Bill Text: MI HB5424 | 2013-2014 | 97th Legislature | Introduced

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Bill Title: Gaming; bingo and charitable gaming; millionaire parties; provide for general amendments. Amends secs. 2, 3, 3a, 4, 4a, 8, 9, 10, 11b, 11c, 12, 13, 14, 15, 16, 18 & 19 of 1972 PA 382 (MCL 432.102 et seq.); adds art. 2; designates secs. 1 - 20 as art. 1 & repeals secs. 10a, 10b & 20 of 1972 PA 382 (MCL 432.110a et seq.).

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced - Dead) 2014-03-26 - Printed Bill Filed 03/26/2014 [HB5424 Detail]

Download: Michigan-2013-HB5424-Introduced.html

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HOUSE BILL No. 5424

 

March 25, 2014, Introduced by Reps. Heise, Lipton and Crawford 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, 11c, 12, 13,

 

14, 15, 16, 18, and 19 (MCL 432.102, 432.103, 432.103a, 432.104,

 

432.104a, 432.108, 432.109, 432.110, 432.111b, 432.111c, 432.112,

 

432.113, 432.114, 432.115, 432.116, 432.118, 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, 16, and 18 as

 

amended and section 11c as added 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:

 

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

 

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

 

 5  1967 PA 150, MCL 32.505.

 

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

 

 7  flyers, radio broadcasts, television broadcasts, advertising

 

 8  signs, billboards, and other media used to promote an event.

 

 9  licensed under this act.

 

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

 

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

 

12  symbols conforming to numbers or symbols selected at random.

 

13        (d) "Board" means the Michigan gaming control board created

 

14  by section 4 of the Michigan gaming control and revenue act, 1996

 

15  IL 1, MCL 432.204.

 

16        (e) (d) "Bureau" means the bureau of state lottery as

 

17  created by section 5 of the McCauley-Traxler-Law-Bowman-McNeely

 

18  lottery act, 1972 PA 239, MCL 432.5.

 

19        (f) "Charitable purpose" means 1 or more of the following

 

20  causes or activities that are beneficial to the general public:

 

21        (i) Relief of poverty.

 

22        (ii) Advancement of education.

 

23        (iii) Advancement of religion.

 

24        (iv) Protection of health or relief from disease, suffering,

 

25  or distress.

 

26        (v) Advancement of civic, governmental, or municipal

 

27  purposes.

 

 1        (vi) Protection of the environment and conservation of

 

 2  wildlife.

 

 3        (vii) Defense of human rights and the elimination of

 

 4  prejudice and discrimination.

 

 5        (viii) Any other purpose that the commissioner or director, as

 

 6  applicable, determines to be beneficial to the general public.

 

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

 

 8  of charity game tickets.

 

 9        (h) (f) "Charity game ticket" means a ticket commonly

 

10  referred to as a break-open ticket or pull-tab that is approved

 

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

 

12  bureau or a licensed supplier to a qualified organization, a

 

13  portion of which is removed to discover whether the ticket is a

 

14  winning ticket. and whether the purchaser may be awarded a prize.

 

15        (i) (g) "Commissioner" means the commissioner of state

 

16  lottery appointed under section 7 of the McCauley-Traxler-Law-

 

17  Bowman-McNeely lottery act, 1972 PA 239, MCL 432.7.

 

18        (j) (h) "Coverall pattern" means a pattern required to win a

 

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

 

20  be called.

 

21        (k) "Day" means the standard 24-hour period, except that

 

22  with respect to the issuance of a license and the conduct of an

 

23  event under the license, day means the time period from 8 a.m. of

 

24  the day on the license to 2 a.m. of the following day.

 

25        (l) "Director" means the executive director of the board,

 

26  appointed under section 4 of the Michigan gaming control and

 

27  revenue act, 1996 IL 1, MCL 432.204.

 

 1        (m) "Educational organization" means an organization in this

 

 2  state that is organized not for pecuniary profit, whose primary

 

 3  purpose is educational in nature and designed to develop the

 

 4  capabilities of individuals by instruction in any public or

 

 5  private elementary or secondary school that complies with the

 

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

 

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

 

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

 

 9  education.

 

10        (n) "Equipment" means the objects and mechanical,

 

11  electromechanical, or electronic devices used to determine or

 

12  assist in determining the winners of prizes at events.

 

13        (o) "Event" means an occasion of bingo games, a raffle, a

 

14  charity game, or a numeral game conducted under a license issued

 

15  under this article.

 

16        (p) "Fraternal organization" means an organization in this

 

17  state, other than a college fraternity or sorority, that meets

 

18  all 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

 

22  raffle or a large raffle under this act, if not a branch, lodge,

 

23  or chapter of a national or state organization, is exempt from

 

24  taxation under section 501(c) of the internal revenue code of

 

25  1986, 26 USC 501.

 

26        (iii) Exists for the common purpose, brotherhood, or other

 

27  interests of its members.

 

 1        (q) "General public" means society as a whole or any

 

 2  considerable part of society.

 

 3        (r) "Gross revenue" means the monetary value received by the

 

 4  licensee for all fees charged to participate in the event before

 

 5  any deductions for prizes or any other expenses.

 

 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

 

17  this state, other than a college fraternity or sorority, that

 

18  meets all 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

 

22  raffle or a large raffle under this act, if not a branch, lodge,

 

23  or chapter of a national or state organization, is exempt from

 

24  taxation under section 501(c) of the internal revenue code of

 

25  1986, 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

 

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

 

 3  prizes awarded for bingo games at a single occasion does not

 

 4  exceed $3,500.00 and the total value of all prizes awarded for 1

 

 5  bingo game does not exceed $1,100.00, except that a prize awarded

 

 6  through a Michigan progressive jackpot bingo game is not subject

 

 7  to these limitations.

 

 8        (b) "Large raffle" means an event where the total value of

 

 9  all prizes awarded through raffle drawings exceeds $500.00 per

 

10  occasion.

 

11        (c) "Lawful purpose" means 1 or more of the authorized

 

12  purposes stated in a qualified organization's written bylaws,

 

13  constitution, charter, or articles of incorporation that are on

 

14  file with the bureau of director, as applicable.

 

15        (d) (c) "Licensee" means a person or qualified organization

 

16  licensed under this act.

 

17        (e) "Location" means a building, enclosure, part of a

 

18  building or enclosure, or a distinct portion of real property

 

19  that is used for the purpose of conducting an event. Location

 

20  also means all components or buildings that compose 1

 

21  architectural entity or that serve a unified functional purpose,

 

22  or a racetrack.

 

23        (f) "Manufacturer" means a person licensed under section 11c

 

24  who manufactures numeral game tickets for sale to suppliers for

 

25  use in an event.

 

26        (g) (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        (h) (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 section 501(c) of the internal

 

14  revenue code of 1986, 26 USC 501.

 

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

 

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

 

17  Michigan national guard whose members are in active service or

 

18  active state service.

 

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

 

20  committee, political committee, political party committee, ballot

 

21  question committee, independent committee, or any other committee

 

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

 

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

 

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

 

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

 

26  that is organized not for pecuniary profit and that gathers in

 

27  common membership for mutual support and edification in piety,

 

 1  worship, and religious observances.

 

 2        (ii) A society of individuals that is organized not for

 

 3  pecuniary profit and that unites for religious purposes at a

 

 4  definite place.

 

 5        (iii) A church related private school that is organized not

 

 6  for pecuniary profit.

 

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

 

 8  within this state that is organized not for pecuniary profit,

 

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

 

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

 

11  advancement of the causes of elderly or retired persons.

 

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

 

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

 

14  organization that is organized not for pecuniary profit and that

 

15  is authorized by its written constitution, charter, articles of

 

16  incorporation, or bylaws to engage in a fraternal, civic, or

 

17  service purpose within the state.

 

18        (ii) A local civic organization that is organized not for

 

19  pecuniary profit; that is not affiliated with a state or national

 

20  organization; that is recognized by resolution adopted by the

 

21  local governmental subdivision in which the organization conducts

 

22  its principal activities; whose constitution, charter, articles

 

23  of incorporation, or bylaws contain a provision for the

 

24  perpetuation of the organization as a nonprofit organization;

 

25  whose entire assets are used for charitable purposes; and whose

 

26  constitution, charter, articles of incorporation, or bylaws

 

27  contain a provision that all assets, real property, and personal

 

 1  property shall revert to the benefit of the local governmental

 

 2  subdivision that granted the resolution upon dissolution of the

 

 3  organization.

 

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

 

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

 

 6  state organization or of a national organization chartered by the

 

 7  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        (i) "Michigan progressive jackpot" means a bingo game

 

14  conducted in conjunction with a licensed large bingo occasion in

 

15  which the value of the prize is carried forward to the next bingo

 

16  occasion if no player wins in a predetermined number of allowable

 

17  calls. Michigan progressive jackpot may include bingo games

 

18  conducted by more than 1 licensee that are linked together for

 

19  the purpose of a common jackpot prize and consolation prize as

 

20  prescribed by the commissioner.

 

21        (j) "Millionaire party" means an event at which wagers are

 

22  placed on games of chance customarily associated with a gambling

 

23  casino and described in section 40 through the use of imitation

 

24  money or chips that have a nominal value equal to or greater than

 

25  the value of the currency for which they can be exchanged.

 

26        (k) "Numeral game" means the random resale of a series of

 

27  numeral game tickets.

 

 1        (l) "Numeral game ticket" means a paper strip on which

 

 2  preprinted numerals are covered by folding the strip and banding

 

 3  the folded strip with a separate piece of paper, so that on

 

 4  breaking the paper that bands the folding strip the purchaser

 

 5  discovers whether the ticket is a winning ticket.

 

 6        (m) "Occasion" means the hours of the day for which a

 

 7  license is issued.

 

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

 

 9  electromechanical devices used to determine or assist in

 

10  determining the winners of prizes at events licensed under this

 

11  act.

 

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

 

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

 

14  act.

 

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

 

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

 

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

 

18  $3,500.00 and the total value of all prizes awarded for 1 game

 

19  does not exceed $1,100.00, except that a prize awarded through a

 

20  Michigan progressive jackpot bingo game is not subject to these

 

21  limitations.

 

22        (4) "Large raffle" means an event where the total value of

 

23  all prizes awarded through raffle drawings exceed $500.00 per

 

24  occasion.

 

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

 

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

 

27  is used for the purpose of conducting events licensed under this

 

 1  act. Location also means all components or buildings that

 

 2  comprise 1 architectural entity or that serve a unified

 

 3  functional purpose.

