SB-0035, As Passed Senate, December 20, 2018
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 35
[As Amended April 26, 2017]
[A bill to amend 1972 PA 382, entitled
"Traxler-McCauley-Law-Bowman bingo act,"
by amending sections 2, 3, 3a, 4, 4a, 8, 9, 10, 11b, 12, 13, 14,
15, 16, 17, and 19 (MCL 432.102, 432.103, 432.103a, 432.104,
432.104a, 432.108, 432.109, 432.110, 432.111b, 432.112, 432.113,
432.114, 432.115, 432.116, 432.117, and 432.119), sections 2 and 9 as
amended by 2008 PA 401, sections 3, 4a, and 12 as amended by 2012
PA 189, sections 3a, 8, 10, and 11b as amended by 2006 PA 427,
sections 4, 13, 14, 15, and 16 as amended by 1999 PA 108, and
section 19 as amended by 1995 PA 263, and by designating sections
1 to 20 as article 1; and to repeal acts and parts of acts.]
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1 ARTICLE 1
1 Sec. 2. As used in this act:
2 (a) "Active service" and "active state service" mean those
3 terms as defined in section 105 of the Michigan military act,
4 1967 PA 150, MCL 32.505.
5 (b) "Advertising" means all printed matter, handouts,
6 flyers, radio broadcasts, television
broadcasts, advertising
7 signs, billboards, and other media used to promote an event.
8 licensed under this act.
9 (c) "Bingo" means a game of chance commonly known as bingo
10 in which prizes are awarded on the basis of designated numbers or
11 symbols conforming to numbers or symbols selected at random.
12 (d) "Board" means the Michigan gaming control board created
13 by section 4 of the Michigan gaming control and revenue act, 1996
14 IL 1, MCL 432.204.
15 (e) (d) "Bureau"
means the bureau of state lottery as
16 created by section 5 of the McCauley-Traxler-Law-Bowman-McNeely
17 lottery act, 1972 PA 239, MCL 432.5.
18 (f) (e) "Charity
game" means the random resale of a series
19 of charity game tickets.
20 (g) (f) "Charity
game ticket" means a ticket commonly
21 referred to as a break-open ticket or pull-tab that is approved
22 and acquired by the bureau and is distributed and sold by the
23 bureau or a licensed supplier to a qualified organization, a
24 portion of which is removed to discover whether the ticket is a
25 winning ticket. and whether the purchaser may be awarded a
prize.
26 (h) (g) "Commissioner"
means the commissioner of state
27 lottery appointed under section 7 of the McCauley-Traxler-Law-
1 Bowman-McNeely lottery act, 1972 PA 239, MCL 432.7.
2 (i) (h) "Coverall
pattern" means a pattern required to win a
3 bingo game in which all numbers on a bingo card are required to
4 be called.
5 (j) "Educational organization" means an organization in this
6 state that is organized not for pecuniary profit, whose primary
7 purpose is educational in nature and designed to develop the
8 capabilities of individuals by instruction in any public or
9 private elementary or secondary school that complies with the
10 revised school code, 1976 PA 451, MCL 380.1 to 380.1852, or any
11 private or public college or university that is organized not for
12 pecuniary profit and that is approved by the state board of
13 education.
14 (k) "Equipment" means the objects and mechanical,
15 electromechanical, or electronic devices used to determine or
16 assist in determining the winners of prizes at an event.
17 (l) "Event" means, in article 1, an occasion of bingo games,
18 a raffle, a charity game, or a numeral game conducted under a
19 license issued under article 1, and in article 2, an occasion of
20 a millionaire party conducted under a license issued under
21 article 2.
22 (m) "Executive director" means the executive director of the
23 board, appointed under section 4 of the Michigan gaming control
24 and revenue act, 1996 IL 1, MCL 432.204.
25 (n) "Fraternal organization" means an organization in this
26 state, other than a college fraternity or sorority, that meets
27 all of the following criteria:
1 (i) Is organized not for pecuniary profit.
2 (ii) Is a branch, lodge, or chapter of a national or state
3 organization or, only for the purpose of conducting a small
4 raffle or a large raffle under this act, if not a branch, lodge,
5 or chapter of a national or state organization, is exempt from
6 taxation under section 501(c) of the internal revenue code of
7 1986, 26 USC 501.
8 (iii) Exists for the common purpose, brotherhood, or other
9 interests of its members.
