Bill Text: MI HB5121 | 2009-2010 | 95th Legislature | Engrossed

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Bill Title: Gaming; bingo and charitable gaming; millionaire parties conducted by nonmembers of charities; increase fees and provide for expedited license. Amends secs. 3a & 4a of 1972 PA 382 (MCL 432.103a & 432.104a) & adds sec. 4b.

Spectrum: Strong Partisan Bill (Democrat 13-1)

Status: (Introduced - Dead) 2010-04-20 - Referred To Committee On Economic Development And Regulatory Reform [HB5121 Detail]

Download: Michigan-2009-HB5121-Engrossed.html

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HB-5121, As Passed House, March 18, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5121

 

 

 

 

 

 

 

 

 

 

 

 

      A bill to amend 1972 PA 382, entitled

 

"Traxler-McCauley-Law-Bowman bingo act,"

 

by amending the title and sections 2, 3, 3a, 4a, 5c, 8, 9, 10,

 

10a, 11a, 11b, and 19 (MCL 432.102, 432.103, 432.103a, 432.104a,

 

432.105c, 432.108, 432.109, 432.110, 432.110a, 432.111a,

 

432.111b, and 432.119), the title as amended and sections 4a and

 

11a as added by 1999 PA 108, sections 2 and 9 as amended by 2008

 

PA 401, section 3 as amended by 2009 PA 41, sections 3a, 5c, 8,

 

10, 10a, and 11b as amended by 2006 PA 427, and section 19 as

 

amended by 1995 PA 263, and by adding section 11d.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1                              TITLE

 

 2        An act to license and regulate the conducting of bingo,

 

 1  millionaire parties, and certain other forms of gambling; to

 

 2  provide for the conducting of charity games, raffles, and numeral

 

 3  games; to provide for exemptions from licensing requirements

 

 4  under certain circumstances; to impose certain duties and

 

 5  authority upon certain state departments, agencies, and officers;

 

 6  to provide a tax exemption; to make an appropriation; and to

 

 7  provide penalties.

 

 8        Sec. 2. As used in this act:

 

 9        (a) "Active service" and "active state service" mean those

 

10  terms as defined in section 105 of the Michigan military act,

 

11  1967 PA 150, MCL 32.505.

 

12        (b) "Advertising" means all printed matter, handouts,

 

13  flyers, radio, television, advertising signs, billboards, and

 

14  other media used to promote an event licensed under this act.

 

15        (c) "Bingo" means a game of chance commonly known as bingo

 

16  in which prizes are awarded on the basis of designated numbers or

 

17  symbols conforming to numbers or symbols selected at random.

 

18        (d) "Bureau" means the bureau of state lottery as created by

 

19  section 5 of the McCauley-Traxler-Law-Bowman-McNeely lottery act,

 

20  1972 PA 239, MCL 432.5.

 

21        (e) "Charity game" means the random resale of a series of

 

22  charity game tickets.

 

23        (f) "Charity game ticket" means a ticket commonly referred

 

24  to as a break-open ticket or pull-tab that is approved and

 

25  acquired by the bureau and is distributed and sold by the bureau

 

26  or a licensed supplier to a qualified organization, a portion of

 

27  which is removed to discover whether the ticket is a winning

 

 1  ticket and whether the purchaser may be awarded a prize.

 

 2        (g) "Commissioner" means the commissioner of state lottery

 

 3  appointed under section 7 of the McCauley-Traxler-Law-Bowman-

 

 4  McNeely lottery act, 1972 PA 239, MCL 432.7.

 

 5        (h) "Coverall pattern" means a pattern required to win a

 

 6  bingo game in which all numbers on a bingo card are required to

 

 7  be called.

 

 8        Sec. 3. As used in this act:

 

 9        (a) "Educational organization" means an organization within

 

10  in this state that is organized not for pecuniary profit, whose

 

11  primary purpose is educational in nature and designed to develop

 

12  the capabilities of individuals by instruction in any public or

 

13  private elementary or secondary school that complies with the

 

14  revised school code, 1976 PA 451, MCL 380.1 to 380.1852, or any

 

15  private or public college or university that is organized not for

 

16  pecuniary profit and that is approved by the state board of

 

17  education.

 

18        (b) "Fraternal organization" means an organization within in

 

19  this state, except a college fraternity or sorority, that is

 

20  organized not for pecuniary profit; that is a branch, lodge, or

 

21  chapter of a national or state organization; and that exists for

 

22  the common purpose, brotherhood, or other interests of its

 

23  members.

