Bill Text: MI HB6339 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Gaming; bingo and charitable gaming; bingo act; amend to reflect renaming of lottery bureau and change in title of lottery commissioner. Amends secs. 2, 3, 3a, 4, 4a, 5, 5c, 7a, 7b, 7d, 8, 9, 10, 10b, 11a, 11b, 11c, 12, 13, 14, 15 & 16 of 1972 PA 382 (MCL 432.102 et seq.). TIE BAR WITH: HB 6341'10

Spectrum: Strong Partisan Bill (Democrat 12-1)

Status: (Introduced - Dead) 2010-07-28 - Printed Bill Filed 07/22/2010 [HB6339 Detail]

Download: Michigan-2009-HB6339-Introduced.html

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HOUSE BILL No. 6339

 

July 21, 2010, Introduced by Reps. Roy Schmidt, Slezak, Melton, Terry Brown, Spade, Kandrevas, Scripps, Corriveau, Green, Haugh, Hammel, Dean and Meadows 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, 5, 5c, 7a, 7b, 7d, 8, 9,

 

10, 10b, 11a, 11b, 11c, 12, 13, 14, 15, and 16 (MCL 432.102,

 

432.103, 432.103a, 432.104, 432.104a, 432.105, 432.105c,

 

432.107a, 432.107b, 432.107d, 432.108, 432.109, 432.110,

 

432.110b, 432.111a, 432.111b, 432.111c, 432.112, 432.113,

 

432.114, 432.115, and 432.116), sections 2 and 9 as amended by

 

2008 PA 401, section 3 as amended by 2009 PA 41, sections 3a, 5,

 

5c, 8, 10, and 11b as amended by 2006 PA 427, and sections 4, 7a,

 

12, 13, 14, 15, and 16 as amended and sections 4a, 7b, 7d, 10b,

 

11a, and 11c as added by 1999 PA 108.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

 1        Sec. 2. As used in this act:

 

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

 

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

 

 4  1967 PA 150, MCL 32.505.

 

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

 

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

 

 7  other media used to promote an event licensed under this act.

 

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

 

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

 

10  symbols conforming to numbers or symbols selected at random.

 

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

 

12  section 5 of the McCauley-Traxler-Law-Bowman-McNeely lottery act,

 

13  1972 PA 239, MCL 432.5.

 

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

 

15  of charity game tickets.

 

16        (e) (f) "Charity game ticket" means a ticket commonly

 

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

 

18  and acquired by the bureau corporation and is distributed and

 

19  sold by the bureau corporation or a licensed supplier to a

 

20  qualified organization, a portion of which is removed to discover

 

21  whether the ticket is a winning ticket and whether the purchaser

 

22  may be awarded a prize.

 

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

 

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

 

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

 

26        (f) "Chief executive officer" or "CEO" means the head of the

 

27  corporation appointed under section 7 of the McCauley-Traxler-

 

 1  Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.7.

 

 2        (g) "Corporation", unless the context clearly indicates

 

 3  otherwise, means the Michigan education lottery corporation

 

 4  created under section 5 of the McCauley-Traxler-Law-Bowman-

 

 5  McNeely lottery act, 1972 PA 239, MCL 432.5.

 

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

 

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

 

 8  be called.

 

 9        (i) "Educational organization" means an organization within

 

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

 

11  primary purpose is educational in nature and designed to develop

 

12  the capabilities of individuals by instruction in any public or

 

13  private elementary or secondary school that complies with the

 

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

 

15  private or public college or university that is organized not for

 

16  pecuniary profit and that is approved by the state board of

 

17  education.

 

18        (j) "Equipment" means the objects and mechanical or

 

19  electromechanical devices used to determine or assist in

 

20  determining the winners of prizes at events licensed under this

 

21  act.

 

22        (k) "Event" means each occasion of a bingo, millionaire

 

23  party, raffle, charity game, or numeral game licensed under this

 

24  act.

 

25        (l) "Fraternal organization" means an organization within

 

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

 

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

 

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

 

 2  the common purpose, brotherhood, or other interests of its

 

 3  members.

 

 4        Sec. 3. As used in this act:

 

 5        (a) "Educational organization" means an organization within

 

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

 

 7  primary purpose is educational in nature and designed to develop

 

 8  the capabilities of individuals by instruction in any public or

 

 9  private elementary or secondary school that complies with the

 

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

 

11  private or public college or university that is organized not for

 

12  pecuniary profit and that is approved by the state board of

 

13  education.

 

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

 

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

 

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

 

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

 

18  the common purpose, brotherhood, or other interests of its

 

19  members.

 

20        (a) "Large bingo" means a series of bingo occasions that

 

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

 

22  prizes awarded through bingo at a single occasion does not exceed

 

23  $3,500.00 and the total value of all prizes awarded for 1 game

 

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

 

25  Michigan progressive jackpot bingo game is not subject to these

 

26  limitations.

 

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

 

 1  all prizes awarded through raffle drawings exceed $500.00 per

 

 2  occasion.

 

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

 

 4  licensed under this act.