10 Sec. 3. As used in this act:
11 (a) "Educational organization" means an organization
within
12 this state that is organized not for pecuniary profit, whose
13 primary purpose is educational in nature and designed to develop
14 the capabilities of individuals by instruction in any public or
15 private elementary or secondary school that complies with the
16 revised school code, 1976 PA 451, MCL 380.1 to 380.1852, or any
17 private or public college or university that is organized not for
18 pecuniary profit and that is approved by the state board of
19 education.
20 (b) "Fraternal organization" means an organization
within
21 this state, other than a college fraternity or sorority, that
22 meets all of the following criteria:
23 (i) Is
organized not for pecuniary profit.
24 (ii) Is a
branch, lodge, or chapter of a national or state
25 organization or, only for the purpose of conducting a small
26 raffle or a large raffle under this act, if not a branch, lodge,
27 or chapter of a national or state organization, is exempt from
1 taxation under section 501(c) of the internal revenue code of
2 1986, 26 USC 501.
3 (iii)
Exists for the common purpose, brotherhood, or other
4 interests of its members.
5 (a) "Large bingo" means a series of bingo occasions that
6 occur on a regular basis during which the total value of all
7 prizes awarded for bingo games at a single occasion does not
8 exceed $3,500.00 and the total value of all prizes awarded for 1
9 bingo game does not exceed $1,100.00, except that a prize awarded
10 through a Michigan progressive jackpot bingo game is not subject
11 to these limitations.
12 (b) "Large raffle" means an event where the total value of
13 all prizes awarded through raffle drawings exceeds $500.00 per
14 occasion.
15 (c) "Licensee" means a person, or
including a qualified
16 organization, licensed under this act.
17 (d) "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 includes all components or buildings that compose 1 architectural
21 entity or that serve a unified functional purpose.
22 (e) "Manufacturer" means a person licensed under section 11c
23 who manufactures numeral game tickets for sale to suppliers for
24 use in an event.
25 (f) (d) "Member"
means an individual who qualified for
26 membership in a qualified organization under its bylaws, articles
27 of incorporation, charter, rules, or other written statement.
1 (g) (e) "Michigan
national guard" and "military" mean those
2 terms as defined in section 105 of the Michigan military act,
3 1967 PA 150, MCL 32.505.
4 (f) "Person" means a natural person, firm, association,
5 corporation, or other legal entity.
6 (g) "Qualified organization" means, subject to
subdivision
7 (h), either of the following:
8 (i) A
bona fide religious, educational, service, senior
9 citizens, fraternal, or veterans' organization that operates
10 without profit to its members and that either has been in
11 existence continuously as an organization for a period of 5 years
12 or is exempt from taxation under section 501(c) of the internal
13 revenue code of 1986, 26 USC 501.
14 (ii) Only
for the purpose of conducting a small raffle or a
15 large raffle under this act, a component of the military or the
16 Michigan national guard whose members are in active service or
17 active state service.
18 (h) "Qualified organization" does not include a
candidate
19 committee, political committee, political party committee, ballot
20 question committee, independent committee, or any other committee
21 as defined by, and organized under, the Michigan campaign finance
22 act, 1976 PA 388, MCL 169.201 to 169.282.
23 (i) "Religious organization" means any of the
following:
24 (i) An
organization, church, body of communicants, or group
25 that is organized not for pecuniary profit and that gathers in
26 common membership for mutual support and edification in piety,
27 worship, and religious observances.
1 (ii) A
society of individuals that is organized not for
2 pecuniary profit and that unites for religious purposes at a
3 definite place.
4 (iii) A
church related private school that is organized not
5 for pecuniary profit.
6 (j) "Senior citizens organization" means an
organization
7 within this state that is organized not for pecuniary profit,
8 that consists of at least 15 members who are 60 years of age or
9 older, and that exists for their mutual support and for the
10 advancement of the causes of elderly or retired persons.
11 (k) "Service organization" means either of the
following:
12 (i) A
branch, lodge, or chapter of a national or state
13 organization that is organized not for pecuniary profit and that
14 is authorized by its written constitution, charter, articles of
15 incorporation, or bylaws to engage in a fraternal, civic, or
16 service purpose within the state.
17 (ii) A
local civic organization that is organized not for
18 pecuniary profit; that is not affiliated with a state or national
19 organization; that is recognized by resolution adopted by the
20 local governmental subdivision in which the organization conducts
21 its principal activities; whose constitution, charter, articles
22 of incorporation, or bylaws contain a provision for the
23 perpetuation of the organization as a nonprofit organization;
24 whose entire assets are used for charitable purposes; and whose
25 constitution, charter, articles of incorporation, or bylaws
26 contain a provision that all assets, real property, and personal
27 property shall revert to the benefit of the local governmental
1 subdivision that granted the resolution upon dissolution of the
2 organization.
