Bill Text: MI HB4172 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Gaming; bingo and charitable gaming; millionaire parties; provide for general amendments. Amends secs. 2, 3, 3a, 4, 4a, 8, 9, 10, 11b, 12, 13, 14, 15, 16, 17 & 19 of 1972 PA 382 (MCL 432.102 et seq.); designates secs. 1-20 as art. 1 & repeals secs. 10a, 10b & 20 of 1972 PA 382 (MCL 432.110a et seq.). TIE BAR WITH: HB 4173'19
Spectrum: Strong Partisan Bill (Democrat 19-1)
Status: (Introduced - Dead) 2019-02-14 - Bill Electronically Reproduced 02/14/2019 [HB4172 Detail]
Download: Michigan-2019-HB4172-Introduced.html
HOUSE BILL No. 4172
February 13, 2019, Introduced by Reps. Witwer, Chirkun, Sowerby, Sneller, Cherry, Brenda Carter, Peterson, Cynthia Johnson, Stone, Shannon, Hertel, Elder, Sabo, Slagh, Garza, Tate, Bolden, Kuppa, Whitsett and 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, 17, 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, 432.117, 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 designating 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:
3 (a) "Active service" and "active state service" mean those
1 terms as defined in section 105 of the Michigan military act, 1967
2 PA 150, MCL 32.505.
3 (b) "Advertising" means all printed matter, handouts, flyers,
4 radio broadcasts, television
broadcasts, advertising signs,
5 billboards, and other media used to promote an event. licensed
6 under this act.
7 (c) "Bingo" means a game of chance commonly known as bingo in
8 which prizes are awarded on the basis of designated numbers or
9 symbols conforming to numbers or symbols selected at random.
10 (d) "Board" means the Michigan gaming control board created by
11 section 4 of the Michigan gaming control and revenue act, 1996 IL
12 1, MCL 432.204.
13 (e) (d) "Bureau"
means the bureau of state lottery as created
14 by section 5 of the McCauley-Traxler-Law-Bowman-McNeely lottery
15 act, 1972 PA 239, MCL 432.5.
16 (f) (e) "Charity
game" means the random resale of a series of
17 charity game tickets.
18 (g) (f) "Charity
game ticket" means a ticket commonly referred
19 to as a break-open ticket or pull-tab that is approved and acquired
20 by the bureau and is distributed and sold by the bureau or a
21 licensed supplier to a
qualified organization, a portion of which
22 is removed to discover whether the ticket is a winning ticket. and
23 whether the purchaser may be awarded a prize.
24 (h) (g) "Commissioner"
means the commissioner of state lottery
25 appointed under section 7 of the McCauley-Traxler-Law-Bowman-
26 McNeely lottery act, 1972 PA 239, MCL 432.7.
27 (i) (h) "Coverall
pattern" means a pattern required to win a
1 bingo game in which all numbers on a bingo card are required to be
2 called.
3 (j) "Educational organization" means an organization in this
4 state that is organized not for pecuniary profit, whose primary
5 purpose is educational in nature and designed to develop the
6 capabilities of individuals by instruction in any public or private
7 elementary or secondary school that complies with the revised
8 school code, 1976 PA 451, MCL 380.1 to 380.1852, or any private or
9 public college or university that is organized not for pecuniary
10 profit and that is approved by the state board of education.
11 (k) "Equipment" means the objects and mechanical,
12 electromechanical, or electronic devices used to determine or
13 assist in determining the winners of prizes at an event.
14 (l) "Event" means, in article 1, an occasion of bingo games, a
15 raffle, a charity game, or a numeral game conducted under a license
16 issued under article 1, and in article 2, an occasion of a
17 millionaire party conducted under a license issued under article 2.
18 (m) "Executive director" means the executive director of the
19 board, appointed under section 4 of the Michigan gaming control and
20 revenue act, 1996 IL 1, MCL 432.204.
21 (n) "Fraternal organization" means an organization in this
22 state, other than a college fraternity or sorority, that meets all
23 of the following criteria:
24 (i) Is organized not for pecuniary profit.
25 (ii) Is a branch, lodge, or chapter of a national or state
26 organization or, only for the purpose of conducting a small raffle
27 or a large raffle under this act, if not a branch, lodge, or
1 chapter of a national or state organization, is exempt from
2 taxation under section 501(c) of the internal revenue code of 1986,
3 26 USC 501.
4 (iii) Exists for the common purpose, brotherhood, or other
5 interests of its members.
