HOUSE BILL No. 4330 February 13, 1997, Introduced by Reps. Varga, Fitzgerald, Anthony, Law, Scott, Profit and Agee and referred to the Committee on Regulatory Affairs. A bill to license and regulate the conducting of bingo and certain forms of gambling; to provide for the conducting of char- ity games and numeral games; to impose certain duties and author- ity upon certain state departments, agencies, and officers; to provide a tax exemption; to provide for remedies and penalties; and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 1. This act shall be known and may be cited as the 2 "charitable gaming act". 3 Sec. 2. (1) "Advertising" means all printed matter, hand- 4 outs, flyers, radio, television, advertising signs, billboards, 5 and other media used to promote an event licensed under this 6 act. 7 (2) "Bingo" means a game of chance commonly known as bingo 8 in which prizes are awarded on the basis of designated numbers or 01821'97 VPW 2 1 symbols on a card conforming to numbers or symbols selected at 2 random. 3 (3) "Bingo card" means a disposable or hard card that is 4 used in conjunction with a game of bingo to determine a winner. 5 Hard cards and disposable cards shall have printed on their face 6 a series number that has been assigned by the manufacturer. 7 Disposable cards shall have printed on their face a serial or 8 control number assigned by the manufacturer. 9 (4) "Bureau" means the bureau of state lottery created in 10 section 5 of the McCauley-Traxler-Law-Bowman-McNeely lottery act, 11 1972 PA 239, MCL 432.5. 12 (5) "Charitable purpose" means 1 or more of the following 13 causes, deeds, or activities that are beneficial to the general 14 public: 15 (a) Relief of poverty. 16 (b) Advancement of education. 17 (c) Advancement of religion. 18 (d) Protection of health or relief from disease, suffering, 19 or distress. 20 (e) Advancement of civic, governmental, or municipal 21 purposes. 22 (f) Protection of the environment and conservation of 23 wildlife. 24 (g) Defense of human rights and the elimination of prejudice 25 and discrimination. 26 (h) Any other purpose that the commissioner determines to be 27 beneficial to the general public. 01821'97 3 1 (6) "Charity game" means the random resale of a series of 2 charity game tickets. 3 (7) "Charity game ticket" means a ticket commonly referred 4 to as a break open ticket or pull-tab that is approved and 5 acquired by the bureau and is sold by the bureau or a licensed 6 supplier to a qualified organization, a portion of which is 7 removed to discover whether the ticket is a winning ticket and 8 whether the purchaser may be awarded a prize. 9 (8) "Commissioner" means the commissioner of the bureau of 10 state lottery. 11 (9) "Coverall" means a type of pattern required to win a 12 bingo game, where all numbers on a bingo card must be called. 13 (10) "Disposable bingo card" means a bingo card that is 14 designed to be disposed after 1 use. 15 Sec. 3. (1) "Educational organization" means a nonprofit 16 organization within this state whose primary purpose is educa- 17 tional in nature and is designed to develop the capabilities of 18 individuals by instruction in any public or private elementary or 19 secondary school and that complies with the revised school code, 20 1976 PA 451, MCL 380.1 to 380.1852, or any nonprofit private or 21 public college or university approved by the state board of 22 education. 23 (2) "Educational subordinate organization" means a nonprofit 24 organization within this state that has separate bylaws or a sep- 25 arate constitution and separately elected officers from the non- 26 profit parent educational organization and that is all of the 27 following: 01821'97 4 1 (a) Established exclusively to raise funds for activities 2 sponsored by the nonprofit parent educational organization. 3 (b) Directly under the control of the nonprofit parent edu- 4 cational organization. 5 (c) Authorized by the principal officer of the nonprofit 6 parent educational organization to conduct charitable gaming 7 events. 8 (d) An organization whose bylaws or constitution contains a 9 provision that upon dissolution of the organization all assets 10 and real and personal property of the organization shall be dis- 11 tributed to another nonprofit organization. 12 (3) "Equipment" means the objects and mechanical or electro- 13 mechanical devices used to determine or assist in determining the 14 winners of prizes at events licensed under this act. Equipment 15 does not include playing cards, dice, bingo chips, daubers, 16 objects used in determining winners in a licensed raffle, or 17 other items determined not to be equipment by the commissioner. 18 (4) "Event" means a licensed bingo, millionaire party, 19 raffle, charity game, or numeral game. 20 (5) "Fraternal organization" means a nonprofit organization 21 within this state, except a college fraternity or sorority, that 22 is a branch, lodge, or chapter of a national or state organiza- 23 tion and exists for a common purpose, brotherhood, sisterhood, or 24 other interests of its members and whose national, state, or 25 local bylaws, constitution, or articles of incorporation contain 26 a provision for the distribution of all assets and real and 01821'97 5 1 personal property of the local organization upon dissolution to 2 another nonprofit organization. 3 (6) "General public" means the society as a whole or a con- 4 siderable part thereof. 5 (7) "Hard bingo card" means a bingo card that is designed to 6 be used more than once. 7 (8) "Large bingo" means a series of bingo occasions that 8 occur on a regular basis during which the total value of all 9 prizes awarded through bingo at a single occasion does not exceed 10 $3,000.00 and the total value of all prizes awarded for 1 game 11 does not exceed $500.00, except that a prize awarded through a 12 Michigan progressive jackpot bingo game shall not be subject to 13 these limitations. 14 (9) "Large raffle" means an event where the total value of 15 all prizes awarded through raffle drawings exceed $500.00 per 16 occasion. 17 (10) "Lawful purpose" means 1 or more of the authorized pur- 18 poses that are stated in the qualified organization's written 19 constitution, charter, articles of incorporation, or bylaws and 20 that is on file with the bureau. 21 (11) "Licensee" means a qualified organization licensed 22 under this act. 23 (12) "Local civic organization" means a nonprofit organiza- 24 tion within this state, not affiliated with a state or national 25 organization that meets all of the following criteria: