by an alternative method that is approved in writing
14 by the board, and a preannounced prize is awarded.
15 (g) "Religious organization" means any of the following:
16 (i) An organization, church, body of communicants, or group
17 in this state that is organized not for pecuniary profit and that
18 gathers in common membership for mutual support and edification
19 in piety, worship, and religious observances.
20 (ii) A society of individuals in this state that is organized
21 not for pecuniary profit and that unites for religious purposes
22 at a definite place.
23 (iii) A church-related private school in this state that is
24 organized not for pecuniary profit.
25 (h) "Senior citizens organization" means an organization in
26 this state that is organized not for pecuniary profit, that
27 consists of at least 15 members who are 60 years of age or older,
1 and that exists for their mutual support and for the advancement
2 of the causes of elderly or retired persons.
3 (i) "Service organization" means either of the following:
4 (i) A branch, lodge, or chapter in this state of a national
5 or state organization that is organized not for pecuniary profit
6 and that is authorized by its written constitution, charter,
7 articles of incorporation, or bylaws to engage in a fraternal,
8 civic, or service purpose in this state.
9 (ii) A local civic organization in this state that is
10 organized not for pecuniary profit; that is not affiliated with a
11 state or national organization; that is recognized by resolution
12 adopted by the local governmental subdivision in which the
13 organization conducts its principal activities; whose
14 constitution, charter, articles of incorporation, or bylaws
15 contain a provision for the perpetuation of the organization as a
16 nonprofit organization; whose entire assets are used for
17 charitable purposes; and whose constitution, charter, articles of
18 incorporation, or bylaws contain a provision that all assets,
19 real property, and personal property shall revert to the benefit
20 of the local governmental subdivision that granted the resolution
21 or another nonprofit organization on dissolution of the
22 organization.
23 (j) (15) "Small
bingo" means a series of bingo occasions
24 that occur on a regular basis during which the total value of all
25 prizes awarded through for
bingo games at a single occasion
does
26 not exceed $300.00 and the total value of all prizes awarded for
27 a single bingo game does not exceed $25.00.
1 (k) (16) "Small
raffle" means an event during which the
2 total value of all prizes awarded through raffle drawings does
3 not exceed $500.00 during 1 occasion.
4 (l) (17)
"Special bingo" means a
single or consecutive series
5 of bingo occasions during which the total value of all prizes
6 awarded through for
bingo games at a single occasion
does not
7 exceed $3,500.00 and the total value of all prizes awarded for a
8 single bingo game does not exceed $1,100.00.
9 (m) (18) "Supplier"
means a person licensed under this act
10 to rent, sell, or lease equipment or to sell charity game or
11 numeral game tickets to qualified organizations licensed under
12 this act.
13 (n) "Veterans' organization" means an organization in this
14 state, or a branch, lodge, or chapter in this state of a state
15 organization or of a national organization chartered by the
16 Congress of the United States, that is organized not for
17 pecuniary profit, the membership of which consists of individuals
18 who were members of the armed services or armed forces of the
19 United States. Veterans' organization includes an auxiliary of a
20 veterans' organization that is a national organization chartered
21 by the Congress of the United States.
22 Sec. 4. (1) Each An
applicant for a license to conduct a
23 bingo event, millionaire party, raffle, charity game, or
numeral
24 game shall submit to the bureau a written application on a form
25 prescribed by the commissioner.
26 (2) The application shall under subsection (1) must include
27 all of the following:
1 (a) The name and address of the applicant organization.
2 (b) The name and address of each officer of the applicant
3 organization.
4 (c) The location at which the applicant will conduct the
5 event.
6 (d) The day or dates of the event.
7 (e) The member or members of the applicant organization who
8 will be responsible for the conduct of the event.
9 (f) Sufficient facts relating to the applicant's
10 incorporation or organization to enable the commissioner to
11 determine whether the applicant is a qualified organization.
12 (g) A sworn statement attesting to the nonprofit status of
13 the applicant organization, signed by the principal officer of
14 that the organization.
15 (h) Other information the commissioner considers necessary.