 

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

 

 6  building or enclosure, or a distinct portion of real estate that

 

 7  is used for the purpose of conducting events licensed under this

 

 8  act. Location also means all components or buildings that

 

 9  comprise 1 architectural entity or that serve a unified

 

10  functional purpose.

 

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

 

12  who manufactures numeral game tickets for sale to suppliers for

 

13  use in an event.

 

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

 

15  membership in a qualified organization under its bylaws, articles

 

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

 

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

 

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

 

19  1967 PA 150, MCL 32.505.

 

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

 

21  conducted in conjunction with a licensed large bingo occasion,

 

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

 

23  occasion if no player bingos in a predetermined number of

 

24  allowable calls. Michigan progressive jackpot may include bingo

 

25  games conducted by more than 1 licensee that are linked together

 

26  for the purpose of a common jackpot prize and consolation prize

 

27  as prescribed by the CEO.

 

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

 

 2  placed upon games of chance customarily associated with a

 

 3  gambling casino through the use of imitation money or chips that

 

 4  have a nominal value equal to or greater than the value of the

 

 5  currency for which they can be exchanged.

 

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

 

 7  numeral game tickets by a qualified organization under a numeral

 

 8  game license or in conjunction with a licensed millionaire party

 

 9  or large raffle.

 

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

 

11  preprinted numerals are covered by folding the strip and banding

 

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

 

13  breaking the paper strip that bands the ticket, the purchaser

 

14  discovers whether the ticket is a winning ticket and the

 

15  purchaser may be awarded a merchandise prize.

 

16        (l) "Occasion" means the hours of the day for which a license

 

17  is issued.

 

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

 

19  corporation, or other legal entity.

 

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

 

21  (h), either of the following:

 

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

 

23  citizens, fraternal, or veterans' organization that operates

 

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

 

25  existence continuously as an organization for a period of 5 years

 

26  or is exempt from taxation under 26 USC 501(c).

 

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

 

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

 

 2  Michigan national guard whose members are in active service or

 

 3  active state service.

 

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

 

 5  committee, political committee, political party committee, ballot

 

 6  question committee, independent committee, or any other committee

 

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

 

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

 

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

 

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

 

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

 

12  common membership for mutual support and edification in piety,

 

13  worship, and religious observances.

 

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

 

15  pecuniary profit and that unites for religious purposes at a

 

16  definite place.

 

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

 

18  for pecuniary profit.

 

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

 

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

 

21  that consists of at least 15 members who are 60 years of age or

 

22  older, and that exists for their mutual support and for the

 

23  advancement of the causes of elderly or retired persons.

 

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

 

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

 

26  organization that is organized not for pecuniary profit and that

 

27  is authorized by its written constitution, charter, articles of

 

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

 

 2  service purpose within the state.

 

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

 

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

 

 5  organization; that is recognized by resolution adopted by the

 

 6  local governmental subdivision in which the organization conducts

 

 7  its principal activities; whose constitution, charter, articles

 

 8  of incorporation, or bylaws contain a provision for the

 

 9  perpetuation of the organization as a nonprofit organization;

 

10  whose entire assets are used for charitable purposes; and whose

 

11  constitution, charter, articles of incorporation, or bylaws

 

12  contain a provision that all assets, real property, and personal

 

13  property shall revert to the benefit of the local governmental

 

14  subdivision that granted the resolution upon dissolution of the

 

15  organization.

 

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

 

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

 

18  state organization or of a national organization chartered by the

 

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

 

20  pecuniary profit, the membership of which consists of individuals

 

21  who were members of the armed services or armed forces of the

 

22  United States. Veterans' organization includes an auxiliary of a

 

23  veterans' organization that is a national organization chartered

 

24  by the congress of the United States.

 

25        (n) "Principal officer" means the highest ranking officer of

 

26  the qualified organization according to its written constitution,

 

27  charter, articles of incorporation, or bylaws.

 

 1        (o) "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

 

 6  with rules promulgated under this act.

 

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

 

 8  electromechanical devices used to determine or assist in

 

 9  determining the winners of prizes at events licensed under this

 

10  act.

 

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

 

12  party, raffle, charity game, or numeral game licensed under this

 

13  act.

 

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

 

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

 

16  prizes awarded through bingo at a single occasion does not exceed

 

17  $3,500.00 and the total value of all prizes awarded for 1 game

 

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

 

19  Michigan progressive jackpot bingo game is not subject to these

 

20  limitations.

 

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

 

22  all prizes awarded through raffle drawings exceed $500.00 per

 

23  occasion.

 

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

 

25  building or enclosure, or a distinct portion of real estate that

 

26  is used for the purpose of conducting events licensed under this

 

27  act. Location also means all components or buildings that

 

 1  comprise 1 architectural entity or that serve a unified

 

 2  functional purpose.

 

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

 

 4  who manufactures numeral game tickets for sale to suppliers for

 

 5  use in an event.