6 Sec. 3. As used in this act:
7 (a) "Educational organization" means an organization
within
8 this state that is organized not for pecuniary profit, whose
9 primary purpose is educational in nature and designed to develop
10 the capabilities of individuals by instruction in any public or
11 private elementary or secondary school that complies with the
12 revised school code, 1976 PA 451, MCL 380.1 to 380.1852, or any
13 private or public college or university that is organized not for
14 pecuniary profit and that is approved by the state board of
15 education.
16 (b) "Fraternal organization" means an organization
within this
17 state, other than a college fraternity or sorority, that meets all
18 of the following criteria:
19 (i) Is
organized not for pecuniary profit.
20 (ii) Is a
branch, lodge, or chapter of a national or state
21 organization or, only for the purpose of conducting a small raffle
22 or a large raffle under this act, if not a branch, lodge, or
23 chapter of a national or state organization, is exempt from
24 taxation under section 501(c) of the internal revenue code of 1986,
25 26 USC 501.
26 (iii)
Exists for the common purpose, brotherhood, or other
27 interests of its members.
1 (a) "Large bingo" means a series of bingo occasions that occur
2 on a regular basis during which the total value of all prizes
3 awarded for bingo games at a single occasion does not exceed
4 $3,500.00 and the total value of all prizes awarded for 1 bingo
5 game does not exceed $1,100.00, except that a prize awarded through
6 a Michigan progressive jackpot bingo game is not subject to these
7 limitations.
8 (b) "Large raffle" means an event where the total value of all
9 prizes awarded through raffle drawings exceeds $500.00 per
10 occasion.
11 (c) "Licensee" means a person, or
including a qualified
12 organization, licensed under this act.
13 (d) "Location" means a building, enclosure, part of a building
14 or enclosure, or a distinct portion of real property that is used
15 for the purpose of conducting an event. Location includes all
16 components or buildings that compose 1 architectural entity or that
17 serve a unified functional purpose.
18 (e) "Manufacturer" means a person licensed under section 11c
19 who manufactures numeral game tickets for sale to suppliers for use
20 in an event.
21 (f) (d) "Member"
means an individual who qualified for
22 membership in a qualified organization under its bylaws, articles
23 of incorporation, charter, rules, or other written statement.
24 (g) (e) "Michigan
national guard" and "military" mean those
25 terms as defined in section 105 of the Michigan military act, 1967
26 PA 150, MCL 32.505.
27 (f) "Person" means a natural person, firm, association,
1 corporation, or other legal entity.
2 (g) "Qualified organization" means, subject to
subdivision
3 (h), either of the following:
4 (i) A
bona fide religious, educational, service, senior
5 citizens, fraternal, or veterans' organization that operates
6 without profit to its members and that either has been in existence
7 continuously as an organization for a period of 5 years or is
8 exempt from taxation under section 501(c) of the internal revenue
9 code of 1986, 26 USC 501.
10 (ii) Only
for the purpose of conducting a small raffle or a
11 large raffle under this act, a component of the military or the
12 Michigan national guard whose members are in active service or
13 active state service.
14 (h) "Qualified organization" does not include a candidate
15 committee, political committee, political party committee, ballot
16 question committee, independent committee, or any other committee
17 as defined by, and organized under, the Michigan campaign finance
18 act, 1976 PA 388, MCL 169.201 to 169.282.
19 (i) "Religious organization" means any of the
following:
20 (i) An
organization, church, body of communicants, or group
21 that is organized not for pecuniary profit and that gathers in
22 common membership for mutual support and edification in piety,
23 worship, and religious observances.
24 (ii) A
society of individuals that is organized not for
25 pecuniary profit and that unites for religious purposes at a
26 definite place.
27 (iii) A
church related private school that is organized not
1 for pecuniary profit.
2 (j) "Senior citizens organization" means an
organization
3 within this state that is organized not for pecuniary profit, that
4 consists of at least 15 members who are 60 years of age or older,
5 and that exists for their mutual support and for the advancement of
6 the causes of elderly or retired persons.
7 (k) "Service organization" means either of the
following:
8 (i) A
branch, lodge, or chapter of a national or state
9 organization that is organized not for pecuniary profit and that is
10 authorized by its written constitution, charter, articles of
11 incorporation, or bylaws to engage in a fraternal, civic, or
12 service purpose within the state.
13 (ii) A
local civic organization that is organized not for
14 pecuniary profit; that is not affiliated with a state or national
15 organization; that is recognized by resolution adopted by the local
16 governmental subdivision in which the organization conducts its
17 principal activities; whose constitution, charter, articles of
18 incorporation, or bylaws contain a provision for the perpetuation
19 of the organization as a nonprofit organization; whose entire
20 assets are used for charitable purposes; and whose constitution,
21 charter, articles of incorporation, or bylaws contain a provision
22 that all assets, real property, and personal property shall revert
23 to the benefit of the local governmental subdivision that granted
24 the resolution upon dissolution of the organization.
