HB-4594, As Passed Senate, December 18, 2008

SUBSTITUTE FOR

HOUSE BILL NO. 4594

     A bill to amend 1972 PA 382, entitled

"Traxler-McCauley-Law-Bowman bingo act,"

by amending sections 2, 3, and 9 (MCL 432.102, 432.103, and

432.109), sections 2 and 9 as amended by 1999 PA 108 and section 3

as amended by 2006 PA 427.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2. As used in this act:

     (a) "Active service" and "active state service" mean those

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

PA 150, MCL 32.505.

     (b) (1) "Advertising" means all printed matter, handouts,

flyers, radio, television, advertising signs, billboards, and other

media used to promote an event licensed under this act.

(c) (2) "Bingo" means a game of chance commonly known as bingo

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

symbols conforming to numbers or symbols selected at random.

(d) (3) "Bureau" means the bureau of state lottery as created

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

act, 1972 PA 239, MCL 432.1 to 432.47 432.5.

(e) (4) "Charity game" means the random resale of a series of

charity game tickets.

(f) (5) "Charity game ticket" means a ticket commonly referred

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

and acquired by the bureau and is distributed and sold by the

bureau or a licensed supplier to a qualified organization, a

portion of which is removed to discover whether the ticket is a

winning ticket and whether the purchaser may be awarded a prize.

(g) (6) "Commissioner" means the commissioner of state lottery

as defined by section 3 appointed under section 7 of the McCauley-

Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.3

432.7.

(h) (7) "Coverall pattern" means a pattern required to win a

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

called.

     Sec. 3. As used in this act:

     (a) (1) "Educational organization" means an organization

within this state that is organized not for pecuniary profit, whose

primary purpose is educational in nature and designed to develop

the capabilities of individuals by instruction in any public or

private elementary or secondary school that complies with the

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

private or public college or university that is organized not for

pecuniary profit and that is approved by the state board of

education.

(b) (2) "Fraternal organization" means an organization within

this state, except a college fraternity or sorority, that is

organized not for pecuniary profit; that is a branch, lodge, or

chapter of a national or state organization; and that exists for

the common purpose, brotherhood, or other interests of its members.

(c) (3) "Licensee" means a person or qualified organization

licensed under this act.

(d) (4) "Member" means an individual who qualified for

membership in a qualified organization under its bylaws, articles

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

     (e) "Michigan national guard" and "military" mean those terms

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

150, MCL 32.505.

(f) (5) "Person" means a natural person, firm, association,

corporation, or other legal entity.

(g) (6) "Qualified organization" means, a subject to

subdivision (h), either of the following:

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

citizens, fraternal, or veterans' organization that operates

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

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

exempt from taxation under 26 USC 501(c). Qualified organization

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

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

Michigan national guard whose members are in active service or

active state service.

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

committee, political committee, political party committee, ballot

question committee, independent committee, or any other committee

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

act, 1976 PA 388, MCL 169.201 to 169.282.

(i) (7) "Religious organization" means any of the following:

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

that is organized not for pecuniary profit and that gathers in

common membership for mutual support and edification in piety,

worship, and religious observances.

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

pecuniary profit and that unites for religious purposes at a

definite place.

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

for pecuniary profit.

(j) (8) "Senior citizens organization" means an organization

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

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

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

the causes of elderly or retired persons.

(k) (9) "Service organization" means either of the following:

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

organization that is organized not for pecuniary profit and that is

authorized by its written constitution, charter, articles of

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

service purpose within the state.

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

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

organization; that is recognized by resolution adopted by the local

governmental subdivision in which the organization conducts its

principal activities; whose constitution, charter, articles of

incorporation, or bylaws contain a provision for the perpetuation

of the organization as a nonprofit organization; whose entire

assets are used for charitable purposes; and whose constitution,

charter, articles of incorporation, or bylaws contain a provision

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

to the benefit of the local governmental subdivision that granted

the resolution upon dissolution of the organization.

(l) (10) "Veterans' organization" means an organization within

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

state organization or of a national organization chartered by the

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

profit, the membership of which consists of individuals who were

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

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

entire net proceeds of an event shall be devoted exclusively to the

lawful purposes of the licensee. A licensee shall not incur or pay

an item of expense in connection with the holding, operating, or

conducting of an event except the following expenses in reasonable

amounts:

     (a) The purchase or rental of equipment necessary for

conducting an event and payment of services reasonably necessary

for the repair of equipment.

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

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

     (d) Janitorial services.

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

to conduct the event.

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

inconsistent with this act, as permitted by rule of the

commissioner.

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

shall use the entire net proceeds of an event, after paying items

of expense incurred in reasonable amounts in connection with the

holding, operating, or conducting of the event and listed in

subsection (1), only for the expense of training or purchasing

goods or services for the support of the activities of the

component.