 

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

 

 7  conducted in conjunction with a licensed large bingo occasion,

 

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

 

 9  occasion if no player bingos in a predetermined number of

 

10  allowable calls. Michigan progressive jackpot may include bingo

 

11  games conducted by more than 1 licensee that are linked together

 

12  for the purpose of a common jackpot prize and consolation prize

 

13  as prescribed by the commissioner.

 

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

 

15  placed upon games of chance customarily associated with a

 

16  gambling casino through the use of imitation money or chips that

 

17  have a nominal value equal to or greater than the value of the

 

18  currency for which they can be exchanged.

 

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

 

20  numeral game tickets by a qualified organization under a numeral

 

21  game license or in conjunction with a licensed millionaire party

 

22  or large raffle.

 

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

 

24  preprinted numerals are covered by folding the strip and banding

 

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

 

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

 

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

 

 1  awarded a merchandise prize.

 

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

 

 3  license is issued.

 

 4        (12) "Principal officer" means the highest ranking officer

 

 5  of the qualified organization according to its written

 

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

 

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

 

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

 

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

 

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

 

11  material given away by a qualified organization in accordance

 

12  with rules promulgated under this act.As used in this act:

 

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

 

14  (b), 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

 

18  existence continuously as an organization for a period of 5 years

 

19  or is exempt from taxation under 26 USC 501(c).

 

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

 

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

 

22  Michigan national guard whose members are in active service or

 

23  active state service.

 

24        (b) "Qualified organization" does not include a candidate

 

25  committee, political committee, political party committee, ballot

 

26  question committee, independent committee, or any other committee

 

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

 

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

 

 2        (c) "Religious organization" means any of the following:

 

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

 

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

 

 5  common membership for mutual support and edification in piety,

 

 6  worship, and religious observances.

 

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

 

 8  pecuniary profit and that unites for religious purposes at a

 

 9  definite place.

 

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

 

11  for pecuniary profit.

 

12        (d) "Senior citizens organization" means an organization

 

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

 

14  that consists of at least 15 members who are 60 years of age or

 

15  older, and that exists for their mutual support and for the

 

16  advancement of the causes of elderly or retired persons.

 

17        (e) "Service organization" means either of the following:

 

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

 

19  organization that is organized not for pecuniary profit and that

 

20  is authorized by its written constitution, charter, articles of

 

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

 

22  service purpose within this state.

 

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

 

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

 

25  organization; that is recognized by resolution adopted by the

 

26  local governmental subdivision in which the organization conducts

 

27  its principal activities; whose constitution, charter, articles

 

 1  of incorporation, or bylaws contain a provision for the

 

 2  perpetuation of the organization as a nonprofit organization;

 

 3  whose entire assets are used for charitable purposes; and whose

 

 4  constitution, charter, articles of incorporation, or bylaws

 

 5  contain a provision that all assets, real property, and personal

 

 6  property shall revert to the benefit of the local governmental

 

 7  subdivision that granted the resolution upon dissolution of the

 

 8  organization.

 

 9        (f) (14) "Single gathering" means 1 scheduled assembly or

 

10  meeting with a specified beginning and ending time that is

 

11  conducted or sponsored by the qualified organization. Single

 

12  gathering does not include the regular operating hours of a club

 

13  or similar facility and does not include a meeting conducted

 

14  solely for the purpose of conducting a raffle.

 

15        (g) (15) "Small bingo" means a series of bingo occasions

 

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

 

17  prizes awarded through bingo at a single occasion does not exceed

 

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

 

19  bingo game does not exceed $25.00.

 

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

 

21  total value of all prizes awarded through raffle drawings does

 

22  not exceed $500.00 during 1 occasion.

 

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

 

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

 

25  prizes awarded through bingo at a single occasion does not exceed

 

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

 

27  bingo game does not exceed $1,100.00.

 

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

 

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

 

 3  numeral game tickets to qualified organizations licensed under

 

 4  this act.

 

 5        (k) "Veterans' organization" means an organization within

 

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

 

 7  state organization or of a national organization chartered by the

 

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

 

 9  pecuniary profit, the membership of which consists of individuals

 

10  who were members of the armed services or armed forces of the

 

11  United States. Veterans' organization includes an auxiliary of a

 

12  veterans' organization that is a national organization chartered

 

13  by the congress of the United States.

 

14        Sec. 4. (1) Each applicant for a license to conduct a bingo,

 

15  millionaire party, raffle, charity game, or numeral game shall

 

16  submit to the bureau corporation a written application on a form

 

17  prescribed by the commissioner CEO.

 

18        (2) The An application submitted under subsection (1) shall

 

19  include all of the following:

 

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

 

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

 

22  organization.

 

23        (c) The location at which where the applicant will conduct

 

24  the event.

 

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

 

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

 

27  will be responsible for the conduct of conducting the event.

 

 1        (f) Sufficient facts relating to the applicant's

 

 2  incorporation or organization to enable the commissioner CEO to

 

 3  determine whether the applicant is a qualified organization.

 

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

 

 5  the applicant, organization, signed by the principal officer of

 

 6  that organization the applicant.

 

 7        (h) Other information the commissioner CEO considers

 

 8  necessary.