 

24        (c) "Licensee" means a person or qualified organization

 

25  licensed under this act.

 

26        (d) "Member" means an individual who qualified for

 

27  membership in a qualified organization under its bylaws, articles

 

 1  of incorporation, charter, rules, or other written statement.

 

 2        (e) "Michigan national guard" and "military" mean those

 

 3  terms as defined in section 105 of the Michigan military act,

 

 4  1967 PA 150, MCL 32.505.

 

 5        (f) "Person" means a natural person, firm, association,

 

 6  corporation, or other legal entity.

 

 7        (g) "Qualified organization" means, subject to subdivision

 

 8  (h), either of the following:

 

 9        (i) A bona fide religious, educational, service, senior

 

10  citizens, fraternal, or veterans' organization that operates

 

11  without profit to its members and that either has been in

 

12  existence continuously as an organization for a period of 5 years

 

13  or is exempt from taxation under 26 USC 501(c).

 

14        (ii) Only for the purpose of conducting a small raffle or a

 

15  large raffle under this act, a component of the military or the

 

16  Michigan national guard whose members are in active service or

 

17  active state service.

 

18        (h) "Qualified organization" does not include a candidate

 

19  committee, political committee, political party committee, ballot

 

20  question committee, independent committee, or any other committee

 

21  as defined by, and organized under, the Michigan campaign finance

 

22  act, 1976 PA 388, MCL 169.201 to 169.282.

 

23        (i) "Religious organization" means any of the following:

 

24        (i) An organization, church, body of communicants, or group

 

25  in this state that is organized not for pecuniary profit and that

 

26  gathers in common membership for mutual support and edification

 

27  in piety, worship, and religious observances.

 

 1        (ii) A society of individuals in this state that is organized

 

 2  not for pecuniary profit and that unites for religious purposes

 

 3  at a definite place.

 

 4        (iii) A church related private school in this state that is

 

 5  organized not for pecuniary profit.

 

 6        (j) "Senior citizens organization" means an organization

 

 7  within in this state that is organized not for pecuniary profit,

 

 8  that consists of at least 15 members who are 60 years of age or

 

 9  older, and that exists for their mutual support and for the

 

10  advancement of the causes of elderly or retired persons.

 

11        (k) "Service organization" means either of the following:

 

12        (i) A branch, lodge, or chapter of a national or state

 

13  organization in this state that is organized not for pecuniary

 

14  profit and that is authorized by its written constitution,

 

15  charter, articles of incorporation, or bylaws to engage in a

 

16  fraternal, civic, or service purpose. within the state.

 

17        (ii) A local civic organization in this state that is

 

18  organized not for pecuniary profit; that is not affiliated with a

 

19  state or national organization; that is recognized by resolution

 

20  adopted by the local governmental subdivision in which the

 

21  organization conducts its principal activities; whose

 

22  constitution, charter, articles of incorporation, or bylaws

 

23  contain a provision for the perpetuation of the organization as a

 

24  nonprofit organization; whose entire assets are used for

 

25  charitable purposes; and whose constitution, charter, articles of

 

26  incorporation, or bylaws contain a provision that all assets,

 

27  real property, and personal property shall revert to the benefit

 

 1  of the local governmental subdivision that granted the resolution

 

 2  or another nonprofit organization upon dissolution of the

 

 3  organization.

 

 4        (l) "Veterans' organization" means an organization within in

 

 5  this state, or a branch, lodge, or chapter within in this state

 

 6  of a state organization or of a national organization chartered

 

 7  by the congress of the United States, that is organized not for

 

 8  pecuniary profit, the membership of which consists of individuals

 

 9  who were members of the armed services or armed forces of the

 

10  United States. Veterans' organization includes an auxiliary of a

 

11  veterans' organization that is a national organization chartered

 

12  by the congress of the United States.

 

13        Sec. 3a. (1) "Equipment" means the objects and mechanical or

 

14  electromechanical devices used to determine or assist in

 

15  determining the winners of prizes at events an event licensed

 

16  under this act.

 

17        (2) "Event" means each occasion of a bingo, millionaire

 

18  party, raffle, charity game, or numeral game licensed under this

 

19  act.

 

20        (3) "Large bingo" means a series of bingo occasions that

 

21  occur on a regular basis during which the total value of all

 

22  prizes awarded through bingo at a single occasion does not exceed

 

23  $3,500.00 and the total value of all prizes awarded for 1 game

 

24  does not exceed $1,100.00, except that the limitations under this

 

25  subsection do not apply to a prize awarded through a Michigan

 

26  progressive jackpot bingo game. is not subject to these

 

27  limitations.