25 (l)
"Veterans' organization" means an organization within this
26 state, or a branch, lodge, or chapter within this state of a state
27 organization or of a national organization chartered by the
1 congress of the United States, that is organized not for pecuniary
2 profit, the membership of which consists of individuals who were
3 members of the armed services or armed forces of the United States.
4 Veterans' organization includes an auxiliary of a veterans'
5 organization that is a national organization chartered by the
6 congress of the United States.
7 (h) "Michigan progressive jackpot" means a bingo game
8 conducted in conjunction with a licensed large bingo occasion in
9 which the value of the prize is carried forward to the next bingo
10 occasion if no player wins in a predetermined number of allowable
11 calls. Michigan progressive jackpot may include bingo games
12 conducted by more than 1 licensee that are linked together for the
13 purpose of a common jackpot prize and consolation prize as
14 prescribed by the commissioner.
15 (i) "Millionaire party" means an event at which wagers are
16 placed on games of chance customarily associated with a gambling
17 casino through the use of imitation money or chips that have a
18 nominal value equal to or greater than the value of the currency
19 for which they can be exchanged.
20 (j) "Numeral game" means the random resale of a series of
21 numeral game tickets.
22 (k) "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, so that on
25 breaking the paper that bands the folding strip the purchaser
26 discovers whether the ticket is a winning ticket.
27 (l) "Occasion" means a single day for which a license to
1 conduct games is issued under this act.
2 Sec. 3a. (1) "Equipment" means the objects and
mechanical or
3 electromechanical devices used to determine or assist in
4 determining the winners of prizes at events licensed under this
5 act.
6 (2) "Event" means each occasion of a bingo, millionaire
party,
7 raffle, charity game, or numeral game licensed under this act.
8 (3) "Large bingo" means a series of bingo occasions
that occur
9 on a regular basis during which the total value of all prizes
10 awarded through bingo at a single occasion does not exceed
11 $3,500.00 and the total value of all prizes awarded for 1 game does
12 not exceed $1,100.00, except that a prize awarded through a
13 Michigan progressive jackpot bingo game is not subject to these
14 limitations.
15 (4) "Large raffle" means an event where the total value
of all
16 prizes awarded through raffle drawings exceed $500.00 per occasion.
17 (5) "Location" means a building, enclosure, part of a
building
18 or enclosure, or a distinct portion of real estate that is used for
19 the purpose of conducting events licensed under this act. Location
20 also means all components or buildings that comprise 1
21 architectural entity or that serve a unified functional purpose.
22 (6) "Manufacturer" means a person licensed under
section 11c
23 who manufactures numeral game tickets for sale to suppliers for use
24 in an event.
25 (7) "Michigan progressive jackpot" means a bingo game
26 conducted in conjunction with a licensed large bingo occasion,
27 where the value of the prize is carried forward to the next bingo
1 occasion if no player bingos in a predetermined number of allowable
2 calls. Michigan progressive jackpot may include bingo games
3 conducted by more than 1 licensee that are linked together for the
4 purpose of a common jackpot prize and consolation prize as
5 prescribed by the commissioner.
6 (8) "Millionaire party" means an event at which wagers
are
7 placed upon games of chance customarily associated with a gambling
8 casino through the use of imitation money or chips that have a
9 nominal value equal to or greater than the value of the currency
10 for which they can be exchanged.
11 (9) "Numeral game" means the random resale of a series
of
12 numeral game tickets by a qualified organization under a numeral
13 game license or in conjunction with a licensed millionaire party or
14 large raffle.
15 (10) "Numeral game ticket" means a paper strip on which
16 preprinted numerals are covered by folding the strip and banding
17 the folded strip with a separate piece of paper, if upon breaking
18 the paper strip that bands the ticket, the purchaser discovers
19 whether the ticket is a winning ticket and the purchaser may be
20 awarded a merchandise prize.
21 (11) "Occasion" means the hours of the day for which a
license
22 is issued.As used in
this act:
23 (a) "Person" means an individual, firm, association,
24 corporation, or other legal entity.
25 (b) (12) "Principal
officer" means the highest ranking officer
26 of the qualified organization according to its written
27 constitution, charter, articles of incorporation, or bylaws.
1 (c) (13) "Prize"
means anything of value, including, but not
2 limited to, money or merchandise that is given to a player for
3 attending or winning a game at an event. A nonmonetary item is
4 valued at its retail value. Prize does not include advertising
5 material given away by a
qualified organization in accordance with
6 rules promulgated under this act.
