SENATE BILL No. 35

 

 

January 18, 2017, Introduced by Senators JONES, HERTEL, O'BRIEN, HANSEN, HORN, MACGREGOR, MARLEAU and BIEDA 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, 12, 13, 14,

 

15, 16, 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, 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, by designating sections 1 to 20 as article 1, and by

 

adding article 2; 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


 1  terms as defined in section 105 of the Michigan military act, 1967

 

 2  PA 150, MCL 32.505.

 

 3        (b) "Advertising" means all printed matter, handouts, flyers,

 

 4  radio broadcasts, television broadcasts, advertising signs,

 

 5  billboards, and other media used to promote an event. licensed

 

 6  under this act.

 

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

 

 8  which prizes are awarded on the basis of designated numbers or

 

 9  symbols conforming to numbers or symbols selected at random.

 

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

 

11  section 4 of the Michigan gaming control and revenue act, 1996 IL

 

12  1, MCL 432.204.

 

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

 

14  by section 5 of the McCauley-Traxler-Law-Bowman-McNeely lottery

 

15  act, 1972 PA 239, MCL 432.5.

 

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

 

17  charity game tickets.

 

18        (g) (f) "Charity game ticket" means a ticket commonly referred

 

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

 

20  by the bureau and is distributed and sold by the bureau or a

 

21  licensed supplier to a qualified organization, a portion of which

 

22  is removed to discover whether the ticket is a winning ticket. and

 

23  whether the purchaser may be awarded a prize.

 

24        (h) (g) "Commissioner" means the commissioner of state lottery

 

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

 

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

 

27        (i) (h) "Coverall pattern" means a pattern required to win a


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

 

 2  called.

 

 3        (j) "Educational organization" means an organization in this

 

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

 

 5  purpose is educational in nature and designed to develop the

 

 6  capabilities of individuals by instruction in any public or private

 

 7  elementary or secondary school that complies with the revised

 

 8  school code, 1976 PA 451, MCL 380.1 to 380.1852, or any private or

 

 9  public college or university that is organized not for pecuniary

 

10  profit and that is approved by the state board of education.

 

11        (k) "Equipment" means the objects and mechanical,

 

12  electromechanical, or electronic devices used to determine or

 

13  assist in determining the winners of prizes at an event.

 

14        (l) "Event" means, in article 1, an occasion of bingo games, a

 

15  raffle, a charity game, or a numeral game conducted under a license

 

16  issued under article 1, and in article 2, an occasion of a

 

17  millionaire party conducted under a license issued under article 2.

 

18        (m) "Executive director" means the executive director of the

 

19  board, appointed under section 4 of the Michigan gaming control and

 

20  revenue act, 1996 IL 1, MCL 432.204.

 

21        (n) "Fraternal organization" means an organization in this

 

22  state, other than a college fraternity or sorority, that meets all

 

23  of the following criteria:

 

24        (i) Is organized not for pecuniary profit.

 

25        (ii) Is a branch, lodge, or chapter of a national or state

 

26  organization or, only for the purpose of conducting a small raffle

 

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


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

 

 2  taxation under section 501(c) of the internal revenue code of 1986,

 

 3  26 USC 501.

 

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

 

 5  interests of its members.

 

 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 this

 

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

 

18  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 raffle

 

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

 

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

 

24  taxation under section 501(c) of the internal revenue code of 1986,

 

25  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 occur

 

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

 

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

 

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

 

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

 

 6  a Michigan progressive jackpot bingo game is not subject to these

 

 7  limitations.

 

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

 

 9  prizes awarded through raffle drawings exceeds $500.00 per

 

10  occasion.

 

11        (c) "Licensee" means a person, or including a qualified

 

12  organization, licensed under this act.

 

13        (d) "Location" means a building, enclosure, part of a building

 

14  or enclosure, or a distinct portion of real property that is used

 

15  for the purpose of conducting an event. Location includes all

 

16  components or buildings that compose 1 architectural entity or that

 

17  serve a unified functional purpose.

 

18        (e) "Manufacturer" means a person licensed under section 11c

 

19  who manufactures numeral game tickets for sale to suppliers for use

 

20  in an event.

 

21        (f) (d) "Member" means an individual who qualified for

 

22  membership in a qualified organization under its bylaws, articles

 

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

 

24        (g) (e) "Michigan national guard" and "military" mean those

 

25  terms as defined in section 105 of the Michigan military act, 1967

 

26  PA 150, MCL 32.505.

 

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


 1  corporation, or other legal entity.

 

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

 

 3  (h), either of the following:

 

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

 

 5  citizens, fraternal, or veterans' organization that operates

 

 6  without profit to its members and that either has been in existence

 

 7  continuously as an organization for a period of 5 years or is

 

 8  exempt from taxation under section 501(c) of the internal revenue

 

 9  code of 1986, 26 USC 501.

 

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

 

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

 

12  Michigan national guard whose members are in active service or

 

13  active state service.

 

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

 

15  committee, political committee, political party committee, ballot

 

16  question committee, independent committee, or any other committee

 

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

 

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

 

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

 

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

 

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

 

22  common membership for mutual support and edification in piety,

 

23  worship, and religious observances.

 

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

 

25  pecuniary profit and that unites for religious purposes at a

 

26  definite place.

 

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


 1  for pecuniary profit.

 

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

 

 3  within 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 of

 

 6  the causes of elderly or retired persons.

