Bill Text: MI HB6464 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Gaming: casinos; provisions in the Michigan gaming control and revenue act relating to horse racing; eliminate. Amends sec. 12 of 1996 IL 1 (MCL 432.212) & repeals sec. 9b of 1996 IL 1 (MCL 432.209b). TIE BAR WITH: SB 0661'19
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-12-02 - Referred To Second Reading [HB6464 Detail]
Download: Michigan-2019-HB6464-Introduced.html
HOUSE BILL NO. 6464
December 01, 2020, Introduced by Rep. Iden and
referred to the Committee on Ways and Means.
A bill to amend 1996 IL 1, entitled
"Michigan Gaming Control and Revenue Act,"
by amending section 12 (MCL 432.212), as amended by 2019 PA 158; and to repeal acts and parts of acts.
the people of the state of michigan enact:
Sec. 12. (1) A
wagering tax is imposed on the adjusted gross receipts received by a casino
licensee from gaming authorized under this act at the rate of 18%. If a city
exercises either of the options in subsection (4), the tax rate under this
subsection is 8.1% and must be deposited in the state school aid fund to
provide additional funds for K-12 classroom education. If a city rescinds or is
otherwise unable to exercise 1 of the options in subsection (4), the tax rate
under this subsection is 18%. A tax rate of 18% imposed under this subsection
covers any period for which the city does not or is unable to exercise 1 of the
options in subsection (4).
(2) The state casino gaming fund is created in the
department. The department shall administer the fund
shall be administered by the department in
accordance with this act. Except as provided in sections 12a and 13, the taxes
imposed under this section plus all other fees, fines, and charges imposed by
this state under this act must be deposited into the state casino gaming fund.
A casino licensee shall remit the wagering tax to the department daily by
electronic wire transfer of funds. The department shall remit the city's
portion of the wagering tax to the city daily by electronic wire transfer of
funds as provided by this act.
(3) If the wagering tax imposed under subsection (1) is 18%
of adjusted gross receipts, money in the state casino gaming fund that is not
from a tax imposed under subsections (5) to (8) must be allocated as follows:
(a) 55% to the city in which a casino is located for use in
connection with the following:
(i) The hiring, training,
and deployment of street patrol officers.
(ii) Neighborhood and downtown economic development programs
designed to create local jobs.
(iii) Public safety programs such as emergency medical services,
fire department programs, and street lighting.
(iv) Anti-gang and youth development programs.
(v) Other programs that are designed to contribute to the
improvement of the quality of life in the city.
(vi) Relief to the taxpayers of the city from 1 or more taxes or
fees imposed by the city.
(vii) The costs of capital improvements.
(viii) Road repairs and improvements.
(b) 45% to the state to
be deposited in the state school aid fund established under section 11 of
article IX of the state constitution of 1963 to provide additional funds for
K-12 classroom education.
(4) A city in which a
casino licensee is located may do 1 of the following:
(a) In the development
agreement into which the city is entitled to enter, include a provision that
requires the licensee located in the city to pay the city a payment equal to
9.9% of the adjusted gross receipts received by the casino licensee from gaming
authorized under this act.
(b) By ordinance, levy,
assess, and collect an excise tax upon licensees located in the city at a rate
of 9.9% of the adjusted gross receipts received by the casino licensee from
gaming authorized under this act.
(5) Subject to
subsections (6) to (8), a wagering tax in addition to the tax imposed in
subsection (1) is imposed on the adjusted gross receipts received by a licensee
from gaming authorized under this act at the rate of 6%. Money from the tax
imposed under this subsection that has been deposited in the state casino
gaming fund must be allocated 1/3 to the city in which the licensee's casino is
located for use in connection with the purposes listed in subsection (3)(a),
7/12 to the general fund, and 1/12 to the Michigan agriculture equine industry
development fund. The city may collect its share of the tax under this
subsection directly using 1 of the methods in subsection (4). For a period
during which the licensee is paying the city's share of the tax under this
subsection directly to the city under either of the methods in subsection (4),
the payment to the state casino gaming fund under this subsection is 4% and
must be allocated 7/8 to the general fund and 1/8 to the Michigan agriculture
equine industry development fund.