 

 4        (6) "Manufacturer" means a person licensed under section 11c

 

 5  who manufactures numeral game tickets for sale to suppliers for

 

 6  use in an event.

 

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

 

 8  conducted in conjunction with a licensed large bingo occasion,

 

 9  where the value of the prize is carried forward to the next bingo

 

10  occasion if no player bingos in a predetermined number of

 

11  allowable calls. Michigan progressive jackpot may include bingo

 

12  games conducted by more than 1 licensee that are linked together

 

13  for the purpose of a common jackpot prize and consolation prize

 

14  as prescribed by the commissioner.

 

15        (8) "Millionaire party" means an event at which wagers are

 

16  placed upon games of chance customarily associated with a

 

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

 

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

 

19  currency for which they can be exchanged.

 

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

 

21  numeral game tickets by a qualified organization under a numeral

 

22  game license or in conjunction with a licensed millionaire party

 

23  or large raffle.

 

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

 

25  preprinted numerals are covered by folding the strip and banding

 

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

 

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

 

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

 

 2  awarded a merchandise prize.

 

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

 

 4  license is issued.As used in this act:

 

 5        (a) "Person" means an individual, firm, association,

 

 6  corporation, or other legal entity.

 

 7        (b) (12) "Principal officer" means the highest ranking

 

 8  officer of the qualified organization according to its written

 

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

 

10        (c) (13) "Prize" means anything of value, including, but not

 

11  limited to, money or merchandise that is given to a player for

 

12  attending or winning a game at an event. A nonmonetary item is

 

13  valued at its retail value. Prize does not include advertising

 

14  material given away by a qualified organization in accordance

 

15  with rules promulgated under this act.

 

16        (d) "Qualified organization" means, subject to subdivision

 

17  (e), either of the following:

 

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

 

19  citizens, fraternal, or veterans' organization that operates

 

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

 

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

 

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

 

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

 

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

 

25  Michigan national guard whose members are in active service or

 

26  active state service.

 

27        (e) "Qualified organization" does not include a candidate

 

 1  committee, political committee, political party committee, ballot

 

 2  question committee, independent committee, or any other committee

 

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

 

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

 

 5        (f) "Racetrack" means a racetrack licensed under section 9

 

 6  of the horse racing law of 1995, 1995 PA 279, MCL 431.309.

 

 7        (g) "Raffle" means an event for which raffle tickets are

 

 8  sold and at which a winner or winners are determined, either by

 

 9  randomly selecting stubs from all of the raffle tickets sold for

 

10  an event or by an alternative method that is approved in writing

 

11  by the board, and a preannounced prize is awarded.

 

12        (h) "Religious organization" means any of the following:

 

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

 

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

 

15  gathers in common membership for mutual support and edification

 

16  in piety, worship, and religious observances.

 

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

 

18  not for pecuniary profit and that unites for religious purposes

 

19  at a definite place.

 

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

 

21  organized not for pecuniary profit.

 

22        (i) "Retail value" means the price at which a merchandise

 

23  item can normally be found for purchase at a retail outlet. For a

 

24  merchandise item that is not normally sold through a retail

 

25  outlet, retail value means the price at which the item normally

 

26  is sold in the secondary market or the price that a reasonable

 

27  seller would ask and that a reasonable purchaser would pay for

 

 1  the item.

 

 2        (j) "Senior citizens organization" means an organization in

 

 3  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

 

 6  of the causes of elderly or retired persons.

 

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

 

 8        (i) A branch, lodge, or chapter in this state of a national

 

 9  or state organization that is organized not for pecuniary profit

 

10  and that is authorized by its written constitution, charter,

 

11  articles of incorporation, or bylaws to engage in a fraternal,

 

12  civic, or service purpose in this state.

 

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

 

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

 

15  state or national organization; that is recognized by resolution

 

16  adopted by the local governmental subdivision in which the

 

17  organization conducts its principal activities; whose

 

18  constitution, charter, articles of incorporation, or bylaws

 

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

 

20  nonprofit organization; whose entire assets are used for

 

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

 

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

 

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

 

24  of the local governmental subdivision that granted the resolution

 

25  or another nonprofit organization on dissolution of the

 

26  organization.

 

27        (14) "Single gathering" means 1 scheduled assembly or

 

 1  meeting with a specified beginning and ending time that is

 

 2  conducted or sponsored by the qualified organization. Single

 

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

 

 4  or similar facility and does not include a meeting conducted

 

 5  solely for the purpose of conducting a raffle.

 

 6        (l) (15) "Small bingo" means a series of bingo occasions that

 

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

 

 8  prizes awarded through for bingo games at a single occasion does

 

 9  not exceed $300.00 and the total value of all prizes awarded for

 

10  a single bingo game does not exceed $25.00.

 

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

 

12  total value of all prizes awarded through raffle drawings does

 

13  not exceed $500.00 during 1 occasion.

 

14        (n) (17) "Special bingo" means a single or consecutive

 

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

 

16  prizes awarded through for bingo games at a single occasion does

 

17  not exceed $3,500.00 and the total value of all prizes awarded

 

18  for a single bingo game does not exceed $1,100.00.

 

19        (o) (18) "Supplier" means a person licensed under this act

 

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

 

21  numeral game tickets to qualified organizations licensed under

 

22  this act.

 

23        (p) "Veterans' organization" means an organization in this

 

24  state, or a branch, lodge, or chapter in this state of a state

 

25  organization or of a national organization chartered by the

 

26  congress of the United States, that is organized not for

 

27  pecuniary profit, the membership of which consists of individuals

 

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

 

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

 

 3  veterans' organization that is a national organization chartered

 

 4  by the congress of the United States.

 

 5        (q) "Week" means a period of 7 days beginning with Sunday

 

 6  and ending with Saturday.

 

 7        Sec. 4. (1) Each An applicant for a license to conduct a

 

 8  bingo event, millionaire party, raffle, charity game, or numeral

 

 9  game shall submit to the bureau a written application on a form

 

10  prescribed by the commissioner.

 

11        (2) The application under subsection (1) shall include all

 

12  of the following:

 

13        (a) The name and address of the applicant organization.

 

14        (b) The name and address of each officer of the applicant

 

15  organization.

 

16        (c) The location at which the applicant will conduct the

 

17  event.

 

18        (d) The day or dates of the event.

 

19        (e) The member or members of the applicant organization who

 

20  will be responsible for the conduct of the event.

 

21        (f) Sufficient facts relating to the applicant's

 

22  incorporation or organization to enable the commissioner to

 

23  determine whether the applicant is a qualified organization.

 

24        (g) A sworn statement attesting to the nonprofit status of

 

25  the applicant organization, signed by the principal officer of

 

26  that the organization.

 

27        (h) Other information the commissioner considers necessary.

 

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

 

 2  if the commissioner determines that the an applicant under

 

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

 

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

 

 5  appropriate fee, the commissioner may shall issue 1 or more of

 

 6  the following licenses:

 

 

7                License                                Fee

8         (a)    Large bingo.........................$ 150.00

9         (b)    Small bingo.........................$  55.00

10        (c)    Special bingo.......................$  25.00

11        (d)    Millionaire party...................$  50.00 per day

12        (d)(e) Large raffle........................$  50.00 per

13                                                       drawing date

14        (e)(f) Small raffle:

15        (i)     One to 3 drawing dates..............$  15.00

16        (ii)    Four or more drawing dates..........$   5.00 per

17                                                       drawing date

18        (f)(g) Annual charity game.................$ 200.00

19        (g)(h) Special charity game................$  15.00 per day

20        (h)(i) Numeral game........................$  15.00 per day

 

 

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

 

22  commissioner, the commissioner may waive 1 or more requirements

 

23  of for a person to be a qualified organization described in

 

24  section 3 under section 3a(d) to permit the licensing of a

 

25  special bingo , millionaire party, event or raffle, if all of the

 

26  following conditions are met:

 

27        (a) The organization applying for the license is a nonprofit

 

28  organization.

 

 1        (b) The entire proceeds of the event, less the actual

 

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

 

 3  for a charitable purpose, organization, or cause.

 

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

 

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

 

 6  participation.

 

 7        (d) The organization complies with all other applicable

 

 8  provisions of this act and rules promulgated under this

 

 9  act.article.

 

10        (3) Under extreme hardship conditions as determined by the

 

11  commissioner, the commissioner may allow an individual or a group

 

12  of individuals to obtain a license to conduct a special bingo ,

 

13  millionaire party, event or raffle if all of the following

 

14  conditions are met:

 

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

 

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

 

17  for a charitable purpose, organization, or cause.

 

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

 

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

 

20  participation.

 

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

 

22  other applicable provisions of this act article and the rules

 

23  promulgated under this act.article.

 

24        (4) Each event license issued to a qualified organization

 

25  under this section is valid for only the location included on the

 

26  license.

 

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

 

 1  transferable.

 

 2        (6) The A licensee is responsible for ensuring shall ensure

 

 3  that the events conducted under a license issued under this

 

 4  section are conducted in compliance with the applicable

 

 5  provisions of this act and rules promulgated under this article.

 

 6        (7) A Except as otherwise provided in this section, a

 

 7  licensee shall only conduct events licensed under this act

 

 8  section during the hours and on the day and date or dates stated

 

 9  on the license.

 

10        (8) In connection with an application for a small raffle

 

11  license or a large raffle license, in determining whether a

 

12  fraternal organization that is not a branch, lodge, or chapter of

 

13  a national or state organization is a qualified organization, the

 

14  commissioner shall only consider whether the organization meets

 

15  requirements that are applicable under this act that are

 

16  unrelated to whether the organization is a branch, lodge, or

 

17  chapter of a national or state organization.

 

18        (9) The commissioner shall not deny a license to an

 

19  applicant under section 4 on the basis that the location where

 

20  the event will be held is a racetrack. The commissioner shall not

 

21  deny a license to an applicant under section 4 in order to limit

 

22  the number of days in a week that events may be conducted at a

 

23  racetrack or limit the number of events that may be conducted at

 

24  a racetrack on 1 day to less than 7.

 

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

 

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

 

27  state lottery fund created under section 41 of the McCauley-

 

 1  Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.41.

 

 2  All necessary expenses incurred by the bureau in the

 

 3  administration and enforcement of any activity authorized by this

 

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

 

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

 

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

 

 7  not exceed the amount of revenues received from the sale of

 

 8  charity game tickets and all fees collected under this act by the

 

 9  commissioner or the bureau. At the end of each fiscal year all

 

10  money, including interest, in the state lottery fund which that

 

11  is attributable to fees and revenue collected under this act by

 

12  the commissioner or the bureau but which that has not been

 

13  expended under this section shall be deposited in the state

 

14  general fund.