16 Sec. 4a. (1) Except as provided in subsections (2) and (3),
17 if the commissioner determines that the an applicant
under
18
section 4 is a qualified organization, and
is not ineligible
19 under section 18, and the applicant has paid to the bureau the
20 appropriate fee, the commissioner may issue 1 or more of the
21 following licenses:
|
22 |
License Fee |
||
|
23 |
(a) |
Large bingo.........................$ 150.00 |
|
|
24 |
(b) |
Small bingo.........................$ 55.00 |
|
|
25 |
(c) |
Special bingo.......................$ 25.00 |
|
|
26 |
|
|
|
1 |
(d) |
Large raffle........................$ 50.00 per |
|
|
2 |
drawing date |
||
|
3 |
(e) |
Small raffle: |
|
|
4 |
(i) |
One to 3 drawing dates..............$ 15.00 |
|
|
5 |
(ii) |
Four or more drawing dates..........$ 5.00 per |
|
|
6 |
drawing date |
||
|
7 |
(f) |
Annual charity game.................$ 200.00 |
|
|
8 |
(g) |
Special charity game................$ 15.00 per day |
|
|
9 |
(h) |
Numeral game........................$ 15.00 per day |
10 (2) Under extreme hardship conditions as determined by the
11 commissioner, the commissioner may waive 1 or more requirements
12 of for a person to be
a qualified organization described
in
13 section 3 under section
3a(d) to permit the licensing of a
14 special bingo , millionaire party, event or
raffle, if all of the
15 following conditions are met:
16 (a) The organization applying for the license is a nonprofit
17 organization.
18 (b) The entire proceeds of the event, less the actual
19 reasonable expense of conducting the event, are donated or used
20 for a charitable purpose, organization, or cause.
21 (c) None of the individuals connected with the conduct of
22 the event is compensated in any manner for his or her
23 participation.
24 (d) The organization complies with all other applicable
25 provisions of this act and rules promulgated under this
26 act.article.
27 (3) Under extreme hardship conditions as determined by the
1 commissioner, the commissioner may allow an individual or a group
2 of individuals to obtain a license to conduct a special bingo ,
3 millionaire party, event
or raffle if all of the following
4 conditions are met:
5 (a) The entire proceeds of the event, less the actual
6 reasonable expense of conducting the event, are donated or used
7 for a charitable purpose, organization, or cause.
8 (b) None of the individuals connected with the conduct of
9 the event is compensated in any manner for his or her
10 participation.
11 (c) The individual or group of individuals complies with all
12 other applicable provisions of this act article and
the rules
13 promulgated under this act.article.
14 (4) Each event license issued to a qualified organization
15 under this section is valid for only the location included on the
16 license.
17 (5) A license issued under this section is not assignable or
18 transferable.
19 (6) The A licensee is responsible for ensuring shall ensure
20 that the events conducted under a license issued under this
21 section are conducted in compliance with the applicable
22 provisions of this act and rules promulgated under this article.
23 (7) A Except
as otherwise provided in this section, a
24 licensee shall only conduct events licensed under this act
25 section during the hours and on the day and date or dates stated
26 on the license.
27 (8) In connection with an application for a small raffle
1 license or a large raffle license, in determining whether a
2 fraternal organization that is not a branch, lodge, or chapter of
3 a national or state organization is a qualified organization, the
4 commissioner shall only consider whether the organization meets
5 requirements that are applicable under this act that are
6 unrelated to whether the organization is a branch, lodge, or
7 chapter of a national or state organization.
8 Sec. 8. (1) All fees and revenue collected by the
9 commissioner or bureau under this act shall be paid into the
10 state lottery fund created under section 41 of the McCauley-
11 Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.41.
12 All necessary expenses incurred by the bureau in the
13 administration and enforcement of any activity authorized by this
14 act and in the initiation, implementation, and ongoing operation
15 of any activity authorized by this act shall be financed from the
16 state lottery fund.
17 (2) All fees and revenue collected by the executive director
18 or board under this act shall be paid into the state lottery fund
19 created under section 41 of the McCauley-Traxler-Law-Bowman-
20 McNeely lottery act, 1972 PA 239, MCL 432.41. All necessary
21 expenses incurred by the executive director or board in the
22 administration and enforcement of any activity authorized by this
23 act and in the initiation, implementation, and ongoing operation
24 of any activity authorized by this act shall be financed from the
25 state lottery fund.
26
(3) The amount of these necessary
expenses shall incurred
27 under subsections (1) and (2) may not exceed the amount of
1 revenues received from the sale of charity game tickets and all
2 fees collected under this act. At the end of each fiscal year all
3 money, including interest, in the state lottery fund which that
4 is attributable to fees and revenue collected under this act but
5 which that has not been expended under this section shall be
6 deposited in the state general fund.
