Bill Text: MI SB0187 | 2015-2016 | 98th Legislature | Engrossed


Bill Title: Gaming; bingo and charitable gaming; millionaire parties; provide for general amendments. Amends secs. 2, 3, 3a, 4, 4a, 8, 9, 10, 11b, 12, 13, 14, 15, 16 & 19 of 1972 PA 382 (MCL 432.102 et seq.), adds art. 2 & repeals secs. 10a, 10b & 20 of 1972 PA 382 (MCL 432.110a et seq.).

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2016-03-23 - Referred To Second Reading [SB0187 Detail]

Download: Michigan-2015-SB0187-Engrossed.html

SB-0187, As Passed Senate, December 9, 2015

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 187

 

 

 

 

 

 

 

 

 

 

 

      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 adding article 2; to

 

designate 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

 


 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 broadcasts, television broadcasts, advertising

 

 7  signs, billboards, and other media used to promote an event.

 

 8  licensed under this act.

 

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

 

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

 

11  symbols conforming to numbers or symbols selected at random.

 

12        (d) "Board" means the Michigan gaming control board created

 

13  by section 4 of the Michigan gaming control and revenue act, 1996

 

14  IL 1, MCL 432.204.

 

15        (e) (d) "Bureau" means the bureau of state lottery as

 

16  created by section 5 of the McCauley-Traxler-Law-Bowman-McNeely

 

17  lottery act, 1972 PA 239, MCL 432.5.

 

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

 

19  of charity game tickets.

 

20        (g) (f) "Charity game ticket" means a ticket commonly

 

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

 

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

 

23  bureau or a licensed supplier to a qualified organization, a

 

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

 

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

 

26        (h) (g) "Commissioner" means the commissioner of state

 

27  lottery appointed under section 7 of the McCauley-Traxler-Law-

 


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

 

 2        (i) (h) "Coverall pattern" means a pattern required to win a

 

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

 

 4  be called.

 

 5        (j) "Educational organization" means an organization in this

 

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

 

 7  purpose is educational in nature and designed to develop the

 

 8  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        (k) "Equipment" means the objects and mechanical,

 

15  electromechanical, or electronic devices used to determine or

 

16  assist in determining the winners of prizes at an event.

 

17        (l) "Event" means, in article 1, an occasion of bingo games,

 

18  a raffle, a charity game, or a numeral game conducted under a

 

19  license issued under article 1, and in article 2, an occasion of

 

20  a millionaire party conducted under a license issued under

 

21  article 2.

 

22        (m) "Executive director" means the executive director of the

 

23  board, appointed under section 4 of the Michigan gaming control

 

24  and revenue act, 1996 IL 1, MCL 432.204.

 

25        (n) "Fraternal organization" means an organization in this

 

26  state, other than a college fraternity or sorority, that meets

 

27  all of the following criteria:

 


 1        (i) Is organized not for pecuniary profit.

 

 2        (ii) Is a branch, lodge, or chapter of a national or state

 

 3  organization or, only for the purpose of conducting a small

 

 4  raffle or a large raffle under this act, if not a branch, lodge,

 

 5  or chapter of a national or state organization, is exempt from

 

 6  taxation under section 501(c) of the internal revenue code of

 

 7  1986, 26 USC 501.

 

 8        (iii) Exists for the common purpose, brotherhood, or other

 

 9  interests of its members.

 

10        Sec. 3. As used in this act:

 

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

 

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

 

13  primary purpose is educational in nature and designed to develop

 

14  the capabilities of individuals by instruction in any public or

 

15  private elementary or secondary school that complies with the

 

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

 

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

 

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

 

19  education.

 

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

 

21  this state, other than a college fraternity or sorority, that

 

22  meets all of the following criteria:

 

23        (i) Is organized not for pecuniary profit.

 

24        (ii) Is a branch, lodge, or chapter of a national or state

 

25  organization or, only for the purpose of conducting a small

 

26  raffle or a large raffle under this act, if not a branch, lodge,

 

27  or chapter of a national or state organization, is exempt from

 


 1  taxation under section 501(c) of the internal revenue code of

 

 2  1986, 26 USC 501.

 

 3        (iii) Exists for the common purpose, brotherhood, or other

 

 4  interests of its members.

 

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

 

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

 

 7  prizes awarded for bingo games at a single occasion does not

 

 8  exceed $3,500.00 and the total value of all prizes awarded for 1

 

 9  bingo game does not exceed $1,100.00, except that a prize awarded

 

10  through a Michigan progressive jackpot bingo game is not subject

 

11  to these limitations.

 

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

 

13  all prizes awarded through raffle drawings exceeds $500.00 per

 

14  occasion.

 

15        (c) "Licensee" means a person, or including a qualified

 

16  organization, licensed under this act.

 

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

 

18  building or enclosure, or a distinct portion of real property

 

19  that is used for the purpose of conducting an event. Location

 

20  includes all components or buildings that compose 1 architectural

 

21  entity or that serve a unified functional purpose.

 

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

 

23  who manufactures numeral game tickets for sale to suppliers for

 

24  use in an event.

 

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

 

26  membership in a qualified organization under its bylaws, articles

 

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

 


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

 

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

 

 3  1967 PA 150, MCL 32.505.

 

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

 

 5  corporation, or other legal entity.

