Bill Text: MI HB6456 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Gaming: bingo and charitable gaming; operation of online raffle games by charitable organizations; allow. Amends secs. 3, 3a, 4, 4a, 12, 13, 14, 15 & 16 of 1972 PA 382 (MCL 432.103 et seq.). TIE BAR WITH: HB 5862'20
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-12-02 - Referred To Second Reading [HB6456 Detail]
Download: Michigan-2019-HB6456-Introduced.html
HOUSE BILL NO. 6456
December 01, 2020, Introduced by Rep. Cole and
referred to the Committee on Ways and Means.
A bill to amend 1972 PA 382, entitled
"Traxler-McCauley-Law-Bowman bingo act,"
by amending sections 3, 3a, 4, 4a, 12, 13, 14, 15, and 16 (MCL 432.103, 432.103a, 432.104, 432.104a, 432.112, 432.113, 432.114, 432.115, and 432.116), as amended by 2019 PA 159.
the people of the state of michigan enact:
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(a) "Large bingo" means a series of bingo occasions
that occur on a regular basis during which the total value of all prizes
awarded for bingo games at a single occasion does not exceed
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$3,500.00 and the total value of all prizes
awarded for 1 bingo game does not exceed $1,100.00, except that a prize awarded
through a Michigan progressive jackpot bingo game is not subject to these
limitations.
(b) "Large raffle" means an event where at
which the total value of all prizes awarded through raffle
drawings exceeds $500.00 per occasion.
(c) "Licensee" means a person, including a
qualified organization, licensed under this act.
(d) "Location" means,
except as otherwise provided in section 5d, a building,
enclosure, part of a building or enclosure, or a distinct portion of real
property that is used for the purpose of conducting an event. Location includes
all components or buildings that compose 1 architectural entity or that serve a
unified functional purpose.
(e) "Manufacturer" means a person licensed under
section 11c who manufactures numeral game tickets for sale to suppliers for use
in an event.
(f) "Member" means an individual who qualified for
membership in a qualified organization under its bylaws, articles of
incorporation, charter, rules, or other written statement.
(g) "Michigan national guard" and
"military" mean those terms as defined in section 105 of the Michigan
military act, 1967 PA 150, MCL 32.505.
(h) "Michigan progressive jackpot" means a bingo
game conducted in conjunction with a licensed large bingo occasion in which the
value of the prize is carried forward to the next bingo occasion if no player
wins in a predetermined number of allowable calls. Michigan progressive jackpot
may include bingo games
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conducted by more than 1 licensee that are linked
together for the purpose of a common jackpot prize and consolation prize as
prescribed by the commissioner.
(i) "Millionaire party" means an event at which
wagers are placed on games of chance customarily associated with a gambling
casino through the use of imitation money or chips that have a nominal value
equal to or greater than the value of the currency for which they can be
exchanged.
(j) "Numeral game" means the random resale of a
series of numeral game tickets.
(k) "Numeral game ticket" means a paper strip on
which preprinted numerals are covered by folding the strip and banding the
folded strip with a separate piece of paper, so that on breaking the paper that
bands the folding strip the purchaser discovers whether the ticket is a winning
ticket.
(l) "Occasion"
means a single day for which a license to conduct games is issued under this
act.
(a) "Person" means an individual, firm,
association, corporation, or other legal entity.
(b) "Principal officer" means the highest ranking
officer of the qualified organization according to its written constitution,
charter, articles of incorporation, or bylaws.
(c) "Prize" means anything of value, including, but
not limited to, money or merchandise that is given to a player for attending or
winning a game at an event. A nonmonetary item is valued at its retail value.
Prize does not include advertising given away by a qualified organization in
accordance with rules promulgated under this act.
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(d) "Qualified organization" means, subject to
subdivision (e), either of the following:
(i) A bona fide religious,
educational, service, senior citizens, fraternal, or veterans' organization
that operates without profit to its members and that either has been in
existence continuously as an organization for a period of 5 years or is exempt
from taxation under section 501(c) of the internal revenue code of 1986, 26 USC
501(c).
(ii) Only for the purpose of conducting a small raffle or a
large raffle under this act, a component of the military or the Michigan
national guard whose members are in active service or active state service.
(e) "Qualified
organization" does not include a candidate committee, political committee,
political party committee, ballot question committee, independent committee, or
any other committee as defined by, and organized under, the Michigan campaign
finance act, 1976 PA 388, MCL 169.201 to 169.282.
(f) "Raffle"
means an event for which raffle tickets are sold and at which a winner or
winners are determined, either by randomly selecting stubs from all of the
raffle tickets sold for an event or by an alternative method that is approved in
writing by the bureau, board,
and a preannounced prize is awarded.