 

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

 

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

 

 9  organization that is organized not for pecuniary profit and that is

 

10  authorized by its written constitution, charter, articles of

 

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

 

12  service purpose within the state.

 

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

 

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

 

15  organization; that is recognized by resolution adopted by the local

 

16  governmental subdivision in which the organization conducts its

 

17  principal activities; whose constitution, charter, articles of

 

18  incorporation, or bylaws contain a provision for the perpetuation

 

19  of the organization as a nonprofit organization; whose entire

 

20  assets are used for charitable purposes; and whose constitution,

 

21  charter, articles of incorporation, or bylaws contain a provision

 

22  that all assets, real property, and personal property shall revert

 

23  to the benefit of the local governmental subdivision that granted

 

24  the resolution upon dissolution of the organization.

 

25        (l) "Veterans' organization" means an organization within this

 

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

 

27  organization or of a national organization chartered by the


 1  congress of the United States, that is organized not for pecuniary

 

 2  profit, the membership of which consists of individuals who were

 

 3  members of the armed services or armed forces of the United States.

 

 4  Veterans' organization includes an auxiliary of a veterans'

 

 5  organization that is a national organization chartered by the

 

 6  congress of the United States.

 

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

 

 8  conducted in conjunction with a licensed large bingo occasion in

 

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

 

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

 

11  calls. Michigan progressive jackpot may include bingo games

 

12  conducted by more than 1 licensee that are linked together for the

 

13  purpose of a common jackpot prize and consolation prize as

 

14  prescribed by the commissioner.

 

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

 

16  placed on games of chance customarily associated with a gambling

 

17  casino through the use of imitation money or chips that have a

 

18  nominal value equal to or greater than the value of the currency

 

19  for which they can be exchanged.

 

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

 

21  numeral game tickets.

 

22        (k) "Numeral game ticket" means a paper strip on which

 

23  preprinted numerals are covered by folding the strip and banding

 

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

 

25  breaking the paper that bands the folding strip the purchaser

 

26  discovers whether the ticket is a winning ticket.

 

27        (l) "Occasion" means a single day for which a license to


 1  conduct games is issued under this act.

 

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

 

 3  electromechanical devices used to determine or assist in

 

 4  determining the winners of prizes at events licensed under this

 

 5  act.

 

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

 

 7  raffle, charity game, or numeral game licensed under this act.

 

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

 

 9  on a regular basis during which the total value of all prizes

 

10  awarded through bingo at a single occasion does not exceed

 

11  $3,500.00 and the total value of all prizes awarded for 1 game does

 

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

 

13  Michigan progressive jackpot bingo game is not subject to these

 

14  limitations.

 

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

 

16  prizes awarded through raffle drawings exceed $500.00 per occasion.

 

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

 

18  or enclosure, or a distinct portion of real estate that is used for

 

19  the purpose of conducting events licensed under this act. Location

 

20  also means all components or buildings that comprise 1

 

21  architectural entity or that serve a unified functional purpose.

 

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

 

23  who manufactures numeral game tickets for sale to suppliers for use

 

24  in an event.

 

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

 

26  conducted in conjunction with a licensed large bingo occasion,

 

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


 1  occasion if no player bingos in a predetermined number of allowable

 

 2  calls. Michigan progressive jackpot may include bingo games

 

 3  conducted by more than 1 licensee that are linked together for the

 

 4  purpose of a common jackpot prize and consolation prize as

 

 5  prescribed by the commissioner.

 

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

 

 7  placed upon games of chance customarily associated with a gambling

 

 8  casino through the use of imitation money or chips that have a

 

 9  nominal value equal to or greater than the value of the currency

 

10  for which they can be exchanged.

 

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

 

12  numeral game tickets by a qualified organization under a numeral

 

13  game license or in conjunction with a licensed millionaire party or

 

14  large raffle.

 

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

 

16  preprinted numerals are covered by folding the strip and banding

 

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

 

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

 

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

 

20  awarded a merchandise prize.

 

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

 

22  is issued.As used in this act:

 

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

 

24  corporation, or other legal entity.

 

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

 

26  of the qualified organization according to its written

 

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


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

 

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

 

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

 

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

 

 5  material given away by a qualified organization in accordance with

 

 6  rules promulgated under this act.

 

 7        (14) "Single gathering" means 1 scheduled assembly or meeting

 

 8  with a specified beginning and ending time that is conducted or

 

 9  sponsored by the qualified organization. Single gathering does not

 

10  include the regular operating hours of a club or similar facility

 

11  and does not include a meeting conducted solely for the purpose of

 

12  conducting a raffle.

 

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

 

14  (e), either of the following:

 

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

 

16  citizens, fraternal, or veterans' organization that operates

 

17  without profit to its members and that either has been in existence

 

18  continuously as an organization for a period of 5 years or is

 

19  exempt from taxation under section 501(c) of the internal revenue

 

20  code of 1986, 26 USC 501(c).

 

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

 

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

 

23  Michigan national guard whose members are in active service or

 

24  active state service.

 

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

 

26  committee, political committee, political party committee, ballot

 

27  question committee, independent committee, or any other committee


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

 

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

 

 3        (f) "Raffle" means an event for which raffle tickets are sold

 

 4  and at which a winner or winners are determined, either by randomly

 

 5  selecting stubs from all of the raffle tickets sold for an event or

 

 6  by an alternative method that is approved in writing by the board,

 

 7  and a preannounced prize is awarded.