 

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

 

 7  (h), either of the following:

 

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

 

 9  citizens, fraternal, or veterans' organization that operates

 

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

 

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

 

12  or is exempt from taxation under section 501(c) of the internal

 

13  revenue code of 1986, 26 USC 501.

 

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

 

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

 

16  Michigan national guard whose members are in active service or

 

17  active state service.

 

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

 

19  committee, political committee, political party committee, ballot

 

20  question committee, independent committee, or any other committee

 

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

 

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

 

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

 

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

 

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

 

26  common membership for mutual support and edification in piety,

 

27  worship, and religious observances.

 


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

 

 2  pecuniary profit and that unites for religious purposes at a

 

 3  definite place.

 

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

 

 5  for pecuniary profit.

 

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

 

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

 

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

 

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

 

10  advancement of the causes of elderly or retired persons.

 

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

 

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

 

13  organization that is organized not for pecuniary profit and that

 

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

 

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

 

16  service purpose within the state.

 

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

 

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

 

19  organization; that is recognized by resolution adopted by the

 

20  local governmental subdivision in which the organization conducts

 

21  its principal activities; whose constitution, charter, articles

 

22  of incorporation, or bylaws contain a provision for the

 

23  perpetuation of the organization as a nonprofit organization;

 

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

 

25  constitution, charter, articles of incorporation, or bylaws

 

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

 

27  property shall revert to the benefit of the local governmental

 


 1  subdivision that granted the resolution upon dissolution of the

 

 2  organization.

 

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

 

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

 

 5  state organization or of a national organization chartered by the

 

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

 

 7  pecuniary profit, the membership of which consists of individuals

 

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

 

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

 

10  veterans' organization that is a national organization chartered

 

11  by the congress of the United States.

 

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

 

13  conducted in conjunction with a licensed large bingo occasion in

 

14  which the value of the prize is carried forward to the next bingo

 

15  occasion if no player wins in a predetermined number of allowable

 

16  calls. Michigan progressive jackpot may include bingo games

 

17  conducted by more than 1 licensee that are linked together for

 

18  the purpose of a common jackpot prize and consolation prize as

 

19  prescribed by the commissioner.

 

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

 

21  placed on games of chance customarily associated with a gambling

 

22  casino through the use of imitation money or chips that have a

 

23  nominal value equal to or greater than the value of the currency

 

24  for which they can be exchanged.

 

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

 

26  numeral game tickets.

 

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

 


 1  preprinted numerals are covered by folding the strip and banding

 

 2  the folded strip with a separate piece of paper, so that on

 

 3  breaking the paper that bands the folding strip the purchaser

 

 4  discovers whether the ticket is a winning ticket.

 

 5        (l) "Occasion" means a single day for which a license to

 

 6  conduct games is issued 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.As used in this act:

 

 4        (a) "Person" means an individual, firm, association,

 

 5  corporation, or other legal entity.

 

 6        (b) (12) "Principal officer" means the highest ranking

 

 7  officer of the qualified organization according to its written

 

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

 

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

 

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

 

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

 

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

 

13  material given away by a qualified organization in accordance

 

14  with rules promulgated under this act.

 

15        (14) "Single gathering" means 1 scheduled assembly or

 

16  meeting with a specified beginning and ending time that is

 

17  conducted or sponsored by the qualified organization. Single

 

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

 

19  or similar facility and does not include a meeting conducted

 

20  solely for the purpose of conducting a raffle.

 

21        (d) "Qualified organization" means, subject to subdivision

 

22  (e), either of the following:

 

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

 

24  citizens, fraternal, or veterans' organization that operates

 

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

 

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

 

27  or is exempt from taxation under section 501(c) of the internal

 


 1  revenue code of 1986, 26 USC 501(c).

 

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

 

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

 

 4  Michigan national guard whose members are in active service or

 

 5  active state service.

 

 6        (e) "Qualified organization" does not include a candidate

 

 7  committee, political committee, political party committee, ballot

 

 8  question committee, independent committee, or any other committee

 

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

 

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

 

11        (f) "Raffle" means an event for which raffle tickets are

 

12  sold and at which a winner or winners are determined, either by

 

13  randomly selecting stubs from all of the raffle tickets sold for

 

14  an event or by an alternative method that is approved in writing

 

15  by the board, and a preannounced prize is awarded.

 

16        (g) "Religious organization" means any of the following:

 

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

 

18  in this state that is organized not for pecuniary profit and that

 

19  gathers in common membership for mutual support and edification

 

20  in piety, worship, and religious observances.

 

21        (ii) A society of individuals in this state that is organized

 

22  not for pecuniary profit and that unites for religious purposes

 

23  at a definite place.

 

24        (iii) A church-related private school in this state that is

 

25  organized not for pecuniary profit.

 

26        (h) "Senior citizens organization" means an organization in

 

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

 


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

 

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

 

 3  of the causes of elderly or retired persons.

 

 4        (i) "Service organization" means either of the following:

 

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

 

 6  or state organization that is organized not for pecuniary profit

 

 7  and that is authorized by its written constitution, charter,

 

 8  articles of incorporation, or bylaws to engage in a fraternal,

 

 9  civic, or service purpose in this state.