7 Sec. 9. (1) Except as provided in subsection (2), the entire
8 net proceeds of an event conducted under a license issued under
9 this article shall be devoted exclusively to the lawful purposes
10 of the licensee. A licensee shall not incur or pay an item of
11 expense in connection with the holding, operating, or conducting
12 of an event except the
following expenses in reasonable amounts
13 that the commissioner determines to be reasonable:
14 (a) The purchase or rental of equipment necessary for
15 conducting an event and payment of services reasonably necessary
16 for the repair of equipment.
17 (b) Cash prizes or the purchase of prizes of merchandise.
18 (c) Rental of the location at which the event is conducted.
19 (d) Janitorial services.
20 (e) The fee required for issuance or reissuance of a license
21 to conduct the event.
22 (f) Other reasonable expenses incurred by the licensee, not
23 inconsistent with this act, as permitted by rule of the
24 commissioner.
25 (2) A qualified organization described in section 3(g)(ii)
26 3a(d)(ii) shall use the entire net proceeds of an event, after
27 paying items of expense incurred in reasonable amounts in
1 connection with the holding, operating, or conducting of the
2 event and listed in subsection (1), only for the expense of
3 training or purchasing goods or services for the support of the
4 activities of the component.
5 Sec. 10. (1) Only a member of the qualified organization
6 shall participate in the management of an event.
7 (2) A person shall not receive any commission, salary, pay,
8 profit, or wage for participating in the management or operation
9 of a bingo
event, a millionaire party, a
raffle, or a charity
10 game except as provided by rule promulgated under this
11 act.article.
12 (3) Except by special permission of the commissioner, a
13 licensee shall conduct bingo or a millionaire party games only
14 with equipment that it owns, uses under a bureau-approved rental
15 contract, or is purchasing or renting at a reasonable rate from a
16 supplier.
17 (4) A licensee shall not advertise a bingo event except to
18 the extent and in the manner permitted by rule promulgated under
19 this act. article.
If the commissioner permits a licensee
to
20 advertise a bingo event, the licensee shall indicate in the
21 advertisement the purposes for which the net proceeds will be
22 used by the licensee.
23 (5) The holder of a millionaire party license shall not
24 advertise the event, except to the extent and in the manner
25 permitted by rule promulgated under this act. If the commissioner
26 permits a licensee to advertise the event, the licensee shall
27 indicate in the advertising the purposes for which the net
1 proceeds will be used by the licensee.
2 Sec. 11b. (1) Each An applicant for a license
or renewal of
3 a license to operate as a supplier of equipment, charity game
4 tickets, or numeral game tickets to qualified organizations
5 licensed under this act article
shall submit a written
6 application to the bureau on a form prescribed by the
7 commissioner.
8 (2) The An applicant under
this section shall pay an annual
9 license fee of $300.00 at the time of the application.
10 (3) A supplier's license issued under this section expires
11 at 12 midnight on September 30 of each year.
12 (4) The commissioner shall require suppliers authorized to
13 sell charity game tickets, numeral game tickets, or both, to post
14 a performance bond of not less than $50,000.00 and not greater
15 than $1,000,000.00.
16 (5) A supplier shall remit to the bureau an amount equal to
17 the qualified organization's purchase price of the charity game
18 tickets less an amount that shall not be less than the sum of
19 $.008 for each ticket sold plus 1.0% of the total resale value
20 for all charity game tickets sold.
21 (6) For each numeral game sold, the supplier shall issue to
22 the licensed organization an invoice listing the manufacturer and
23 serial number of each game.
24 (7) The A
supplier shall collect a fee collected
by a
25 supplier from the a qualified
organization for each game of
26 numeral tickets sold shall be that equals $5.00 per 1,000
tickets
27 or any portion of 1,000 tickets.
1 (8) The A
supplier shall remit the fees collected
by the
2 supplier for each numeral game sold shall be remitted to the
3 bureau under
subsection (7) to the bureau by the
fifteenth day of
4 the month following the month in which the numeral game is sold.
5 A The commissioner
may assess a late fee of 25% of the
amount due
6 may be assessed by the commissioner against any a supplier who
7 fails to remit the fees by the required filing date.
8 (9) A supplier shall only display, offer for sale, sell, or
9 otherwise make available to a qualified organization numeral game
10 tickets that have been obtained from a manufacturer.