7 (14) "Single gathering" means 1 scheduled assembly or
meeting
8 with a specified beginning and ending time that is conducted or
9 sponsored by the qualified organization. Single gathering does not
10 include the regular operating hours of a club or similar facility
11 and does not include a meeting conducted solely for the purpose of
12 conducting a raffle.
13 (d) "Qualified organization" means, subject to subdivision
14 (e), either of the following:
15 (i) A bona fide religious, educational, service, senior
16 citizens, fraternal, or veterans' organization that operates
17 without profit to its members and that either has been in existence
18 continuously as an organization for a period of 5 years or is
19 exempt from taxation under section 501(c) of the internal revenue
20 code of 1986, 26 USC 501.
21 (ii) Only for the purpose of conducting a small raffle or a
22 large raffle under this act, a component of the military or the
23 Michigan national guard whose members are in active service or
24 active state service.
25 (e) "Qualified organization" does not include a candidate
26 committee, political committee, political party committee, ballot
27 question committee, independent committee, or any other committee
1 as defined by, and organized under, the Michigan campaign finance
2 act, 1976 PA 388, MCL 169.201 to 169.282.
3 (f) "Raffle" means an event for which raffle tickets are sold
4 and at which a winner or winners are determined, either by randomly
5 selecting stubs from all of the raffle tickets sold for an event or
6 by an alternative method that is approved in writing by the bureau,
7 and a preannounced prize is awarded.
8 (g) "Religious organization" means any of the following:
9 (i) An organization, church, body of communicants, or group in
10 this state that is organized not for pecuniary profit and that
11 gathers in common membership for mutual support and edification in
12 piety, worship, and religious observances.
13 (ii) A society of individuals in this state that is organized
14 not for pecuniary profit and that unites for religious purposes at
15 a definite place.
16 (iii) A church-related private school in this state that is
17 organized not for pecuniary profit.
18 (h) "Senior citizens organization" means an organization in
19 this state that is organized not for pecuniary profit, that
20 consists of at least 15 members who are 60 years of age or older,
21 and that exists for their mutual support and for the advancement of
22 the causes of elderly or retired persons.
23 (i) "Service organization" means either of the following:
24 (i) A branch, lodge, or chapter in this state of a national or
25 state organization that is organized not for pecuniary profit and
26 that is authorized by its written constitution, charter, articles
27 of incorporation, or bylaws to engage in a fraternal, civic, or
1 service purpose in this state.
2 (ii) A local civic organization in this state that is
3 organized not for pecuniary profit; that is not affiliated with a
4 state or national organization; that is recognized by resolution
5 adopted by the local governmental subdivision in which the
6 organization conducts its principal activities; whose constitution,
7 charter, articles of incorporation, or bylaws contain a provision
8 for the perpetuation of the organization as a nonprofit
9 organization; whose entire assets are used for charitable purposes;
10 and whose constitution, charter, articles of incorporation, or
11 bylaws contain a provision that all assets, real property, and
12 personal property must revert to the benefit of the local
13 governmental subdivision that granted the resolution or another
14 nonprofit organization on dissolution of the organization.
15 (j) (15) "Small
bingo" means a series of bingo occasions that
16 occur on a regular basis during which the total value of all prizes
17 awarded through for
bingo games at a single occasion
does not
18 exceed $300.00 and the total value of all prizes awarded for a
19 single bingo game does not exceed $25.00.
20 (k) (16) "Small
raffle" means an event during which the total
21 value of all prizes awarded through raffle drawings does not exceed
22 $500.00 during 1 occasion.
23 (l) (17)
"Special bingo" means a
single or consecutive series
24 of bingo occasions during which the total value of all prizes
25 awarded through for
bingo games at a single occasion
does not
26 exceed $3,500.00 and the total value of all prizes awarded for a
27 single bingo game does not exceed $1,100.00.
1 (m) (18) "Supplier"
means a person licensed under this act to
2 rent, sell, or lease equipment or to sell charity game or numeral
3 game tickets to qualified organizations licensed under this act.
4 (n) "Veterans' organization" means an organization in this
5 state, or a branch, lodge, or chapter in this state of a state
6 organization or of a national organization chartered by the
7 Congress of the United States, that is organized not for pecuniary
8 profit, the membership of which consists of individuals who were
9 members of the armed services or armed forces of the United States.
10 Veterans' organization includes an auxiliary of a veterans'
11 organization that is a national organization chartered by the
12 Congress of the United States.
13 Sec. 4. (1) Each An
applicant for a license to conduct a
14 bingo, millionaire party, raffle, charity game, or numeral game
15 event shall submit to the bureau a written application on a form
16 prescribed by the commissioner.