 

15        (2) All fees and revenue collected by the director or board

 

16  under this act shall be paid into the state lottery fund created

 

17  under section 41 of the McCauley-Traxler-Law-Bowman-McNeely

 

18  lottery act, 1972 PA 239, MCL 432.41. All necessary expenses

 

19  incurred by the director or board in the administration and

 

20  enforcement of any activity authorized by this act and in the

 

21  initiation, implementation, and ongoing operation of any activity

 

22  authorized by this act shall be financed from the state lottery

 

23  fund. The amount of these necessary expenses shall not exceed the

 

24  amount of the fees collected under this act by the director or

 

25  the board. At the end of each fiscal year all money, including

 

26  interest, in the state lottery fund that is attributable to fees

 

27  and revenue collected under this act by the director or the board

 

 1  but that has not been expended under this section shall be

 

 2  deposited in the state general fund.

 

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

 

 4  net proceeds of an event conducted under a license issued under

 

 5  this article shall be devoted exclusively to the lawful purposes

 

 6  of the licensee. A licensee shall not incur or pay an item of

 

 7  expense in connection with the holding, operating, or conducting

 

 8  of an event except the following expenses in reasonable amounts

 

 9  that the commissioner determines to be reasonable:

 

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

 

11  conducting an event and payment of services reasonably necessary

 

12  for the repair of equipment.

 

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

 

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

 

15        (d) Janitorial services.

 

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

 

17  to conduct the event.

 

18        (f) Other reasonable expenses incurred by the licensee, not

 

19  inconsistent with this act, as permitted by rule of the

 

20  commissioner.

 

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

 

22  3a(d)(ii) shall use the entire net proceeds of an event, after

 

23  paying items of expense incurred in reasonable amounts in

 

24  connection with the holding, operating, or conducting of the

 

25  event and listed in subsection (1), only for the expense of

 

26  training or purchasing goods or services for the support of the

 

27  activities of the component.

 

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

 

 2  shall participate in the management of an event.

 

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

 

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

 

 5  of a bingo event, a millionaire party, a raffle, or a charity

 

 6  game except as provided by rule promulgated under this

 

 7  act.article.

 

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

 

 9  licensee shall conduct bingo or a millionaire party games only

 

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

 

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

 

12  supplier.

 

13        (4) A licensee shall not advertise a bingo event except to

 

14  the extent and in the manner permitted by rule promulgated under

 

15  this act. article. If the commissioner permits a licensee to

 

16  advertise a bingo event, the licensee shall indicate in the

 

17  advertisement the purposes for which the net proceeds will be

 

18  used by the licensee.

 

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

 

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

 

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

 

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

 

23  indicate in the advertising the purposes for which the net

 

24  proceeds will be used by the licensee.

 

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

 

26  a license to operate as a supplier of equipment, charity game

 

27  tickets, or numeral game tickets to qualified organizations

 

 1  licensed under this act shall submit a written application to the

 

 2  bureau on a form prescribed by the commissioner.

 

 3        (2) The An applicant under this section shall pay an annual

 

 4  license fee of $300.00 at the time of the application.

 

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

 

 6  30 of each year.

 

 7        (4) The commissioner shall require suppliers authorized to

 

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

 

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

 

10  than $1,000,000.00.

 

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

 

12  the qualified organization's purchase price of the charity game

 

13  tickets less an amount that shall not be less than the sum of

 

14  $.008 for each ticket sold plus 1.0% of the total resale value

 

15  for all charity game tickets sold.

 

16        (6) For each numeral game sold, the supplier shall issue to

 

17  the licensed organization an invoice listing the manufacturer and

 

18  serial number of each game.

 

19        (7) The A supplier shall collect a fee collected by a

 

20  supplier from the a qualified organization for each game of

 

21  numeral tickets sold shall be that equals $5.00 per 1,000 tickets

 

22  or any portion of 1,000 tickets.

 

23        (8) The A supplier shall remit the fees collected by the

 

24  supplier for each numeral game sold shall be remitted to the

 

25  bureau under subsection (7) to the bureau by the fifteenth day of

 

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

 

27  A The commissioner may assess a late fee of 25% of the amount due

 

 1  may be assessed by the commissioner against any a supplier who

 

 2  fails to remit the fees by the required filing date.

 

 3        (9) A supplier shall only display, offer for sale, sell, or

 

 4  otherwise make available to a qualified organization numeral game

 

 5  tickets that have been obtained from a manufacturer.

 

 6        (10) A person who is directly or indirectly connected to the

 

 7  sale, rental, or distribution of bingo or millionaire party

 

 8  equipment, or the sale of charity game tickets or numeral game

 

 9  tickets, or a person residing in the same household as the

 

10  supplier shall not be involved directly or indirectly with the

 

11  rental or leasing of a facility used for an event.

 

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

 

13  required by the commissioner regarding the sale or rental of

 

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

 

15  tickets.

 

16        Sec. 11c. (1) Each An applicant for a license or renewal of

 

17  a license to act as a manufacturer shall submit to the bureau a

 

18  written application on a form prescribed by the commissioner.

 

19        (2) The annual manufacturer's license fee shall be is

 

20  $300.00.

 

21        (3) The A manufacturer's license expires at 12 midnight on

 

22  June 30 of each year.

 

23        (4) Only numeral games and numeral game tickets approved by

 

24  the commissioner may be distributed to suppliers within this

 

25  state.

 

26        (5) All records supporting the sale of numeral game tickets

 

27  to suppliers shall be available upon request to an authorized

 

 1  representative of the bureau for inspection or audit and shall be

 

 2  kept by the manufacturer for not less than the calendar year in

 

 3  which the sale is made plus 3 additional years.

 

 4        (6) Each A manufacturer shall submit to the bureau a report

 

 5  as required by the commissioner regarding the sale of numeral

 

 6  game tickets to suppliers.

 

 7        Sec. 12. (1) The bureau shall enforce and supervise the

 

 8  administration of this act. article. The commissioner shall

 

 9  employ personnel as necessary to implement this act.article.

 

10        (2) The bureau may select fraternal organizations that are

 

11  not a branch, lodge, or chapter of a national or state

 

12  organization to audit to ensure that the organizations are in

 

13  compliance with this act.article.

 

14        Sec. 13. The commissioner shall promulgate rules pursuant to

 

15  the administrative procedures act of 1969, 1969 PA 306, MCL

 

16  24.201 to 24.328, to implement this act.article.

 

17        Sec. 14. (1) Each A licensee under this article shall keep a

 

18  record of each event as required by the commissioner. The A

 

19  licensee shall allow a representative authorized by the bureau to

 

20  inspect a record kept under this subsection and all financial

 

21  accounts into which proceeds from events licensed under this act

 

22  are deposited or transferred shall be open to inspection by a

 

23  duly authorized representative of the bureau during reasonable

 

24  business hours.

 

25        (2) Each A licensee under this article shall file with the

 

26  commissioner a financial statement signed by the principal

 

27  officer of the qualified organization of receipts and expenses

 

 1  related to the conduct of each event as may be required by rule

 

 2  promulgated under this act. article. If the revenue from a bingo

 

 3  game, millionaire party, event, raffle, numeral game, or charity

 

 4  game is represented to be used or applied by a licensee under

 

 5  this article for a charitable purpose, the licensee shall file a

 

 6  copy of the financial statement with the attorney general under

 

 7  the supervision of trustees for charitable purposes act, 1961 PA

 

 8  101, MCL 14.251 to 14.266.

 

 9        (3) The A licensee under this article shall allow an

 

10  authorized representative of the bureau or the department of

 

11  state police or a law enforcement officer of a political

 

12  subdivision of this state to inspect a location at which events

 

13  licensed under this act are conducted or at which an applicant or

 

14  a building, enclosure, or portion of real property that the

 

15  licensee intends to conduct an event licensed under this act

 

16  shall be open to inspection use as a location at all times by a

 

17  duly authorized representative of the bureau or by the state

 

18  police or a peace officer of a political subdivision of this

 

19  state.any time.

 

20        Sec. 15. Annually the The commissioner shall report annually

 

21  to the governor and the legislature about the operation of events

 

22  licensed under this act within this state, article, abuses that

 

23  the bureau may have encountered, and recommendations for changes

 

24  in this act.

 

25        Sec. 16. (1) The commissioner may deny, suspend, summarily

 

26  suspend, or revoke any a license issued under this act article if

 

27  the licensee holder of the license or an officer, director,

 

 1  agent, member, or employee of the licensee holder of the license

 

 2  violates this act article or a rule promulgated under this act.

 

 3  article. The commissioner may summarily suspend a license for a

 

 4  period of not more than 60 days pending prosecution,

 

 5  investigation, or public hearing.

 

 6        (2) A proceeding to suspend or revoke a license shall be

 

 7  considered under this article is a contested case and shall be

 

 8  governed by the administrative procedures act of 1969, 1969 PA

 

 9  306, MCL 24.201 to 24.328.

 

10        (3) Upon petition of the commissioner, the circuit court

 

11  after a hearing may issue subpoenas to compel the attendance of

 

12  witnesses and the production of documents, papers, books,

 

13  records, and other evidence before it in a matter over which it

 

14  has jurisdiction, control, or supervision. If a person subpoenaed

 

15  to attend in any such proceeding or hearing fails to obey the

 

16  command of the subpoena without reasonable cause, or if a person

 

17  in attendance in any such proceeding or hearing refuses, without

 

18  lawful cause, to be examined or to answer a legal or pertinent

 

19  question or to exhibit a book, account, record, or other document

 

20  when ordered to do so by the court, that person may be punished

 

21  as a being in contempt of the court.

 

22        (4) With approval of the commissioner, the holder of a bingo

 

23  hall licensee, license, in lieu of a suspension of its license,

 

24  may elect to pay a fine equal to the amount of rent that would

 

25  have been paid by the bingo licensees during the period of the

 

26  suspension. This fine shall be paid to the bureau on or before

 

27  the date agreed to in the suspension agreement entered into by

 

 1  the bureau and the holder of the bingo hall licensee.license.

 

 2        Sec. 18. (1) A licensee holder of a license whose license is

 

 3  revoked in consequence of for a violation of this act article or

 

 4  a rule promulgated under this act article is ineligible to apply

 

 5  for a license for a period of 2 years.

 

 6        (2) A person convicted of an offense under section 17 or any

 

 7  other gambling offense is ineligible to serve as an officer of a

 

 8  licensee holder of a license or to participate in conducting a

 

 9  bingo , a millionaire party, event, raffle, numeral game, or

 

10  charity game for a period of 1 year after the conviction becomes

 

11  final. If the person is licensed under this act, article, the

 

12  person shall forfeit the license and is ineligible to apply for

 

13  the issuance or reissuance of the license for a period of 1 year

 

14  after the conviction becomes final.