3 (l)
"Veterans' organization" means an organization within
4 this state, or a branch, lodge, or chapter within this state of a
5 state organization or of a national organization chartered by the
6 congress of the United States, that is organized not for
7 pecuniary profit, the membership of which consists of individuals
8 who were members of the armed services or armed forces of the
9 United States. Veterans' organization includes an auxiliary of a
10 veterans' organization that is a national organization chartered
11 by the congress of the United States.
12 (h) "Michigan progressive jackpot" means a bingo game
13 conducted in conjunction with a licensed large bingo occasion in
14 which the value of the prize is carried forward to the next bingo
15 occasion if no player wins in a predetermined number of allowable
16 calls. Michigan progressive jackpot may include bingo games
17 conducted by more than 1 licensee that are linked together for
18 the purpose of a common jackpot prize and consolation prize as
19 prescribed by the commissioner.
20 (i) "Millionaire party" means an event at which wagers are
21 placed on games of chance customarily associated with a gambling
22 casino through the use of imitation money or chips that have a
23 nominal value equal to or greater than the value of the currency
24 for which they can be exchanged.
25 (j) "Numeral game" means the random resale of a series of
26 numeral game tickets.
27 (k) "Numeral game ticket" means a paper strip on which
1 preprinted numerals are covered by folding the strip and banding
2 the folded strip with a separate piece of paper, so that on
3 breaking the paper that bands the folding strip the purchaser
4 discovers whether the ticket is a winning ticket.
5 (l) "Occasion" means a single day for which a license to
6 conduct games is issued under this act.
7 Sec. 3a. (1) "Equipment" means the objects and
mechanical or
8 electromechanical devices used to determine or assist in
9 determining the winners of prizes at events licensed under this
10 act.
11 (2) "Event" means each occasion of a bingo, millionaire
12 party, raffle, charity game, or numeral game licensed under this
13 act.
14 (3) "Large bingo" means a series of bingo occasions
that
15 occur on a regular basis during which the total value of all
16 prizes awarded through bingo at a single occasion does not exceed
17 $3,500.00 and the total value of all prizes awarded for 1 game
18 does not exceed $1,100.00, except that a prize awarded through a
19 Michigan progressive jackpot bingo game is not subject to these
20 limitations.
21 (4) "Large raffle" means an event where the total value
of
22 all prizes awarded through raffle drawings exceed $500.00 per
23 occasion.
24 (5) "Location" means a building, enclosure, part of a
25 building or enclosure, or a distinct portion of real estate that
26 is used for the purpose of conducting events licensed under this
27 act. Location also means all components or buildings that
1 comprise 1 architectural entity or that serve a unified
2 functional purpose.
3 (6) "Manufacturer" means a person licensed under
section 11c
4 who manufactures numeral game tickets for sale to suppliers for
5 use in an event.
6 (7) "Michigan progressive jackpot" means a bingo game
7 conducted in conjunction with a licensed large bingo occasion,
8 where the value of the prize is carried forward to the next bingo
9 occasion if no player bingos in a predetermined number of
10 allowable calls. Michigan progressive jackpot may include bingo
11 games conducted by more than 1 licensee that are linked together
12 for the purpose of a common jackpot prize and consolation prize
13 as prescribed by the commissioner.
14 (8) "Millionaire party" means an event at which wagers
are
15 placed upon games of chance customarily associated with a
16 gambling casino through the use of imitation money or chips that
17 have a nominal value equal to or greater than the value of the
18 currency for which they can be exchanged.
19 (9) "Numeral game" means the random resale of a series
of
20 numeral game tickets by a qualified organization under a numeral
21 game license or in conjunction with a licensed millionaire party
22 or large raffle.
23 (10) "Numeral game ticket" means a paper strip on which
24 preprinted numerals are covered by folding the strip and banding
25 the folded strip with a separate piece of paper, if upon breaking
26 the paper strip that bands the ticket, the purchaser discovers
27 whether the ticket is a winning ticket and the purchaser may be
1 awarded a merchandise prize.
2 (11) "Occasion" means the hours of the day for which a
3 license is issued.As
used in this act:
4 (a) "Person" means an individual, firm, association,
5 corporation, or other legal entity.
6 (b) (12) "Principal
officer" means the highest ranking
7 officer of the qualified organization according to its written
8 constitution, charter, articles of incorporation, or bylaws.
9 (c) (13) "Prize"
means anything of value, including, but not
10 limited to, money or merchandise that is given to a player for
11 attending or winning a game at an event. A nonmonetary item is
12 valued at its retail value. Prize does not include advertising
13 material given away by a
qualified organization in accordance
14 with rules promulgated under this act.
15 (14) "Single gathering" means 1 scheduled assembly or
16 meeting with a specified beginning and ending time that is
17 conducted or sponsored by the qualified organization. Single
18 gathering does not include the regular operating hours of a club
19 or similar facility and does not include a meeting conducted
20 solely for the purpose of conducting a raffle.
21 (d) "Qualified organization" means, subject to subdivision
22 (e), either of the following:
23 (i) A bona fide religious, educational, service, senior
24 citizens, fraternal, or veterans' organization that operates
25 without profit to its members and that either has been in
26 existence continuously as an organization for a period of 5 years
27 or is exempt from taxation under section 501(c) of the internal
1 revenue code of 1986, 26 USC 501(c).
2 (ii) Only for the purpose of conducting a small raffle or a
3 large raffle under this act, a component of the military or the
4 Michigan national guard whose members are in active service or
5 active state service.
6 (e) "Qualified organization" does not include a candidate
7 committee, political committee, political party committee, ballot
8 question committee, independent committee, or any other committee
9 as defined by, and organized under, the Michigan campaign finance
10 act, 1976 PA 388, MCL 169.201 to 169.282.
11 (f) "Raffle" means an event for which raffle tickets are
12 sold and at which a winner or winners are determined, either by
13 randomly selecting stubs from all of the raffle tickets sold for
14 an event or by an alternative method that is approved in writing
15 by the bureau, and a preannounced prize is awarded.
16 (g) "Religious organization" means any of the following:
17 (i) An organization, church, body of communicants, or group
18 in this state that is organized not for pecuniary profit and that
19 gathers in common membership for mutual support and edification
20 in piety, worship, and religious observances.
21 (ii) A society of individuals in this state that is organized
22 not for pecuniary profit and that unites for religious purposes
23 at a definite place.
24 (iii) A church-related private school in this state that is
25 organized not for pecuniary profit.
26 (h) "Senior citizens organization" means an organization in
27 this state that is organized not for pecuniary profit, that
1 consists of at least 15 members who are 60 years of age or older,
2 and that exists for their mutual support and for the advancement
3 of the causes of elderly or retired persons.
4 (i) "Service organization" means either of the following:
5 (i) A branch, lodge, or chapter in this state of a national
6 or state organization that is organized not for pecuniary profit
7 and that is authorized by its written constitution, charter,
8 articles of incorporation, or bylaws to engage in a fraternal,
9 civic, or service purpose in this state.
10 (ii) A local civic organization in this state that is
11 organized not for pecuniary profit; that is not affiliated with a
12 state or national organization; that is recognized by resolution
13 adopted by the local governmental subdivision in which the
14 organization conducts its principal activities; whose
15 constitution, charter, articles of incorporation, or bylaws
16 contain a provision for the perpetuation of the organization as a
17 nonprofit organization; whose entire assets are used for
18 charitable purposes; and whose constitution, charter, articles of
19 incorporation, or bylaws contain a provision that all assets,
20 real property, and personal property must revert to the benefit
21 of the local governmental subdivision that granted the resolution
22 or another nonprofit organization on dissolution of the
23 organization.
24 (j) (15) "Small
bingo" means a series of bingo occasions
25 that occur on a regular basis during which the total value of all
26 prizes awarded through for
bingo games at a single occasion
does
27 not exceed $300.00 and the total value of all prizes awarded for
1 a single bingo game does not exceed $25.00.
2 (k) (16) "Small
raffle" means an event during which the
3 total value of all prizes awarded through raffle drawings does
4 not exceed $500.00 during 1 occasion.
5 (l) (17)
"Special bingo" means a
single or consecutive series
6 of bingo occasions during which the total value of all prizes
7 awarded through for
bingo games at a single occasion
does not
8 exceed $3,500.00 and the total value of all prizes awarded for a
9 single bingo game does not exceed $1,100.00.
10 (m) (18) "Supplier"
means a person licensed under this act
11 to rent, sell, or lease equipment or to sell charity game or
12 numeral game tickets to qualified organizations licensed under
13 this act.