 

 8        (g) "Religious organization" means any of the following:

 

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

 

10  this state that is organized not for pecuniary profit and that

 

11  gathers in common membership for mutual support and edification in

 

12  piety, worship, and religious observances.

 

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

 

14  not for pecuniary profit and that unites for religious purposes at

 

15  a definite place.

 

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

 

17  organized not for pecuniary profit.

 

18        (h) "Senior citizens organization" means an organization in

 

19  this state that is organized not for pecuniary profit, that

 

20  consists of at least 15 members who are 60 years of age or older,

 

21  and that exists for their mutual support and for the advancement of

 

22  the causes of elderly or retired persons.

 

23        (i) "Service organization" means either of the following:

 

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

 

25  state organization that is organized not for pecuniary profit and

 

26  that is authorized by its written constitution, charter, articles

 

27  of incorporation, or bylaws to engage in a fraternal, civic, or


 1  service purpose in this state.

 

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

 

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

 

 4  state or national organization; that is recognized by resolution

 

 5  adopted by the local governmental subdivision in which the

 

 6  organization conducts its principal activities; whose constitution,

 

 7  charter, articles of incorporation, or bylaws contain a provision

 

 8  for the perpetuation of the organization as a nonprofit

 

 9  organization; whose entire assets are used for charitable purposes;

 

10  and whose constitution, charter, articles of incorporation, or

 

11  bylaws contain a provision that all assets, real property, and

 

12  personal property must revert to the benefit of the local

 

13  governmental subdivision that granted the resolution or another

 

14  nonprofit organization on dissolution of the organization.

 

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

 

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

 

17  awarded through for bingo games at a single occasion does not

 

18  exceed $300.00 and the total value of all prizes awarded for a

 

19  single bingo game does not exceed $25.00.

 

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

 

21  value of all prizes awarded through raffle drawings does not exceed

 

22  $500.00 during 1 occasion.

 

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

 

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

 

25  awarded through for bingo games at a single occasion does not

 

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

 

27  single bingo game does not exceed $1,100.00.


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

 

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

 

 3  game tickets to qualified organizations licensed under this act.

 

 4        (n) "Veterans' organization" means an organization in this

 

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

 

 6  organization or of a national organization chartered by the

 

 7  Congress of the United States, that is organized not for pecuniary

 

 8  profit, the membership of which consists of individuals who were

 

 9  members of the armed services or armed forces of the United States.

 

10  Veterans' organization includes an auxiliary of a veterans'

 

11  organization that is a national organization chartered by the

 

12  Congress of the United States.

 

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

 

14  bingo, millionaire party, raffle, charity game, or numeral game

 

15  event shall submit to the bureau a written application on a form

 

16  prescribed by the commissioner.

 

17        (2) The application shall under subsection (1) must include

 

18  all of the following:

 

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

 

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

 

21  organization.

 

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

 

23  event.

 

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

 

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

 

26  will be responsible for the conduct of the event.

 

27        (f) Sufficient facts relating to the applicant's incorporation


 1  or organization to enable the commissioner to determine whether the

 

 2  applicant is a qualified organization.

 

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

 

 4  applicant organization, signed by the principal officer of that the

 

 5  organization.

 

 6        (h) Other information the commissioner considers necessary.

 

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

 

 8  the commissioner determines that the an applicant under section 4

 

 9  is a qualified organization, and is not ineligible under section

 

10  18, and the applicant has paid to the bureau the appropriate fee,

 

11  the commissioner may issue 1 or more of the following licenses:

 

 

12

License                                Fee

13

(a)

Large bingo.........................$ 150.00

14

(b)

Small bingo.........................$  55.00

15

(c)

Special bingo.......................$  25.00

16

(d)

Millionaire party...................$  50.00 per day

17

(d)(e)

Large raffle........................$  50.00 per

18

                                        drawing date

19

(e)(f)

Small raffle:

20

(i)

One to 3 drawing dates..............$  15.00

21

(ii)

Four or more drawing dates..........$   5.00 per

22

                                        drawing date

23

(f)(g)

Annual charity game.................$ 200.00

24

(g)(h)

Special charity game................$  15.00 per day

25

(h)(i)

Numeral game........................$  15.00 per day

 

 

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

 


 1  commissioner, the commissioner may waive 1 or more requirements of

 

 2  for a person to be a qualified organization described in section 3

 

 3  under section 3a(d) to permit the licensing of a special bingo ,

 

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

 

 5  conditions are met:

 

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

 

 7  organization.

 

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

 

 9  reasonable expense of conducting the event, are donated or used for

 

10  a charitable purpose, organization, or cause.

 

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

 

12  event is compensated in any manner for his or her participation.

 

13        (d) The organization complies with all other applicable

 

14  provisions of this act article and rules promulgated under this

 

15  act.article.

 

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

 

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

 

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

 

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

 

20  conditions are met:

 

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

 

22  reasonable expense of conducting the event, are donated or used for

 

23  a charitable purpose, organization, or cause.

 

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

 

25  event is compensated in any manner for his or her participation.

 

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

 

27  other applicable provisions of this act article and the rules


 1  promulgated under this act.article.

 

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

 

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

 

 4  license.

 

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

 

 6  transferable.

 

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

 

 8  that the events conducted under a license issued under this section

 

 9  are conducted in compliance with the applicable provisions of this

 

10  act article and rules promulgated under this article.