17 (2) The application shall under subsection (1) must include
18 all of the following:
19 (a) The name and address of the applicant organization.
20 (b) The name and address of each officer of the applicant
21 organization.
22 (c) The location at which the applicant will conduct the
23 event.
24 (d) The day or dates of the event.
25 (e) The member or members of the applicant organization who
26 will be responsible for the conduct of the event.
27 (f) Sufficient facts relating to the applicant's incorporation
1 or organization to enable the commissioner to determine whether the
2 applicant is a qualified organization.
3 (g) A sworn statement attesting to the nonprofit status of the
4 applicant organization, signed by the principal officer of that the
5 organization.
6 (h) Other information the commissioner considers necessary.
7 Sec. 4a. (1) Except as provided in subsections (2) and (3), if
8 the commissioner determines that the an applicant
under section 4
9 is a qualified organization, and is not ineligible under section
10 18, and the applicant has paid to the bureau the
appropriate fee,
11 the commissioner may issue 1 or more of the following licenses:
|
12 |
License Fee |
||
|
13 |
(a) |
Large bingo.........................$ 150.00 |
|
|
14 |
(b) |
Small bingo.........................$ 55.00 |
|
|
15 |
(c) |
Special bingo.......................$ 25.00 |
|
|
16 |
|
|
|
|
17 |
|
Large raffle........................$ 50.00 per |
|
|
18 |
drawing date |
||
|
19 |
|
Small raffle: |
|
|
20 |
(i) |
One to 3 drawing dates..............$ 15.00 |
|
|
21 |
(ii) |
Four or more drawing dates..........$ 5.00 per |
|
|
22 |
drawing date |
||
|
23 |
|
Annual charity game.................$ 200.00 |
|
|
24 |
|
Special charity game................$ 15.00 per day |
|
|
25 |
|
Numeral game........................$ 15.00 per day |
26 (2) Under extreme hardship conditions as determined by the
27 commissioner, the commissioner may waive 1 or more requirements of
1 for a person to be a
qualified organization described in section 3
2 under section 3a(d) to
permit the licensing of a special bingo
,
3 millionaire party, or
raffle event, if all of the following
4 conditions are met:
5 (a) The organization applying for the license is a nonprofit
6 organization.
7 (b) The entire proceeds of the event, less the actual
8 reasonable expense of conducting the event, are donated or used for
9 a charitable purpose, organization, or cause.
10 (c) None of the individuals connected with the conduct of the
11 event is compensated in any manner for his or her participation.
12 (d) The organization complies with all other applicable
13 provisions of this act article
and rules promulgated under this
14 act.article.
15 (3) Under extreme hardship conditions as determined by the
16 commissioner, the commissioner may allow an individual or a group
17 of individuals to obtain a license to conduct a special bingo ,
18 millionaire party, event
or raffle if all of the following
19 conditions are met:
20 (a) The entire proceeds of the event, less the actual
21 reasonable expense of conducting the event, are donated or used for
22 a charitable purpose, organization, or cause.
23 (b) None of the individuals connected with the conduct of the
24 event is compensated in any manner for his or her participation.
25 (c) The individual or group of individuals complies with all
26 other applicable provisions of this act article and
the rules
27 promulgated under this act.article.
1 (4) Each event license issued to a qualified organization
2 under this section is valid for only the location included on the
3 license.
4 (5) A license issued under this section is not assignable or
5 transferable.
6 (6) The A licensee is responsible for ensuring shall ensure
7 that the events conducted under a license issued under this section
8 are conducted in compliance with the applicable provisions of this
9 act article and rules
promulgated under this article.
10 (7) A Except
as otherwise provided in this section, a licensee
11 shall only conduct events licensed under this act section during
12 the hours and on the day and date or dates stated on the
license.
13 (8) In connection with an application for a small raffle
14 license or a large raffle license, in determining whether a
15 fraternal organization that is not a branch, lodge, or chapter of a
16 national or state organization is a qualified organization, the
17 commissioner shall only consider whether the organization meets
18 requirements that are applicable under this act article that
are
19 unrelated to whether the organization is a branch, lodge, or
20 chapter of a national or state organization.
21 Sec. 8. (1) All fees and revenue collected by the commissioner
22 or bureau under this act shall must be paid into the state
lottery
23 fund created under section 41 of the McCauley-Traxler-Law-Bowman-
24 McNeely lottery act, 1972 PA 239, MCL 432.41. All necessary
25 expenses incurred by the bureau in the administration and
26 enforcement of any activity authorized by this act and in the
27 initiation, implementation, and ongoing operation of any activity
1 authorized by this act shall must be financed from the
state
2 lottery fund.