14 (n) "Veterans' organization" means an organization in this
15 state, or a branch, lodge, or chapter in this state of a state
16 organization or of a national organization chartered by the
17 Congress of the United States, that is organized not for
18 pecuniary profit, the membership of which consists of individuals
19 who were members of the armed services or armed forces of the
20 United States. Veterans' organization includes an auxiliary of a
21 veterans' organization that is a national organization chartered
22 by the Congress of the United States.
23 Sec. 4. (1) Each An
applicant for a license to conduct a
24 bingo, millionaire party, raffle, charity game, or numeral game
25 event shall submit to the bureau a written application on a form
26 prescribed by the commissioner.
27 (2) The application shall under subsection (1) must include
1 all of the following:
2 (a) The name and address of the applicant organization.
3 (b) The name and address of each officer of the applicant
4 organization.
5 (c) The location at which the applicant will conduct the
6 event.
7 (d) The day or dates of the event.
8 (e) The member or members of the applicant organization who
9 will be responsible for the conduct of the event.
10 (f) Sufficient facts relating to the applicant's
11 incorporation or organization to enable the commissioner to
12 determine whether the applicant is a qualified organization.
13 (g) A sworn statement attesting to the nonprofit status of
14 the applicant organization, signed by the principal officer of
15 that the organization.
16 (h) Other information the commissioner considers necessary.
17 Sec. 4a. (1) Except as provided in subsections (2) and (3),
18 if the commissioner determines that the an applicant
under
19
section 4 is a qualified organization, and
is not ineligible
20 under section 18, and the applicant has paid to the bureau the
21 appropriate fee, the commissioner may issue 1 or more of the
22 following licenses:
|
23 |
License Fee |
||
|
24 |
(a) |
Large bingo.........................$ 150.00 |
|
|
25 |
(b) |
Small bingo.........................$ 55.00 |
|
|
26 |
(c) |
Special bingo.......................$ 25.00 |
|
|
27 |
|
|
|
1 |
(d) |
Large raffle........................$ 50.00 per |
|
|
2 |
drawing date |
||
|
3 |
(e) |
Small raffle: |
|
|
4 |
(i) |
One to 3 drawing dates..............$ 15.00 |
|
|
5 |
(ii) |
Four or more drawing dates..........$ 5.00 per |
|
|
6 |
drawing date |
||
|
7 |
(f) |
Annual charity game.................$ 200.00 |
|
|
8 |
(g) |
Special charity game................$ 15.00 per day |
|
|
9 |
(h) |
Numeral game........................$ 15.00 per day |
10 (2) Under extreme hardship conditions as determined by the
11 commissioner, the commissioner may waive 1 or more requirements
12 of for a person to be
a qualified organization described
in
13 section 3 under section
3a(d) to permit the licensing of a
14 special bingo , millionaire party, or raffle
event, if all of the
15 following conditions are met:
16 (a) The organization applying for the license is a nonprofit
17 organization.
18 (b) The entire proceeds of the event, less the actual
19 reasonable expense of conducting the event, are donated or used
20 for a charitable purpose, organization, or cause.
21 (c) None of the individuals connected with the conduct of
22 the event is compensated in any manner for his or her
23 participation.
24 (d) The organization complies with all other applicable
25 provisions of this act article
and rules promulgated under this
26 act.article.
27 (3) Under extreme hardship conditions as determined by the
1 commissioner, the commissioner may allow an individual or a group
2 of individuals to obtain a license to conduct a special bingo ,
3 millionaire party, event
or raffle if all of the following
4 conditions are met:
5 (a) The entire proceeds of the event, less the actual
6 reasonable expense of conducting the event, are donated or used
7 for a charitable purpose, organization, or cause.
8 (b) None of the individuals connected with the conduct of
9 the event is compensated in any manner for his or her
10 participation.
11 (c) The individual or group of individuals complies with all
12 other applicable provisions of this act article and
the rules
13 promulgated under this act.article.
14 (4) Each event license issued to a qualified organization
15 under this section is valid for only the location included on the
16 license.
17 (5) A license issued under this section is not assignable or
18 transferable.
19 (6) The A licensee is responsible for ensuring shall ensure
20 that the events conducted under a license issued under this
21 section are conducted in compliance with the applicable
22
provisions of this act article and
rules promulgated under this
23 article.