 

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 organization to further its lawful purposes.

 

13        (b) "Charitable gaming service provider" means a person

 

14  licensed as a charitable gaming service provider under section 61

 

15  to rent or sell equipment or provide operation services to

 

16  millionaire party licensees.

 

17        (c) "Event" means an occasion of a millionaire party under a

 

18  license issued under this article.

 

19        (d) "Lessor" means a person who rents a location to a

 

20  millionaire party licensee for the purpose of conducting an

 

21  event.

 

22        (e) "Management" means handling of cash, chips, and house

 

23  rakes at an event and preparation of game records and financial

 

24  statements for the event.

 

25        (f) "Millionaire party equipment" means any authorized item

 

26  that is used to conduct an authorized game at a millionaire

 

27  party.

 

 1        (g) "Operation services" means providing a location,

 

 2  staffing, and services commonly associated with games of chance

 

 3  for a millionaire party event.

 

 4        (h) "Terms of probation" means conditions established at the

 

 5  discretion of the bureau or director, as applicable, that the

 

 6  licensee must comply with while the licensee is on probation

 

 7  under this article.

 

 8        (i) "Worker" means a person who assists or participates in

 

 9  the management, conduct, or operation of a millionaire party.

 

10  Worker does not include a person employed by or an agent of a

 

11  lessor or charitable gaming service provider.

 

12        (2) The definitions in sections 2, 3, and 3a apply to this

 

13  article, unless a term defined in 1 of those sections is defined

 

14  differently in this section.

 

15        Sec. 34. (1) An applicant for a license to conduct a

 

16  millionaire party shall submit to the director a written

 

17  application on a form prescribed by the director.

 

18        (2) The application under subsection (1) must include all of

 

19  the following:

 

20        (a) The name and address of the applicant.

 

21        (b) The name and address of each officer of the applicant.

 

22        (c) The name of the individual who will serve as the

 

23  chairperson of the millionaire party under section 39.

 

24        (d) The name of the individual who will serve as the record

 

25  keeper of the millionaire party under section 44.

 

26        (e) The location at which the applicant will conduct the

 

27  event.

 

 1        (f) If a charitable gaming service provider will be used,

 

 2  the name of the charitable gaming service provider.

 

 3        (g) The day or dates of the event.

 

 4        (h) The member or members of the applicant who will be

 

 5  responsible for the conduct of the event.

 

 6        (i) Sufficient facts relating to the applicant's

 

 7  incorporation or organization to enable the director to determine

 

 8  whether the applicant is a qualified organization.

 

 9        (j) A sworn statement attesting to the nonprofit status of

 

10  the applicant, signed by the principal officer of the applicant.

 

11        (k) Other information the director considers necessary.

 

12        (3) If an applicant under subsection (1) is a service

 

13  organization, the applicant shall provide proof that its bylaws,

 

14  constitution, or articles of incorporation or the bylaws or

 

15  constitution of its parent organization includes a statement of

 

16  dissolution stating that on dissolution of the organization all

 

17  assets that remain, after satisfying the organization's debts,

 

18  are to be distributed to the local government in which the

 

19  principal place of business of the organization is located or to

 

20  another nonprofit organization.

 

21        (4) An applicant under subsection (1) shall disclose to the

 

22  director whether any officer or agent of the applicant, before or

 

23  during the application process, has been convicted of, forfeited

 

24  bond on a charge of, or pled guilty to any of the following:

 

25        (a) A felony.

 

26        (b) A gambling offense.

 

27        (c) Criminal fraud.

 

 1        (d) Forgery.

 

 2        (e) Larceny.

 

 3        (f) Filing a false report with a governmental agency.

 

 4        (5) As part of an application under this section, an

 

 5  applicant shall state that if a license is issued, the applicant

 

 6  agrees to all of the following terms and conditions:

 

 7        (a) That the applicant is bound by and will comply with this

 

 8  act, and the rules promulgated under this article.

 

 9        (b) That the applicant will not assign or transfer the

 

10  license.

 

11        (c) That the applicant will maintain current and accurate

 

12  records of all operations in conjunction with the event as

 

13  required under this act.

 

14        (d) That the applicant will conduct the event in accordance

 

15  with the information submitted on the application.

 

16        (e) That the applicant will conduct the event only on the

 

17  day or days of the week and date or dates and at the time and

 

18  specific location in this state stated on the license.

 

19        (f) That the applicant will immediately report to the

 

20  director in writing any change in the information stated in or

 

21  that accompanies the application.

 

22        (g) That the applicant will hold the director, the board,

 

23  and this state harmless from any liability arising from the

 

24  event, including, but not limited to, legal expenses.

 

25        (6) An applicant under this section shall immediately report

 

26  in writing to the director any changes to the information

 

27  provided in or accompanying an application under this section.

 

 1        (7) An applicant under this section shall immediately submit

 

 2  a copy of the appropriate amended document to the director if

 

 3  there is a change in any of the following:

 

 4        (a) The applicant's constitution.

 

 5        (b) The applicant's bylaws.

 

 6        (c) The applicant's articles of incorporation.

 

 7        (d) Any other qualification document previously submitted.

 

 8        (e) The federal tax-exempt status of the applicant.

 

 9        (8) The director, in his or her discretion, may require an

 

10  applicant that was previously licensed to conduct a millionaire

 

11  party to submit updated information to assure that the applicant

 

12  continues to be a qualified organization.

 

13        Sec. 35. (1) If the director determines that an applicant

 

14  for a millionaire party license is a qualified organization, is

 

15  not ineligible under section 86, and has paid to the director a

 

16  fee of $50.00 per day that the applicant proposes to conduct the

 

17  millionaire party, the director shall issue a millionaire party

 

18  license to the applicant.

 

19        (2) The director shall not issue a millionaire party license

 

20  unless the principal officer of the qualified organization is 18

 

21  years of age or older.

 

22        (3) The director shall consider all of the following factors

 

23  when reviewing an application for a millionaire party license:

 

24        (a) Whether the character, responsibility, and fitness of

 

25  the officers and members of the applicant and their motives in

 

26  seeking to conduct the millionaire party are such as to command

 

27  the confidence of the community and to warrant the belief that

 

 1  the millionaire party will be honestly and efficiently conducted.

 

 2        (b) The veracity and accuracy of any information supplied by

 

 3  the applicant.

 

 4        (c) Any indebtedness of the applicant to a local, state, or

 

 5  federal governmental agency.

 

 6        (d) Any pending lawsuit or bankruptcy proceeding involving

 

 7  the applicant.

 

 8        (e) The applicant's current or past history of compliance

 

 9  with this act and the rules promulgated under this article.

 

10        (f) Any criminal conviction of an officer or agent of the

 

11  applicant for any of the following offenses:

 

12        (i) A violation of this act.

 

13        (ii) A felony.

 

14        (iii) A gambling offense.

 

15        (iv) Criminal fraud.

 

16        (v) Forgery.

 

17        (vi) Larceny.

 

18        (vii) Filing a false report with a governmental agency.

 

19        (g) Any other information considered advisable by the

 

20  director.

 

21        (4) For the purposes of determining whether an applicant is

 

22  a qualified organization, the director shall consider all of the

 

23  following when determining whether a service, fraternal, or

 

24  veteran's organization qualifies as a branch, lodge, or chapter:

 

25        (a) A charter or similar document issued by the national or

 

26  state organization on acceptance of the applicant as a branch,

 

27  lodge, or chapter.

 

 1        (b) Conditions established by the national or state

 

 2  organization for the revocation or suspension of the charter or

 

 3  relationship with the applicant.

 

 4        (c) Dues or financial support submitted to the national or

 

 5  state organization by the applicant.

 

 6        (d) The degree of control exerted by the national or state

 

 7  organization over the activities of the applicant.

 

 8        (e) Oversight and control, including the auditing of

 

 9  financial records, provided by the national or state organization

 

10  over the financial affairs of the applicant.

 

11        (f) Whether standard bylaws were adopted by the applicant or

 

12  whether bylaws were submitted to the national or state

 

13  organization for approval.

 

14        (g) Appointed or elected officers of the applicant who are

 

15  responsible for the activities of the applicant.

 

16        (h) The ability of the applicant, by exercising voting

 

17  privileges or otherwise, to influence activities of the state or

 

18  national organization.

 

19        (5) Under extreme hardship conditions as determined by the

 

20  director, the director may waive 1 or more of the requirements

 

21  under section 3a(d) for a person to be a qualified organization

 

22  and issue a millionaire party license to the person if all of the

 

23  following conditions are met:

 

24        (a) The person is a nonprofit organization.

 

25        (b) The entire proceeds of the event, less the actual

 

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

 

27  for a charitable purpose, organization, or cause.

 

 1        (c) None of the individuals connected with the management of

 

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

 

 3  participation.

 

 4        (d) The person has complied and will comply with all other

 

 5  provisions of this act and rules promulgated under this article.

 

 6        (6) Under extreme hardship conditions as determined by the

 

 7  director, the director may allow an individual or a group of

 

 8  individuals to obtain a license to conduct a millionaire party if

 

 9  all of the following conditions 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        (7) 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        (8) A millionaire party license may be issued for up to 4

 

23  days in 1 week.

 

24        (9) The director shall not issue more than 1 millionaire

 

25  party license to a qualified organization for any 1 day.

 

26        (10) The director shall not issue more than 6 millionaire

 

27  party licenses that would allow events to be conducted at the

 

 1  same time at the same location. This subsection does not limit

 

 2  the number of licenses that may be issued for the same location

 

 3  on the same date if not more than 6 events are being conducted at

 

 4  any 1 time.

 

 5        (11) A millionaire party license is not assignable or

 

 6  transferable.

 

 7        (12) A millionaire party licensee shall ensure that the

 

 8  events conducted under the license are conducted in compliance

 

 9  with this act and rules promulgated under this article.

 

10        (13) Except as otherwise provided in this section, a

 

11  millionaire party licensee shall only conduct events licensed

 

12  under this act during the hours and on the day and date or dates

 

13  stated on the license.

 

14        (14) The director may allow a change in the location, day,

 

15  date, or time of an event under an issued millionaire party

 

16  license or may issue a duplicate license. To change the location,

 

17  day, date, or time of an event or obtain a duplicate license, the

 

18  licensee shall submit a request to the director in writing with a

 

19  nonrefundable $35.00 fee at least 20 days before the event or, if

 

20  the request is to change the date of the event, before the

 

21  proposed new date.