3 (2) All fees and revenue collected by the executive director
4 or board under this act must be paid into the state lottery fund
5 created under section 41 of the McCauley-Traxler-Law-Bowman-McNeely
6 lottery act, 1972 PA 239, MCL 432.41. All necessary expenses
7 incurred by the executive director or board in the administration
8 and enforcement of any activity authorized by this act and in the
9 initiation, implementation, and ongoing operation of any activity
10 authorized by this act must be financed from the state lottery
11 fund.
12 (3) The amount of these
necessary expenses shall incurred
13 under subsections (1) and (2) must not exceed the amount of
14 revenues received from the sale of charity game tickets and all
15 fees collected under this act. At the end of each fiscal year all
16 money, including interest, in the state lottery fund which that is
17 attributable to fees and revenue collected under this act but which
18 that has not been expended
under this section shall must
be
19 deposited in the state general fund.
20 Sec. 9. (1) Except as provided in subsection (2), the entire
21 net proceeds of an event shall conducted under a license issued
22 under this article must be devoted exclusively to the lawful
23 purposes of the licensee. A licensee shall not incur or pay an item
24 of expense in connection with the holding, operating, or
conducting
25 of an event except the
following expenses in reasonable amounts
26 that the commissioner determines to be reasonable:
27 (a) The purchase or rental of equipment necessary for
1 conducting an event and payment of services reasonably necessary
2 for the repair of equipment.
3 (b) Cash prizes or the purchase of prizes of merchandise.
4 (c) Rental of the location at which the event is conducted.
5 (d) Janitorial services.
6 (e) The fee required for issuance or reissuance of a license
7 to conduct the event.
8 (f) Other reasonable expenses incurred by the licensee, not
9 inconsistent with this act, article, as permitted by
rule of the
10 commissioner.
11 (2) A qualified organization described in section 3(g)(ii)
12 3a(d)(ii) shall use the entire net proceeds of an event, after
13 paying items of expense incurred in reasonable amounts in
14 connection with the holding, operating, or conducting of the event
15 and listed in subsection (1), only for the expense of training or
16 purchasing goods or services for the support of the activities of
17 the component.
18 Sec. 10. (1) Only a member of the qualified organization shall
19 participate in the management of an event.
20 (2) A person shall not receive any commission, salary, pay,
21 profit, or wage for participating in the management or operation of
22 a bingo event,
a millionaire party, a raffle, or a charity game
23 except as provided by rule promulgated under this act.article.
24 (3) Except by special permission of the commissioner, a
25 licensee shall conduct bingo or a millionaire party games only
with
26 equipment that it owns, uses under a bureau-approved rental
27 contract, or is purchasing or renting at a reasonable rate from a
1 supplier.
2 (4) A licensee shall not advertise a bingo event except to the
3 extent and in the manner permitted by rule promulgated under this
4 act. article. If the commissioner permits a licensee to advertise a
5 bingo event, the licensee shall indicate in the advertisement the
6 purposes for which the net proceeds will be used by the licensee.
7 (5) The holder of a millionaire party license shall not
8 advertise the event, except to the extent and in the manner
9 permitted by rule promulgated under this act. If the commissioner
10 permits a licensee to advertise the event, the licensee shall
11 indicate in the advertising the purposes for which the net proceeds
12 will be used by the licensee.
13 Sec. 11b. (1) Each An applicant for a license
or renewal of a
14 license to operate as a supplier of equipment, charity game
15 tickets, or numeral game tickets to qualified organizations
16 licensed under this act shall submit a written application to the
17 bureau on a form prescribed by the commissioner.
18 (2) The An applicant under
this section shall pay an annual
19 license fee of $300.00 at the time of the application.
20 (3) A supplier's license issued under this section expires at
21 12 midnight on September 30 of each year.
22 (4) The commissioner shall require suppliers authorized to
23 sell charity game tickets, numeral game tickets, or both, to post a
24 performance bond of not less than $50,000.00 and not greater than
25 $1,000,000.00.
26 (5) A supplier shall remit to the bureau an amount equal to
27 the qualified organization's purchase price of the charity game
1 tickets less an amount that shall not be less than the sum of $.008
2 for each ticket sold plus 1.0% of the total resale value for all
3 charity game tickets sold.
4 (6) For each numeral game sold, the supplier shall issue to
5 the licensed organization an invoice listing the manufacturer and
6 serial number of each game.
7 (7) The A
supplier shall collect a fee collected
by a supplier
8 from the a qualified organization for each game of numeral tickets
9 sold shall be that
equals $5.00 per 1,000 tickets or any
portion of
10 1,000 tickets.