 

10        (ii) A local civic organization in this state that is

 

11  organized not for pecuniary profit; that is not affiliated with a

 

12  state or national organization; that is recognized by resolution

 

13  adopted by the local governmental subdivision in which the

 

14  organization conducts its principal activities; whose

 

15  constitution, charter, articles of incorporation, or bylaws

 

16  contain a provision for the perpetuation of the organization as a

 

17  nonprofit organization; whose entire assets are used for

 

18  charitable purposes; and whose constitution, charter, articles of

 

19  incorporation, or bylaws contain a provision that all assets,

 

20  real property, and personal property shall revert to the benefit

 

21  of the local governmental subdivision that granted the resolution

 

22  or another nonprofit organization on dissolution of the

 

23  organization.

 

24        (j) (15) "Small bingo" means a series of bingo occasions

 

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

 

26  prizes awarded through for bingo games at a single occasion does

 

27  not exceed $300.00 and the total value of all prizes awarded for

 


 1  a single bingo game does not exceed $25.00.

 

 2        (k) (16) "Small raffle" means an event during which the

 

 3  total value of all prizes awarded through raffle drawings does

 

 4  not exceed $500.00 during 1 occasion.

 

 5        (l) (17) "Special bingo" means a single or consecutive series

 

 6  of bingo occasions during which the total value of all prizes

 

 7  awarded through for bingo games at a single occasion does not

 

 8  exceed $3,500.00 and the total value of all prizes awarded for a

 

 9  single bingo game does not exceed $1,100.00.

 

10        (m) (18) "Supplier" means a person licensed under this act

 

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

 

12  numeral game tickets to qualified organizations licensed under

 

13  this act.

 

14        (n) "Veterans' organization" means an organization in this

 

15  state, or a branch, lodge, or chapter in this state of a state

 

16  organization or of a national organization chartered by the

 

17  Congress of the United States, that is organized not for

 

18  pecuniary profit, the membership of which consists of individuals

 

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

 

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

 

21  veterans' organization that is a national organization chartered

 

22  by the Congress of the United States.

 

23        Sec. 4. (1) Each An applicant for a license to conduct a

 

24  bingo, millionaire party, raffle, charity game, or numeral game

 

25  event shall submit to the bureau a written application on a form

 

26  prescribed by the commissioner.

 

27        (2) The application shall under subsection (1) must include

 


 1  all of the following:

 

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

 

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

 

 4  organization.

 

 5        (c) The location at which the applicant will conduct the

 

 6  event.

 

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

 

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

 

 9  will be responsible for the conduct of the event.

 

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

 

11  incorporation or organization to enable the commissioner to

 

12  determine whether the applicant is a qualified organization.

 

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

 

14  the applicant organization, signed by the principal officer of

 

15  that the organization.

 

16        (h) Other information the commissioner considers necessary.

 

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

 

18  if the commissioner determines that the an applicant under

 

19  section 4 is a qualified organization, and is not ineligible

 

20  under section 18, and the applicant has paid to the bureau the

 

21  appropriate fee, the commissioner may issue 1 or more of the

 

22  following licenses:

 

 

23

License                                Fee

24

(a)

Large bingo.........................$ 150.00

25

(b)

Small bingo.........................$  55.00

26

(c)

Special bingo.......................$  25.00

27

(d)

Millionaire party...................$  50.00 per day


1

(d)(e)

Large raffle........................$  50.00 per

2

                                        drawing date

3

(e)(f)

Small raffle:

4

(i)

One to 3 drawing dates..............$  15.00

5

(ii)

Four or more drawing dates..........$   5.00 per

6

                                        drawing date

7

(f)(g)

Annual charity game.................$ 200.00

8

(g)(h)

Special charity game................$  15.00 per day

9

(h)(i)

Numeral game........................$  15.00 per day

 

 

10        (2) Under extreme hardship conditions as determined by the

 

11  commissioner, the commissioner may waive 1 or more requirements

 

12  of for a person to be a qualified organization described in

 

13  section 3 under section 3a(d) to permit the licensing of a

 

14  special bingo , millionaire party, or raffle event, if all of the

 

15  following conditions are met:

 

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

 

17  organization.

 

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

 

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

 

20  for a charitable purpose, organization, or cause.

 

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

 

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

 

23  participation.

 

24        (d) The organization complies with all other applicable

 

25  provisions of this act article and rules promulgated under this

 

26  act.article.

 

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

 


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

 

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

 

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

 

 4  conditions are met:

 

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

 

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

 

 7  for a charitable purpose, organization, or cause.

 

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

 

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

 

10  participation.

 

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

 

12  other applicable provisions of this act article and the rules

 

13  promulgated under this act.article.

 

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

 

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

 

16  license.

 

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

 

18  transferable.

 

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

 

20  that the events conducted under a license issued under this

 

21  section are conducted in compliance with the applicable

 

22  provisions of this act article and rules promulgated under this

 

23  article.

 

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

 

25  licensee shall only conduct events licensed under this act

 

26  section during the hours and on the day and date or dates stated

 

27  on the license.

 


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

 

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

 

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

 

 4  a national or state organization is a qualified organization, the

 

 5  commissioner shall only consider whether the organization meets

 

 6  requirements that are applicable under this act article that are

 

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

 

 8  chapter of a national or state organization.