 

22        (15) A millionaire party licensee shall notify the director

 

23  in writing at least 10 days before a planned cancellation of an

 

24  event.

 

25        (16) The director shall establish criteria under which a

 

26  qualified organization may receive an expedited millionaire party

 

27  license and establish a fee structure for expedited licenses. A

 

 1  fee for an expedited millionaire party license shall not exceed

 

 2  150% of the standard license fee.

 

 3        (17) If a millionaire party license application is canceled

 

 4  or denied, the director may retain a portion of the fee submitted

 

 5  to cover processing costs.

 

 6        (18) The director shall not deny a license to an applicant

 

 7  for a millionaire party license on the basis that the location

 

 8  where the event will be held is a racetrack. The director shall

 

 9  not deny a license to an applicant for a millionaire party

 

10  license in order to limit the number of days in a week that

 

11  events may be conducted at a racetrack or limit the number of

 

12  events that may be conducted at a racetrack on 1 day to less than

 

13  7.

 

14        Sec. 36. (1) A millionaire party licensee may advertise the

 

15  event as follows:

 

16        (a) The expenditure for advertising must be reasonable and

 

17  necessary.

 

18        (b) The advertising must include the name of the licensee

 

19  and the license number.

 

20        (2) A lessor or charitable gaming service provider may

 

21  advertise millionaire parties without specific license

 

22  information if all of the following requirements are met:

 

23        (a) Licensed millionaire parties are conducted at the

 

24  location or by the charitable gaming service provider on an

 

25  ongoing basis.

 

26        (b) The advertisement states that the proceeds from the

 

27  millionaire parties benefit nonprofit organizations. The

 

 1  statement required by this subdivision shall be displayed as

 

 2  follows:

 

 3        (i) If the advertising is over the internet, printed matter,

 

 4  or a sign or billboard, in a font that is the same size or larger

 

 5  than that of the body of the advertisement.

 

 6        (ii) If the advertising is televised, in a manner that is

 

 7  easily readable by the viewer continuously during the

 

 8  advertisement.

 

 9        (3) Advertising under this section does not include any of

 

10  the following:

 

11        (a) A message or greeting on an answering machine or

 

12  voicemail intended to be heard by an individual who telephones a

 

13  licensee, lessor, or charitable gaming service provider.

 

14        (b) Video, audio, or other means of communication that is

 

15  broadcast solely inside a location where an event is being

 

16  conducted.

 

17        (c) Printed matter inside a location where an event is being

 

18  conducted that is intended to be visible only inside the

 

19  location.

 

20        (d) An internet webpage that does not mention the day, date,

 

21  or time of, specify games played at, or give program information

 

22  for an event.

 

23        (e) A sign located at a location that does not mention the

 

24  day, date, or time of, specify games played at, or give program

 

25  information for an event.

 

26        Sec. 37. An event held under a millionaire party license

 

27  shall be held at a location that meets 1 or more of the following

 

 1  requirements:

 

 2        (a) The location is owned or rented on a continual basis and

 

 3  operated by a qualified organization for the regular use of its

 

 4  members and the equipment used for gaming at the location is

 

 5  owned by the licensee.

 

 6        (b) The location is rented or controlled by a qualified

 

 7  organization for the event and the equipment used for gaming at

 

 8  the location is owned by the licensee.

 

 9        (c) The location is owned or rented on a continual basis and

 

10  operated by a qualified organization for the regular use of its

 

11  members and the equipment used for gaming at the location is

 

12  rented from a charitable gaming service provider.

 

13        (d) The location is rented or controlled by a qualified

 

14  organization for the event and the equipment used for gaming at

 

15  the location is rented from a charitable gaming service provider.

 

16        (e) The location is owned, rented, or operated by a

 

17  charitable gaming service provider.

 

18        Sec. 38. A millionaire party licensee shall designate an

 

19  officer of the licensee to be responsible for all of the

 

20  following:

 

21        (a) Ensuring that there is full accountability for all

 

22  gaming assets, including, but not limited to, cash, prizes, chips

 

23  or imitation money, and all money derived from the event.

 

24        (b) Ensuring that the event is conducted in accordance with

 

25  this act and rules promulgated under this article.

 

26        (c) Ensuring that all records related to the event are

 

27  current and accurate.

 

 1        (d) Reviewing all reports and correspondence from the

 

 2  director.

 

 3        (e) Signing and ensuring that financial statements from the

 

 4  event are submitted to the director as required under this act.

 

 5        (f) Responding in writing to violation notices under this

 

 6  act.

 

 7        (g) Ensuring that all workers are qualified to work the

 

 8  event.

 

 9        Sec. 39. (1) The officers of a millionaire party licensee

 

10  shall designate 1 individual to serve as chairperson to be in

 

11  charge of and responsible for assuring that the millionaire party

 

12  is conducted in accordance with this act and rules promulgated

 

13  under this article.

 

14        (2) A chairperson is a worker and must have been a bona fide

 

15  member of the licensee for at least 6 months before the event.

 

16        (3) A chairperson must be familiar with this act, rules

 

17  promulgated under this article, and any applicable terms of

 

18  probation.

 

19        (4) An individual designated as chairperson shall be present

 

20  on the premises continuously during the event.

 

21        (5) An individual designated as chairperson shall wear a

 

22  badge on which is printed the word "chairperson", the name of the

 

23  licensee, and the name of the chairperson.

 

24        (6) An individual designated as chairperson shall be in full

 

25  charge of the event, supervise and direct all workers, and assure

 

26  that proper receipts are given for all money received during the

 

27  event, that the receipt of the money is properly recorded, and

 

 1  that the money is properly deposited.

 

 2        (7) The chairperson shall attempt to resolve in accordance

 

 3  with this act, rules promulgated under this article, and event

 

 4  rules any disputes that may occur during the event.

 

 5        (8) The principal officer of a licensee shall immediately

 

 6  notify the director in a writing signed by the officer of any

 

 7  change in the chairperson listed on the application for the

 

 8  license.

 

 9        Sec. 40. (1) At an event held under a millionaire party

 

10  license, the licensee shall ensure all of the following:

 

11        (a) That an individual who is less than 18 years of age is

 

12  not permitted to wager or participate in operation of the event.

 

13        (b) That only authorized equipment and games are used.

 

14        (c) That the equipment used is maintained in good repair and

 

15  sound working condition.

 

16        (d) That the equipment and methods of play used afford each

 

17  player an equal opportunity to win.

 

18        (e) That a wager is not placed on a contest other than a

 

19  game of chance taking place at the location and during the time

 

20  period approved for the event and that a wager is not placed on

 

21  an athletic event or a game involving personal skill.

 

22        (f) That imitation money or chips are used only for wagering

 

23  or redemption.

 

24        (g) That imitation money or chips are not used to purchase

 

25  food, beverages, raffle tickets, charity game tickets, numeral

 

26  game tickets, or nongaming items or given or accepted as tips.

 

27        (h) That imitation money or chips are only sold by

 

 1  authorized sellers.

 

 2        (i) That imitation money or chips are not sold by dealers or

 

 3  at individual gaming tables.

 

 4        (j) That imitation money or chips are only redeemed at

 

 5  authorized redemption areas.

 

 6        (k) That the licensee does not receive more than $15,000.00

 

 7  in exchange for imitation money or chips in 1 day of the

 

 8  millionaire party.

 

 9        (l) That a sign on which a toll-free compulsive gaming

 

10  helpline number is printed is posted so as to be visually

 

11  prominent at each entrance and exit of the location.

 

12        (2) If a licensee has engaged a charitable gaming service

 

13  provider to provide operation services for an event, the

 

14  charitable gaming service provider shall ensure all of the

 

15  following:

 

16        (a) That all staff provided by the charitable gaming service

 

17  provider have undergone a criminal background check as required

 

18  under section 63.

 

19        (b) That an individual provided by the charitable gaming

 

20  service provider is prohibited from placing a wager at a

 

21  millionaire party held at a location where and on a date that the

 

22  individual is assigned to provide services. The individual may

 

23  place a wager at a millionaire party held at a location where and

 

24  on a date that the individual is not performing services.

 

25        (c) That an individual who is less than 18 years of age is

 

26  not permitted to wager at or participate in the operation of the

 

27  event.

 

 1        (d) That a wager is not placed on a contest other than a

 

 2  game of chance taking place at the location and during the time

 

 3  period approved for the event and that a wager is not placed on

 

 4  an athletic event or a game involving personal skill.

 

 5        (e) That a sign on which a toll-free compulsive gaming

 

 6  helpline number is printed is posted so as to be visually

 

 7  prominent at each entrance and exit of the location.

 

 8        (3) A millionaire party licensee may assign a member to

 

 9  provide security services at an event held under the license and

 

10  pay the member for the services.

 

11        (4) A millionaire party licensee or charitable gaming

 

12  service provider may contract for security services from a person

 

13  licensed under the private security business and security alarm

 

14  act, 1968 PA 330, MCL 338.1051 to 338.1092. A licensee or

 

15  charitable gaming service provider shall pay a person who

 

16  provides security under this subsection at current market rates.

 

17  A person who provides security under this subsection shall not

 

18  participate in any other way in conducting the millionaire party.

 

19        (5) A millionaire party licensee may conduct the following

 

20  games at an event held under the license:

 

21        (a) Wheel of fortune.

 

22        (b) Roulette.

 

23        (c) A dice game in which the players compete only against

 

24  the licensee.

 

25        (d) Twenty-one or blackjack.

 

26        (e) Poker, in any form.

 

27        (f) Any other game approved by the director.

 

 1        (6) If a charitable gaming service provider provides

 

 2  operation services during an event to a millionaire party

 

 3  licensee, both of the following apply:

 

 4        (a) The charitable gaming service provider shall only

 

 5  conduct games that have been agreed to by the licensee.

 

 6        (b) The charitable gaming service provider shall hold the

 

 7  licensee harmless from any loss from the conduct of a game over

 

 8  the course of the event.

 

 9        Sec. 41. (1) A millionaire party licensee shall establish

 

10  and adhere to event rules for the conduct of the event. The event

 

11  rules must not conflict with this act or rules promulgated under

 

12  this article. At a minimum, the house rules shall contain all of

 

13  the following information:

 

14        (a) The licensee's name.

 

15        (b) The license number.

 

16        (c) The price of imitation money or chips and the admission

 

17  fee, if any.

 

18        (d) A contingency plan for inclement weather, power outages,

 

19  equipment failure, and other emergencies.

 

20        (e) A refund policy.

 

21        (f) The method of play for all games that will be conducted.

 

22        (g) The statutory limit for total prizes or winnings awarded

 

23  to a single person in a single day.