11 (10) A person who is directly or indirectly connected to the
12 sale, rental, or distribution of bingo or millionaire party
13 equipment, or the sale of charity game tickets or numeral game
14 tickets, or a person residing in the same household as the
15 supplier shall not be involved directly or indirectly with the
16 rental or leasing of a facility used for an event.
17 (11) A supplier licensed under this section shall submit to
18 the bureau a report as required by the commissioner regarding the
19 sale or rental of equipment and the sale of charity game tickets
20 and numeral game tickets.
21 Sec. 12. (1) The bureau shall enforce and supervise the
22 administration of this act. article. The commissioner
shall
23 employ personnel as necessary to implement this act.article.
24 (2) The bureau may select fraternal organizations that are
25 not a branch, lodge, or chapter of a national or state
26 organization to audit to ensure that the organizations are in
27 compliance with this act.article.
1 Sec. 13. The commissioner shall promulgate rules pursuant to
2 the administrative procedures act of 1969, 1969 PA 306, MCL
3 24.201 to 24.328, to implement this act.article.
4 Sec. 14. (1) Each A
licensee under this article shall
keep a
5 record of each event as required by the commissioner. The A
6 licensee shall allow a representative authorized by the bureau to
7 inspect a record kept under this subsection and all financial
8 accounts into which proceeds from events licensed under this act
9 are deposited or transferred shall be open to inspection by a
10 duly authorized representative of the bureau during reasonable
11 business hours.
12 (2) Each A licensee under
this article shall file with the
13 commissioner a financial statement signed by the principal
14 officer of the qualified organization of receipts and expenses
15 related to the conduct of each event as may be required by rule
16 promulgated under this act. article. If the revenue from
a bingo
17 game, millionaire party, event,
raffle, numeral game, or charity
18 game is represented to be used or applied by a licensee under
19 this article for a charitable purpose, the licensee shall file a
20 copy of the financial statement with the attorney general under
21 the supervision of trustees for charitable purposes act, 1961 PA
22 101, MCL 14.251 to 14.266.
23 (3) The A
licensee under this article shall allow an
24 authorized representative of the bureau or the department of
25 state police or a law enforcement officer of a political
26
subdivision of this state to inspect a location
at which events
27 licensed under this act are conducted or at which an applicant or
1 a building, enclosure, or portion of real property that the
2 licensee intends to conduct an event licensed under this act
3 shall be open to inspection use as a location at all
times by a
4 duly authorized representative of the bureau or by the state
5 police or a peace officer of a political subdivision of this
6 state.any time.
7 Sec. 15. Annually the The commissioner shall
report annually
8 to the governor and the legislature about the operation of events
9 licensed under this act within this state, article, abuses
that
10 the bureau may have encountered, and recommendations for changes
11 in this act.
12 Sec. 16. (1) The commissioner may deny, suspend, summarily
13 suspend, or revoke any a
license issued under this act article if
14 the licensee or an officer, director, agent, member, or employee
15 of the licensee violates this act article or a rule
promulgated
16 under this act. article.
The commissioner may summarily suspend
a
17 license for a period of not more than 60 days pending
18 prosecution, investigation, or public hearing.
19 (2) A proceeding to suspend or revoke a license shall be
20 considered under this
article is a contested case and
shall be
21 governed by the administrative procedures act of 1969, 1969 PA
22 306, MCL 24.201 to 24.328.
23 (3) Upon petition of the commissioner, the circuit court
24 after a hearing may issue subpoenas to compel the attendance of
25 witnesses and the production of documents, papers, books,
26 records, and other evidence before it in a matter over which it
27 has jurisdiction, control, or supervision. If a person subpoenaed
1 to attend in any such proceeding or hearing fails to obey the
2 command of the subpoena without reasonable cause, or if a person
3 in attendance in any such proceeding or hearing refuses, without
4 lawful cause, to be examined or to answer a legal or pertinent
5 question or to exhibit a book, account, record, or other document
6 when ordered to do so by the court, that person may be punished
7 as a being in contempt of the court.
8 (4) With approval of the commissioner, a bingo hall
9 licensee, in lieu of a suspension of its license, may elect to
10 pay a fine equal to the amount of rent that would have been paid
11 by the bingo licensees during the period of the suspension. This
12 fine shall be paid to the bureau on or before the date agreed to
13 in the suspension agreement entered into by the bureau and the
14 bingo hall licensee.