 

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

 

10  commissioner or bureau under this act shall be paid into the

 

11  state lottery fund created under section 41 of the McCauley-

 

12  Traxler-Law-Bowman-McNeely lottery act, 1972 PA 239, MCL 432.41.

 

13  All necessary expenses incurred by the bureau in the

 

14  administration and enforcement of any activity authorized by this

 

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

 

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

 

17  state lottery fund.

 

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

 

19  or board under this act shall be paid into the state lottery fund

 

20  created under section 41 of the McCauley-Traxler-Law-Bowman-

 

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

 

22  expenses incurred by the executive director or board in the

 

23  administration and enforcement of any activity authorized by this

 

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

 

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

 

26  state lottery fund.

 

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

 


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

 

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

 

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

 

 4  money, including interest, in the state lottery fund which that

 

 5  is attributable to fees and revenue collected under this act but

 

 6  which that has not been expended under this section shall be

 

 7  deposited in the state general fund.

 

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

 

 9  net proceeds of an event conducted under a license issued under

 

10  this article shall be devoted exclusively to the lawful purposes

 

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

 

12  expense in connection with the holding, operating, or conducting

 

13  of an event except the following expenses in reasonable amounts

 

14  that the commissioner determines to be reasonable:

 

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

 

16  conducting an event and payment of services reasonably necessary

 

17  for the repair of equipment.

 

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

 

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

 

20        (d) Janitorial services.

 

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

 

22  to conduct the event.

 

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

 

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

 

25  commissioner.

 

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

 

27  3a(d)(ii) shall use the entire net proceeds of an event, after

 


 1  paying items of expense incurred in reasonable amounts in

 

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

 

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

 

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

 

 5  activities of the component.

 

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

 

 7  shall participate in the management of an event.

 

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

 

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

 

10  of a bingo event, a millionaire party, a raffle, or a charity

 

11  game except as provided by rule promulgated under this

 

12  act.article.

 

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

 

14  licensee shall conduct bingo or a millionaire party games only

 

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

 

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

 

17  supplier.

 

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

 

19  the extent and in the manner permitted by rule promulgated under

 

20  this act. article. If the commissioner permits a licensee to

 

21  advertise a bingo event, the licensee shall indicate in the

 

22  advertisement the purposes for which the net proceeds will be

 

23  used by the licensee.

 

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

 

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

 

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

 

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

 


 1  indicate in the advertising the purposes for which the net

 

 2  proceeds will be used by the licensee.

 

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

 

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

 

 5  tickets, or numeral game tickets to qualified organizations

 

 6  licensed under this act article shall submit a written

 

 7  application to the bureau on a form prescribed by the

 

 8  commissioner.

 

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

 

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

 

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

 

12  at 12 midnight on September 30 of each year.

 

13        (4) The commissioner shall require suppliers authorized to

 

14  sell charity game tickets, numeral game tickets, or both, to post

 

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

 

16  than $1,000,000.00.

 

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

 

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

 

19  tickets less an amount that shall not be less than the sum of

 

20  $.008 for each ticket sold plus 1.0% of the total resale value

 

21  for all charity game tickets sold.

 

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

 

23  the licensed organization an invoice listing the manufacturer and

 

24  serial number of each game.

 

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

 

26  supplier from the a qualified organization for each game of

 

27  numeral tickets sold shall be that equals $5.00 per 1,000 tickets

 


 1  or any portion of 1,000 tickets.

 

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

 

 3  supplier for each numeral game sold shall be remitted under

 

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

 

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

 

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

 

 7  be assessed by the commissioner against any a supplier who fails

 

 8  to remit the fees by the required filing date.

 

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

 

10  otherwise make available to a qualified organization numeral game

 

11  tickets that have been obtained from a manufacturer.

 

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

 

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

 

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

 

15  tickets, or a person residing in the same household as the

 

16  supplier shall not be involved directly or indirectly with the

 

17  rental or leasing of a facility used for an event.

 

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

 

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

 

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

 

21  and numeral game tickets.

 

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

 

23  administration of this act. article. The commissioner shall

 

24  employ personnel as necessary to implement this act.article.

 

25        (2) The bureau may select fraternal organizations that are

 

26  not a branch, lodge, or chapter of a national or state

 

27  organization to audit to ensure that the organizations are in

 


 1  compliance with this act.article.

 

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

 

 3  the administrative procedures act of 1969, 1969 PA 306, MCL

 

 4  24.201 to 24.328, to implement this act.article.

 

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

 

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

 

 7  licensee shall allow a representative authorized by the bureau to

 

 8  inspect a record kept under this subsection and all financial

 

 9  accounts into which proceeds from events licensed under this act

 

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

 

11  duly authorized representative of the bureau during reasonable

 

12  business hours.

 

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

 

14  commissioner a financial statement signed by the principal

 

15  officer of the qualified organization of receipts and expenses

 

16  related to the conduct of each event as may be required by rule

 

17  promulgated under this act. article. If the revenue from a bingo

 

18  game, millionaire party, raffle, numeral game, or charity game

 

19  event is represented to be used or applied by a licensee under

 

20  this article for a charitable purpose, the licensee shall file a

 

21  copy of the financial statement with the attorney general under

 

22  the supervision of trustees for charitable purposes act, 1961 PA

 

23  101, MCL 14.251 to 14.266.