 

 1        (4) "Large millionaire party" means a millionaire party that

 

 2  is not conducted at a location owned and operated by the

 

 3  qualified organization for the regular use of its members or

 

 4  rented on a continual basis for the regular use of its members.

 

 5        (5) "Large millionaire party operating services" means

 

 6  performing duties in the conduct of a large millionaire party

 

 7  other than management.

 

 8        (6) (4) "Large raffle" means an event where during which the

 

 9  total value of all prizes awarded through raffle drawings exceed

 

10  exceeds $500.00 per occasion.

 

11        (7) (5) "Location" means a building, enclosure, part of a

 

12  building or enclosure, or a distinct portion of real estate that

 

13  is used for the purpose of conducting events an event licensed

 

14  under this act. Location also means all components or buildings

 

15  that comprise 1 architectural entity or that serve a unified

 

16  functional purpose.

 

17        (8) "Management" means, with respect to a large millionaire

 

18  party, handling cash, chips, or house rakes or completing a game

 

19  record or financial statement.

 

20        (9) (6) "Manufacturer" means a person licensed under section

 

21  11c who manufactures numeral game tickets for sale to suppliers

 

22  for use in an event.

 

23        (10) (7) "Michigan progressive jackpot" means a bingo game

 

24  conducted in conjunction with a licensed large bingo occasion,

 

25  where in which the value of the prize is carried forward to the

 

26  next bingo occasion if no player bingos in a predetermined number

 

27  of allowable calls. Michigan progressive jackpot may include

 

 1  bingo games conducted by more than 1 licensee that are linked

 

 2  together for the purpose of a common jackpot prize and

 

 3  consolation prize as prescribed by the commissioner.

 

 4        (11) (8) "Millionaire party" means an event at which wagers

 

 5  are placed upon games of chance customarily associated with a

 

 6  gambling casino through the use of imitation money or chips that

 

 7  have a nominal value equal to or greater than the value of the

 

 8  currency for which they can be exchanged.

 

 9        (12) (9) "Numeral game" means the random resale of a series

 

10  of numeral game tickets by a qualified organization under a

 

11  numeral game license or in conjunction with a licensed

 

12  millionaire party or large raffle.

 

13        (13) (10) "Numeral game ticket" means a paper strip on which

 

14  preprinted numerals are covered by folding the strip and banding

 

15  the folded strip with a separate piece of paper, if upon breaking

 

16  the paper strip that bands the ticket, the purchaser discovers

 

17  whether the ticket is a winning ticket and the purchaser may be

 

18  awarded a merchandise prize.

 

19        (14) (11) "Occasion" means the hours of the day for which a

 

20  license is issued.

 

21        (15) (12) "Principal officer" means the highest ranking

 

22  officer of the qualified organization according to its written

 

23  constitution, charter, articles of incorporation, or bylaws.

 

24        (16) (13) "Prize" means anything of value, including, but

 

25  not limited to, money or merchandise that is given to a player

 

26  for attending or winning a game at an event. A nonmonetary item

 

27  is valued at its retail value. Prize does not include advertising

 

 1  material given away by a qualified organization in accordance

 

 2  with rules promulgated under this act.

 

 3        (17) (14) "Single gathering" means 1 scheduled assembly or

 

 4  meeting with a specified beginning and ending time that is

 

 5  conducted or sponsored by the qualified organization. Single

 

 6  gathering does not include the regular operating hours of a club

 

 7  or similar facility and does not include a meeting conducted

 

 8  solely for the purpose of conducting a raffle.

 

 9        (18) (15) "Small bingo" means a series of bingo occasions

 

10  that occur on a regular basis during which the total value of all

 

11  prizes awarded through bingo at a single occasion does not exceed

 

12  $300.00 and the total value of all prizes awarded for a single

 

13  bingo game does not exceed $25.00.

 

14        (19) "Small millionaire party" means a millionaire party

 

15  that is conducted at a location owned and operated by the

 

16  qualified organization for the regular use of its members or

 

17  rented on a continual basis for the regular use of its members

 

18  and that is operated primarily by members of the qualified

 

19  organization or related qualified organizations.

 

20        (20) (16) "Small raffle" means an event during which the

 

21  total value of all prizes awarded through raffle drawings does

 

22  not exceed $500.00 during 1 occasion.