15 Sec. 19. (1) Except as provided in subsection (2), any other
16 law providing a penalty or disability upon a person who conducts
17 or participates in a raffle, bingo game, millionaire party, or
18 charity game; who sells or possesses equipment used in conducting
19 a raffle, bingo, or a millionaire party; who permits a raffle,
20 bingo, a millionaire party, or a charity game to be conducted on
21 his or her premises; or who does other acts in connection with a
22 raffle, bingo, a millionaire party, or a charity game does not
23 apply to that conduct if done pursuant to this act or rules
24 promulgated under this act.
25 (2) Subsection (1) does not limit in any way the application
26 of the Michigan campaign finance act, Act No. 388 of the Public
27 Acts of 1976, being sections 1976 PA 388, MCL 169.201 to
169.282
1 of the Michigan Compiled Laws, including, but not limited to,
2 section 41 of Act No. 388 of the Public Acts of 1976, being
3 section the Michigan
campaign finance act, 1976 PA 388, MCL
4 169.241, of the Michigan Compiled Laws, to
fundraising events
5 conducted by or for the benefit of a committee that has filed or
6 is required to file a statement of organization pursuant to Act
7 No. 388 of the Public Acts of 1976.under the Michigan campaign
8 finance act, 1976 PA 388, MCL 169.201 to 169.282.
9 ARTICLE 2
10 Sec. 32. (1) As used in this article:
11 (a) "Bona fide member" means a member who participates in
12 the qualified organization to further its lawful purposes.
13 (b) "Dealer" means an individual who does any of the
14 following in a millionaire party game:
15 (i) Performs the act of dealing.
16 (ii) Assists in supervising the dealers.
17 (iii) Provides technical advice to the millionaire party
18 chairperson.
19 (c) "Demarcated area" means the physical area in which
20 gaming is conducted at an event.
21 (d) "Lawful purpose" means 1 or more of the authorized
22 purposes stated in the qualified organization's written bylaws,
23 constitution, charter, or articles of incorporation that are on
24 file with the executive director.
25 (e) "Lessor" means a person who rents a location to a
26 millionaire party licensee for the purpose of conducting an
27 event.
1 (f) "Location owner" means the person that owns a location
2 or an employee or agent of the person.
3 (2) The definitions in sections 2, 3, and 3a apply to this
4 article, unless a term defined in 1 of those sections is defined
5 differently in this article.
6 Sec. 33. (1) An applicant for a license to conduct a
7 millionaire party shall submit to the executive director a
8 written application on a form prescribed by the executive
9 director.
10 (2) The application under subsection (1) must include all of
11 the following:
12 (a) The name and address of the applicant.
13 (b) The name and address of each officer of the applicant.
14 (c) The name of each bona fide member who will be present at
15 the event as required by section 40.
16 (d) The name of each individual who will serve as a dealer
17 at the event and, as to each individual, whether the individual
18 has been convicted of, forfeited bond on a charge of, or pled
19 guilty to any of the following:
20 (i) A felony.
21 (ii) A gambling offense.
22 (iii) Criminal fraud.
23 (iv) Forgery.
24 (v) Larceny.
25 (vi) Filing a false report with a governmental agency.
26 (e) The location at which the applicant will conduct the
27 event.
1 (f) A description of the demarcated area for the event and
2 an explanation of how the demarcated area will be marked.
3 (g) The day or dates of the event.
4 (h) Sufficient facts relating to the applicant's
5 incorporation or organization to enable the executive director to
6 determine whether the applicant is a qualified organization.
7 (i) A sworn statement attesting to the nonprofit status of
8 the applicant, signed by the principal officer of the applicant.
9 (j) Other information the executive director considers
10 necessary.
11 Sec. 34. (1) If the executive director determines that an
12 applicant for a millionaire party license is a qualified
13 organization, has paid to the executive director a fee of $50.00
14 per day that the applicant proposes to conduct the millionaire
15 party, and that there is no reason to deny the issuance of the
16 license under section 18, the executive director may issue a
17 millionaire party license to the applicant.
18 (2) Under extreme hardship conditions as determined by the
19 executive director, the executive director may waive 1 or more of
20 the requirements under section 3a(d) for a person to be a
21 qualified organization and issue a millionaire party license to
22 the person if all of the following conditions are met:
23 (a) The person is a nonprofit organization.
24 (b) The entire proceeds of the event, less the actual
25 reasonable expense of conducting the event, are donated or used
26 for a charitable purpose, organization, or cause.
27 (c) None of the individuals connected with the management of
1 the event is compensated in any manner for his or her
2 participation.