24 (7) A Except
as otherwise provided in this section, a
25 licensee shall only conduct events licensed under this act
26
section during the hours and on the day
and date or dates stated
27 on the license.
1 (8) In connection with an application for a small raffle
2 license or a large raffle license, in determining whether a
3 fraternal organization that is not a branch, lodge, or chapter of
4 a national or state organization is a qualified organization, the
5 commissioner shall only consider whether the organization meets
6 requirements that are applicable under this act article that
are
7 unrelated to whether the organization is a branch, lodge, or
8 chapter of a national or state organization.
9 Sec. 8. (1) All fees and revenue collected by the
10 commissioner or bureau under this act shall must be
paid into the
11 state lottery fund created under section 41 of the McCauley-
12 Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.41.
13 All necessary expenses incurred by the bureau in the
14 administration and enforcement of any activity authorized by this
15 act and in the initiation, implementation, and ongoing operation
16 of any activity authorized by this act shall must be
financed
17 from the state lottery fund.
18 (2) All fees and revenue collected by the executive director
19 or board under this act must be paid into the state lottery fund
20 created under section 41 of the McCauley-Traxler-Law-Bowman-
21 McNeely lottery act, 1972 PA 239, MCL 432.41. All necessary
22 expenses incurred by the executive director or board in the
23 administration and enforcement of any activity authorized by this
24 act and in the initiation, implementation, and ongoing operation
25 of any activity authorized by this act must be financed from the
26 state lottery fund.
27
(3) The amount of these necessary
expenses shall incurred
1 under subsections (1) and (2) must not exceed the amount of
2 revenues received from the sale of charity game tickets and all
3 fees collected under this act. At the end of each fiscal year all
4 money, including interest, in the state lottery fund which that
5 is attributable to fees and revenue collected under this act but
6 which that has not been expended under this section shall must be
7 deposited in the state general fund.
8 Sec. 9. (1) Except as provided in subsection (2), the entire
9 net proceeds of an event shall conducted under a license issued
10 under this article must be devoted exclusively to the lawful
11 purposes of the licensee. A licensee shall not incur or pay an
12 item of expense in connection with the holding, operating, or
13 conducting of an event except the following expenses in
14 reasonable amounts that the commissioner determines to be
15 reasonable:
16 (a) The purchase or rental of equipment necessary for
17 conducting an event and payment of services reasonably necessary
18 for the repair of equipment.
19 (b) Cash prizes or the purchase of prizes of merchandise.
20 (c) Rental of the location at which the event is conducted.
21 (d) Janitorial services.
22 (e) The fee required for issuance or reissuance of a license
23 to conduct the event.
24 (f) Other reasonable expenses incurred by the licensee, not
25 inconsistent with this act, article, as permitted by
rule of the
26 commissioner.
27 (2) A qualified organization described in section 3(g)(ii)
1 3a(d)(ii) shall use the entire net proceeds of an event, after
2 paying items of expense incurred in reasonable amounts in
3 connection with the holding, operating, or conducting of the
4 event and listed in subsection (1), only for the expense of
5 training or purchasing goods or services for the support of the
6 activities of the component.
7 Sec. 10. (1) Only a member of the qualified organization
8 shall participate in the management of an event.
9 (2) A person shall not receive any commission, salary, pay,
10 profit, or wage for participating in the management or operation
11 of a bingo
event, a millionaire party, a
raffle, or a charity
12 game except as provided by rule promulgated under this
13 act.article.
14 (3) Except by special permission of the commissioner, a
15 licensee shall conduct bingo or a millionaire party games only
16 with equipment that it owns, uses under a bureau-approved rental
17 contract, or is purchasing or renting at a reasonable rate from a
18 supplier.
19 (4) A licensee shall not advertise a bingo event except to
20 the extent and in the manner permitted by rule promulgated under
21 this act. article.
If the commissioner permits a licensee
to
22 advertise a bingo event, the licensee shall indicate in the
23 advertisement the purposes for which the net proceeds will be
24 used by the licensee.
25 (5) The holder of a millionaire party license shall not
26 advertise the event, except to the extent and in the manner
27 permitted by rule promulgated under this act. If the commissioner
1 permits a licensee to advertise the event, the licensee shall
2 indicate in the advertising the purposes for which the net
3 proceeds will be used by the licensee.
4 Sec. 11b. (1) Each An applicant for a license
or renewal of
5 a license to operate as a supplier of equipment, charity game
6 tickets, or numeral game tickets to qualified organizations
7 licensed under this act shall submit a written application to the
8 bureau on a form prescribed by the commissioner.