 

23        (21) (17) "Special bingo" means a single or consecutive

 

24  series of bingo occasions during which the total value of all

 

25  prizes awarded through bingo at a single occasion does not exceed

 

26  $3,500.00 and the total value of all prizes awarded for a single

 

27  bingo game does not exceed $1,100.00.

 

 1        (22) (18) "Supplier" means a person licensed under this act

 

 2  to rent, sell, or lease equipment or to sell charity game or

 

 3  numeral game tickets to qualified organizations licensed under

 

 4  this act.

 

 5        Sec. 4a. (1) Except as provided in subsections (2) and (3),

 

 6  if the commissioner determines that the an applicant under

 

 7  section 4 is a qualified organization, and is not ineligible

 

 8  under section 18, and the applicant has paid to the bureau the

 

 9  appropriate fee, the commissioner may issue 1 or more of the

 

10  following licenses:

 

 

11                 License                          Fee

12       (a)    Large bingo.........................$ 150.00 $ 175.00

13       (b)    Small bingo.........................$  55.00 $  75.00

14       (c)    Special bingo.......................$  25.00 $  50.00

15       (d)    Large millionaire party.............$ 100.00 per day

16       (e)(d) Millionaire Small millionaire party.$  50.00 $  65.00

17              per day

18       (f)(e) Large raffle........................$  50.00 $  75.00

19              per drawing date

20       (g)(f) Small raffle:

21       (i)     One to 3 drawing dates..............$  15.00 $  25.00

22       (ii)     Four or more drawing dates..........$   5.00

23              per drawing date

24       (h)(g) Annual charity game.................$ 200.00 $ 400.00

25       (i)(h) Special charity game                $  15.00 $  25.00

26              per day

27       (j)(i) Numeral game........................$ 15.00 per day

 

 

28        (2) Under extreme hardship conditions as determined by the

 

 1  commissioner, the commissioner may waive 1 or more requirements

 

 2  of a qualified organization described in section 3 to permit the

 

 3  licensing of a special bingo, millionaire party, or raffle, if

 

 4  all of the following 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

 

 9  for a charitable purpose, organization, or cause.

 

10        (c) None of the individuals connected with the conduct of

 

11  the event is compensated in any manner for his or her

 

12  participation.

 

13        (d) The organization complies with all other provisions of

 

14  this act and rules promulgated under this act.

 

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, or raffle if all of the following conditions

 

19  are met:

 

20        (a) The entire proceeds of the event, less the actual

 

21  reasonable expense of conducting the event, are donated or used

 

22  for a charitable purpose, organization, or cause.

 

23        (b) None of the individuals connected with the conduct of

 

24  the event is compensated in any manner for his or her

 

25  participation.

 

26        (c) The individual or group of individuals complies with all

 

27  other provisions of this act and the rules promulgated under this

 

 1  act.

 

 2        (4) Each Subject to subsection (8), each event license

 

 3  issued under this section to a qualified organization is valid

 

 4  for only the location included on the license.

 

 5        (5) A license issued under this section is not assignable or

 

 6  transferable.

 

 7        (6) The A licensee under this section is responsible for

 

 8  ensuring that the events are conducted in compliance with this

 

 9  act and rules promulgated under this act.

 

10        (7) A Subject to subsection (8), a licensee under this

 

11  section shall only conduct events licensed under this act during

 

12  the hours and on the day and date or dates stated on the license.

 

13        (8) The commissioner may change the location, hours, day, or

 

14  date stated on an issued license or issue a duplicate license on

 

15  payment by the licensee of a nonrefundable $35.00 fee.

 

16        (9) Within 14 days before the event, an applicant for a

 

17  millionaire party license may apply for an expedited license. The

 

18  applicant shall pay an additional fee of $300.00 with the

 

19  application.

 

20        Sec. 5c. (1) The value of a prize or consolation prize

 

21  awarded during a Michigan progressive jackpot bingo game is not

 

22  subject to the prize limitations of section 3a(3).

 

23        (2) The prize awarded to the winner of a Michigan

 

24  progressive jackpot bingo game may be a predetermined amount that

 

25  shall not exceed $500.00 or 50% or a predetermined percentage of

 

26  the card sales on the first bingo occasion.

 

27        (3) If a Michigan progressive jackpot prize is not won in

 

 1  the predetermined number of allowable calls, the game shall may

 

 2  be played to its conclusion for a predetermined consolation

 

 3  prize. that shall not exceed $100.00.

 

 4        (4) If a Michigan progressive jackpot prize is not won in

 

 5  the predetermined number of allowable calls, the entire prize

 

 6  amount shall be carried forward to the next scheduled bingo

 

 7  occasion.