 

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

 

12  shall only conduct events licensed under this act section during

 

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

 

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

 

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

 

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

 

17  national or state organization is a qualified organization, the

 

18  commissioner shall only consider whether the organization meets

 

19  requirements that are applicable under this act article that are

 

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

 

21  chapter of a national or state organization.

 

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

 

23  or bureau under this act shall must be paid into the state lottery

 

24  fund created under section 41 of the McCauley-Traxler-Law-Bowman-

 

25  McNeely lottery act, 1972 PA 239, MCL 432.41. All necessary

 

26  expenses incurred by the bureau in the administration and

 

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


 1  initiation, implementation, and ongoing operation of any activity

 

 2  authorized by this act shall must be financed from the state

 

 3  lottery fund.

 

 4        (2) All fees and revenue collected by the executive director

 

 5  or board under this act must be paid into the state lottery fund

 

 6  created under section 41 of the McCauley-Traxler-Law-Bowman-McNeely

 

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

 

 8  incurred by the executive director or board in the administration

 

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

 

10  initiation, implementation, and ongoing operation of any activity

 

11  authorized by this act must be financed from the state lottery

 

12  fund.

 

13        (3) The amount of these necessary expenses shall incurred

 

14  under subsections (1) and (2) must not exceed the amount of

 

15  revenues received from the sale of charity game tickets and all

 

16  fees collected under this act. At the end of each fiscal year all

 

17  money, including interest, in the state lottery fund which that is

 

18  attributable to fees and revenue collected under this act but which

 

19  that has not been expended under this section shall must be

 

20  deposited in the state general fund.

 

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

 

22  net proceeds of an event shall conducted under a license issued

 

23  under this article must be devoted exclusively to the lawful

 

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

 

25  of expense in connection with the holding, operating, or conducting

 

26  of an event except the following expenses in reasonable amounts

 

27  that the commissioner determines to be reasonable:


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

 

 2  conducting an event and payment of services reasonably necessary

 

 3  for the repair of equipment.

 

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

 

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

 

 6        (d) Janitorial services.

 

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

 

 8  to conduct the event.

 

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

 

10  inconsistent with this act, article, as permitted by rule of the

 

11  commissioner.

 

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

 

13  3a(d)(ii) shall use the entire net proceeds of an event, after

 

14  paying items of expense incurred in reasonable amounts in

 

15  connection with the holding, operating, or conducting of the event

 

16  and listed in subsection (1), only for the expense of training or

 

17  purchasing goods or services for the support of the activities of

 

18  the component.

 

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

 

20  participate in the management of an event.

 

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

 

22  profit, or wage for participating in the management or operation of

 

23  a bingo event, a millionaire party, a raffle, or a charity game

 

24  except as provided by rule promulgated under this act.article.

 

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

 

26  licensee shall conduct bingo or a millionaire party games only with

 

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


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

 

 2  supplier.

 

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

 

 4  extent and in the manner permitted by rule promulgated under this

 

 5  act. article. If the commissioner permits a licensee to advertise a

 

 6  bingo event, the licensee shall indicate in the advertisement the

 

 7  purposes for which the net proceeds will be used by the licensee.

 

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

 

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

 

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

 

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

 

12  indicate in the advertising the purposes for which the net proceeds

 

13  will be used by the licensee.

 

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

 

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

 

16  tickets, or numeral game tickets to qualified organizations

 

17  licensed under this act article shall submit a written application

 

18  to the bureau on a form prescribed by the commissioner.

 

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

 

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

 

21        (3) A supplier's license issued under this section expires at

 

22  12 midnight on September 30 of each year.

 

23        (4) The commissioner shall require suppliers authorized to

 

24  sell charity game tickets, numeral game tickets, or both, to post a

 

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

 

26  $1,000,000.00.

 

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


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

 

 2  tickets less an amount that shall not be less than the sum of $.008

 

 3  for each ticket sold plus 1.0% of the total resale value for all

 

 4  charity game tickets sold.

 

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

 

 6  the licensed organization an invoice listing the manufacturer and

 

 7  serial number of each game.

 

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

 

 9  from the a qualified organization for each game of numeral tickets

 

10  sold shall be that equals $5.00 per 1,000 tickets or any portion of

 

11  1,000 tickets.

 

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

 

13  supplier for each numeral game sold shall be remitted under

 

14  subsection (7) to the bureau by the fifteenth day of the month

 

15  following the month in which the numeral game is sold. A The

 

16  commissioner may assess a late fee of 25% of the amount due may be

 

17  assessed by the commissioner against any a supplier who fails to

 

18  remit the fees by the required filing date.

 

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

 

20  otherwise make available to a qualified organization numeral game

 

21  tickets that have been obtained from a manufacturer.

 

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

 

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

 

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

 

25  tickets, or a person residing in the same household as the supplier

 

26  shall not be involved directly or indirectly with the rental or

 

27  leasing of a facility used for an event.


 1        (11) A supplier licensed under this section shall submit to

 

 2  the bureau a report as required by the commissioner regarding the

 

 3  sale or rental of equipment and the sale of charity game tickets

 

 4  and numeral game tickets.

 

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

 

 6  administration of this act. article. The commissioner shall employ

 

 7  personnel as necessary to implement this act.article.

 

 8        (2) The bureau may select fraternal organizations that are not

 

 9  a branch, lodge, or chapter of a national or state organization to

 

10  audit to ensure that the organizations are in compliance with this

 

11  act.article.

 

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

 

13  the administrative procedures act of 1969, 1969 PA 306, MCL 24.201

 

14  to 24.328, to implement this act.article.