11 (8) The A
supplier shall remit the fees collected
by the
12 supplier for each numeral game sold shall be remitted under
13 subsection (7) to the bureau by the fifteenth day of the month
14 following the month in which the numeral game is sold. A The
15 commissioner may assess a late
fee of 25% of the amount due may be
16 assessed by the commissioner against
any a supplier who fails to
17 remit the fees by the required filing date.
18 (9) A supplier shall only display, offer for sale, sell, or
19 otherwise make available to a qualified organization numeral game
20 tickets that have been obtained from a manufacturer.
21 (10) A person who is directly or indirectly connected to the
22 sale, rental, or distribution of bingo or millionaire party
23 equipment, or the sale of charity game tickets or numeral game
24 tickets, or a person residing in the same household as the supplier
25 shall not be involved directly or indirectly with the rental or
26 leasing of a facility used for an event.
27 (11) A supplier licensed under this section shall submit to
1 the bureau a report as required by the commissioner regarding the
2 sale or rental of equipment and the sale of charity game tickets
3 and numeral game tickets.
4 Sec. 12. (1) The bureau shall enforce and supervise the
5 administration of this act. article. The commissioner
shall employ
6 personnel as necessary to implement this act.article.
7 (2) The bureau may select fraternal organizations that are not
8 a branch, lodge, or chapter of a national or state organization to
9 audit to ensure that the organizations are in compliance with this
10 act.article.
11 Sec. 13. The commissioner shall promulgate rules pursuant to
12 the administrative procedures act of 1969, 1969 PA 306, MCL 24.201
13 to 24.328, to implement this act.article.
14 Sec. 14. (1) Each A
licensee under this article shall
keep a
15 record of each event as required by the commissioner. The A
16 licensee shall allow a representative authorized by the bureau to
17 inspect a record kept under this subsection and all financial
18 accounts into which proceeds from events licensed under this act
19 are deposited or transferred shall be open to inspection by a duly
20 authorized representative of the bureau during reasonable business
21 hours.
22 (2) Each A licensee under
this article shall file with the
23 commissioner a financial statement signed by the principal officer
24 of the qualified organization of receipts and expenses related to
25 the conduct of each event as may be required by rule promulgated
26 under this act. article.
If the revenue from a bingo, game,
27 millionaire party, raffle,
numeral game, or charity game event
is
1 represented to be used or applied by a licensee under this article
2 for a charitable purpose, the licensee shall file a copy of the
3 financial statement with the attorney general under the supervision
4 of trustees for charitable purposes act, 1961 PA 101, MCL 14.251 to
5 14.266.
6 (3) The A
licensee under this article shall allow an
7 authorized representative of the bureau or the department of state
8 police or a law enforcement officer of a political subdivision of
9 this state to inspect the location
at which events licensed under
10 this act are conducted or at which an applicant or licensee intends
11 to conduct an event licensed under this act shall be open to
12 inspection at all times by a duly authorized representative of the
13 bureau or by the state police or a peace officer of a political
14 subdivision of this state.or
an intended location during business
15 hours.
16 Sec. 15. Annually the The commissioner shall
report annually
17 to the governor and the legislature about the operation of events
18 licensed under this act within this state, article, abuses
that the
19 bureau may have encountered, and recommendations for changes in
20 this act.
21 Sec. 16. (1) The commissioner may deny, suspend, summarily
22 suspend, or revoke any a
license issued under this act article if
23 the licensee or an officer, director, agent, member, or employee of
24 the licensee violates this act article or a rule
promulgated under
25 this act. article.
The commissioner may summarily suspend
a license
26 for a period of not more than 60 days pending prosecution,
27 investigation, or public hearing.
1 (2) A proceeding to suspend or revoke a license shall be
2 considered under this
article is a contested case and
shall be
3 governed by the administrative procedures act of 1969, 1969 PA 306,
4 MCL 24.201 to 24.328.
5 (3) Upon On petition of the commissioner, the circuit court
6 after a hearing may issue subpoenas to compel the attendance of
7 witnesses and the production of documents, papers, books, records,
8 and other evidence before it in a matter over which it has
9 jurisdiction, control, or supervision. If a person subpoenaed to
10 attend in any such proceeding or hearing fails to obey the command
11 of the subpoena without reasonable cause, or if a person in
12 attendance in any such proceeding or hearing refuses, without
13 lawful cause, to be examined or to answer a legal or pertinent
14 question or to exhibit a book, account, record, or other document
15 when ordered to do so by the court, that person may be punished as
16 a being in contempt of the court.