 

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

 

25  authorized representative of the bureau or the department of

 

26  state police or a law enforcement officer of a political

 

27  subdivision of this state to inspect the location at which events

 


 1  licensed under this act are conducted or at which an applicant or

 

 2  licensee intends to conduct an event licensed under this act

 

 3  shall be open to inspection at all times by a duly authorized

 

 4  representative of the bureau or by the state police or a peace

 

 5  officer of a political subdivision of this state.or an intended

 

 6  location during business hours.

 

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

 

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

 

 9  licensed under this act within this state, article, abuses that

 

10  the bureau may have encountered, and recommendations for changes

 

11  in this act.

 

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

 

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

 

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

 

15  of the licensee violates this act article or a rule promulgated

 

16  under this act. article. The commissioner may summarily suspend a

 

17  license for a period of not more than 60 days pending

 

18  prosecution, investigation, or public hearing.

 

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

 

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

 

21  governed by the administrative procedures act of 1969, 1969 PA

 

22  306, MCL 24.201 to 24.328.

 

23        (3) Upon petition of the commissioner, the circuit court

 

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

 

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

 

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

 

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

 


 1  to attend in any such proceeding or hearing fails to obey the

 

 2  command of the subpoena without reasonable cause, or if a person

 

 3  in attendance in any such proceeding or hearing refuses, without

 

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

 

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

 

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

 

 7  as a being in contempt of the court.

 

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

 

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

 

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

 

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

 

12  fine shall be paid to the bureau on or before the date agreed to

 

13  in the suspension agreement entered into by the bureau and the

 

14  bingo hall licensee.

 

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

 

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

 

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

 

18  charity game; who sells or possesses equipment used in conducting

 

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

 

20  bingo, a millionaire party, or a charity game to be conducted on

 

21  his or her premises; or who does other acts in connection with a

 

22  raffle, bingo, a millionaire party, or a charity game does not

 

23  apply to that conduct if done pursuant to this act or rules

 

24  promulgated under this act.

 

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

 

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

 

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

 


    Senate Bill No. 187 as amended December 9, 2015

 

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

 

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

 

 3  section the Michigan campaign finance act, 1976 PA 388, MCL

 

 4  169.241, of the Michigan Compiled Laws, to fundraising fund-

 

 5  raising events conducted by or for the benefit of a committee

 

 6  that has filed or is required to file a statement of organization

 

 7  pursuant to Act No. 388 of the Public Acts of 1976.under the

 

 8  Michigan campaign finance act, 1976 PA 388, MCL 169.201 to

 

 9  169.282.

 

10                            ARTICLE 2

 

11        Sec. 32. (1) As used in this article:

 

12        (a) "Bona fide member" means a member who participates in

 

13  the qualified organization to further its lawful purposes <<and the

    spouse of such a member>>.

 

14        (b) "Dealer" means an individual who does any of the

 

15  following in a millionaire party game:

 

16        (i) Performs the act of dealing.

 

17        (ii) Assists in supervising the dealers.

 

18        (iii) Provides technical advice to the millionaire party

 

19  chairperson.

 

20        (c) "Demarcated area" means the physical area in which

 

21  gaming is conducted at an event.

 

22        (d) "Lawful purpose" means 1 or more of the authorized

 

23  purposes stated in the qualified organization's written bylaws,

 

24  constitution, charter, or articles of incorporation that are on

 

25  file with the executive director.

 

26        (e) "Lessor" means a person who rents a location to a

 

27  millionaire party licensee for the purpose of conducting an

 


    Senate Bill No. 187 as amended December 9, 2015

 

 1  event.

 

 2        (f) "Location owner" means the person that owns a location

 

 3  or an employee or agent of the person.

 

 4        (2) The definitions in sections 2, 3, and 3a apply to this

 

 5  article, unless a term defined in 1 of those sections is defined

 

 6  differently in this article.

 

 7        Sec. 33. (1) An applicant for a license to conduct a

 

 8  millionaire party shall submit to the executive director a

 

 9  written application on a form prescribed by the executive

 

10  director.

 

11        (2) The application under subsection (1) must include all of

 

12  the following:

 

13        (a) The name and address of the applicant.

 

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

 

15        <<

 

16 

 

17        (c)>> The name of each individual who will serve as a dealer

 

18  at the event and, as to each individual, whether the individual

 

19  has been convicted of, forfeited bond on a charge of, or pled

 

20  guilty to any of the following:

 

21        (i) A felony.

 

22        (ii) A gambling offense.

 

23        (iii) Criminal fraud.

 

24        (iv) Forgery.

 

25        (v) Larceny.

 

26        (vi) Filing a false report with a governmental agency.

 

27        <<(d)>> The location at which the applicant will conduct the

 


    Senate Bill No. 187 as amended December 9, 2015

 

 1  event.

 

 2        <<(e)>> A description of the demarcated area for the event and

 

 3  an explanation of how the demarcated area will be marked.

 

 4        <<(f)>> The dates of the event.

 

 5        <<(g)>> Sufficient facts relating to the applicant's

 

 6  incorporation or organization to enable the executive director to

 

 7  determine whether the applicant is a qualified organization.

 

 8        <<(h)>> A sworn statement attesting to the nonprofit status of

 

 9  the applicant, signed by the principal officer of the applicant.

 

10        <<(I)>> Other information the executive director considers

 

11  necessary.