 

 8        (5) When a Michigan progressive jackpot prize has been

 

 9  carried forward from a previous bingo occasion, the new prize

 

10  amount shall include the entire amount carried forward, plus 50%

 

11  a predetermined percentage of the card sales for the Michigan

 

12  progressive jackpot bingo game for the current bingo occasion.

 

13        (6) No arrangement of numbers other than a coverall pattern

 

14  shall be required or allowed to win a Michigan progressive

 

15  jackpot bingo game.

 

16        (6) (7) A Michigan progressive jackpot bingo game shall be

 

17  played only on bingo cards that are approved by the commissioner.

 

18        (8) All cards for the Michigan progressive jackpot bingo

 

19  game shall be sold by the licensee at a uniform price with no

 

20  discount for the purchase of more than 1 card.

 

21        (7) (9) Whenever a Michigan progressive jackpot bingo game

 

22  is conducted, the licensee shall post a notice and announce the

 

23  following information:

 

24        (a) The maximum number of allowable calls in which the

 

25  player must complete a coverall the predetermined pattern in

 

26  order to win a Michigan progressive jackpot prize on that

 

27  occasion.

 

 1        (b) The prize amount offered to the winner of the Michigan

 

 2  progressive jackpot game and the consolation prize, if any, for

 

 3  that bingo occasion.

 

 4        (c) The date the next bingo occasion will occur in that

 

 5  particular progression if the jackpot is not awarded.

 

 6        (8) (10) A Michigan progressive jackpot bingo game shall be

 

 7  conducted in the following manner:

 

 8        (a) On the first bingo occasion a player shall not be

 

 9  required to obtain bingo in less than the number of allowable

 

10  calls as prescribed by the commissioner to win the jackpot prize.

 

11        (b) The number of allowable calls required to win the

 

12  jackpot shall be increased by 1 number on each successive bingo

 

13  occasion for that licensee in a particular progression.

 

14        (c) Once a Michigan progressive jackpot bingo game has been

 

15  started, the progressive jackpot prize shall be offered at each

 

16  successive bingo occasion for that licensee until the jackpot

 

17  prize has been won.

 

18        (d) A Michigan progressive jackpot progression shall only be

 

19  terminated or interrupted by 1 of the following:

 

20        (i) Determining a winner of the Michigan progressive jackpot

 

21  prize.

 

22        (ii) Expiration, suspension, revocation, or surrender of the

 

23  license to conduct bingo.

 

24        (iii) A previously announced scheduled interruption, such as a

 

25  legal holiday or other temporary closing.

 

26        (iv) A valid emergency condition under which the licensee is

 

27  unable to conduct the game.

 

 1        (9) (11) Only 1 Michigan progressive jackpot bingo game

 

 2  shall be in progress at 1 time per bingo occasion unless 1 of the

 

 3  games is a linked game.

 

 4        (10) (12) Prizes for a Michigan progressive jackpot bingo

 

 5  game shall be awarded as follows:

 

 6        (a) The Michigan progressive jackpot prize shall be awarded

 

 7  to the player or players who complete the coverall predetermined

 

 8  pattern within the predesignated number of allowable calls.

 

 9        (b) A consolation prize shall may be awarded on each bingo

 

10  occasion at which a Michigan progressive jackpot game is played.

 

11  , except on the bingo occasion that the jackpot prize is won.

 

12        (c) The consolation prize, if offered, shall be awarded to

 

13  the player or players who complete a coverall predetermined

 

14  pattern on each bingo occasion, regardless of the number of calls

 

15  in excess of the predesignated number of allowable calls required

 

16  to win the Michigan progressive jackpot bingo game.

 

17        (11) (13) The jackpot prize shall be awarded by a check

 

18  written from the licensee's financial account or in the manner

 

19  prescribed by the commissioner.

 

20        (12) (14) Except as otherwise provided in this section, all

 

21  other provisions of this act or rules promulgated under this act

 

22  apply to the conduct of a Michigan progressive jackpot game.

 

23        (13) (15) If an organization's bingo license will expire or

 

24  is suspended, revoked, or surrendered before the last bingo

 

25  occasion of a particular progression, the jackpot prize shall be

 

26  awarded and the winner determined on the last authorized bingo

 

27  occasion regardless of the number of calls required to determine

House Bill No. 5121 (H-3) as amended March 18, 2010

 1  the winner.

 

 2        Sec. 8. (1) All fees and revenue money collected by the

 

 3  commissioner or bureau under this act shall be paid into the

 

 4  state lottery fund.