17 (4) With approval of the commissioner, a bingo hall licensee,
18 in lieu of a suspension of its license, may elect to pay a fine
19 equal to the amount of rent that would have been paid by the bingo
20 licensees during the period of the suspension. This The bingo hall
21 licensee shall pay this fine
shall be paid to the bureau on or
22 before the date agreed to in the suspension agreement entered into
23 by the bureau and the bingo hall licensee.
24 Sec. 17. (1) A
Except as otherwise provided
in subsections (2)
25 and (3), a person who wilfully
willfully violates this act is
26 guilty of a misdemeanor and shall be fined not more than $1,000.00
27 or imprisoned punishable
by imprisonment for not more than 6
months
1 or a fine of not more than $1,000.00, or both.
2 (2) A person is guilty of a misdemeanor punishable by
3 imprisonment for not more than 1 year or a fine of not more than
4 $1,500.00, or both, for doing any of the following:
5 (a) Cheating at a charitable gambling game.
6 (b) Using millionaire party proceeds for something other than
7 the lawful purpose of the organization.
8 (c) Knowingly making a wager if the person is less than 18
9 years of age or permitting a person less than 18 years of age to
10 make a wager.
11 (d) Using chips not authorized for use at a millionaire party.
12 (e) Willfully failing to appear before or provide an item to
13 the executive director at the time and place specified in a
14 subpoena issued by the executive director.
15 (f) Willfully refusing, without just cause, to testify or
16 provide items in an answer to a subpoena or subpoena duces tecum
17 issued by the executive director.
18 (g) For a location owner or lessor, a shareholder of a
19 privately held corporate-owned or leased location, partner,
20 officer, agent, or employee of a lessor, or person residing in the
21 same household as a location owner or lessor, shareholder of a
22 privately held corporate-owned or leased location, partner,
23 officer, or agent of a location owner where a millionaire party
24 occurs, making or receiving a payment from any person, other than
25 for the preapproved payment of rent, for any aspect of a
26 millionaire party. This subdivision does not apply to the sale of
27 food and drink.
1 (h) Conducting or permitting a person who is not licensed
2 under this act to conduct activities required to be licensed under
3 this act.
4 (3) A person is guilty of a misdemeanor punishable by
5 imprisonment for not more than 2 years or a fine of not more than
6 $2,500.00, or both, for doing any of the following:
7 (a) Knowingly making a false statement on an application for a
8 license provided in this act.
9 (b) Knowingly making false statements, either orally or in
10 writing, to the executive director or his or her authorized
11 representatives.
12 (4) A person convicted under this section is ineligible to
13 receive or maintain a license under this act.
14 (5) In addition to the fines described in this section, a
15 person may be liable for a fine up to the amount of any illegal
16 payments made or received in violation of this act.
17 (6) This section does not prohibit a person who violates this
18 act from being charged with, convicted of, or punished for any
19 other violation of law, including the Michigan penal code, 1931 PA
20 328, MCL 750.1 to 750.568, and the Michigan gaming control and
21 revenue act, 1996 IL 1, MCL 432.201 to 432.226.
22 Sec. 19. (1) Except as provided in subsection (2), any other
23 law providing a penalty or disability upon a person who conducts or
24 participates in a raffle,
bingo, game, millionaire
party, or
25 charity game; who sells or possesses equipment used in conducting a
26 raffle, bingo, or a millionaire party; who permits a raffle, bingo,
27 a millionaire party, or a charity game to be conducted on his or
1 her premises; or who does other acts in connection with a raffle,
2 bingo, a millionaire party, or a charity game does not apply to
3 that conduct if done pursuant to under this act or rules
4 promulgated under this act.
5 (2) Subsection (1) does not limit in any way the
application
6 of the Michigan campaign finance act, Act No. 388 of the Public
7 Acts of 1976, being sections 1976 PA 388, MCL 169.201 to
169.282,
8 of the Michigan Compiled Laws, including, but not limited to,
9 section 41 of Act No. 388 of the Public Acts of 1976, being section
10 the Michigan campaign finance act, 1976 PA 388, MCL 169.241, of the
11 Michigan Compiled Laws, to fundraising
fund-raising events
12 conducted by or for the benefit of a committee that has filed or is
13 required to file a statement of organization pursuant to Act No.
14 388 of the Public Acts of 1976.under the Michigan campaign finance
15 act, 1976 PA 388, MCL 169.201 to 169.282.
16 Enacting section 1. Sections 10a, 10b, and 20 of the Traxler-
17 McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.110a, 432.110b,
18 and 432.120, are repealed.
19 Enacting section 2. This amendatory act does not take effect
20 unless Senate Bill No. ____ or House Bill No. 4173 (request no.
21 01601'19) of the 100th Legislature is enacted into law.