(g) "Religious
organization" means any of the following:
(i) An organization, church, body of communicants, or group in
this state that is organized not for pecuniary profit and that gathers in
common membership for mutual support and edification in piety, worship, and
religious observances.
(ii) A society of individuals in this state that is organized
not for pecuniary profit and that unites for religious purposes at
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a definite place.
(iii) A church-related private school in this state that is
organized not for pecuniary profit.
(h) "Senior
citizens organization" means an organization in this state that is
organized not for pecuniary profit, that consists of at least 15 members who
are 60 years of age or older, and that exists for their mutual support and for
the advancement of the causes of elderly or retired persons.
(i) "Service organization"
means either of the following:
(i) A branch, lodge, or chapter in this state of a national or
state organization that is organized not for pecuniary profit and that is
authorized by its written constitution, charter, articles of incorporation, or
bylaws to engage in a fraternal, civic, or service purpose in this state.
(ii) A local civic organization in this state that is organized
not for pecuniary profit; that is not affiliated with a state or national
organization; that is recognized by resolution adopted by the local
governmental subdivision in which the organization conducts its principal
activities; whose constitution, charter, articles of incorporation, or bylaws
contain a provision for the perpetuation of the organization as a nonprofit
organization; whose entire assets are used for charitable purposes; and whose
constitution, charter, articles of incorporation, or bylaws contain a provision
that all assets, real property, and personal property must revert to the
benefit of the local governmental subdivision that granted the resolution or
another nonprofit organization on dissolution of the organization.
(j) "Small
bingo" means a series of bingo occasions that occur on a regular basis
during which the total value of all prizes
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awarded for bingo games
at a single occasion does not exceed $300.00 and the total value of all prizes
awarded for a single bingo game does not exceed $25.00.
(k) "Small
raffle" means an event during which the total value of all prizes awarded
through raffle drawings does not exceed $500.00 during 1 occasion.
(l) "Special bingo" means a single or consecutive
series of bingo occasions during which the total value of all prizes awarded
for bingo games at a single occasion does not exceed $3,500.00 and the total
value of all prizes awarded for a single bingo game does not exceed $1,100.00.
(m) "Supplier"
means a person licensed under this act to rent, sell, or lease equipment or to
sell charity game or numeral game tickets to qualified organizations licensed
under this act.
(n) "Veterans'
organization" means an organization in this state, or a branch, lodge, or
chapter in this state of a state organization or of a national organization
chartered by the Congress of the United States, that is organized not for
pecuniary profit, the membership of which consists of individuals who were
members of the armed services or armed forces of the United States. Veterans'
organization includes an auxiliary of a veterans' organization that is a
national organization chartered by the Congress of the United States.
Sec. 4. (1) An
applicant for a license to conduct a bingo, raffle,
charity game, or numeral game event shall submit to the bureau a written
application on a form prescribed by the commissioner.
(2) The application under subsection (1) must include all of
the following:
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(a) The name and address of the applicant organization.
(b) The name and address of each officer of the applicant
organization.
(c) The location at which the applicant will conduct the
event.
(d) The day or dates of the event.
(e) The member or members of the applicant organization who will
be responsible for the conduct of the event.
(f) Sufficient facts relating to the applicant's
incorporation or organization to enable the commissioner to determine whether
the applicant is a qualified organization.
(g) A sworn statement attesting to the nonprofit status of
the applicant organization, signed by the principal officer of the
organization.
(h) Other information the commissioner considers necessary.
(3)
An applicant for a license to conduct a raffle shall submit to the board a
written application on a form prescribed by the executive director.
(4)
The application under subsection (3) must include all of the following:
(a)
The name and address of the applicant organization.
(b)
The name and address of each officer of the applicant organization.
(c)
The location at which the applicant will conduct the event.
(d)
The day or dates of the event.
(e)
The member or members of the applicant organization who will be responsible for
the conduct of the event.
(f)
Sufficient facts relating to the applicant's incorporation
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or organization to enable the executive director
to determine whether the applicant is a qualified organization.
(g)
A sworn statement attesting to the nonprofit status of the applicant
organization, signed by the principal officer of the organization.
(h)
Other information the executive director considers necessary.