 

 5        (2) All necessary expenses incurred by the bureau in the

 

 6  administration and enforcement of any activity authorized by this

 

 7  act and in the initiation, implementation, and ongoing operation

 

 8  of any activity authorized by this act shall be financed from the

 

 9  state lottery fund. The amount of these necessary expenses shall

 

10  not exceed the amount of revenues money received from the sale of

 

11  charity game tickets and all fees collected under this act.

 

12        (3) At the end of each fiscal year, all money, including

 

13  interest, in the state lottery fund which is attributable to fees

 

14  and revenue money collected under this act but which that has not

 

15  been expended under this section shall be deposited in the state

 

16  [general school aid] fund.

 

17        (4) For the fiscal year ending September 30, 2010, there is

 

18  appropriated from the fund to the bureau $325,000.00 to hire 4.0

 

19  full-time equated positions to implement and conduct additional

 

20  responsibilities imposed on the bureau by the amendatory act that

 

21  added this subsection.

 

22        Sec. 9. (1) Except as provided in subsection (2), the entire

 

23  net proceeds of an event shall be devoted exclusively to the

 

24  lawful purposes of the licensee. A licensee shall not incur or

 

25  pay an item of expense in connection with the holding, operating,

 

26  or conducting of an event except unless the expense is for 1 of

 

27  the following expenses in a reasonable amounts amount as

 

 1  determined by the commissioner:

 

 2        (a) The purchase or rental of equipment necessary for

 

 3  conducting an the event and payment of services reasonably

 

 4  necessary for the repair of equipment.

 

 5        (b) Cash prizes or the purchase of prizes of merchandise.

 

 6        (c) Rental of the location at which the event is conducted.

 

 7        (d) Janitorial services.

 

 8        (e) The fee required for issuance or reissuance of a license

 

 9  to conduct the event.

 

10        (f) If the event is a large millionaire party, wages or

 

11  salaries of individuals who perform large millionaire party

 

12  operating services.

 

13        (g) Security measures to protect volunteers and patrons of

 

14  the event.

 

15        (h) Reasonable advertising.

 

16        (i) (f) Other reasonable expenses incurred by the licensee,

 

17  not inconsistent with this act, as permitted by rule of the

 

18  commissioner.

 

19        (2) A qualified organization described in section 3(g)(ii)

 

20  shall use the entire net proceeds of an event, after paying items

 

21  of expense incurred in reasonable amounts in connection with the

 

22  holding, operating, or conducting of the event and listed in

 

23  subsection (1), only for the expense of training or purchasing

 

24  goods or services for the support of the activities of the

 

25  component.

 

26        Sec. 10. (1) Only a member of the qualified organization

 

27  shall participate in the management of an event.

 

 1        (2) A person shall not receive any commission, salary, pay,

 

 2  profit, or wage for participating in the management or operation

 

 3  of bingo, a millionaire party, a raffle, or a charity game except

 

 4  as provided by this act or a rule promulgated under this act.

 

 5        (3) Except by special permission of the commissioner, a

 

 6  licensee shall conduct bingo or a millionaire party only with

 

 7  equipment that it owns, uses under a bureau-approved rental

 

 8  contract, or is purchasing or renting at a reasonable rate from a

 

 9  supplier.

 

10        (4) A licensee shall not may advertise bingo except to the

 

11  extent and in the manner permitted by rule promulgated events

 

12  conducted under this act by the licensee. If the commissioner

 

13  permits a licensee to advertise bingo, the A licensee shall

 

14  indicate in the any advertisement the purposes for which the net

 

15  proceeds will be used. by the licensee. The commissioner may

 

16  promulgate rules under this act regarding advertising of events

 

17  under this section.

 

18        (5) The holder of a millionaire party license shall not

 

19  advertise the event, except to the extent and in the manner

 

20  permitted by rule promulgated under this act. If the commissioner

 

21  permits a licensee to advertise the event, the licensee shall

 

22  indicate in the advertising the purposes for which the net

 

23  proceeds will be used by the licensee.

 

24        (5) Unless the commissioner has agreed otherwise in writing,

 

25  for purposes of this act, an individual who performs large

 

26  millionaire party operating services shall be considered to be an

 

27  agent of a large millionaire party location licensed by the

 

 1  bureau or supplier that is supplying large millionaire party

 

 2  operating services for the millionaire party.

 

 3        (6) An individual who is performing large millionaire party

 

 4  operating services may receive a tip from a patron of the large

 

 5  millionaire party.