 

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

 

10  if the commissioner CEO determines that the an applicant under

 

11  section 4 is a qualified organization and is not ineligible under

 

12  section 18 and the applicant has paid to the bureau the

 

13  appropriate fee to the corporation, the commissioner CEO may

 

14  issue 1 or more of the following licenses:

 

 

15              License  Fee

16       (a)   Large bingo.........................$ 150.00

17       (b)   Small bingo.........................$ 55.00

18       (c)   Special bingo.......................$ 25.00

19       (d)   Millionaire party...................$ 50.00 per day

20       (e)   Large raffle........................$ 50.00 per

21             drawing date

22       (f)   Small raffle:

23       (i)    One to 3 drawing dates..............$ 15.00

24       (ii)    Four or more drawing dates..........$ 5.00 per

25             drawing date

26       (g)   Annual charity game.................$ 200.00

27       (h)   Special charity game................$ 15.00 per day

1        (i)   Numeral game........................$ 15.00 per day

 

 

 2        (2) Under If the CEO determines that an extreme hardship

 

 3  conditions as determined by the commissioner exists, the

 

 4  commissioner CEO may waive 1 or more requirements of a qualified

 

 5  organization described in section 3 to permit the licensing of 3a

 

 6  and issue a license to conduct special bingo, a millionaire

 

 7  party, or a raffle, if all of the following conditions are met:

 

 8        (a) The organization applying for the license applicant is a

 

 9  nonprofit organization.

 

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

 

11  reasonable expense of conducting the event, are donated or used

 

12  for a charitable purpose, organization, or cause.

 

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

 

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

 

15  participation.

 

16        (d) The organization applicant complies with all other

 

17  provisions of this act and rules promulgated under this act.

 

18        (3) Under If the CEO determines that an extreme hardship

 

19  conditions as determined by the commissioner exists, the

 

20  commissioner CEO may allow an individual or a group of

 

21  individuals to obtain issue a license to conduct a special bingo,

 

22  a millionaire party, or a raffle if all of the following

 

23  conditions are met:

 

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

 

25  reasonable expense of conducting the event, are donated or used

 

26  for a charitable purpose, organization, or cause.

 

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

 

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

 

 3  participation.

 

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

 

 5  other provisions of this act and the rules promulgated under this

 

 6  act.

 

 7        (4) Each event license issued to a qualified organization is

 

 8  valid for only the location included on the license.

 

 9        (5) A license is not assignable or transferable.

 

10        (6) The licensee is responsible for ensuring that the events

 

11  are conducted in compliance with this act and the rules

 

12  promulgated under this act.

 

13        (7) A licensee shall only conduct events licensed under this

 

14  act during the hours and on the day and date or dates stated on

 

15  the license.

 

16        Sec. 5. (1) A large or small bingo license may be reissued

 

17  annually upon the submitting on submission of an application for

 

18  renewal provided by the commissioner CEO and upon the licensee's

 

19  payment of the appropriate fee. A small or large bingo license

 

20  expires at 12 midnight on the last day of February.

 

21        (2) A qualified organization may hold more than 1 bingo

 

22  license.

 

23        (3) A small or large bingo license shall be valid for not

 

24  more than 1 day per week.

 

25        (4) Not more than 14 bingo licenses shall be issued for a 7-

 

26  day period at any 1 location.

 

27        (5) A special bingo license may be issued for up to 7

 

 1  consecutive days.

 

 2        (6) A qualified organization may be issued up to 4 special

 

 3  bingo licenses per calendar year.

 

 4        Sec. 5c. (1) The value of a prize or consolation prize

 

 5  awarded during a Michigan progressive jackpot bingo game is not

 

 6  subject to the prize limitations of section 3a(3) 3(a).

 

 7        (2) The prize awarded to the winner of a Michigan

 

 8  progressive jackpot bingo game may be a predetermined amount that

 

 9  shall not exceed $500.00 or 50% of the card sales on the first

 

10  bingo occasion.

 

11        (3) If a Michigan progressive jackpot prize is not won in

 

12  the predetermined number of allowable calls, the game shall be

 

13  played to its conclusion for a predetermined consolation prize

 

14  that shall not exceed $100.00.

 

15        (4) If a Michigan progressive jackpot prize is not won in

 

16  the predetermined number of allowable calls, the entire prize

 

17  amount shall be carried forward to the next scheduled bingo

 

18  occasion.

 

19        (5) When a Michigan progressive jackpot prize has been

 

20  carried forward from a previous bingo occasion, the new prize

 

21  amount shall include the entire amount carried forward, plus 50%

 

22  of the card sales for the Michigan progressive jackpot bingo game

 

23  for the current bingo occasion.

 

24        (6) No arrangement of numbers other than a coverall pattern

 

25  shall be required or allowed to win a Michigan progressive

 

26  jackpot bingo game.

 

27        (7) A Michigan progressive jackpot bingo game shall be

 

 1  played only on bingo cards that are approved by the commissioner

 

 2  CEO.

 

 3        (8) All cards for the Michigan progressive jackpot bingo

 

 4  game shall be sold by the licensee at a uniform price with no

 

 5  discount for the purchase of more than 1 card.