3 (d) The person has complied and will comply with all other
4 provisions of this act and rules promulgated under this article.
5 (3) Under extreme hardship conditions as determined by the
6 executive director, the executive director may allow an
7 individual or a group of individuals to obtain a license to
8 conduct a millionaire party if all of the following conditions
9 are met:
10 (a) The entire proceeds of the event, less the actual
11 reasonable expense of conducting the event, are donated or used
12 for a charitable purpose, organization, or cause.
13 (b) None of the individuals connected with the management of
14 the event is compensated in any manner for his or her
15 participation.
16 (c) The individual or group of individuals has complied and
17 will comply with all other provisions of this act and the rules
18 promulgated under this article.
19 (4) A qualified organization may be issued up to 4
20 millionaire party licenses in 1 calendar year. Each license is
21 valid for only 1 location as stated on the license.
22 (5) A millionaire party license may be issued for up to 4
23 consecutive days.
24 (6) The executive director shall not issue more than 1
25 millionaire party license to a qualified organization for any 1
26 day.
27 (7) The executive director shall not issue millionaire party
1 licenses that would allow more than 2 events to be conducted at a
2 location on the same date.
3 (8) The executive director shall not issue millionaire party
4 licenses that would allow more than 4 events to be conducted at a
5 location in 1 week.
6 (9) For each day on which the millionaire party is to be
7 conducted, the executive director shall include in the license
8 the time of the day during which the licensee may conduct gaming
9 under the license. The executive director may determine the time
10 at his or her discretion.
11 Sec. 35. (1) A millionaire party licensee shall comply with
12 this act and the rules promulgated under this article.
13 (2) A millionaire party licensee shall comply with the terms
14 and requirements of the license.
15 (3) A millionaire party license is not assignable or
16 transferrable, and a licensee shall not assign or transfer a
17 millionaire party license.
18 Sec. 36. (1) A millionaire party licensee may advertise the
19 event if the advertising complies with rules promulgated under
20 this article.
21 (2) An advertisement under this section must state the
22 purposes for which the proceeds from the event will be used.
23 Sec. 37. (1) A millionaire party licensee shall not enter
24 into an agreement with a location owner or lessor unless the
25 agreement is expressed in a written rental agreement that is
26 approved by the executive director.
27 (2) A location owner or lessor, a partner, member, director,
1 officer, agent, or employee of a location owner or lessor, a
2 shareholder of a privately held corporation that is a location
3 owner or lessor, or a person residing in the same household as
4 any of these shall not do any of the following:
5 (a) Be an officer of a qualified organization conducting a
6 millionaire party at the location.
7 (b) Participate as a player in any event being conducted at
8 the location.
9 (c) Participate in any aspect of an event being conducted at
10 the location, including providing dealers, equipment, or workers,
11 unless all of the following conditions exist:
12 (i) The location is owned or rented by a qualified
13 organization and used by the qualified organization on a
14 continual basis for the regular use of its members.
15 (ii) The qualified organization is the millionaire party
16 licensee and is conducting the event.
17 (iii) The executive director has granted a waiver for the
18 participation.
19 Sec. 38. A millionaire party licensee shall only conduct an
20 event with equipment that it owns, rents from another qualified
21 organization under a rental agreement approved by the executive
22 director, or purchases or rents from a supplier.
23 Sec. 39. (1) A millionaire party licensee shall use only the
24 following as dealers at an event:
25 (a) A bona fide member.
26 (b) An employee of a supplier.
27 (2) An individual shall not act as a dealer if the
1 individual has been convicted of, forfeited bond on a charge of,
2 or pled guilty to any of the following offenses:
3 (a) A felony.
4 (b) A gambling offense.
5 (c) Criminal fraud.
6 (d) Forgery.
7 (e) Larceny.
8 (f) Filing a false report with a governmental agency.
9 (3) An individual who is not listed as a dealer on the
10 application for a millionaire party license shall not act as a
11 dealer at an event conducted under the license.
12 (4) A millionaire party licensee shall ensure that the
13 dealers at an event conducted under the license comply with this
14 act, rules promulgated under this article, and any directives of
15 the executive director.
16 Sec. 40. (1) At least 3 bona fide members of the millionaire
17 party licensee, not including any bona fide member acting as a
18 dealer, must be present at all times during an event.
19 (2) If fewer than 3 bona fide members are present at any
20 time during an event, the millionaire party licensee shall
21 immediately report this to the executive director. The executive
22 director may require the licensee to stop conducting the event.