 

 6        Sec. 10a. All of the following apply in the conduct of a

 

 7  millionaire party:

 

 8        (a) A person less than 18 years of age shall not be

 

 9  permitted to wager.

 

10        (b) A wager may shall not be placed on a contest other than

 

11  a game of chance taking place at the location and during the time

 

12  period approved for the event. , and in no event shall a A wager

 

13  shall not be placed upon on an athletic event or upon a game

 

14  involving personal skill.

 

15        (c) An individual who performs large millionaire party

 

16  operating services shall not place a wager at a large millionaire

 

17  party at which the individual performs the services, except that

 

18  the individual may place a wager at the large millionaire party

 

19  on a day on which the individual is not performing the services.

 

20        (d) (c) The millionaire party licensee under the millionaire

 

21  party license shall be is responsible for insuring that the

 

22  requirements of this section are met.

 

23        (e) (d) A qualified organization shall not receive more than

 

24  $15,000.00 $20,000.00 in exchange for imitation money or chips in

 

25  1 day of a millionaire party.

 

26        (f) Unless the commissioner has given permission in writing,

 

27  a licensee shall only conduct a large millionaire party at a

 

 1  large millionaire party location licensed by the bureau or at a

 

 2  location where the equipment and services are provided by a

 

 3  supplier.

 

 4        (g) The licensee shall conspicuously post at each entrance

 

 5  and exit of the location where the event is conducted a visually

 

 6  prominent sign on which is printed a toll-free compulsive gaming

 

 7  helpline telephone number.

 

 8        Sec. 11a. (1) Each applicant for a license or renewal of a

 

 9  license to operate a bingo hall under this act shall submit a

 

10  written application to the bureau on a form prescribed by rule

 

11  promulgated under this act.

 

12        (2) If the commissioner determines that an applicant is

 

13  eligible and the applicant pays an appropriate fee, the bureau

 

14  may issue a bingo hall license to operate a facility that will be

 

15  rented to bingo licensees.

 

16        (3) A bingo hall license expires at 12 midnight on the last

 

17  day of February, or if the applicant does not own the facility,

 

18  on the expiration date of their lease or the applicant's rental

 

19  agreement if that date is prior to before the last day of

 

20  February of the current licensing period.

 

21        (4) The annual bingo hall licensing fee is $50.00 $75.00

 

22  multiplied by the number of large or small bingo occasions that

 

23  will be conducted during the 7-day week.

 

24        (5) To increase the number of large or small bingo occasions

 

25  conducted under a bingo hall licensee's original or renewal

 

26  application, a hall licensee shall submit a written request on a

 

27  form provided by the commissioner, plus an additional $50.00 for

 

 1  each large or small bingo occasion that will be conducted during

 

 2  the 7-day week that is in addition to the number of those

 

 3  occasions calculated under subsection (4).

 

 4        Sec. 11b. (1) Each applicant for a license or renewal of a

 

 5  license to operate as a supplier of equipment, large millionaire

 

 6  party operating services, charity game tickets, or numeral game

 

 7  tickets to qualified organizations licensed under this act shall

 

 8  submit a written application to the bureau on a form prescribed

 

 9  by the commissioner.

 

10        (2) The applicant for a supplier's license shall pay an

 

11  annual license fee of $300.00 $1,000.00 at the time of the

 

12  application.

 

13        (3) A supplier's license expires at 12 midnight on September

 

14  30 of each year.

 

15        (4) The commissioner shall require suppliers authorized to

 

16  sell charity game tickets, numeral game tickets, or both, to post

 

17  a performance bond of not less than $50,000.00 and not greater

 

18  than $1,000,000.00 $1,500,000.00.

 

19        (5) The commissioner shall not issue a license to a person

 

20  to act as a supplier of large millionaire party operating

 

21  services unless the applicant meets all of the following

 

22  requirements:

 

23        (a) The person or any owner, partner, shareholder, director,

 

24  officer, member, or employee of the person has not been convicted

 

25  of a felony or of a misdemeanor involving illegal gambling.

 

26        (b) The person, and any individuals associated with the

 

27  person as designated by the commissioner, meets minimum

 

 1  requirements established by the commissioner for experience in

 

 2  gaming and knowledge of lottery rules and directives as necessary

 

 3  to properly advise qualified organizations in conducting events.

 

 4        (6) (5) A supplier shall remit to the bureau an amount equal

 

 5  to the qualified organization's purchase price of the charity

 

 6  game tickets less an amount that shall not be less than the sum

 

 7  of $.008 for each ticket sold plus 1.0% of the total resale value

 

 8  for all charity game tickets sold.