 

 6        (9) Whenever a Michigan progressive jackpot bingo game is

 

 7  conducted, the licensee shall post a notice and announce the

 

 8  following information:

 

 9        (a) The maximum number of allowable calls in which the

 

10  player must complete a coverall pattern in order to win a

 

11  Michigan progressive jackpot prize on that occasion.

 

12        (b) The prize amount offered to the winner of the Michigan

 

13  progressive jackpot game and the consolation prize for that bingo

 

14  occasion.

 

15        (c) The date the next bingo occasion will occur in that

 

16  particular progression if the jackpot is not awarded.

 

17        (10) A Michigan progressive jackpot bingo game shall be

 

18  conducted in the following manner:

 

19        (a) On the first bingo occasion a player shall not be

 

20  required to obtain bingo in less than the number of allowable

 

21  calls as prescribed by the commissioner CEO to win the jackpot

 

22  prize.

 

23        (b) The number of allowable calls required to win the

 

24  jackpot prize shall be increased by 1 number on each successive

 

25  bingo occasion for that licensee in a particular progression.

 

26        (c) Once a Michigan progressive jackpot bingo game has been

 

27  started, the progressive jackpot prize shall be offered at each

 

 1  successive bingo occasion for that licensee until the jackpot

 

 2  prize has been won.

 

 3        (d) A Michigan progressive jackpot progression shall only be

 

 4  terminated or interrupted by 1 of the following:

 

 5        (i) Determining a winner of the Michigan progressive jackpot

 

 6  prize.

 

 7        (ii) Expiration, suspension, revocation, or surrender of the

 

 8  license to conduct bingo.

 

 9        (iii) A previously announced scheduled interruption, such as a

 

10  legal holiday or other temporary closing.

 

11        (iv) A valid emergency condition under which the licensee is

 

12  unable to conduct the game.

 

13        (11) Only 1 Michigan progressive jackpot bingo game shall be

 

14  in progress at 1 time per bingo occasion.

 

15        (12) Prizes for a Michigan progressive jackpot bingo game

 

16  shall be awarded as follows:

 

17        (a) The Michigan progressive jackpot prize shall be awarded

 

18  to the player or players who complete the coverall pattern within

 

19  the predesignated number of allowable calls.

 

20        (b) A consolation prize shall be awarded on each bingo

 

21  occasion at which a Michigan progressive jackpot game is played,

 

22  except on the bingo occasion that the jackpot prize is won.

 

23        (c) The consolation prize shall be awarded to the player or

 

24  players who complete a coverall pattern on each bingo occasion,

 

25  regardless of the number of calls in excess of the predesignated

 

26  number of allowable calls required to win the Michigan

 

27  progressive jackpot bingo game.

 

 1        (13) The jackpot prize shall be awarded by a check written

 

 2  from the licensee's financial account or in the manner prescribed

 

 3  by the commissioner CEO.

 

 4        (14) Except as otherwise provided in this section, all other

 

 5  provisions of this act or rules promulgated under this act apply

 

 6  to the conduct of a Michigan progressive jackpot game.

 

 7        (15) If an organization's bingo license will expire or is

 

 8  suspended, revoked, or surrendered before the last bingo occasion

 

 9  of a particular progression, the jackpot prize shall be awarded

 

10  and the winner determined on the last authorized bingo occasion

 

11  regardless of the number of calls required to determine the

 

12  winner.

 

13        Sec. 7a. (1) All charity game tickets used in the conduct of

 

14  a charity game shall be purchased by the qualified organization

 

15  from the bureau corporation or a supplier.

 

16        (2) The bureau corporation shall determine the number of

 

17  charity game tickets that constitute a charity game.

 

18        (3) The bureau corporation shall determine the price at

 

19  which the qualified organization shall resell each charity game

 

20  ticket and shall have that price printed on each charity game

 

21  ticket.

 

22        (4) The bureau corporation or a supplier shall sell charity

 

23  game tickets to a qualified organization that is eligible to

 

24  conduct a charity game at a percentage, to be determined by the

 

25  bureau corporation, of the gross revenues that are realized by

 

26  the resale of all the charity game tickets for that game at the

 

27  price established by the bureau corporation.

 

 1        (5) The A qualified organization shall retain 60% and the

 

 2  bureau corporation shall retain 40% of the money obtained from

 

 3  the sale of charity game tickets.

 

 4        (6) A qualified organization that conducts a charity game

 

 5  shall be is solely responsible for paying prizes won by

 

 6  purchasers of winning charity game tickets.

 

 7        (7) When If all charity game tickets for a single charity

 

 8  game are resold, prizes distributed shall have an aggregate value

 

 9  of, as near as practicable, not less than 60% of the resale value

 

10  of all the charity game tickets for that charity game.

 

11        (8) The bureau corporation shall determine the number of

 

12  winning charity game tickets provided on a random basis for

 

13  resale for any 1 charity game and shall establish the value of

 

14  the prize won by each winning charity game ticket.