 

24        (h) The bet limit for all games.

 

25        (i) An effective date of the event rules.

 

26        (2) A millionaire party licensee shall post all of the

 

27  following at the event, if applicable:

 

 1        (a) Any limit to the number of hands a player may play in a

 

 2  game.

 

 3        (b) The method by which winners will be determined.

 

 4        (3) A millionaire party licensee shall post the event rules

 

 5  in a conspicuous place at the event or print the event rules in

 

 6  sufficient number for distribution to all interested persons.

 

 7        Sec. 42. (1) A person shall not conduct a millionaire party

 

 8  between the hours of 2 a.m. and 8 a.m.

 

 9        (2) A millionaire party licensee shall post the millionaire

 

10  party license in a conspicuous place at the location during the

 

11  event.

 

12        (3) A millionaire party licensee shall have a copy of the

 

13  application for the millionaire party license and any changes on

 

14  site and available for review.

 

15        (4) Except for disputed prizes, a millionaire party licensee

 

16  shall determine all prize winners at the event and all prizes

 

17  shall be awarded within the hours stated on the license.

 

18        (5) A millionaire party licensee shall not allow an

 

19  individual who is not a bona fide member of the millionaire party

 

20  licensee to participate in the management of the event. An

 

21  individual who is not a bona fide member of the millionaire party

 

22  licensee shall not participate in the management of an event.

 

23        (6) Except when dealing cards, an individual who is not a

 

24  bona fide member of the millionaire party licensee shall not

 

25  perform any of the following millionaire party management duties:

 

26        (a) Counting, distributing, handling, selling, or redeeming

 

27  chips.

 

 1        (b) Receiving, handling, or counting cash.

 

 2        (c) Collecting the house rake.

 

 3        (d) Paying out cash prizes.

 

 4        (e) Paying workers.

 

 5        (f) Completing game records and the financial statement.

 

 6        (7) Except with prior written approval of the director, a

 

 7  millionaire party licensee shall not allow an individual to

 

 8  assist in the operation of the event unless the individual is a

 

 9  bona fide member of the licensee or an employee or agent of a

 

10  charitable gaming service provider.

 

11        (8) Unless approved in writing by the director, a lessor, a

 

12  shareholder of a privately held corporation that owns or leases a

 

13  location, a partner, officer, agent, or employee of the owner of

 

14  a location, or an individual who resides in the same household

 

15  with any of these individuals shall not do any of the following:

 

16        (a) Participate in the management of a millionaire party at

 

17  the location.

 

18        (b) Be an officer of a millionaire party licensee that

 

19  conducts an event at the location.

 

20        (c) Participate as a player in any games at an event held at

 

21  the location.

 

22        (d) Accept a prize or purchase, play, or accept a charity

 

23  game ticket or numeral game ticket during an event at the

 

24  location.

 

25        (e) Split a prize with a player.

 

26        (f) Receive any compensation, food, or beverage as

 

27  prescribed by section 46.

 

 1        (9) An employee or agent of a lessor or charitable gaming

 

 2  service provider may accept cash tips at a millionaire party

 

 3  event.

 

 4        Sec. 44. (1) The officers of a millionaire party licensee

 

 5  shall designate 1 individual to serve as record keeper to be

 

 6  responsible for the handling of cash, prizes, chips, and

 

 7  imitation money at the event.

 

 8        (2) An individual designated as a record keeper shall be

 

 9  present on the premises continuously during the event. The record

 

10  keeper shall give proper receipts for all money received during

 

11  the event and properly record the receipt of the money.

 

12        (3) A millionaire party licensee shall not allow an

 

13  individual to act as a record keeper at an event unless the

 

14  individual qualifies as a worker and is a bona fide member of the

 

15  licensee.

 

16        (4) A worker at a millionaire party shall not play games in

 

17  which he or she is working or assisting. A worker may play when

 

18  not working, after paying any admission fee and all other fees in

 

19  the same manner as other players.

 

20        (5) A worker shall not accept a prize or purchase, play, or

 

21  accept a charity game ticket or numeral game ticket at an event

 

22  at which he or she is working or assisting.

 

23        (6) A worker shall not split a prize with a player or accept

 

24  any kind of tip.

 

25        Sec. 45. (1) Except as provided in subsection (3), a

 

26  licensee shall devote the entire net proceeds of a millionaire

 

27  party exclusively to the lawful purposes of the licensee. A

 

 1  licensee shall not use the net proceeds from a millionaire party

 

 2  for the benefit of an individual or a director, member, or

 

 3  shareholder of the licensee except to directly further the lawful

 

 4  purposes of the licensee. A millionaire party licensee shall not

 

 5  incur or pay an item of expense in connection with holding or

 

 6  conducting an event except the following expenses in amounts that

 

 7  the director determines to be reasonable:

 

 8        (a) Purchase of equipment.

 

 9        (b) Repair of equipment.

 

10        (c) Cash prizes or the purchase of prizes of merchandise.

 

11        (d) Rental of the location at which the event is conducted.

 

12        (e) Janitorial services.

 

13        (f) The fee required for issuance or reissuance of a license

 

14  to conduct the event.

 

15        (g) Security.

 

16        (h) Reasonable advertising.

 

17        (i) Fees paid to a charitable gaming service provider for

 

18  any of the following:

 

19        (i) Rental of equipment.

 

20        (ii) Operation services.

 

21        (iii) Security.

 

22        (j) Other reasonable expenses incurred by the licensee, not

 

23  inconsistent with this act or rules promulgated under this

 

24  article.

 

25        (2) A millionaire party licensee shall not pay more than 45%

 

26  of the gross profit from an event for expenses, not including

 

27  expenses described in subsection (1)(c) and (f). As used in this

 

 1  subsection, "gross profit" means the total amount paid by patrons

 

 2  to participate in charitable gaming at the event less the amount

 

 3  or value of prizes paid.

 

 4        (3) A millionaire party licensee shall keep at the location

 

 5  invoices showing the cost per item for all equipment used at the

 

 6  event and shall allow an authorized representative of the

 

 7  director to review the invoices at any time.

 

 8        Sec. 46. (1) A millionaire party licensee shall not pay a

 

 9  person a commission, salary, wage, or other compensation for

 

10  participating in the management of the event except as provided

 

11  by this section or rule promulgated under this article.

 

12        (2) A millionaire party licensee shall not compensate a

 

13  worker more than $50.00 per day. The director may adjust this

 

14  amount by rule promulgated under section 89. If the director

 

15  proposes an adjustment, the director shall give licensees 30 days

 

16  to comment before the change is implemented. The maximum

 

17  compensation under this section shall not be adjusted to amounts

 

18  that are more than the following, as applicable:

 

19        (a) For workers who serve as chairperson or record keeper,

 

20  $150.00 per day.

 

21        (b) For all other workers, $100.00 per day.

 

22        (3) Only 1 person may be paid as chairperson and only 1

 

23  person may be paid as record keeper per day of an event.

 

24        (4) A millionaire party licensee shall only compensate an

 

25  individual for being 1 of the following per day of the event:

 

26        (a) Chairperson.

 

27        (b) Record keeper.

 

 1        (c) Other worker.

 

 2        (5) In determining the amount of compensation of a worker,

 

 3  compensation includes, but is not limited to, all of the

 

 4  following:

 

 5        (a) Cash or check.

 

 6        (b) Anything of value.

 

 7        (c) Credit toward dues, tuition, or any other items of

 

 8  value.

 

 9        (6) In determining the amount of compensation of a worker,

 

10  compensation does not include food and beverages consumed while

 

11  working that do not exceed $10.00 in retail value.

 

12        (7) A millionaire party licensee shall pay all worker

 

13  compensation, other than credits, on the day of the event.

 

14        (8) A millionaire party licensee shall record the names of

 

15  workers and the amount paid to each worker, including any

 

16  credits, on a service record for each day of the event.

 

17        (9) A millionaire party licensee shall pay all compensation

 

18  for a worker in any form only from the proceeds of the event or

 

19  the financial account as provided in section 47.

 

20        (10) A millionaire party licensee shall report all

 

21  compensation paid to workers on the financial statement required

 

22  under section 48.

 

23        Sec. 47. (1) A millionaire party licensee shall not write a

 

24  check on an account into which proceeds from the event are

 

25  deposited or transferred unless the check satisfies all of the

 

26  following requirements:

 

27        (a) The name of the licensee is preprinted on the check.

 

 1        (b) An authorized individual or individuals sign the check.

 

 2        (c) The check is not made payable to cash or bearer or drawn

 

 3  in blank.

 

 4        (d) The check contains a brief description of the expense on

 

 5  the memo line.

 

 6        (2) A millionaire party licensee shall ensure that canceled

 

 7  checks written on an account into which proceeds from the event

 

 8  are deposited or transferred are returned on a monthly basis to

 

 9  the account holder. This subsection is satisfied by the return of

 

10  copies of the checks, if the copies are legible and if the

 

11  originals can be made available to the director on request.

 

12        (3) A millionaire party licensee shall deposit all money

 

13  derived from the conduct of the event into the licensee's

 

14  financial account within 4 business days after the event.

 

15        (4) A millionaire party licensee shall not allow a check to

 

16  be cashed out of the millionaire party start cash or gross

 

17  revenue.

 

18        (5) Except for cash prizes and worker compensation, a

 

19  millionaire party licensee shall not pay any expenditure in cash

 

20  from proceeds of the event. A millionaire party licensee shall

 

21  pay all other expenses related to the event by check as required

 

22  by this section.

 

23        Sec. 48. (1) A millionaire party licensee shall keep a

 

24  record of each event as required by the director. The record must

 

25  include a copy of the application for the license and any changes

 

26  to the license. A licensee shall allow a representative

 

27  authorized by the director to inspect a record kept under this

 

 1  subsection and a financial account into which proceeds from an

 

 2  event are deposited or transferred during reasonable business

 

 3  hours. An authorized representative of the director may remove

 

 4  for review a record kept under this subsection and any document

 

 5  that supports any entries made in the record. A licensee shall

 

 6  keep a record under this subsection and all documents that

 

 7  support entries made in the record for at least the calendar year

 

 8  in which the event occurred and the 3 following years. A record

 

 9  described in this subsection may be maintained using a computer

 

10  if it is maintained in accordance with rules promulgated under

 

11  this article.

 

12        (2) A millionaire party licensee shall file with the

 

13  director a financial statement signed by the principal officer of

 

14  the qualified organization of receipts and expenses related to

 

15  the conduct of each event as required by rule promulgated under

 

16  this article. If the revenue from a millionaire party is

 

17  represented to be used or applied by a licensee for a charitable

 

18  purpose, the licensee shall file a copy of the financial

 

19  statement with the attorney general under the supervision of

 

20  trustees for charitable purposes act, 1961 PA 101, MCL 14.251 to

 

21  14.266.