(6) Subject to
subsections (7) and (8), and unless an act of God, a war, a disaster, or an act
of terrorism directly and substantially impacts the ability of a casino
licensee to complete construction of its casino and casino enterprise, if a
casino licensee is not fully operational by each of the following dates, the
tax on the casino licensee under subsection (5) is as follows:
(a) July 1, 2009, 7%,
allocated 1/2 to the general fund, 1/14 to the Michigan agriculture equine
industry development fund, and 3/7 to the city in which the licensee's casino
is located.
(b) July 1, 2010, 8%,
allocated 7/16 to the general fund, 1/16 to the Michigan agriculture equine
industry development fund, and 1/2 to the city in which the licensee's casino
is located.
(c) July 1, 2011, 9%,
allocated 7/18 to the general fund, 1/18 to the Michigan agriculture equine
industry development fund, and 5/9 to the city in which the licensee's casino
is located.
(7) Subject to
subsection (8), and irrespective of whether there has been an increase under
subsection (6), after a casino licensee has been fully operational for 30
consecutive days, the casino licensee may apply to the board for certification
under this subsection. If the board determines that a casino licensee that
makes an application under this subsection has been fully operational and in
compliance with its development agreement that is in existence on July 1, 2004
or a subsequent original development agreement, for at least 30 consecutive
days, the board shall certify the casino licensee under this subsection, and
the tax imposed on the casino licensee under subsection (5), as adjusted, if
applicable, by subsection (6), shall be, retroactive to the first day of the 30
consecutive day period that the casino licensee was fully operational, reduced
to 1% and must be allocated entirely to the city where the licensee operates
its casino.
(8) If the
McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to
432.47, is amended to allow the operation of video lottery at horse racetracks
in this state, and if video lottery is being conducted at horse racetracks in
this state, the casino licensee is no longer obligated to pay the wagering tax
under subsections (5) to (7).
(9) Notwithstanding section 9b, if the
McCauley-Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to
432.47, is amended to allow the operation of video lottery at horse racetracks
in this state, and if video lottery is being conducted at horse racetracks in
this state, a casino licensee may, after obtaining approval from the board,
apply to the racing commissioner for authorization to simulcast horse races
under the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336. A
casino licensee that is authorized under this subsection shall comply with all
applicable provisions of the horse racing law of 1995, 1995 PA 279, MCL 431.301
to 431.336, rules promulgated under that act, and the written permit to conduct
simulcasting and any related order issued to the casino licensee by the racing
commissioner. Simulcasting and wagering under this subsection are under the
primary control of the racing commissioner, and the racing commissioner may
revoke or suspend the authorization of or take other disciplinary action
against the casino licensee for failing to comply with a law, rule, permit, or
order as required by this subsection. However, the simulcasting and wagering
under this subsection is part of the licensee's casino operation under this act
and subject to the same control by the board as are other parts of the
licensee's casino operation. The board may take disciplinary action under
section 4a against a casino licensee for failure to comply with a law, rule,
permit, or order as required by this subsection.
(10) A casino licensee is entitled to the same commission
from money wagered on horse races simulcast by the licensee as a race meeting
licensee is entitled to receive from wagering on simulcast horse races under
the horse racing law of 1995, 1995 PA 279, MCL 431.301 to 431.336. The same
taxes, fees, and other deductions must be subtracted and paid from the
licensee's commission as are subtracted and paid from a race meeting licensee's
commission under the horse racing law of 1995, 1995 PA 279, MCL 431.301 to
431.336.
(9) (11) Payments
to a city under 1 of the methods in subsection (4) must be made in a manner, at
those times, and subject to reporting requirements and penalties and interest
for delinquent payment as may be provided for in the development agreement if
the payment is required under a development agreement, or by ordinance if the
payment is required for a tax levied by the city. Payments required under the
method described in subsection (4)(a) may be in addition to any other payments
that may be required in the development agreement for the conveyance of any
interest in property, the purchase of services, or the reimbursement of
expenses. Payments to a city under the method described in subsection (4) must
be used by the city for the purposes listed in subsection (3)(a).
(10) (12) Approval
by the city of a development agreement or adoption of an ordinance approving
either casino gaming or the levy of a local excise tax does not constitute the
granting of a franchise or license by the city for purposes of any statutory,
charter, or constitutional provision.