 

15        (9) A charity game ticket shall not have a price for resale

 

16  by a qualified organization of less than 30 cents.

 

17        (10) The bureau corporation shall have a bureau corporation

 

18  control number for identification purposes imprinted upon on each

 

19  charity game ticket.

 

20        (11) A If a charity game is held in conjunction with a

 

21  licensed bingo game or millionaire party, the value of prizes

 

22  awarded for a the charity game shall not be included within in

 

23  the prize limitations of a the licensed bingo game or millionaire

 

24  party. in conjunction with which the charity game is held.

 

25        (12) A person shall not sell a charity game ticket shall not

 

26  be sold to a person under 18 years of age. This subsection shall

 

27  does not prohibit the purchase of a charity game ticket by a

 

 1  person 18 years of age or older for the purpose of making a gift

 

 2  to a person under 18 years of age, and shall does not prohibit a

 

 3  person under 18 years of age from receiving a prize or prizes won

 

 4  in a charity game conducted pursuant to under this act.

 

 5        Sec. 7b. (1) The commissioner CEO may issue an annual

 

 6  charity game license to a qualified organization for a location

 

 7  owned and operated by the qualified organization for the regular

 

 8  use of its members, or rented or leased on a continual basis for

 

 9  the regular use of its members.

 

10        (2) A qualified organization may be issued only 1 annual

 

11  charity game license per year.

 

12        (3) An annual charity game license shall expire at 12

 

13  midnight on July 31 of each year.

 

14        (4) An annual charity game license may be reissued annually

 

15  if the qualified organization submits an application for renewal

 

16  provided by the commissioner CEO and pays the appropriate fee.

 

17        (5) A qualified organization may be issued up to 8 special

 

18  charity game licenses per calendar year.

 

19        (6) A special charity game license may be issued for up to 4

 

20  consecutive days.

 

21        (7) A qualified organization that is licensed to conduct

 

22  bingo, a millionaire party, or a large raffle may also sell

 

23  charity game tickets and conduct a charity game at the same time

 

24  and location and in conjunction with the licensed bingo,

 

25  millionaire party, or large raffle without obtaining an

 

26  additional license.

 

27        (8) The commissioner CEO shall promulgate rules for the

 

 1  licensing, selling, and playing of, and financial record keeping

 

 2  for, charity games.

 

 3        Sec. 7d. (1) All numeral game tickets used in the conduct of

 

 4  conducting a numeral game shall be purchased by the qualified

 

 5  organization from a supplier. The logo or name of the

 

 6  manufacturer and the serial number must be visible before

 

 7  breaking the band on the ticket is broken.

 

 8        (2) The value of merchandise prizes offered at a numeral

 

 9  game shall be a minimum of 50% of the ideal gross receipts from

 

10  the game. For the purposes of As used in this subsection, "ideal

 

11  gross receipts" means the total amount of receipts money that

 

12  would be received if every individual ticket in a series is sold

 

13  at face value.

 

14        (3) Winning numbers for a numeral game shall be determined

 

15  by use of a series of common ending numbers contained within the

 

16  pool of numbers making up the numeral game. The winning numbers

 

17  may not be determined randomly.

 

18        (4) The prize list, associated winning numbers, the total

 

19  number of tickets offered, and rules of play shall be posted

 

20  before the a numeral game is offered for sale or any tickets are

 

21  opened.

 

22        (5) A person shall not sell a numeral game ticket shall not

 

23  be sold to a person under 18 years of age. This subsection shall

 

24  does not prohibit the purchase of a numeral game ticket by a

 

25  person 18 years of age or older for the purpose of making a gift

 

26  to a person under 18 years of age, and shall does not prohibit a

 

27  person under 18 years of age from receiving a prize or prizes won

 

 1  in a numeral game conducted under this act.

 

 2        (6) The A licensee that conducts a numeral game shall have

 

 3  available for inspection by an authorized representative of the

 

 4  bureau corporation at the site where the numeral game is being

 

 5  conducted a copy of the invoice from the supplier showing the

 

 6  manufacturer's name and serial number for each numeral game being

 

 7  conducted at the site. where the numeral game is being conducted.

 

 8        Sec. 8. All fees and revenue collected by the commissioner

 

 9  CEO or bureau corporation under this act shall be paid into the

 

10  state lottery fund created in section 41 of the McCauley-Traxler-

 

11  Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.41. All

 

12  necessary expenses incurred by the bureau corporation in the

 

13  administration and enforcement of any activity authorized by this

 

14  act and in the initiation, implementation, and ongoing operation

 

15  of any activity authorized by this act shall be financed from the

 

16  state lottery fund. The amount of these necessary expenses shall

 

17  not exceed the amount of revenues received from the sale of

 

18  charity game tickets and all fees collected under this act. At

 

19  the end of each fiscal year, all money, including interest, in

 

20  the state lottery fund which that is attributable to fees and

 

21  revenue collected under this act but which has not been expended

 

22  under this section shall be deposited in the state general fund.