 

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

 

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

 

17  licensee shall allow a representative authorized by the bureau to

 

18  inspect a record kept under this subsection and all financial

 

19  accounts into which proceeds from events licensed under this act

 

20  are deposited or transferred shall be open to inspection by a duly

 

21  authorized representative of the bureau during reasonable business

 

22  hours.

 

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

 

24  commissioner a financial statement signed by the principal officer

 

25  of the qualified organization of receipts and expenses related to

 

26  the conduct of each event as may be required by rule promulgated

 

27  under this act. article. If the revenue from a bingo, game,


 1  millionaire party, raffle, numeral game, or charity game event is

 

 2  represented to be used or applied by a licensee under this article

 

 3  for a charitable purpose, the licensee shall file a copy of the

 

 4  financial statement with the attorney general under the supervision

 

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

 

 6  14.266.

 

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

 

 8  authorized representative of the bureau or the department of state

 

 9  police or a law enforcement officer of a political subdivision of

 

10  this state to inspect the location at which events licensed under

 

11  this act are conducted or at which an applicant or licensee intends

 

12  to conduct an event licensed under this act shall be open to

 

13  inspection at all times by a duly authorized representative of the

 

14  bureau or by the state police or a peace officer of a political

 

15  subdivision of this state.or an intended location during business

 

16  hours.

 

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

 

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

 

19  licensed under this act within this state, article, abuses that the

 

20  bureau may have encountered, and recommendations for changes in

 

21  this act.

 

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

 

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

 

24  the licensee or an officer, director, agent, member, or employee of

 

25  the licensee violates this act article or a rule promulgated under

 

26  this act. article. The commissioner may summarily suspend a license

 

27  for a period of not more than 60 days pending prosecution,


 1  investigation, or public hearing.

 

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

 

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

 

 4  governed by the administrative procedures act of 1969, 1969 PA 306,

 

 5  MCL 24.201 to 24.328.

 

 6        (3) Upon On petition of the commissioner, the circuit court

 

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

 

 8  witnesses and the production of documents, papers, books, records,

 

 9  and other evidence before it in a matter over which it has

 

10  jurisdiction, control, or supervision. If a person subpoenaed to

 

11  attend in any such proceeding or hearing fails to obey the command

 

12  of the subpoena without reasonable cause, or if a person in

 

13  attendance in any such proceeding or hearing refuses, without

 

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

 

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

 

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

 

17  a being in contempt of the court.

 

18        (4) With approval of the commissioner, a bingo hall licensee,

 

19  in lieu of a suspension of its license, may elect to pay a fine

 

20  equal to the amount of rent that would have been paid by the bingo

 

21  licensees during the period of the suspension. This The bingo hall

 

22  licensee shall pay this fine shall be paid to the bureau on or

 

23  before the date agreed to in the suspension agreement entered into

 

24  by the bureau and the bingo hall licensee.

 

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

 

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

 

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


 1  charity game; who sells or possesses equipment used in conducting a

 

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

 

 3  a millionaire party, or a charity game to be conducted on his or

 

 4  her premises; or who does other acts in connection with a raffle,

 

 5  bingo, a millionaire party, or a charity game does not apply to

 

 6  that conduct if done pursuant to under this act or rules

 

 7  promulgated under this act.

 

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

 

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

 

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

 

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

 

12  section 41 of Act No. 388 of the Public Acts of 1976, being section

 

13  the Michigan campaign finance act, 1976 PA 388, MCL 169.241, of the

 

14  Michigan Compiled Laws, to fundraising fund-raising events

 

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

 

16  required to file a statement of organization pursuant to Act No.

 

17  388 of the Public Acts of 1976.under the Michigan campaign finance

 

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

 

19                            ARTICLE 2

 

20        Sec. 32. (1) As used in this article:

 

21        (a) "Bona fide member" means a member who participates in the

 

22  qualified organization to further its lawful purposes and the

 

23  spouse of such a member.

 

24        (b) "Dealer" means an individual who does any of the following

 

25  in a millionaire party game:

 

26        (i) Performs the act of dealing.

 

27        (ii) Assists in supervising the dealers.


 1        (iii) Provides technical advice to the millionaire party

 

 2  chairperson.

 

 3        (c) "Demarcated area" means the physical area in which gaming

 

 4  is conducted at an event.

 

 5        (d) "Lawful purpose" means 1 or more of the authorized

 

 6  purposes stated in the qualified organization's written bylaws,

 

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

 

 8  file with the executive director.

 

 9        (e) "Lessor" means a person who rents a location to a

 

10  millionaire party licensee for the purpose of conducting an event.

 

11        (f) "Location owner" means the person that owns a location or

 

12  an employee or agent of the person.

 

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

 

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

 

15  differently in this article.

 

16        Sec. 33. (1) An applicant for a license to conduct a

 

17  millionaire party shall submit to the executive director a written

 

18  application on a form prescribed by the executive director.

 

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

 

20  the following:

 

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

 

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

 

23        (c) The name of each individual who will serve as a dealer at

 

24  the event and, as to each individual, whether the individual has

 

25  been convicted of, forfeited bond on a charge of, or pled guilty to

 

26  any of the following:

 

27        (i) A felony.


 1        (ii) A gambling offense.

 

 2        (iii) Criminal fraud.

 

 3        (iv) Forgery.

 

 4        (v) Larceny.

 

 5        (vi) Filing a false report with a governmental agency.