23 (3) One of the bona fide members listed on the application
24 for the millionaire party license shall act as the millionaire
25 party chairperson. An individual shall not serve as chairperson
26 of millionaire parties conducted by more than 1 qualified
27 organization during a calendar year.
1 (4) A bona fide member of a millionaire party licensee who
2 is present at the event shall wear a vest, button, or other
3 distinctive apparel to identify the member as a member of the
4 millionaire party licensee and as not being an employee or agent
5 of the location owner, lessor, or supplier.
6 (5) Unless permitted by this act, a rule promulgated under
7 this article, or written authorization of the executive director,
8 only a bona fide member of the millionaire party licensee may
9 perform any of the following duties at an event conducted under
10 the license:
11 (a) Monitoring a game or verifying that the game is
12 conducted in conformance with the rules of the game.
13 (b) Verifying the age of a player.
14 (6) A bona fide member of a millionaire party licensee shall
15 not play a game at an event at which the member is working or
16 assisting.
17 (7) A bona fide member of a millionaire party licensee shall
18 not share in a prize awarded at an event at which the member is
19 working or assisting.
20 (8) A bona fide member of a millionaire party licensee shall
21 not purchase, play, or accept a charity game ticket or numeral
22 game ticket offered for sale by the licensee at an event at which
23 the member is working or assisting.
24 (9) A bona fide member of a millionaire party licensee shall
25 not split a prize with a player or accept a tip of any kind at an
26 event conducted under the license, unless the tip is a cash tip
27 given to the member for serving as a dealer at the event.
1 Sec. 41. (1) A millionaire party licensee shall ensure that
2 an event conducted under the license is conducted in compliance
3 with this act and the rules promulgated under this article.
4 (2) A millionaire party licensee shall post the license so
5 that it is conspicuously visible at the location where the event
6 is being conducted at all times during the event.
7 (3) A millionaire party licensee shall not conduct gaming
8 under the license anywhere outside of the demarcated area
9 approved by the executive director.
10 (4) A millionaire party licensee shall ensure that access to
11 the demarcated area is controlled.
12 (5) A millionaire party licensee shall not allow an
13 individual who is less than 18 years old to enter the demarcated
14 area when gaming is being conducted there.
15 (6) If alcoholic beverages are served at an event, an
16 individual in the demarcated area who is 18 years old or older
17 but less than 21 years old must be identified by wearing a mark
18 indicating that a member or agent of the millionaire party
19 licensee has verified the individual's age and identification.
20 (7) A millionaire party licensee shall not allow wagering at
21 an event held under the license other than wagering on a game of
22 chance that takes place at the location during the event. The
23 licensee shall not allow a wager to be placed at the event on an
24 athletic event or a game involving personal skill.
25 (8) A millionaire party licensee shall not receive more than
26 $15,000.00 in exchange for imitation money or chips on any day
27 under the license.
1 Sec. 42. (1) A millionaire party licensee shall not pay an
2 expense related to an event unless all of the following apply:
3 (a) The expense is incurred in connection with the conduct
4 of the event.
5 (b) The expense is necessary and reasonable and falls into 1
6 of the following categories of expense:
7 (i) The purchase or rental of equipment necessary for
8 conducting the event and payment of services reasonably necessary
9 for the repair of equipment.
10 (ii) Cash prizes or the purchase of prizes of merchandise.
11 (iii) Rental of the location at which the event is conducted.
12 (iv) Janitorial services.
13 (v) The fee required for issuance or reissuance of a license
14 to conduct the event.
15 (vi) Other reasonable expenses incurred by the licensee, not
16 inconsistent with this act, as permitted by rule promulgated
17 under this article.
18 (c) The expense is itemized.
19 (d) The expense is approved by the executive director in
20 writing before the event.
21 (2) A millionaire party licensee shall not accept any
22 compensation in connection with an event unless the compensation
23 is expressly authorized by this act or a rule promulgated under
24 this article.
25 (3) A millionaire party licensee shall not expend more than
26 45% of the gross profit from an event to pay expenses incurred in
27 connection with the event.
1 (4) A person shall not accept any commission, salary, pay,
2 profit, or wage for participating in the management or operation
3 of a millionaire party except as allowed under a rule promulgated
4 under this article.
5 Sec. 43. (1) A millionaire party licensee shall keep a
6 record of each event as required by the executive director.