 

22        (3) A millionaire party licensee shall allow an authorized

 

23  representative of the director or the department of state police

 

24  or a law enforcement officer of a political subdivision of this

 

25  state to inspect a location or a building, enclosure, or portion

 

26  of real property that the licensee intends to use as a location

 

27  at any time.

 

 1        (4) A person shall not refuse to cooperate with, hinder, or

 

 2  obstruct in any way an authorized representative of the director

 

 3  while the representative is performing official duties.

 

 4        Sec. 49. A millionaire party licensee shall make all of the

 

 5  following financial records available to an authorized

 

 6  representative of the director for review and shall keep the

 

 7  records for at least the calendar year in which the event

 

 8  occurred and the 3 following years:

 

 9        (a) A copy of the financial statement required under section

 

10  50.

 

11        (b) Bank-validated deposit slips for all proceeds from the

 

12  event.

 

13        (c) Bank statements from all accounts into which proceeds

 

14  from the event were deposited or transferred.

 

15        (d) Canceled checks or copies of checks, as required under

 

16  section 47, from all accounts into which proceeds from the event

 

17  were deposited or transferred.

 

18        (e) Invoices or receipts with the date, the vendor's name,

 

19  and a description of the item or service for all expenditures

 

20  made from accounts into which proceeds from the event were

 

21  deposited or transferred.

 

22        Sec. 50. (1) A millionaire party licensee shall submit a

 

23  financial statement to the director on a form prescribed by the

 

24  director, by the tenth day of the month following the month in

 

25  which the event was held.

 

26        (2) A financial statement submitted under subsection (1)

 

27  must be signed by an officer of the licensee, certifying that the

 

 1  information on the financial statement is true, correct, and

 

 2  complete to the best of the officer's knowledge.

 

 3        Sec. 61. (1) An applicant for a license to operate as a

 

 4  charitable gaming service provider to qualified organizations

 

 5  licensed under this article shall submit a written application to

 

 6  the director on a form prescribed by the director.

 

 7        (2) An applicant under this section shall disclose to the

 

 8  director whether an owner, partner, shareholder, officer, or

 

 9  agent of the applicant, or any individual who resides in the same

 

10  household as any of these, has been convicted of, has forfeited

 

11  bond on a charge of, or has plead guilty to any of the following

 

12  offenses:

 

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        (3) An applicant under this section shall immediately report

 

20  to the director in writing any changes to the information

 

21  provided on an application filed under this section.

 

22        (4) The director shall consider all of the following factors

 

23  when reviewing an application or renewal application under this

 

24  section:

 

25        (a) Whether the character, responsibility, and fitness of

 

26  the shareholders, directors, officers, members, partners, owners,

 

27  employees, and agents of the applicant and the applicant's

 

 1  motives in seeking to be licensed as a charitable gaming service

 

 2  provider are such as to command the confidence of the community

 

 3  and to warrant the belief that the charitable gaming service

 

 4  provider's business will be honestly and efficiently conducted.

 

 5        (b) The veracity and accuracy of any information supplied by

 

 6  the applicant.

 

 7        (c) Any indebtedness of the applicant to a local, state, or

 

 8  federal governmental agency.

 

 9        (d) Any pending lawsuit or bankruptcy proceeding involving

 

10  the applicant or any owner, partner, shareholder, or officer of

 

11  the applicant.

 

12        (e) The current or past history of compliance of the

 

13  applicant or any owner, partner, shareholder, member, director,

 

14  officer, or agent of the applicant, or of any individual who

 

15  resides in the same household as any of these, with this act and

 

16  rules promulgated under this article.

 

17        (f) Criminal convictions of the applicant or any owner,

 

18  partner, shareholder, member, director, officer, or agent of the

 

19  applicant, or of any individual who resides in the same household

 

20  as any of these, for any of the following offenses:

 

21        (i) A violation of the act.

 

22        (ii) A felony.

 

23        (iii) A gambling offense.

 

24        (iv) Criminal fraud.

 

25        (v) Forgery.

 

26        (vi) Larceny.

 

27        (vii) Filing a false report with a governmental agency.

 

 1        (g) Any other information considered advisable by the

 

 2  director.

 

 3        (5) If the director determines that an application and

 

 4  supporting information submitted under this section comply with

 

 5  this act and rules promulgated under this article, the applicant

 

 6  has not materially misrepresented or omitted required information

 

 7  or violated this act or a rule promulgated under this article,

 

 8  and the applicant has paid an annual license fee of $300.00, the

 

 9  director shall issue a charitable gaming service provider license

 

10  to the applicant.

 

11        Sec. 62. (1) A charitable gaming service provider license

 

12  expires at midnight on September 30 and is renewable annually on

 

13  the submission of a renewal application, prescribed by the

 

14  director, unless the license is summarily suspended, suspended,

 

15  denied, or revoked by the director.

 

16        (2) If the ownership or any portion of ownership of the

 

17  corporation, limited liability company, partnership, or sole

 

18  proprietorship acting as a charitable gaming service provider

 

19  changes, not including the departure of an owner or a change in

 

20  percentage of ownership, the license issued to the corporation,

 

21  partnership, or sole proprietorship is void and the charitable

 

22  gaming service provider shall return the license to the director

 

23  without delay.

 

24        (3) A charitable gaming service provider license shall state

 

25  that the charitable gaming service provider is licensed to do

 

26  either of the following:

 

27        (a) Rent or sell equipment.

 

 1        (b) Provide operation services.

 

 2        Sec. 63. (1) On the issuance of a charitable gaming service

 

 3  provider license, the charitable gaming service provider agrees

 

 4  to all of the following terms and conditions:

 

 5        (a) To be bound by and comply with this act and rules

 

 6  promulgated under this article.

 

 7        (b) To not assign or transfer the license. A charitable

 

 8  gaming service provider shall not attempt to sell or transfer an

 

 9  interest in its business without the prior written approval of

 

10  the director.

 

11        (c) To immediately report to the director in writing any

 

12  change in the information stated on or attached to the

 

13  application for the license.

 

14        (d) To only accept checks from a millionaire party

 

15  licensee's account for the payment of millionaire party equipment

 

16  or operation services.

 

17        (e) To not reveal investigative information to any

 

18  millionaire party licensee.

 

19        (f) To hold the director, the board, and this state harmless

 

20  from any liability, including, but not limited to, taxes and

 

21  legal expenses.

 

22        (2) An authorized representative of the director may inspect

 

23  the location at which a charitable gaming service provider does

 

24  business, including supplemental storage locations, or intends to

 

25  do business or store equipment during reasonable business hours.

 

26        (3) A person shall not refuse to cooperate with, hinder, or

 

27  obstruct in any way an authorized representative of the director

 

 1  while the representative is performing official duties.

 

 2        (4) A charitable gaming service provider shall not require a

 

 3  millionaire party licensee to enter into an exclusive contract

 

 4  with the charitable gaming service provider.

 

 5        (5) The director may deny, summarily suspend, suspend,

 

 6  revoke, or refuse to renew a charitable gaming service provider

 

 7  license as provided in sections 83 to 86.

 

 8        (6) A person convicted of a criminal offense under this act

 

 9  or any other gambling offense is ineligible to be an owner,

 

10  partner, shareholder, member, director, officer, agent, or

 

11  employee of a charitable gaming service provider for 1 year after

 

12  the conviction becomes final.

 

13        (7) Before hiring a prospective employee, a charitable

 

14  gaming service provider shall request the board to conduct a

 

15  background check of the prospective employee to determine whether

 

16  the prospective employee has been convicted of a criminal offense

 

17  or has any criminal charges pending against him or her. The board

 

18  shall conduct the background check as provided in section 21 of

 

19  the Michigan gaming control and revenue act, 1996 IL 1, MCL

 

20  432.221. The charitable gaming service provider shall not hire

 

21  the prospective employee until the director has determined, based

 

22  on the results of the background check, whether the prospective

 

23  employee is disqualified from employment under this act. If the

 

24  director has not notified the charitable gaming service provider

 

25  of the director's determination within 30 days after the director

 

26  is advised of the prospective hiring and provided with any

 

27  documents and information necessary to perform the background

 

 1  check, the charitable gaming service provider may consider the

 

 2  employee to be qualified under this act and employ the employee

 

 3  until the director notifies the charitable gaming service

 

 4  provider of a negative determination.

 

 5        (8) A charitable gaming service provider shall pay to the

 

 6  board at the time of a request for a criminal background check

 

 7  under subsection (7) an amount determined by the board to cover

 

 8  the cost of the background check and determination by the

 

 9  director. The amount charged under this subsection may not exceed

 

10  $25.00.

 

11        Sec. 64. (1) A charitable gaming service provider shall not

 

12  sell or rent millionaire party equipment that has not been

 

13  authorized in writing by the director or that is not in sound

 

14  working condition.

 

15        (2) A charitable gaming service provider shall publish in

 

16  writing with an effective date an itemized price list of all

 

17  millionaire party equipment and services that it provides to

 

18  millionaire party licensees. The list must have sufficient detail

 

19  to permit a potential customer to easily make price comparisons.

 

20  A charitable gaming service provider shall file a price list

 

21  published under this subsection with the director not less than

 

22  10 days before the effective date of the list.

 

23        (3) A charitable gaming service provider shall remove all

 

24  millionaire party equipment from a rented location within 2

 

25  business days after the event.

 

26        Sec. 65. A charitable gaming service provider license does

 

27  not include the authority to purchase and sell charity game

 

 1  tickets or numeral game tickets. The authority to purchase and

 

 2  sell charity game or numeral game tickets is controlled by

 

 3  article 1.

 

 4        Sec. 66. (1) A charitable gaming service provider or an

 

 5  owner, partner, shareholder, member, director, officer, agent, or

 

 6  employee of a charitable gaming service provider, or an

 

 7  individual who resides in the same household as any of these,

 

 8  shall not be involved with the management of an event. This

 

 9  subsection does not apply to the delivery, repair, and set up of

 

10  equipment, training before the start of the event, or technical

 

11  advice during the event.

 

12        (2) An employee or agent of a charitable gaming service

 

13  provider shall not receive any compensation, food, or beverage

 

14  from a millionaire party licensee.

 

15        (3) A charitable gaming service provider or an owner,

 

16  partner, shareholder, officer, agent, or employee of a charitable

 

17  gaming service provider, or an individual who resides in the same

 

18  household as any of these, shall not do any of the following:

 

19        (a) Be an officer of a millionaire party licensee conducting

 

20  an event for which the charitable gaming service provider is

 

21  providing equipment or services.