 

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

 

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

 

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

 

26  pay an item of expense in connection with the holding, operating,

 

27  or conducting of an event except the following expenses in

 

 1  reasonable amounts:

 

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

 

 3  conducting an the event and payment of services reasonably

 

 4  necessary for the repair of equipment.

 

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

 

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

 

 7        (d) Janitorial services.

 

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

 

 9  to conduct the event.

 

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

 

11  inconsistent with this act, as permitted by rule of the

 

12  commissioner CEO.

 

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

 

14  3a(a)(ii) shall use the entire net proceeds of an event, after

 

15  paying items of expense incurred in reasonable amounts in

 

16  connection with the holding, operating, or conducting of the

 

17  event and listed in subsection (1), only for the expense of

 

18  training or purchasing goods or services for the support of the

 

19  activities of the component.

 

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

 

21  shall participate in the management of an event.

 

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

 

23  profit, or wage for participating in the management or operation

 

24  of bingo, a millionaire party, a raffle, or a charity game except

 

25  as provided by rule promulgated under this act.

 

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

 

27  licensee shall conduct bingo or a millionaire party only with

 

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

 

 2  contract approved by the corporation, or is purchasing or renting

 

 3  at a reasonable rate from a supplier.

 

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

 

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

 

 6  act. If the commissioner CEO permits a licensee to advertise

 

 7  bingo, the licensee shall indicate in the advertisement the

 

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

 

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

 

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

 

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

 

12  CEO permits a licensee to advertise the event, the licensee shall

 

13  indicate in the advertising the purposes for which the net

 

14  proceeds will be used by the licensee.

 

15        Sec. 10b. (1) A qualified organization may be issued up to 4

 

16  millionaire party licenses in 1 calendar year. Each license shall

 

17  only be valid for 1 location.

 

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

 

19  consecutive days.

 

20        (3) The bureau corporation shall not issue more than 1

 

21  millionaire party license to a qualified organization for any 1

 

22  day.

 

23        Sec. 11a. (1) Each applicant for a license or renewal of a

 

24  license to operate a bingo hall under this act shall submit a

 

25  written application to the bureau corporation on a form

 

26  prescribed by rule promulgated under this act.

 

27        (2) If the commissioner CEO determines that an applicant is

 

 1  eligible and the applicant pays an appropriate fee, the bureau

 

 2  corporation may issue a bingo hall license to operate a facility

 

 3  that will be rented to bingo licensees.

 

 4        (3) A bingo hall license expires at 12 midnight on the last

 

 5  day of February, or if the applicant does not own the facility,

 

 6  on the expiration date of their the applicant's lease or rental

 

 7  agreement if that date is prior to the last day of February of

 

 8  the current licensing period.

 

 9        (4) The annual bingo hall licensing fee is $50.00 multiplied

 

10  by the number of large or small bingo occasions that will be

 

11  conducted during the 7-day week.

 

12        (5) To increase the number of large or small bingo occasions

 

13  conducted under a bingo hall licensee's original or renewal

 

14  application, a bingo hall licensee shall submit a written request

 

15  on a form provided by the commissioner CEO, plus an additional

 

16  $50.00 for each large or small bingo occasion that will be

 

17  conducted during the 7-day week that is in addition to the number

 

18  of those occasions calculated under subsection (4).

 

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

 

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

 

21  tickets, or numeral game tickets to qualified organizations

 

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

 

23  bureau corporation on a form prescribed by the commissioner CEO.

 

24        (2) The An applicant under subsection (1) shall pay an

 

25  annual license fee of $300.00 at the time of the application.

 

26        (3) A supplier's license expires at 12 midnight on September

 

27  30 of each year.

 

 1        (4) The commissioner CEO shall require suppliers authorized

 

 2  to sell charity game tickets, numeral game tickets, or both, to

 

 3  post a performance bond of not less than $50,000.00 and not

 

 4  greater more than $1,000,000.00.

 

 5        (5) A supplier shall remit to the bureau corporation an

 

 6  amount equal to the qualified organization's purchase price of

 

 7  the charity game tickets less an amount that shall is not be less

 

 8  than the sum of $.008 for each ticket sold plus 1.0% of the total

 

 9  resale value for of all charity game tickets sold.

 

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

 

11  the licensed organization an invoice listing the manufacturer and

 

12  serial number of each game.

 

13        (7) The fee collected by a supplier from the qualified

 

14  organization for each game of numeral tickets sold shall be $5.00

 

15  per 1,000 tickets or any portion of 1,000 tickets.

 

16        (8) The fees collected by the supplier for each numeral game

 

17  sold shall be remitted to the bureau corporation by the fifteenth

 

18  day of the month following the month in which the numeral game is

 

19  sold. A late fee of 25% of the amount due may be assessed by the

 

20  commissioner CEO against any supplier who fails to remit the fees

 

21  by the required filing remission date.

 

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

 

23  otherwise make available to a qualified organization numeral game

 

24  tickets that have been obtained from a manufacturer.