7 (2) The millionaire party licensee shall allow an authorized
8 representative of the executive director to inspect during
9 reasonable business hours a record kept under subsection (1) and
10 all financial accounts into which proceeds from the event are
11 deposited or transferred.
12 (3) A millionaire party licensee shall file with the
13 executive director a financial statement signed by the principal
14 officer of the qualified organization of receipts and expenses
15 related to the conduct of each event as required by rule
16 promulgated under this article. If the revenue from a millionaire
17 party is represented to be used or applied by a millionaire party
18 licensee for a charitable purpose, the licensee shall file a copy
19 of the financial statement with the attorney general under the
20 supervision of trustees for charitable purposes act, 1961 PA 101,
21 MCL 14.251 to 14.266.
22 (4) A millionaire party licensee and a location owner or
23 lessee shall allow an authorized representative of the executive
24 director or the state police or a peace officer of a political
25 subdivision in which the event is being conducted to inspect the
26 location, or an intended location, at any time.
27 Sec. 46. (1) A person that applies for a license or renewal
1 of a license to operate as a supplier to millionaire party
2 licensees shall submit a written application to the executive
3 director on a form prescribed by the executive director.
4 (2) An applicant under this section shall pay an annual
5 license fee of $300.00 at the time of the application.
6 (3) If an applicant under this section wishes to provide
7 dealers to millionaire party licensees, the person shall include
8 with its application a list containing the name of each
9 individual who will work for the person as a dealer at
10 millionaire parties and, as to each individual, whether the
11 individual has been convicted of, forfeited bond on a charge of,
12 or pled guilty to any of the following:
13 (a) A felony.
14 (b) A gambling offense.
15 (c) Criminal fraud.
16 (d) Forgery.
17 (e) Larceny.
18 (f) Filing a false report with a governmental agency.
19 (4) If, after the application is submitted as described in
20 subsection (1) or after the suppliers license is issued, there
21 are any changes in the individuals who will work for the supplier
22 as dealers at millionaire parties, the applicant or supplier
23 shall immediately provide an updated list containing all of the
24 information required under subsection (3).
25 (5) A supplier licensed under this section shall submit to
26 the executive director reports as required by the executive
27 director regarding the supplier's activities under this article.
1 (6) A supplier's license expires at 12 midnight on September
2 30 of each year.
3 Sec. 48. (1) The executive director shall enforce and
4 supervise the administration of this article. The executive
5 director shall employ personnel as necessary to implement this
6 article.
7 (2) The executive director may select fraternal
8 organizations that conduct millionaire parties and that are not a
9 branch, lodge, or chapter of a national or state organization to
10 audit to ensure that the organizations are in compliance with
11 this act.
12 Sec. 49. (1) Any rules promulgated by the executive director
13 under this act before the effective date of the amendatory act
14 that added this article are rescinded.
15 (2) The executive director shall promulgate rules pursuant
16 to the administrative procedures act of 1969, 1969 PA 306, MCL
17 24.201 to 24.328, to implement this article.
18 Sec. 50. (1) The executive director may deny, suspend,
19 summarily suspend, or revoke any license issued under this
20 article if the licensee or an officer, director, agent, member,
21 or employee of the licensee violates this act or a rule
22 promulgated under this article. The executive director may
23 summarily suspend a license for a period of not more than 60 days
24 pending prosecution, investigation, or public hearing.
25 (2) A proceeding to suspend or revoke a license is a
26 contested case and must be conducted in accordance with the
27 administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
1 24.328.
2 (3) On petition of the executive director, the circuit court
3 after a hearing may issue subpoenas to compel the attendance of
4 witnesses and the production of documents, papers, books,
5 records, and other evidence before it in a matter over which the
6 executive director has jurisdiction, control, or supervision
7 under this article. If a person subpoenaed to attend in any such
8 proceeding or hearing fails to obey the command of the subpoena
9 without reasonable cause, or if a person in attendance in any
10 such proceeding or hearing refuses, without lawful cause, to be
11 examined or to answer a legal or pertinent question or to exhibit
12 a book, account, record, or other document when ordered to do so
13 by the court, the person may be punished as being in contempt of
14 the court.
15 Sec. 51. The executive director shall report annually to the
16 governor and the legislature about the operation of events
17 licensed under this article, abuses that the executive director
18 may have encountered, and recommendations for changes in this
19 act.
20 Enacting section 1. Sections 10a, 10b, and 20 of the
21 Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.110a,
22 432.110b, and 432.120, are repealed.