SENATE BILL No. 236

 

 

March 21, 2019, Introduced by Senator BARRETT 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, 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

 

 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 bureau,

 

 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

 

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


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

 

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

 

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

 

 4  conditions are met:

 

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

 

 6  organization.

 

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

 

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

 

 9  a charitable purpose, organization, or cause.

 

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

 

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

 

12        (d) The organization complies with all other applicable

 

13  provisions of this act article and rules promulgated under this

 

14  act.article.

 

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

 

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

 

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

 

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

 

19  conditions are met:

 

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

 

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

 

22  a charitable purpose, organization, or cause.

 

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

 

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

 

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

 

26  other applicable provisions of this act article and the rules

 

27  promulgated under this act.article.


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

 

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

 

 3  license.

 

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

 

 5  transferable.

 

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

 

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

 

 8  are conducted in compliance with the applicable provisions of this

 

 9  act article and rules promulgated under this article.

 

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

 

11  shall only conduct events licensed under this act section during

 

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

 

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

 

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

 

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

 

16  national or state organization is a qualified organization, the

 

17  commissioner shall only consider whether the organization meets

 

18  requirements that are applicable under this act article that are

 

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

 

20  chapter of a national or state organization.

 

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

 

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

 

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

 

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

 

25  expenses incurred by the bureau in the administration and

 

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

 

27  initiation, implementation, and ongoing operation of any activity


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

 

 2  lottery fund.

 

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

 

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

 

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

 

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

 

 7  incurred by the executive director or board in the administration

 

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

 

 9  initiation, implementation, and ongoing operation of any activity

 

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

 

11  fund.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

19  deposited in the state general fund.

 

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

 

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

 

22  under this article must be devoted exclusively to the lawful

 

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

 

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

 

25  of an event except the following expenses in reasonable amounts

 

26  that the commissioner determines to be reasonable:

 

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


 1  conducting an event and payment of services reasonably necessary

 

 2  for the repair of equipment.

 

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

 

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

 

 5        (d) Janitorial services.

 

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

 

 7  to conduct the event.

 

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

 

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

 

10  commissioner.

 

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

 

12  3a(d)(ii) shall use the entire net proceeds of an event, after

 

13  paying items of expense incurred in reasonable amounts in

 

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

 

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

 

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

 

17  the component.

 

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

 

19  participate in the management of an event.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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


 1  supplier.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

12  will be used by the licensee.

 

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

 

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

 

15  tickets, or numeral game tickets to qualified organizations

 

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

 

17  bureau on a form prescribed by the commissioner.

 

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

 

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

 

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

 

21  12 midnight on September 30 of each year.

 

22        (4) The commissioner shall require suppliers authorized to

 

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

 

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

 

25  $1,000,000.00.

 

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

 

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


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

 

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

 

 3  charity game tickets sold.

 

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

 

 5  the licensed organization an invoice listing the manufacturer and

 

 6  serial number of each game.

 

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

 

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

 

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

 

10  1,000 tickets.

 

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

 

12  supplier for each numeral game sold shall be remitted under

 

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

 

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

 

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

 

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

 

17  remit the fees by the required filing date.

 

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

 

19  otherwise make available to a qualified organization numeral game

 

20  tickets that have been obtained from a manufacturer.

 

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

 

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

 

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

 

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

 

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

 

26  leasing of a facility used for an event.

 

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


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

 

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

 

 3  and numeral game tickets.

 

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

 

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

 

 6  personnel as necessary to implement this act.article.

 

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

 

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

 

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

 

10  act.article.

 

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

 

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

 

13  to 24.328, to implement this act.article.

 

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

 

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

 

16  licensee shall allow a representative authorized by the bureau to

 

17  inspect a record kept under this subsection and all financial

 

18  accounts into which proceeds from events licensed under this act

 

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

 

20  authorized representative of the bureau during reasonable business

 

21  hours.

 

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

 

23  commissioner a financial statement signed by the principal officer

 

24  of the qualified organization of receipts and expenses related to

 

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

 

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

 

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


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

 

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

 

 3  financial statement with the attorney general under the supervision

 

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

 

 5  14.266.

 

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

 

 7  authorized representative of the bureau or the department of state

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

15  hours.

 

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

 

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

 

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

 

19  bureau may have encountered, and recommendations for changes in

 

20  this act.

 

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

 

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

 

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

 

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

 

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

 

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

 

27  investigation, or public hearing.


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

 

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

 

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

 

 4  MCL 24.201 to 24.328.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

12  attendance in any such proceeding or hearing refuses, without

 

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

 

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

 

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

 

16  a being in contempt of the court.

 

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

 

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

 

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

 

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

 

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

 

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

 

23  by the bureau and the bingo hall licensee.

 

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

 

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

 

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

 

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


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

 

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

 

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

 

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

 

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

 

 6  promulgated under this act.

 

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

 

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

 

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

 

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

 

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

 

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

 

13  Michigan Compiled Laws, to fundraising fund-raising events

 

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

 

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

 

16  388 of the Public Acts of 1976.under the Michigan campaign finance

 

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

 

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

 

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

 

20  and 432.120, are repealed.

 

21        Enacting section 2. This amendatory act does not take effect

 

22  unless Senate Bill No. 237

 

23  of the 100th Legislature is enacted into law.