HOUSE BILL No. 4755
May 7, 1997, Introduced by Reps. Hood, Cherry, Hanley and Kilpatrick and referred to the Committee on House Oversight and Ethics. A bill to amend the Initiated Law of 1996, entitled "Michigan gaming control and revenue act," by amending section 2 (MCL 432.202). THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 SEC. 2. Section 2. Definitions. AS USED IN THIS ACT: 2 (a) "Affiliate" means a person who, directly or indirectly, 3 through one or more intermediaries, controls, is controlled by or 4 is under common control with or is in a partnership or joint ven- 5 ture relationship with or is a co-shareholder of a corporation or 6 a co-member of a limited liability company with a proposed 7 casino gaming licensee AN APPLICANT. 8 (b) "Affiliated company" means any form of business organi- 9 zation which controls, is controlled by or is under common 10 control with or is in a partnership or joint venture relationship 11 with or is a co-shareholder of a corporation or a co-member of a 03242'97 * VPW 2 1 limited liability company with a proposed casino gaming 2 licensee AN APPLICANT. 3 (c) "Applicant" means any company , affiliate or affiliated 4 company that applies for a license to operate a casino. 5 (d) "Board" means the Michigan Gaming Control Board GAMING 6 CONTROL BOARD. 7 (e) "Casino" means a building in which gaming is conducted. 8 (f) "City" means a local unit of government other than a 9 county which meets all of the following criteria: 10 (i) (1) the city has HAS a population of at least 800,000 11 at the time a license is issued. ; 12 (ii) (2) the city is IS located within 100 miles of any 13 other state or country in which gaming is permitted. ; and 14 (iii) (3) a A majority of the ITS voters of the local 15 unit of government have expressed approval of casino gaming in 16 the city. 17 (g) "Company" means a sole proprietorship, corporation, 18 partnership, limited partnership, limited liability company, 19 trust, association, joint stock company, joint venture, tribal 20 corporation or other form of business organization COMPANY REG- 21 ISTERED PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934, 22 CHAPTER 404, 48 STAT. 881. 23 (h) "Control" means having a greater than 15% direct or 24 indirect pecuniary interest in the casino gaming operation with 25 respect to which the license is sought. 26 (i) "Department" means the Department of Treasury 27 DEPARTMENT OF TREASURY. 03242'97 * 3 1 (j) "Development Agreement AGREEMENT" means a written 2 agreement between a city and a company naming such company as 3 the designated AS THE developer of a casino in the city and 4 covering THAT COVERS certain subjects including, but not limited 5 to, : approval by the city of the location of the casino; cer- 6 tification by the city that the applicant has sufficient finan- 7 cial resources to construct and open the casino which it proposes 8 to develop; zoning and site plan requirements; utility connection 9 fees; infrastructure improvements; requirements to utilize local 10 businesses and small businesses as suppliers; employment issues; 11 compulsive behavior programs; insurance requirements; conceptual 12 design approval; reimbursement for traffic engineering and other 13 transportation costs; AND plans for completion of destination 14 attractions either within or outside the casino facility and 15 ancillary development rights. ; provided that, in no event, 16 shall the cost of all infrastructure and pre-development costs 17 exceed $6,000,000.00. 18 (k) "Game" means any game played with cards, dice, equipment 19 or machine (including any mechanical, electromechanical or elec- 20 tronic device which shall include computers and cashless wagering 21 systems) for money, or credit or any representative of value, 22 including, but not limited to, faro, monte, roulette, keno, 23 bingo, fan tan, twenty one, blackjack, seven and a half, klon- 24 dike, craps, poker, chuck a luck, Chinese chuck a luck (dai shu), 25 wheel of fortune, chemin de fer, baccarat, pai gow, beat the 26 banker, panguingui, slot machine, any banking or percentage game 27 or any other game or device approved by the board, but does not 03242'97 * 4 1 include games played with cards in private homes or residences in 2 which no person makes money for operating the game, except as a 3 player. 4 (l) "Gaming" means to deal, operate, carry on, conduct, 5 maintain or expose for play any game. 6 (m) "Gross Revenue REVENUE" means the total of all : 7 SUMS RECEIVED BY A CASINO LICENSEE, INCLUDING CHECKS, WHETHER OR 8 NOT COLLECTED, LESS THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS 9 AND A DEDUCTION FOR UNCOLLECTIBLE GAMING RECEIVABLES NOT TO 10 EXCEED THE LESSER OF A REASONABLE PROVISION FOR UNCOLLECTIBLE 11 PATRON CHECKS RECEIVED FROM GAMING OPERATIONS OR 4% OF THE TOTAL 12 OF ALL SUMS RECEIVED BY THE CASINO LICENSEE FROM GAMING OPERA- 13 TIONS INCLUDING CHECKS, WHETHER OR NOT COLLECTED, BUT NOT INCLUD- 14 ING THE AMOUNT PAID OUT AS WINNINGS. 15 (1) Cash received as winnings; 16 (2) Cash received in payment for credit extended by the 17 holder of the casino license to a patron for purposes of gaming; 18 and 19 (3) Compensation received for conducting any game in which 20 the licensee is not party to a wager, less the total of all cash 21 paid out as losses to patrons. For the purposes hereof, cash or 22 the value of noncash prizes awarded to patrons in a contest or 23 tournament are not losses. 24 "Gross Revenue" does not include: 25 (1) Counterfeit facsimiles of money, chips, tokens, wagering 26 instruments or wagering credits; 03242'97 * 5 1 (2) Coins of other countries which are received in gaming 2 devices; 3 (3) Any portion of the face value of any chip, token or 4 other representative of value won by the holder of a casino 5 license from a patron for which the holder of a casino license 6 can demonstrate that it or its affiliate or affiliated company 7 has not received cash; 8 (4) Cash taken in fraudulent acts perpetrated against the 9 holder of a casino license for which the licensee is not 10 reimbursed. 11 (5) Cash received as entry fees for contest or tournaments 12 in which patrons compete for prizes. 13 (n) "Occupational license" means a license issued by the 14 board to a person or entity to perform an occupation which the 15 board has identified as requiring a license to engage in casino 16 gaming in Michigan. 03242'97 * Final page. 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