Sec. 4a. (1)
Except as provided in subsections (2) and (3), if the commissioner determines
that an applicant under section 4 is a qualified organization, is not
ineligible under section 18, and has paid to the bureau the appropriate fee,
the commissioner may issue 1 or more of the following licenses:
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License |
|
Fee |
|
(a) |
Large
bingo............................... |
$ |
150.00 |
|
(b) |
Small
bingo............................... |
$ |
55.00 |
|
(c) |
Special bingo............................. |
$ |
25.00 |
|
(d) |
Large
raffle.............................. |
$ |
50.00 per drawing date |
|
(e) |
Small
raffle.............................. |
$ |
15.00 |
|
(i) |
One to 3 drawing
dates.................... |
$ |
15.00 |
|
(ii) |
Four or more drawing
dates................. |
$ |
5.00 per drawing date |
|
(d) (f) |
Annual charity
game....................... |
$ |
200.00 |
|
(e) (g) |
Special charity
game....................... |
$ |
15.00 per day |
|
(f) (h) |
Numeral game.............................. |
$ |
15.00 per day |
(2) Under extreme hardship conditions as determined by the
commissioner, the commissioner may waive 1 or more requirements for a person to
be a qualified organization under section 3a(d) to permit the licensing of a
special bingo or raffle event, if all of
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the following conditions are met:
(a) The organization applying for the license is a nonprofit
organization.
(b) The entire proceeds of the event, less the actual reasonable
expense of conducting the event, are donated or used for a charitable purpose,
organization, or cause.
(c) None of the individuals connected with the conduct of the
event is compensated in any manner for his or her participation.
(d) The organization complies with all other applicable
provisions of this article and rules promulgated under this article.
(3) Under extreme hardship conditions as determined by the
commissioner, the commissioner may allow an individual or a group of
individuals to obtain a license to conduct a special bingo event or raffle if all of the following
conditions are met:
(a) The entire proceeds of the event, less the actual
reasonable expense of conducting the event, are donated or used for a
charitable purpose, organization, or cause.
(b) None of the individuals connected with the conduct of the
event is compensated in any manner for his or her participation.
(c) The individual or group of individuals complies with all
other applicable provisions of this article and the rules promulgated under
this article.
(4)
Except as provided in subsections (5) and (6), if the executive director
determines that an applicant under section 4 is a qualified organization, is
not eligible under section 18, and has paid to the board the appropriate fee,
the executive director may issue 1 or more of the following licenses:
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License |
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Fee |
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|
(a) |
Large raffle...................... |
$ |
50.00 per drawing date |
|
(b) |
Small raffle...................... |
$ |
15.00 |
|
(i) |
One to 3 drawing dates............ |
$ |
15.00 |
|
(ii) |
Four or more drawing dates........ |
$ |
5.00 per drawing date |
(5)
Under extreme hardship conditions as determined by the executive director, the executive
director may waive 1 or more requirements for a person to be a qualified
organization under section 3a(d) to permit the licensing of a raffle event, if
all of the following conditions are met:
(a)
The organization applying for the license is a nonprofit organization.
(b)
The entire proceeds of the event, less the actual reasonable expense of
conducting the event, are donated or used for a charitable purpose, organization,
or cause.
(c)
None of the individuals connected with the conduct of the event is compensated
in any manner for his or her participation.
(d)
The organization complies with all other applicable provisions of this article
and rules promulgated under this article.
(6)
Under extreme hardship conditions as determined by the executive director, the executive
director may allow an individual or a group of individuals to obtain a license
to conduct a raffle if all of the following conditions are met:
(a)
The entire proceeds of the event, less the actual reasonable expense of
conducting the event, are donated or used for a charitable purpose,
organization, or cause.
(b)
None of the individuals connected with the conduct of the event is compensated
in any manner for his or her participation.
(c)
The individual or group of individuals complies with all
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other applicable provisions of this article and
the rules promulgated under this article.
(7)
(4) Each event
license issued to a qualified organization under this section is valid for only
the location included on the license.
(8)
(5) A license issued
under this section is not assignable or transferable.
(9)
(6) A licensee shall
ensure that the events conducted under a license issued under this section are
conducted in compliance with the applicable provisions of this article and
rules promulgated under this article.
(10)
(7) Except as
otherwise provided in this section, a licensee shall only conduct events
licensed under this section during the hours and on the date or dates stated on
the license.
(11)
(8) In connection
with an application for a small raffle license or a large raffle license, in
determining whether a fraternal organization that is not a branch, lodge, or
chapter of a national or state organization is a qualified organization, the commissioner executive director shall only consider whether the
organization meets requirements that are applicable under this article that are
unrelated to whether the organization is a branch, lodge, or chapter of a
national or state organization.
Sec. 12. (1) The Except
as otherwise provided in subsection (3), the bureau shall enforce
and supervise the administration of this article. The
Except as otherwise provided in subsection (3),
the commissioner shall employ personnel as necessary to implement
this article.
(2) The Except as otherwise provided in subsection (3), the bureau
may select fraternal organizations that are not a branch,
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lodge, or chapter of a national or state organization
to audit to ensure that the organizations are in compliance with this article.
(3)
For raffles, all of the following apply:
(a)
The board shall enforce and supervise the administration of this article.
(b)
The executive director shall employ personnel as necessary to implement this
article.