 

 6        (d) The location at which the applicant will conduct the

 

 7  event.

 

 8        (e) A description of the demarcated area for the event and an

 

 9  explanation of how the demarcated area will be marked.

 

10        (f) The dates of the event.

 

11        (g) Sufficient facts relating to the applicant's incorporation

 

12  or organization to enable the executive director to determine

 

13  whether the applicant is a qualified organization.

 

14        (h) A sworn statement attesting to the nonprofit status of the

 

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

 

16        (i) Other information the executive director considers

 

17  necessary.

 

18        Sec. 34. (1) If the executive director determines that an

 

19  applicant for a millionaire party license is a qualified

 

20  organization and that both of the following apply, the executive

 

21  director shall issue a millionaire party license to the applicant:

 

22        (a) The applicant has paid to the executive director a fee of

 

23  $50.00 per day that the applicant proposes to conduct the

 

24  millionaire party.

 

25        (b) There is no reason to deny the issuance of the license

 

26  under section 18.

 

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


 1  executive director, the executive director may waive 1 or more of

 

 2  the requirements under section 3a(d) for a person to be a qualified

 

 3  organization and issue a millionaire party license to the person if

 

 4  all of the following conditions are met:

 

 5        (a) The person is a nonprofit organization.

 

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

 

 7  reasonable expense of conducting the event, are donated or used for

 

 8  a charitable purpose, organization, or cause.

 

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

 

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

 

11  participation.

 

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

 

13  provisions of this article and rules promulgated under this

 

14  article.

 

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

 

16  executive director, the executive director may allow an individual

 

17  or a group of individuals to obtain a license to conduct a

 

18  millionaire party if all of the following conditions are met:

 

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

 

20  reasonable expense of conducting the event, are donated or used for

 

21  a charitable purpose, organization, or cause.

 

22        (b) None of the individuals connected with the management of

 

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

 

24  participation.

 

25        (c) The individual or group of individuals has complied and

 

26  will comply with all other provisions of this article and the rules

 

27  promulgated under this article.


 1        (4) A qualified organization may be issued up to 4 millionaire

 

 2  party licenses in 1 calendar year. Each license is valid for only 1

 

 3  location as stated on the license.

 

 4        (5) A millionaire party license may be issued for up to 4

 

 5  consecutive days.

 

 6        (6) The executive director shall not issue more than 1

 

 7  millionaire party license to a qualified organization for any 1

 

 8  day.

 

 9        (7) The executive director shall not issue millionaire party

 

10  licenses that would allow more than 2 events to be conducted at a

 

11  location on the same date.

 

12        (8) The executive director shall not issue millionaire party

 

13  licenses that would allow more than 4 events to be conducted at a

 

14  location in 1 week.

 

15        (9) A millionaire party license must state that for each day

 

16  on which the millionaire party is to be conducted, the licensee may

 

17  conduct gaming under the license between the hours of 8 a.m. on

 

18  that day and 2 a.m. on the following day.

 

19        Sec. 35. (1) A millionaire party licensee shall comply with

 

20  this article and the rules promulgated under this article.

 

21        (2) A millionaire party licensee shall comply with the terms

 

22  and requirements of the license.

 

23        (3) A millionaire party license is not assignable or

 

24  transferrable, and a licensee shall not assign or transfer a

 

25  millionaire party license.

 

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

 

27  event if the advertising complies with rules promulgated under this


 1  article.

 

 2        (2) An advertisement under this section must state the

 

 3  purposes for which the proceeds from the event will be used.

 

 4        Sec. 37. (1) A millionaire party licensee shall not enter into

 

 5  an agreement with a location owner or lessor unless the agreement

 

 6  is expressed in a written rental agreement that is approved by the

 

 7  executive director.

 

 8        (2) A location owner or lessor, a partner, member, director,

 

 9  officer, agent, or employee of a location owner or lessor, a

 

10  shareholder of a privately held corporation that is a location

 

11  owner or lessor, or a person residing in the same household as any

 

12  of these shall not do any of the following:

 

13        (a) Be an officer of a qualified organization conducting a

 

14  millionaire party at the location.

 

15        (b) Participate as a player in any event being conducted at

 

16  the location.

 

17        (c) Participate in any aspect of an event being conducted at

 

18  the location, including providing dealers, equipment, or workers,

 

19  unless all of the following conditions exist:

 

20        (i) The location is owned or rented by a qualified

 

21  organization and used by the qualified organization on a continual

 

22  basis for the regular use of its members.

 

23        (ii) The qualified organization is the millionaire party

 

24  licensee and is conducting the event.

 

25        (iii) The executive director has granted a waiver for the

 

26  participation.

 

27        Sec. 38. A millionaire party licensee shall only conduct an


 1  event with equipment that it owns, rents from another qualified

 

 2  organization under a rental agreement approved by the executive

 

 3  director, or purchases or rents from a supplier.

 

 4        Sec. 39. (1) A millionaire party licensee shall use only the

 

 5  following as dealers at an event:

 

 6        (a) A bona fide member.

 

 7        (b) An employee of a supplier.

 

 8        (2) An individual shall not act as a dealer if the individual

 

 9  has been convicted of, forfeited bond on a charge of, or pled

 

10  guilty to any of the following offenses:

 

11        (a) A felony.

 

12        (b) A gambling offense.

 

13        (c) Criminal fraud.

 

14        (d) Forgery.

 

15        (e) Larceny.