 

12        Sec. 34. (1) If the executive director determines that an

 

13  applicant for a millionaire party license is a qualified

 

14  organization and that both of the following apply, the executive

 

15  director may issue a millionaire party license to the applicant:

 

16        (a) The applicant has paid to the executive director a fee

 

17  of $50.00 per day that the applicant proposes to conduct the

 

18  millionaire party.

 

19        (b) There is no reason to deny the issuance of the license

 

20  under section 18.

 

21        (2) Under extreme hardship conditions as determined by the

 

22  executive director, the executive director may waive 1 or more of

 

23  the requirements under section 3a(d) for a person to be a

 

24  qualified organization and issue a millionaire party license to

 

25  the person if all of the following conditions are met:

 

26        (a) The person is a nonprofit organization.

 

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

 


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

 

 2  for a charitable purpose, organization, or cause.

 

 3        (c) None of the individuals connected with the management of

 

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

 

 5  participation.

 

 6        (d) The person has complied and will comply with all other

 

 7  provisions of this article and rules promulgated under this

 

 8  article.

 

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

 

10  executive director, the executive director may allow an

 

11  individual or a group of individuals to obtain a license to

 

12  conduct a millionaire party if all of the following conditions

 

13  are met:

 

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

 

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

 

16  for a charitable purpose, organization, or cause.

 

17        (b) None of the individuals connected with the management of

 

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

 

19  participation.

 

20        (c) The individual or group of individuals has complied and

 

21  will comply with all other provisions of this article and the

 

22  rules promulgated under this article.

 

23        (4) A qualified organization may be issued up to 4

 

24  millionaire party licenses in 1 calendar year. Each license is

 

25  valid for only 1 location as stated on the license.

 

26        (5) A millionaire party license may be issued for up to 4

 

27  consecutive days.

 


 1        (6) The executive director shall not issue more than 1

 

 2  millionaire party license to a qualified organization for any 1

 

 3  day.

 

 4        (7) The executive director shall not issue millionaire party

 

 5  licenses that would allow more than 2 events to be conducted at a

 

 6  location on the same date.

 

 7        (8) The executive director shall not issue millionaire party

 

 8  licenses that would allow more than 4 events to be conducted at a

 

 9  location in 1 week.

 

10        (9) For each day on which the millionaire party is to be

 

11  conducted, the executive director shall include in the license

 

12  the hours during which the licensee may conduct gaming under the

 

13  license. The executive director may determine the hours at his or

 

14  her discretion.

 

15        Sec. 35. (1) A millionaire party licensee shall comply with

 

16  this article and the rules promulgated under this article.

 

17        (2) A millionaire party licensee shall comply with the terms

 

18  and requirements of the license.

 

19        (3) A millionaire party license is not assignable or

 

20  transferrable, and a licensee shall not assign or transfer a

 

21  millionaire party license.

 

22        Sec. 36. (1) A millionaire party licensee may advertise the

 

23  event if the advertising complies with rules promulgated under

 

24  this article.

 

25        (2) An advertisement under this section must state the

 

26  purposes for which the proceeds from the event will be used.

 

27        Sec. 37. (1) A millionaire party licensee shall not enter

 


 1  into an agreement with a location owner or lessor unless the

 

 2  agreement is expressed in a written rental agreement that is

 

 3  approved by the executive director.

 

 4        (2) A location owner or lessor, a partner, member, director,

 

 5  officer, agent, or employee of a location owner or lessor, a

 

 6  shareholder of a privately held corporation that is a location

 

 7  owner or lessor, or a person residing in the same household as

 

 8  any of these shall not do any of the following:

 

 9        (a) Be an officer of a qualified organization conducting a

 

10  millionaire party at the location.

 

11        (b) Participate as a player in any event being conducted at

 

12  the location.

 

13        (c) Participate in any aspect of an event being conducted at

 

14  the location, including providing dealers, equipment, or workers,

 

15  unless all of the following conditions exist:

 

16        (i) The location is owned or rented by a qualified

 

17  organization and used by the qualified organization on a

 

18  continual basis for the regular use of its members.

 

19        (ii) The qualified organization is the millionaire party

 

20  licensee and is conducting the event.

 

21        (iii) The executive director has granted a waiver for the

 

22  participation.

 

23        Sec. 38. A millionaire party licensee shall only conduct an

 

24  event with equipment that it owns, rents from another qualified

 

25  organization under a rental agreement approved by the executive

 

26  director, or purchases or rents from a supplier.

 

27        Sec. 39. (1) A millionaire party licensee shall use only the

 


 1  following as dealers at an event:

 

 2        (a) A bona fide member.

 

 3        (b) An employee of a supplier.

 

 4        (2) An individual shall not act as a dealer if the

 

 5  individual has been convicted of, forfeited bond on a charge of,

 

 6  or pled guilty to any of the following offenses:

 

 7        (a) A felony.

 

 8        (b) A gambling offense.

 

 9        (c) Criminal fraud.

 

10        (d) Forgery.

 

11        (e) Larceny.

 

12        (f) Filing a false report with a governmental agency.

 

13        (3) An individual who is not listed as a dealer on the

 

14  application for a millionaire party license shall not act as a

 

15  dealer at an event conducted under the license.