9 (2) The An applicant under
this section shall pay an annual
10 license fee of $300.00 at the time of the application.
11 (3) A supplier's license issued under this section expires
12 at 12 midnight on September 30 of each year.
13 (4) The commissioner shall require suppliers authorized to
14 sell charity game tickets, numeral game tickets, or both, to post
15 a performance bond of not less than $50,000.00 and not greater
16 than $1,000,000.00.
17 (5) A supplier shall remit to the bureau an amount equal to
18 the qualified organization's purchase price of the charity game
19 tickets less an amount that shall not be less than the sum of
20 $.008 for each ticket sold plus 1.0% of the total resale value
21 for all charity game tickets sold.
22 (6) For each numeral game sold, the supplier shall issue to
23 the licensed organization an invoice listing the manufacturer and
24 serial number of each game.
25 (7) The A
supplier shall collect a fee collected
by a
26 supplier from the a qualified
organization for each game of
27 numeral tickets sold shall be that equals $5.00 per 1,000
tickets
1 or any portion of 1,000 tickets.
2 (8) The A
supplier shall remit the fees collected
by the
3 supplier for each numeral game sold shall be remitted under
4 subsection (7) to the bureau by the fifteenth day of the month
5 following the month in which the numeral game is sold. A The
6
commissioner may assess a late fee of
25% of the amount due may
7 be assessed by the commissioner against any a supplier who fails
8 to remit the fees by the required filing date.
9 (9) A supplier shall only display, offer for sale, sell, or
10 otherwise make available to a qualified organization numeral game
11 tickets that have been obtained from a manufacturer.
12 (10) A person who is directly or indirectly connected to the
13 sale, rental, or distribution of bingo or millionaire party
14 equipment, or the sale of charity game tickets or numeral game
15 tickets, or a person residing in the same household as the
16 supplier shall not be involved directly or indirectly with the
17 rental or leasing of a facility used for an event.
18 (11) A supplier licensed under this section shall submit to
19 the bureau a report as required by the commissioner regarding the
20 sale or rental of equipment and the sale of charity game tickets
21 and numeral game tickets.
22 Sec. 12. (1) The bureau shall enforce and supervise the
23 administration of this act. article. The commissioner
shall
24 employ personnel as necessary to implement this act.article.
25 (2) The bureau may select fraternal organizations that are
26 not a branch, lodge, or chapter of a national or state
27 organization to audit to ensure that the organizations are in
1 compliance with this act.article.
2 Sec. 13. The commissioner shall promulgate rules pursuant to
3 the administrative procedures act of 1969, 1969 PA 306, MCL
4 24.201 to 24.328, to implement this act.article.
5 Sec. 14. (1) Each A
licensee under this article shall
keep a
6 record of each event as required by the commissioner. The A
7 licensee shall allow a representative authorized by the bureau to
8 inspect a record kept under this subsection and all financial
9 accounts into which proceeds from events licensed under this act
10 are deposited or transferred shall be open to inspection by a
11 duly authorized representative of the bureau during reasonable
12 business hours.
13 (2) Each A licensee under
this article shall file with the
14 commissioner a financial statement signed by the principal
15 officer of the qualified organization of receipts and expenses
16 related to the conduct of each event as may be required by rule
17 promulgated under this act. article. If the revenue from
a bingo,
18 game, millionaire party, raffle,
numeral game, or charity game
19 event is represented to be used or applied by a licensee under
20 this article for a charitable purpose, the licensee shall file a
21 copy of the financial statement with the attorney general under
22 the supervision of trustees for charitable purposes act, 1961 PA
23 101, MCL 14.251 to 14.266.
24 (3) The A
licensee under this article shall allow an
25 authorized representative of the bureau or the department of
26 state police or a law enforcement officer of a political
27
subdivision of this state to inspect the location
at which events
1 licensed under this act are conducted or at which an applicant or
2 licensee intends to conduct an event licensed under this act
3 shall be open to inspection at all times by a duly authorized
4 representative of the bureau or by the state police or a peace
5 officer of a political subdivision of this state.or an intended
6 location during business hours.
7 Sec. 15. Annually the The commissioner shall
report annually
8 to the governor and the legislature about the operation of events
9 licensed under this act within this state, article, abuses
that
10 the bureau may have encountered, and recommendations for changes
11 in this act.