 

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

 

17        (3) An individual who is not listed as a dealer on the

 

18  application for a millionaire party license shall not act as a

 

19  dealer at an event conducted under the license.

 

20        (4) A millionaire party licensee shall ensure that the dealers

 

21  at an event conducted under the license comply with this article,

 

22  rules promulgated under this article, and any directives of the

 

23  executive director.

 

24        Sec. 40. (1) At least 2 bona fide members of the millionaire

 

25  party licensee, not including any bona fide member acting as a

 

26  dealer, must be present at all times during an event.

 

27        (2) If fewer than 2 bona fide members are present at any time


 1  during an event, the millionaire party licensee shall immediately

 

 2  report this to the executive director. The executive director may

 

 3  require the licensee to stop conducting the event.

 

 4        (3) One of the bona fide members listed on the application for

 

 5  the millionaire party license shall act as the millionaire party

 

 6  chairperson. An individual shall not serve as chairperson of

 

 7  millionaire parties conducted by more than 1 qualified organization

 

 8  during a calendar year.

 

 9        (4) A bona fide member of a millionaire party licensee who is

 

10  present at the event shall wear a vest, button, or other

 

11  distinctive apparel to identify the bona fide member as a member of

 

12  the millionaire party licensee and as not being an employee or

 

13  agent of the location owner, lessor, or supplier.

 

14        (5) Unless permitted by this act, a rule promulgated under

 

15  this article, or written authorization of the executive director,

 

16  only a bona fide member of the millionaire party licensee may

 

17  perform any of the following duties at an event conducted under the

 

18  license:

 

19        (a) Monitoring a game or verifying that the game is conducted

 

20  in conformance with the rules of the game.

 

21        (b) Verifying the age of a player.

 

22        (6) A bona fide member of a millionaire party licensee shall

 

23  not play a game at an event at which the bona fide member is

 

24  working or assisting.

 

25        (7) A bona fide member of a millionaire party licensee shall

 

26  not share in a prize awarded at an event at which the bona fide

 

27  member is working or assisting.


 1        (8) A bona fide member of a millionaire party licensee shall

 

 2  not purchase, play, or accept a charity game ticket or numeral game

 

 3  ticket offered for sale by the licensee at an event at which the

 

 4  bona fide member is working or assisting.

 

 5        (9) A bona fide member of a millionaire party licensee shall

 

 6  not split a prize with a player or accept a tip of any kind at an

 

 7  event conducted under the license, unless the tip is a cash tip

 

 8  given to the bona fide member for serving as a dealer at the event.

 

 9        Sec. 41. (1) A millionaire party licensee shall ensure that an

 

10  event conducted under the license is conducted in compliance with

 

11  this article and the rules promulgated under this article.

 

12        (2) A millionaire party licensee shall post the license so

 

13  that it is conspicuously visible at the location where the event is

 

14  being conducted at all times during the event.

 

15        (3) A millionaire party licensee shall not conduct gaming

 

16  under the license anywhere outside of the demarcated area approved

 

17  by the executive director.

 

18        (4) A millionaire party licensee shall ensure that access to

 

19  the demarcated area is controlled.

 

20        (5) A millionaire party licensee shall not allow an individual

 

21  who is less than 18 years old to enter the demarcated area when

 

22  gaming is being conducted there.

 

23        (6) If alcoholic beverages are served at an event, an

 

24  individual in the demarcated area who is 18 years old or older but

 

25  less than 21 years old must be identified by wearing a mark

 

26  indicating that a member or agent of the millionaire party licensee

 

27  has verified the individual's age and identification.


 1        (7) A millionaire party licensee shall not allow wagering at

 

 2  an event held under the license other than wagering on a game of

 

 3  chance that takes place at the location during the event. The

 

 4  licensee shall not allow a wager to be placed at the event on an

 

 5  athletic event or a game involving personal skill.

 

 6        (8) A millionaire party licensee shall not receive more than

 

 7  $20,000.00 in exchange for imitation money or chips on any day

 

 8  under the license. However, if the licensee conducts the

 

 9  millionaire party without using dealers from a supplier and owns

 

10  the location at which the millionaire party is held and if the

 

11  license is for fewer than 4 days of gaming, the daily limit under

 

12  this subsection is determined by dividing $80,000.00 by the number

 

13  of days of gaming allowed under the license.

 

14        Sec. 42. (1) A millionaire party licensee shall not pay an

 

15  expense related to an event unless all of the following apply:

 

16        (a) The expense is incurred in connection with the conduct of

 

17  the event.

 

18        (b) The expense is necessary and reasonable and falls into 1

 

19  of the following categories of expense:

 

20        (i) The purchase or rental of equipment necessary for

 

21  conducting the event and payment of services reasonably necessary

 

22  for the repair of equipment.

 

23        (ii) Cash prizes or the purchase of prizes of merchandise.

 

24        (iii) Rental of the location at which the event is conducted.

 

25        (iv) Janitorial services.

 

26        (v) The fee required for issuance or reissuance of a license

 

27  to conduct the event.


 1        (vi) Other reasonable expenses incurred by the licensee, not

 

 2  inconsistent with this act, as permitted by rule promulgated under

 

 3  this article.

 

 4        (c) The expense is itemized.

 

 5        (d) The expense is approved by the executive director in

 

 6  writing before the event.

 

 7        (2) A millionaire party licensee shall not accept any

 

 8  compensation in connection with an event unless the compensation is

 

 9  expressly authorized by this article or a rule promulgated under

 

10  this article.