 

16        (4) A millionaire party licensee shall ensure that the

 

17  dealers at an event conducted under the license comply with this

 

18  article, rules promulgated under this article, and any directives

 

19  of the executive director.

 

20        Sec. 40. (1) At least 2 bona fide members of the millionaire

 

21  party licensee, not including any bona fide member acting as a

 

22  dealer, must be present at all times during an event.

 

23        (2) If fewer than 2 bona fide members are present at any

 

24  time during an event, the millionaire party licensee shall

 

25  immediately report this to the executive director. The executive

 

26  director may require the licensee to stop conducting the event.

 

27        (3) One of the bona fide members listed on the application

 


 1  for the millionaire party license shall act as the millionaire

 

 2  party chairperson. An individual shall not serve as chairperson

 

 3  of millionaire parties conducted by more than 1 qualified

 

 4  organization during a calendar year.

 

 5        (4) A bona fide member of a millionaire party licensee who

 

 6  is present at the event shall wear a vest, button, or other

 

 7  distinctive apparel to identify the member as a member of the

 

 8  millionaire party licensee and as not being an employee or agent

 

 9  of the location owner, lessor, or supplier.

 

10        (5) Unless permitted by this act, a rule promulgated under

 

11  this article, or written authorization of the executive director,

 

12  only a bona fide member of the millionaire party licensee may

 

13  perform any of the following duties at an event conducted under

 

14  the license:

 

15        (a) Monitoring a game or verifying that the game is

 

16  conducted in conformance with the rules of the game.

 

17        (b) Verifying the age of a player.

 

18        (6) A bona fide member of a millionaire party licensee shall

 

19  not play a game at an event at which the member is working or

 

20  assisting.

 

21        (7) A bona fide member of a millionaire party licensee shall

 

22  not share in a prize awarded at an event at which the member is

 

23  working or assisting.

 

24        (8) A bona fide member of a millionaire party licensee shall

 

25  not purchase, play, or accept a charity game ticket or numeral

 

26  game ticket offered for sale by the licensee at an event at which

 

27  the member is working or assisting.

 


 1        (9) A bona fide member of a millionaire party licensee shall

 

 2  not split a prize with a player or accept a tip of any kind at an

 

 3  event conducted under the license, unless the tip is a cash tip

 

 4  given to the member for serving as a dealer at the event.

 

 5        Sec. 41. (1) A millionaire party licensee shall ensure that

 

 6  an event conducted under the license is conducted in compliance

 

 7  with this article and the rules promulgated under this article.

 

 8        (2) A millionaire party licensee shall post the license so

 

 9  that it is conspicuously visible at the location where the event

 

10  is being conducted at all times during the event.

 

11        (3) A millionaire party licensee shall not conduct gaming

 

12  under the license anywhere outside of the demarcated area

 

13  approved by the executive director.

 

14        (4) A millionaire party licensee shall ensure that access to

 

15  the demarcated area is controlled.

 

16        (5) A millionaire party licensee shall not allow an

 

17  individual who is less than 18 years old to enter the demarcated

 

18  area when gaming is being conducted there.

 

19        (6) If alcoholic beverages are served at an event, an

 

20  individual in the demarcated area who is 18 years old or older

 

21  but less than 21 years old must be identified by wearing a mark

 

22  indicating that a member or agent of the millionaire party

 

23  licensee has verified the individual's age and identification.

 

24        (7) A millionaire party licensee shall not allow wagering at

 

25  an event held under the license other than wagering on a game of

 

26  chance that takes place at the location during the event. The

 

27  licensee shall not allow a wager to be placed at the event on an

 


 1  athletic event or a game involving personal skill.

 

 2        (8) A millionaire party licensee shall not receive more than

 

 3  $15,000.00 in exchange for imitation money or chips on any day

 

 4  under the license. However, if the licensee conducts the

 

 5  millionaire party without using dealers or renting equipment from

 

 6  a supplier and owns the location at which the millionaire party

 

 7  is held and if the license is for fewer than 4 days of gaming,

 

 8  the daily limit under this subsection is determined by dividing

 

 9  $60,000.00 by the number of days of gaming allowed under the

 

10  license.

 

11        Sec. 42. (1) A millionaire party licensee shall not pay an

 

12  expense related to an event unless all of the following apply:

 

13        (a) The expense is incurred in connection with the conduct

 

14  of the event.

 

15        (b) The expense is necessary and reasonable and falls into 1

 

16  of the following categories of expense:

 

17        (i) The purchase or rental of equipment necessary for

 

18  conducting the event and payment of services reasonably necessary

 

19  for the repair of equipment.

 

20        (ii) Cash prizes or the purchase of prizes of merchandise.

 

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

 

22        (iv) Janitorial services.

 

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

 

24  to conduct the event.

 

25        (vi) Other reasonable expenses incurred by the licensee, not

 

26  inconsistent with this act, as permitted by rule promulgated

 

27  under this article.

 


    Senate Bill No. 187 as amended December 9, 2015

 

 1        (c) The expense is itemized.

 

 2        (d) The expense is approved by the executive director in

 

 3  writing before the event.

 

 4        (2) A millionaire party licensee shall not accept any

 

 5  compensation in connection with an event unless the compensation

 

 6  is expressly authorized by this article or a rule promulgated

 

 7  under this article.