 

 9        (7) (6) For each numeral game sold, the supplier shall issue

 

10  to the licensed organization an invoice listing the manufacturer

 

11  and serial number of each game.

 

12        (8) (7) The fee collected by a supplier from the qualified

 

13  organization for each game of numeral tickets sold shall be $5.00

 

14  per 1,000 tickets or any portion of 1,000 tickets.

 

15        (9) (8) The fees collected by the supplier for each numeral

 

16  game sold shall be remitted to the bureau by the fifteenth day of

 

17  the month following the month in which the numeral game is sold.

 

18  A late fee of 25% of the amount due may be assessed by the

 

19  commissioner against any supplier who fails to remit the fees by

 

20  the required filing date.

 

21        (10) (9) A supplier shall only display, offer for sale,

 

22  sell, or otherwise make available to a qualified organization

 

23  numeral game tickets that have been obtained from a manufacturer.

 

24        (11) (10) A person who is directly or indirectly connected

 

25  to the sale, rental, or distribution of bingo or small

 

26  millionaire party equipment, or the sale of charity game tickets

 

27  or numeral game tickets, or a person residing in the same

 

 1  household as the supplier shall not be involved directly or

 

 2  indirectly with the rental or leasing of a facility used for an

 

 3  event.

 

 4        (12) (11) A supplier shall submit to the bureau a report as

 

 5  required by the commissioner regarding the sale or rental of

 

 6  equipment and the sale of charity game tickets and numeral game

 

 7  tickets.

 

 8        Sec. 11d. (1) Each applicant for a license or renewal of a

 

 9  license to act as a large millionaire party location shall submit

 

10  to the bureau a written application on a form prescribed by the

 

11  commissioner.

 

12        (2) The annual license fee for the issuance or renewal of a

 

13  large millionaire party location license is $1,000.00.

 

14        (3) The commissioner shall not issue a license to a person

 

15  to act as a large millionaire party location unless the applicant

 

16  meets all of the following requirements:

 

17        (a) The person or any owner, partner, shareholder, director,

 

18  officer, member, or employee of the person has not been convicted

 

19  of a felony or of a misdemeanor involving illegal gambling.

 

20        (b) The person, and any individuals associated with the

 

21  person as designated by the commissioner, meets minimum

 

22  requirements established by the commissioner for experience in

 

23  gaming and knowledge of lottery rules and directives as necessary

 

24  to properly advise qualified organizations in conducting events.

 

25        (4) If the commissioner determines that an applicant is

 

26  eligible and has paid the license fee, the bureau may issue a

 

27  large millionaire party location license to a person to rent a

 

 1  facility and equipment and provide services to large millionaire

 

 2  party licensees.

 

 3        (5) A large millionaire party location license expires on

 

 4  January 1 of each year.

 

 5        (6) A large millionaire party location licensee shall submit

 

 6  to the bureau a report as required by the commissioner regarding

 

 7  the rental of its facility and equipment and the provision of

 

 8  services to large millionaire party licensees.

 

 9        Sec. 19. (1) Except as provided in subsection (2), any other

 

10  law providing a penalty or disability upon a person who conducts

 

11  or participates in a raffle, bingo game, millionaire party, or

 

12  charity game; who sells or possesses equipment used in conducting

 

13  a raffle, bingo, or a millionaire party; who permits a raffle,

 

14  bingo, a millionaire party, or a charity game to be conducted on

 

15  his or her premises; or who does other acts in connection with a

 

16  raffle, bingo, a millionaire party, or a charity game does not

 

17  apply to that conduct if done pursuant to this act or rules

 

18  promulgated under this act.

 

19        (2) Subsection (1) does not limit in any way the application

 

20  of the Michigan campaign finance act, Act No. 388 of the Public

 

21  Acts of 1976, being sections 1976 PA 388, MCL 169.201 to 169.282,

 

22  of the Michigan Compiled Laws, including but not limited to

 

23  including section 41 of Act No. 388 of the Public Acts of 1976,

 

24  being section the Michigan campaign finance act, 1976 PA 388, MCL

 

25  169.241, of the Michigan Compiled Laws, to fundraising events

 

26  conducted by or for the benefit of a committee that has filed or

 

27  is required to file a statement of organization pursuant to Act

 

 1  No. 388 of the Public Acts of 1976. under the Michigan campaign

 

 2  finance act, 1976 PA 388, MCL 169.201 to 169.282.