 

11        (3) A millionaire party licensee shall not expend more than

 

12  45% of the gross profit from an event to pay expenses incurred in

 

13  connection with the event.

 

14        (4) A person shall not accept any commission, salary, pay,

 

15  profit, or wage for participating in the management or operation of

 

16  a millionaire party except as allowed under a rule promulgated

 

17  under this article.

 

18        Sec. 43. (1) A millionaire party licensee shall keep a record

 

19  of each event as required by the executive director.

 

20        (2) The millionaire party licensee shall allow an authorized

 

21  representative of the executive director to inspect during

 

22  reasonable business hours a record kept under subsection (1) and

 

23  all financial accounts into which proceeds from the event are

 

24  deposited or transferred.

 

25        (3) A millionaire party licensee shall file with the executive

 

26  director a financial statement signed by the principal officer of

 

27  the qualified organization. The financial statement must contain a


 1  list of the qualified members of the millionaire party licensee who

 

 2  were present as to each event and a disclosure of receipts and

 

 3  expenses related to the conduct of each event as required by rule

 

 4  promulgated under this article. If the revenue from a millionaire

 

 5  party is represented to be used or applied by a millionaire party

 

 6  licensee for a charitable purpose, the licensee shall file a copy

 

 7  of the financial statement with the attorney general under the

 

 8  supervision of trustees for charitable purposes act, 1961 PA 101,

 

 9  MCL 14.251 to 14.266.

 

10        (4) A millionaire party licensee and a location owner or

 

11  lessee shall allow an authorized representative of the executive

 

12  director or the state police or a peace officer of a political

 

13  subdivision in which the event is being conducted to inspect the

 

14  location, or an intended location, during business hours.

 

15        Sec. 46. (1) A person that applies for a license or renewal of

 

16  a license to operate as a supplier to millionaire party licensees

 

17  shall submit a written application to the executive director on a

 

18  form prescribed by the executive director.

 

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

 

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

 

21        (3) If an applicant under this section wishes to provide

 

22  dealers to millionaire party licensees, the applicant shall include

 

23  with its application a list containing the name of each individual

 

24  who will work for the applicant as a dealer at millionaire parties

 

25  and, as to each individual, whether the individual has been

 

26  convicted of, forfeited bond on a charge of, or pled guilty to any

 

27  of the following:


 1        (a) A felony.

 

 2        (b) A gambling offense.

 

 3        (c) Criminal fraud.

 

 4        (d) Forgery.

 

 5        (e) Larceny.

 

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

 

 7        (4) If, after the application is submitted as described in

 

 8  subsection (1) or after the suppliers license is issued, there are

 

 9  any changes in the individuals who will work for the supplier as

 

10  dealers at millionaire parties, the applicant or supplier shall

 

11  immediately provide an updated list containing all of the

 

12  information required under subsection (3).

 

13        (5) A supplier licensed under this section shall submit to the

 

14  executive director reports as required by the executive director

 

15  regarding the supplier's activities under this article.

 

16        (6) A supplier's license expires at 12 midnight on September

 

17  30 of each year.

 

18        Sec. 48. (1) The executive director shall enforce and

 

19  supervise the administration of this article. The executive

 

20  director shall employ personnel as necessary to implement this

 

21  article.

 

22        (2) The executive director may select fraternal organizations

 

23  that conduct millionaire parties and that are not a branch, lodge,

 

24  or chapter of a national or state organization to audit to ensure

 

25  that the organizations are in compliance with this act.

 

26        Sec. 49. (1) Any rules promulgated by the executive director

 

27  under this act before the effective date of the amendatory act that


 1  added this article are rescinded.

 

 2        (2) The executive director shall promulgate rules pursuant to

 

 3  the administrative procedures act of 1969, 1969 PA 306, MCL 24.201

 

 4  to 24.328, to implement this article.

 

 5        Sec. 50. (1) The executive director may deny, suspend,

 

 6  summarily suspend, or revoke a license issued under this article if

 

 7  the licensee or an officer, director, agent, member, or employee of

 

 8  the licensee violates this article or a rule promulgated under this

 

 9  article. The executive director may summarily suspend a license for

 

10  a period of not more than 60 days pending prosecution,

 

11  investigation, or public hearing.

 

12        (2) A proceeding to suspend or revoke a license is a contested

 

13  case and must be conducted in accordance with the administrative

 

14  procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.

 

15        (3) On petition of the executive director, the circuit court

 

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

 

17  witnesses and the production of documents, papers, books, records,

 

18  and other evidence before it in a matter over which the executive

 

19  director has jurisdiction, control, or supervision under this

 

20  article. If a person subpoenaed to attend in any such proceeding or

 

21  hearing fails to obey the command of the subpoena without

 

22  reasonable cause, or if a person in attendance in any such

 

23  proceeding or hearing refuses, without lawful cause, to be examined

 

24  or to answer a legal or pertinent question or to exhibit a book,

 

25  account, record, or other document when ordered to do so by the

 

26  court, the person may be punished as being in contempt of the

 

27  court.


 1        Sec. 51. The executive director shall report annually to the

 

 2  governor and the legislature about the operation of events licensed

 

 3  under this article, abuses that the executive director may have

 

 4  encountered, and recommendations for changes in this act.

 

 5        Enacting section 1. Sections 10a, 10b, and 20 of the Traxler-

 

 6  McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.110a, 432.110b,

 

 7  and 432.120, are repealed.