(c)
The board may select fraternal organizations that are not a branch, lodge, or
chapter of a national or state organization to audit to ensure that the
organizations are in compliance with this article.
Sec. 13. (1) The Except as otherwise provided in subsection (2), the commissioner
shall promulgate rules pursuant to the administrative procedures act of 1969,
1969 PA 306, MCL 24.201 to 24.328, to implement this article.
(2)
For raffles, the executive director shall promulgate rules pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to
implement this article.
Sec. 14. (1) A Except
as otherwise provided in this section, a licensee under this
article shall keep a record of each event as required by the commissioner. A Except
as otherwise provided in this section, a licensee shall allow a
representative authorized by the bureau to inspect a record kept under this
subsection and all financial accounts into which proceeds from events are
deposited or transferred during reasonable business hours.
(2) A Except as otherwise provided in this section, a licensee
under this article shall file with the commissioner a financial statement
signed by the principal officer of the qualified organization of receipts and
expenses related to the conduct of
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each event as required by rule promulgated under
this article. If the revenue from a bingo, raffle,
numeral game, or charity game event is represented to be used or
applied by a licensee under this article for a charitable purpose, the licensee
shall file a copy of the financial statement with the attorney general under
the supervision of trustees for charitable purposes act, 1961 PA 101, MCL
14.251 to 14.266.
(3) A Except as otherwise provided in this section, a licensee
under this article shall allow an authorized representative of the bureau or
the department of state police or a law enforcement officer of a political
subdivision of this state to inspect the location or an intended location
during business hours.
(4)
A raffle licensee under this article shall keep a record of each event as
required by the executive director. A raffle licensee shall allow a
representative authorized by the board to inspect a record kept under this
subsection and all financial accounts into which proceeds from events are
deposited or transferred during reasonable business hours.
(5)
A raffle licensee under this article shall file with the executive director a
financial statement signed by the principal officer of the qualified
organization of receipts and expenses related to the conduct of each event as
required by rule promulgated under this article. If the revenue from a raffle event
is represented to be used or applied by a licensee under this article for a
charitable purpose, the raffle licensee shall file a copy of the financial
statement with the attorney general under the supervision of trustees for
charitable purposes act, 1961 PA 101, MCL 14.251 to 14.266.
(6)
A raffle licensee under this article shall allow an
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authorized representative of the board or the
department of state police or a law enforcement officer of a political
subdivision of this state to inspect the location or an intended location
during business hours.
Sec. 15. (1) The Except as otherwise provided in subsection (2), the commissioner
shall report annually to the governor and the legislature about the operation
of events licensed under this article, abuses that the bureau may have
encountered, and recommendations for changes in this act.
(2)
The executive director shall report annually to the governor and the
legislature about the operation of raffle events licensed under this article,
abuses that the board may have encountered, and recommendations for changes in
this act.
Sec. 16. (1) The Except
as otherwise provided in subsection (2), the commissioner may
deny, suspend, summarily suspend, or revoke a license issued under this article
if the licensee or an officer, director, agent, member, or employee of the
licensee violates this article or a rule promulgated under this article. The Except
as otherwise provided in subsection (2), the commissioner may
summarily suspend a license for a period of not more than 60 days pending
prosecution, investigation, or public hearing.
(2)
The executive director may deny, suspend, summarily suspend, or revoke a raffle
license issued under this article if the licensee or an officer, director,
agent, member, or employee of the licensee violates this article or a rule
promulgated under this article. The executive may summarily suspend a raffle license
for a period of not more than 60 days pending prosecution, investigation, or
public hearing.
(3)
(2) A proceeding to
suspend or revoke a license under this
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article is a contested case governed by the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
(4)
(3) On petition of
the commissioner, or for raffles, on petition of the executive
director, the circuit court after a hearing may issue subpoenas
to compel the attendance of witnesses and the production of documents, papers,
books, records, and other evidence before it in a matter over which it has
jurisdiction, control, or supervision. If a person subpoenaed to attend in any
such proceeding or hearing fails to obey the command of the subpoena without
reasonable cause, or if a person in attendance in any such proceeding or
hearing refuses, without lawful cause, to be examined or to answer a legal or
pertinent question or to exhibit a book, account, record, or other document
when ordered to do so by the court, that person may be punished as being in
contempt of the court.
(5)
(4) With approval of
the commissioner, a bingo hall licensee, in lieu of a suspension of its license,
may elect to pay a fine equal to the amount of rent that would have been paid
by bingo licensees during the period of the suspension. The bingo hall licensee
shall pay this fine to the bureau on or before the date agreed to in the
suspension agreement entered into by the bureau and the bingo hall licensee.
Enacting section 1. This amendatory act does not take effect unless House Bill No. 5862 of the 100th Legislature is enacted into law.