(11) (13) The taxes
imposed under this section and any tax imposed under section 13(2) must be
administered by the department of treasury in accordance with 1941 PA 122, MCL
205.1 to 205.31, and this act. In case of conflict between the provisions of
1941 PA 122, MCL 205.1 to 205.31, and this act, the provisions of this act
prevail.
(12) (14) Funds from
this act must not be used to supplant existing state appropriations or local
expenditures.
(13) (15) If
internet sports betting or other forms of internet gaming are authorized and
regulated by other laws of this state, any taxes, payments, and fees relating
to such internet wagers received by a casino licensee and such internet gaming
are subject to those other laws of this state.
(14) (16) Except as
otherwise provided in subsection (15), (13), and in lieu of the taxes and fees that otherwise
would be imposed under this act on sports betting, a wagering tax of 8.4% is
imposed on the qualified adjusted gross receipts received by a casino licensee
from any form of sports betting conducted under this act. Wagering taxes paid
under this subsection must be allocated as provided in subsection (3). As used
in this subsection:
(a) "Gross sports
betting receipts" means the total of all sums, including, but not limited
to, valid or invalid checks, valid or invalid credit or debit card deposits,
valid or invalid ACH deposits, currency, coupons, free play or promotional
credits, redeemable credits, vouchers, entry fees assessed for tournaments or
other contests, or instruments of monetary value whether collected or
uncollected, in each case actually wagered by a person authorized by law to
participate in sports betting at or with a casino licensee on sports betting,
less all of the following:
(i) Winnings.
(ii) Amounts returned to a person authorized by law to
participate in sports betting due to a game, platform, or system malfunction or
because the sports bet must be voided due to concerns regarding integrity of
the wager or game.
(iii) Uncollectible markers or successfully disputed credit or
debit card charges that were previously included in the computation of gross
sports betting receipts.
(b) "Qualified
adjusted gross receipts" means gross sports betting receipts minus the
monetary value of free play provided to and wagered by persons authorized by
law to participate in sports betting as an incentive to place or as a result of
their having placed sports betting wagers.
(15) (17) Notwithstanding
subsection (15), (13), if
a casino licensee provides a wagerer with a device to conduct internet gaming
while at the casino, the taxes otherwise provided for under subsections (1) to (14), (12), not to
exceed 19%, are imposed on the adjusted gross receipts received by the casino
licensee from the wagerer's internet gaming on the device. This subsection does
not apply to sports betting.
(16) (18) A casino
licensee shall provide to the board a monthly report to include all of the
following regarding its gaming operations under this act by game category, such
as slots, poker and table games, and sports betting by sport:
(a) Total amount of
wagers received.
(b) Winnings.
(c) Free play redeemed.
(d) Deductions.
(e) Adjusted gross
receipts.
(17) (19) The board
shall provide the report under subsection (18) (16) to the department and state budget office on
request. In addition, the department and the state budget office may request
additional information from the casino licensees that is directly related to,
and for the purposes of verification of, the financial data provided under
subsection (18)(a) and (b), (16)(a) and (b), which must be provided within 60 days
after the request. All information provided under this section is confidential
and proprietary and is exempt from disclosure under the freedom of information
act, 1976 PA 442, MCL 15.231 to 15.246.
(18) (20) This
section does not impair the contractual rights under an existing development
agreement between a city and a casino licensee.
(19) (21) As used in
this section:
(a) "Fully
operational" means that a certificate of occupancy has been issued to the
casino licensee for the operation of a hotel with not fewer than 400 guest
rooms and, after issuance of the certificate of occupancy, the casino
licensee's casino, casino enterprise, and 400-guest-room hotel have been opened
and made available for public use at their permanent location and maintained in
that status.
(b) "Michigan
agriculture equine industry development fund" means the Michigan
agriculture equine industry development fund created in section 20 of the horse
racing law of 1995, 1995 PA 279, MCL 431.320.
Enacting section 1.
Section 9b of the Michigan Gaming Control and Revenue Act, 1996 IL 1, MCL 432.209b,
is repealed.
Enacting section 2. This amendatory act does not
take effect unless all of the following bills of the 100th Legislature are
enacted into law:
(a) Senate Bill No. 661.
(b) Senate Bill No.____ or House Bill No. 6462
(request no. 07887'20).
(c) Senate Bill No.____ or House Bill No. 6463 (request no. 07889'20).