 

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

 

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

 

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

 

 1  tickets, or a person residing who resides in the same household

 

 2  as the supplier shall not be involved directly or indirectly with

 

 3  the rental or leasing of a facility used for an event.

 

 4        (11) A supplier shall submit to the bureau corporation a

 

 5  report as required by the commissioner CEO regarding the sale or

 

 6  rental of equipment and the sale of charity game tickets and

 

 7  numeral game tickets.

 

 8        Sec. 11c. (1) Each applicant for a license or renewal of a

 

 9  license to act as a manufacturer shall submit to the bureau

 

10  corporation a written application on a form prescribed by the

 

11  commissioner CEO.

 

12        (2) The annual license fee for a manufacturer's license

 

13  shall be $300.00.

 

14        (3) The A manufacturer's license expires at 12 midnight on

 

15  June 30 of each year.

 

16        (4) Only numeral games and numeral game tickets approved by

 

17  the commissioner CEO may be distributed to suppliers within this

 

18  state.

 

19        (5) All records supporting the sale of numeral game tickets

 

20  to suppliers shall be available upon request to an authorized

 

21  representative of the bureau corporation for inspection or audit

 

22  and shall be kept by the manufacturer for not less than the

 

23  calendar year in which the sale is made plus 3 additional years.

 

24        (6) Each manufacturer shall submit to the bureau corporation

 

25  a report as required by the commissioner CEO regarding the sale

 

26  of numeral game tickets to suppliers.

 

27        Sec. 12. The bureau corporation shall enforce and supervise

 

 1  the administration of this act. The commissioner CEO shall employ

 

 2  personnel as necessary to implement this act.

 

 3        Sec. 13. The commissioner CEO shall promulgate rules

 

 4  pursuant to the administrative procedures act of 1969, 1969 PA

 

 5  306, MCL 24.201 to 24.328, to implement this act.

 

 6        Sec. 14. (1) Each licensee shall keep a record of each event

 

 7  as required by the commissioner CEO. The record and all financial

 

 8  accounts into which proceeds from events licensed under this act

 

 9  are deposited or transferred shall be open to inspection by a

 

10  duly authorized representative of the bureau CEO during

 

11  reasonable business hours.

 

12        (2) Each licensee shall file with the commissioner CEO a

 

13  financial statement signed by the principal officer of the

 

14  qualified organization of receipts and expenses related to the

 

15  conduct of each event as may be required by rule promulgated

 

16  under this act. If the revenue from a bingo game, millionaire

 

17  party, raffle, numeral game, or charity game is represented to be

 

18  used or applied by a licensee for a charitable purpose, the

 

19  licensee shall file a copy of the financial statement with the

 

20  attorney general under the supervision of trustees for charitable

 

21  purposes act, 1961 PA 101, MCL 14.251 to 14.266.

 

22        (3) The location at which events licensed under this act are

 

23  conducted or at which an applicant or licensee intends to conduct

 

24  an event licensed under this act shall be open at all times to

 

25  inspection at all times by a duly an authorized representative of

 

26  the bureau corporation or by the department of state police or a

 

27  peace officer of a political subdivision of this state.

 

 1        Sec. 15. Annually the commissioner The CEO shall report

 

 2  annually to the governor and the legislature about the operation

 

 3  of events licensed under this act within in this state, abuses

 

 4  that the bureau corporation may have encountered, and

 

 5  recommendations for changes in to this act.

 

 6        Sec. 16. (1) The commissioner CEO may deny, suspend,

 

 7  summarily suspend, or revoke any license issued under this act if

 

 8  the licensee or an officer, director, agent, member, or employee

 

 9  of the licensee violates this act or a rule promulgated under

 

10  this act. The commissioner CEO may summarily suspend a license

 

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

 

12  investigation, or public hearing.

 

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

 

14  considered a contested case and shall be governed by the

 

15  administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

 

16  24.328.

 

17        (3) Upon petition of the commissioner CEO, the circuit court

 

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

 

19  witnesses and the production of documents, papers, books,

 

20  records, and other evidence before it in a matter over which it

 

21  has jurisdiction, control, or supervision. If a person subpoenaed

 

22  under this subsection to attend in any such a proceeding or

 

23  hearing fails to obey the command of the subpoena without

 

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

 

25  subpoenaed under this subsection to attend a proceeding or

 

26  hearing refuses, without lawful cause, to be examined or to

 

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

 

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

 

 2  court, that the person may be punished as a for contempt of the

 

 3  court.

 

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

 

 5  licensee, in lieu of a suspension of its license, may elect to

 

 6  pay a fine equal to the amount of rent that would have been paid

 

 7  by the bingo licensees during the period of the suspension. This

 

 8  fine shall be paid to the bureau corporation on or before the

 

 9  date agreed to in the suspension agreement entered into by the

 

10  bureau corporation and the bingo hall licensee.

 

11        Enacting section 1. This amendatory act takes effect October

 

12  1, 2010.

 

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

 

14  unless Senate Bill No.____ or House Bill No. 6341(request no.

 

15  07160'10) of the 95th Legislature is enacted into law.