12 Sec. 16. (1) The commissioner may deny, suspend, summarily
13 suspend, or revoke any a
license issued under this act article if
14 the licensee or an officer, director, agent, member, or employee
15 of the licensee violates this act article or a rule
promulgated
16 under this act. article.
The commissioner may summarily suspend
a
17 license for a period of not more than 60 days pending
18 prosecution, investigation, or public hearing.
19 (2) A proceeding to suspend or revoke a license shall be
20 considered under this
article is a contested case and
shall be
21 governed by the administrative procedures act of 1969, 1969 PA
22 306, MCL 24.201 to 24.328.
23 (3) Upon On petition of the commissioner, the circuit court
24 after a hearing may issue subpoenas to compel the attendance of
25 witnesses and the production of documents, papers, books,
26 records, and other evidence before it in a matter over which it
27 has jurisdiction, control, or supervision. If a person subpoenaed
1 to attend in any such proceeding or hearing fails to obey the
2 command of the subpoena without reasonable cause, or if a person
3 in attendance in any such proceeding or hearing refuses, without
4 lawful cause, to be examined or to answer a legal or pertinent
5 question or to exhibit a book, account, record, or other document
6 when ordered to do so by the court, that person may be punished
7 as a being in contempt of the court.
8 (4) With approval of the commissioner, a bingo hall
9 licensee, in lieu of a suspension of its license, may elect to
10 pay a fine equal to the amount of rent that would have been paid
11 by the bingo licensees during the period of the suspension. This
12
The bingo hall licensee shall pay this fine
shall be paid to the
13 bureau on or before the date agreed to in the suspension
14 agreement entered into by the bureau and the bingo hall licensee.
[Sec. 17. (1) A Except as otherwise provided in
subsections (2) and (3), a
person who wilfully willfully violates this act is guilty of a misdemeanor and shall be fined not
more than $1,000.00 or imprisoned punishable by imprisonment for not more than 6 months or a fine of not more than $1,000.00, or both.
(2) A person is guilty of a misdemeanor punishable by imprisonment for not more than 1 year or a fine of not more than $1,500.00, or both, for doing any of the following:
(a) Cheating at a charitable gambling game.
(b) Using millionaire party proceeds for something other than the lawful purpose of the organization.
(c) Knowingly making a wager if the person is less than 18 years of age or permitting a person less than 18 years of age to make a wager.
(d) Using chips not authorized for use at a millionaire party.
(e) Willfully failing to appear before or provide an item to the executive director at the time and place specified in a subpoena issued by the executive director.
(f) Willfully refusing, without just cause, to testify or provide items in an answer to a subpoena or subpoena duces tecum issued by the executive director.
(g) For a location owner or lessor, a shareholder of a privately held corporate-owned or leased location, partner, officer, agent, or employee of a lessor, or person residing in the same household as a location owner or lessor, shareholder of a privately held corporate-owned or leased location, partner, officer, or agent of a location owner where a millionaire party occurs, making or receiving a payment from any person, other than for the
preapproved payment of rent, for any aspect of a millionaire party. This
subdivision does not apply to the sale of food and drink.
(h) Conducting or permitting a person who is not licensed under this act to conduct activities required to be licensed under this act.
(3) A person is guilty of a misdemeanor punishable by imprisonment for not more than 2 years or a fine of not more than $2,500.00, or both, for doing any of the following:
(a) Knowingly making a false statement on an application for a license provided in this act.
(b) Knowingly making false statements, either orally or in writing, to the executive director or his or her authorized representatives.
(4) A person convicted under this section is ineligible to receive or maintain a license under this act.
(5) In addition to the fines described in this section, a person may be liable for a fine up to the amount of any illegal payments made or received in violation of this act.
(6) This section does not prohibit a person who violates this act from being charged with, convicted of, or punished for any other violation of law, including the Michigan penal code, 1931 PA 328, MCL 750.1 to 750.568, and the Michigan gaming control and revenue act, 1996 IL 1, MCL 432.201 to 432.226.]
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 under 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
fund-
5 raising events conducted by or for the benefit of a committee
6 that has filed or is required to file a statement of organization
7 pursuant to Act No. 388 of the Public Acts of 1976.under the
8 Michigan campaign finance act, 1976 PA 388, MCL 169.201 to
9 169.282.
10 Enacting section 1. Sections 10a, 10b, and 20 of the
11 Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.110a,
12 432.110b, and 432.120, are repealed.
13 Enacting section 2. This amendatory act does not take effect
14 unless House Bill No. 4081 of the 99th Legislature is enacted
15 into law.