 

22        (b) Play millionaire party games at the location where he or

 

23  she works or assists.

 

24        (c) Share in a prize or purchase, play, or accept charity

 

25  game tickets or numeral game tickets offered for sale by the

 

26  millionaire party licensee at any time at the location where he

 

27  or she is working or assisting.

 

 1        (d) Split a prize with a player.

 

 2        Sec. 67. (1) A charitable gaming service provider shall

 

 3  record every sale, rental, return, or any other type of transfer

 

 4  of millionaire party equipment to or from a millionaire party

 

 5  licensee by completing a sales invoice or credit memo.

 

 6        (2) All invoices for millionaire party equipment must be

 

 7  sequentially numbered and issued in sequential order.

 

 8        (3) A charitable gaming service provider shall give a

 

 9  millionaire party licensee an invoice for all millionaire party

 

10  equipment supplied to the licensee before the event.

 

11        (4) An invoice under this section must contain all of the

 

12  following information:

 

13        (a) The amount of each sale.

 

14        (b) All credits.

 

15        (c) All exchanges.

 

16        (d) All sales premiums.

 

17        (e) All rebates or discounts.

 

18        (f) The net amount of each sale.

 

19        (g) Any other information required by the director.

 

20        (5) A charitable gaming service provider shall retain all

 

21  voided or spoiled invoices for millionaire party equipment.

 

22        Sec. 68. (1) A charitable gaming service provider shall

 

23  maintain current and accurate records of all operations in

 

24  conjunction with the purchase, sale, or rental of millionaire

 

25  party equipment and the provision of operation services as

 

26  required by this act.

 

27        (2) An authorized representative of the director may review

 

 1  the records described in subsection (1) and all documents

 

 2  supporting entries made in the records at the location.

 

 3        (3) A charitable gaming service provider shall keep the

 

 4  records described in subsection (1) and all documents supporting

 

 5  entries made in the records for at least the calendar year in

 

 6  which the event occurred and the 3 following years.

 

 7        (4) A charitable gaming service provider shall report to the

 

 8  director, on a form prescribed by the director, the type and

 

 9  total amount of sales and rentals of millionaire party equipment.

 

10        Sec. 69. (1) A charitable gaming service provider shall file

 

11  with the director a financial statement signed by an officer of

 

12  the charitable gaming service provider of receipts and expenses

 

13  related to the conduct of each event as required by rule

 

14  promulgated under this article. If the revenue from a millionaire

 

15  party is represented by a millionaire party licensee for which a

 

16  charitable gaming service provider provides services to be used

 

17  or applied for a charitable purpose, the charitable gaming

 

18  service provider shall file a copy of the financial statement

 

19  with the attorney general under the supervision of trustees for

 

20  charitable purposes act, 1961 PA 101, MCL 14.251 to 14.266. A

 

21  charitable gaming service provider shall file the reports

 

22  required under this subsection quarterly.

 

23        (2) A charitable gaming service provider that provides

 

24  operation services at a millionaire party shall maintain records

 

25  in a form prescribed by the director that allow a running

 

26  reconciliation of the amount of imitation money or chips

 

27  available for sale, the amount of imitation money or chips bought

 

 1  back, and the amount of cash received and disbursed. The

 

 2  charitable gaming service provider shall keep imitation money and

 

 3  chips that are bought back out of use and separate from imitation

 

 4  money and chips for sale.

 

 5        (3) A charitable gaming service provider that provides

 

 6  operation services at a millionaire party shall allow an

 

 7  authorized representative of the director or of the department of

 

 8  state police or a law enforcement officer of a political

 

 9  subdivision of this state to inspect at any time a location under

 

10  its control, including the records maintained under subsection

 

11  (2), or a building, enclosure, or portion of real property at

 

12  which the charitable gaming service provider intends to use as a

 

13  location.

 

14        Sec. 71. A person shall not act as a charitable gaming

 

15  service provider unless the person is licensed as a charitable

 

16  gaming service provider under this act.

 

17        Sec. 81. (1) At his or her discretion, the director may

 

18  issue a violation notice.

 

19        (2) A millionaire party licensee or a charitable gaming

 

20  service provider shall respond to a violation notice in writing

 

21  within the time specified in the notice and shall inform the

 

22  director what action has been taken to correct the violation

 

23  cited. The response shall be signed by the principal officer of a

 

24  millionaire party licensee or an officer of a charitable gaming

 

25  service provider, as applicable.

 

26        (3) At his or her discretion, the director may initiate

 

27  further administrative action if a response to a violation notice

 

 1  is not received or the response does not resolve the violation.

 

 2        Sec. 82. (1) At his or her discretion, the director may

 

 3  require the principal officer of a millionaire party licensee or

 

 4  an officer of a charitable gaming service provider to attend an

 

 5  informal meeting to discuss a violation of this act or rules

 

 6  promulgated under this article.

 

 7        (2) The purpose of a meeting under subsection (1) is to

 

 8  assist the licensee or license holder to comply with this act or

 

 9  rules promulgated under this article and to forestall further

 

10  action, including, but not limited to, a contested case hearing.

 

11        (3) During or after a meeting under subsection (1), a

 

12  licensee or license holder may agree to be placed on probation.

 

13        (4) The director may waive a meeting under subsection (1) if

 

14  in the opinion of the director the violation of this act or rules

 

15  promulgated under this article warrants action under sections 83

 

16  to 86.

 

17        Sec. 83. In determining a proper sanction for a violation of

 

18  this act or rules promulgated under this article, the director

 

19  shall consider whether the violation was inadvertent or

 

20  intentional and what the consequences of the violation were. For

 

21  a violation, the director may order 1 or more of the following:

 

22        (a) That the licensee or license holder receive a written

 

23  warning.

 

24        (b) That the licensee or license holder be placed on

 

25  probation under section 84.

 

26        (c) For a first violation, that the licensee or license

 

27  holder pay a fine of up to $1,000.00 and, if the violation

 

 1  threatened the public health, safety, or welfare or public trust,

 

 2  that the license be suspended under section 85 for up to 30 days.

 

 3        (d) For a second violation in a 2-year period, that the

 

 4  licensee or license holder pay a fine of up to $2,000.00 and, if

 

 5  the violation threatened the public health, safety, or welfare or

 

 6  public trust, that the license be suspended under section 85 for

 

 7  up to 60 days.

 

 8        (e) For a third violation in a 2-year period, that the

 

 9  licensee or license holder pay a fine of up to $3,000.00 and, if

 

10  the violation threatened the public health, safety, or welfare or

 

11  public trust, that the license be suspended under section 85 for

 

12  up to 90 days.

 

13        (f) For a fourth or subsequent violation in a 2-year period,

 

14  that the licensee or license holder pay a fine of up to $4,000.00

 

15  and, at the director's discretion, that the licensee or license

 

16  holder be prohibited from holding events for up to 2 years. If a

 

17  2-year suspension is imposed under this subdivision, the director

 

18  shall not issue a license to the qualified organization or

 

19  charitable gaming service provider unless the organization or

 

20  charitable gaming service provider demonstrates to the director

 

21  the changes that have been put in place to ensure that violations

 

22  will not continue.

 

23        Sec. 84. (1) The director may place a millionaire party

 

24  licensee or charitable gaming service provider on probation or

 

25  may condition the renewal of a license with terms of probation as

 

26  provided in section 83.

 

27        (2) The continuation of a probationary license under this

 

 1  section is conditioned on strict compliance with this act, rules

 

 2  promulgated under this act, and terms of probation.

 

 3        (3) It is a violation of probation under this section if the

 

 4  licensee or license holder fails to comply with this act, rules

 

 5  promulgated under this act, or terms of probation.

 

 6        (4) The director may summarily suspend a probationary

 

 7  license issued under this section as provided in section 85 if

 

 8  the licensee or license holder violates this act, rules

 

 9  promulgated under this act, and terms of probation.

 

10        Sec. 85. (1) The director may deny, suspend, summarily

 

11  suspend, or revoke a license issued under this article if the

 

12  holder of the license or an officer, director, agent, member, or

 

13  employee of the holder of the license violates this act or a rule

 

14  promulgated under this article. The director may summarily

 

15  suspend a license for a period of not more than 60 days pending

 

16  prosecution, investigation, or public hearing.

 

17        (2) A proceeding to suspend or revoke a license under this

 

18  article is a contested case governed by the administrative

 

19  procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

20        (3) On petition of the director, the circuit court after a

 

21  hearing may issue subpoenas to compel the attendance of witnesses

 

22  and the production of documents, papers, books, records, and

 

23  other evidence before the director in a matter over which the

 

24  director has jurisdiction, control, or supervision. If a person

 

25  subpoenaed to attend in any such proceeding or hearing fails to

 

26  obey the command of the subpoena without reasonable cause, or if

 

27  a person in attendance in any such proceeding or hearing refuses,

 

 1  without lawful cause, to be examined or to answer a legal or

 

 2  pertinent question or to exhibit a book, account, record, or

 

 3  other document when ordered to do so by the court, that person

 

 4  may be punished as being in contempt of the court.

 

 5        Sec. 86. (1) A holder of a license whose license is revoked

 

 6  for a violation of this article or a rule promulgated under this

 

 7  article is ineligible to apply for a license for 2 years.

 

 8        (2) A person convicted of an offense under section 17 or any

 

 9  other gambling offense is ineligible to serve as an officer of a

 

10  holder of a license or to participate in conducting a millionaire

 

11  party for 1 year after the conviction becomes final. If the

 

12  person is licensed under this article, the person shall forfeit

 

13  the license and is ineligible to apply for the issuance or

 

14  reissuance of the license for 1 year after the conviction becomes

 

15  final.

 

16        Sec. 87. If the director determines that the holder of a

 

17  license under this article has violated this act or a rule

 

18  promulgated under this article, the holder of the license may

 

19  request a hearing before the board. A holder of a license shall

 

20  request a hearing under this section in writing by filing the

 

21  request with the board within 21 days after the holder of the

 

22  license receives notice of the license action under sections 83

 

23  to 86 as a result of the determination.

 

24        Sec. 89. (1) Any administrative rules relating to

 

25  millionaire parties promulgated before the effective date of this

 

26  article are rescinded.

 

27        (2) Within 1 year after the effective date of this article,

 

 1  the director shall promulgate rules pursuant to the

 

 2  administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

 3  24.328, to implement this article.

 

 4        Enacting section 1. Sections 10a, 10b, and 20 of the

 

 5  Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.110a,

 

 6  432.110b, and 432.120, are repealed.