 

 8        (3) A millionaire party licensee shall not expend more than

 

 9  45% of the gross profit from an event to pay expenses incurred in

 

10  connection with the event.

 

11        (4) A person shall not accept any commission, salary, pay,

 

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

 

13  of a millionaire party except as allowed under a rule promulgated

 

14  under this article.

 

15        Sec. 43. (1) A millionaire party licensee shall keep a

 

16  record of each event as required by the executive director.

 

17        (2) The millionaire party licensee shall allow an authorized

 

18  representative of the executive director to inspect during

 

19  reasonable business hours a record kept under subsection (1) and

 

20  all financial accounts into which proceeds from the event are

 

21  deposited or transferred.

 

22        (3) A millionaire party licensee shall file with the

 

23  executive director a financial statement signed by the principal

 

24  officer of the qualified organization<<. The financial statement must

    contain a list of the qualified members of the millionaire party

    licensee who were present as to each event and a disclosure>> of receipts

    and expenses

 

25  related to the conduct of each event as required by rule

 

26  promulgated under this article. If the revenue from a millionaire

 

27  party is represented to be used or applied by a millionaire party

 


 1  licensee for a charitable purpose, the licensee shall file a copy

 

 2  of the financial statement with the attorney general under the

 

 3  supervision of trustees for charitable purposes act, 1961 PA 101,

 

 4  MCL 14.251 to 14.266.

 

 5        (4) A millionaire party licensee and a location owner or

 

 6  lessee shall allow an authorized representative of the executive

 

 7  director or the state police or a peace officer of a political

 

 8  subdivision in which the event is being conducted to inspect the

 

 9  location, or an intended location, during business hours.

 

10        Sec. 46. (1) A person that applies for a license or renewal

 

11  of a license to operate as a supplier to millionaire party

 

12  licensees shall submit a written application to the executive

 

13  director on a form prescribed by the executive director.

 

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

 

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

 

16        (3) If an applicant under this section wishes to provide

 

17  dealers to millionaire party licensees, the person shall include

 

18  with its application a list containing the name of each

 

19  individual who will work for the person as a dealer at

 

20  millionaire parties and, as to each individual, whether the

 

21  individual has been convicted of, forfeited bond on a charge of,

 

22  or pled guilty to any of the following:

 

23        (a) A felony.

 

24        (b) A gambling offense.

 

25        (c) Criminal fraud.

 

26        (d) Forgery.

 

27        (e) Larceny.

 


 1        (f) Filing a false report with a governmental agency.

 

 2        (4) If, after the application is submitted as described in

 

 3  subsection (1) or after the suppliers license is issued, there

 

 4  are any changes in the individuals who will work for the supplier

 

 5  as dealers at millionaire parties, the applicant or supplier

 

 6  shall immediately provide an updated list containing all of the

 

 7  information required under subsection (3).

 

 8        (5) A supplier licensed under this section shall submit to

 

 9  the executive director reports as required by the executive

 

10  director regarding the supplier's activities under this article.

 

11        (6) A supplier's license expires at 12 midnight on September

 

12  30 of each year.

 

13        Sec. 48. (1) The executive director shall enforce and

 

14  supervise the administration of this article. The executive

 

15  director shall employ personnel as necessary to implement this

 

16  article.

 

17        (2) The executive director may select fraternal

 

18  organizations that conduct millionaire parties and that are not a

 

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

 

20  audit to ensure that the organizations are in compliance with

 

21  this act.

 

22        Sec. 49. (1) Any rules promulgated by the executive director

 

23  under this act before the effective date of the amendatory act

 

24  that added this article are rescinded.

 

25        (2) The executive director shall promulgate rules pursuant

 

26  to the administrative procedures act of 1969, 1969 PA 306, MCL

 

27  24.201 to 24.328, to implement this article.

 


 1        Sec. 50. (1) The executive director may deny, suspend,

 

 2  summarily suspend, or revoke any license issued under this

 

 3  article if the licensee or an officer, director, agent, member,

 

 4  or employee of the licensee violates this article or a rule

 

 5  promulgated under this article. The executive director may

 

 6  summarily suspend a license for a period of not more than 60 days

 

 7  pending prosecution, investigation, or public hearing.

 

 8        (2) A proceeding to suspend or revoke a license is a

 

 9  contested case and must be conducted in accordance with the

 

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

 

11  24.328.

 

12        (3) On petition of the executive director, the circuit court

 

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

 

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

 

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

 

16  executive director has jurisdiction, control, or supervision

 

17  under this article. If a person subpoenaed to attend in any such

 

18  proceeding or hearing fails to obey the command of the subpoena

 

19  without reasonable cause, or if a person in attendance in any

 

20  such proceeding or hearing refuses, without lawful cause, to be

 

21  examined or to answer a legal or pertinent question or to exhibit

 

22  a book, account, record, or other document when ordered to do so

 

23  by the court, the person may be punished as being in contempt of

 

24  the court.

 

25        Sec. 51. The executive director shall report annually to the

 

26  governor and the legislature about the operation of events

 

27  licensed under this article, abuses that the executive director

 


 1  may have encountered, and recommendations for changes in this

 

 2  act.

 

 3        Enacting section 1. Sections 10a, 10b, and 20 of the

 

 4  Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.110a,

 

 5  432.110b, and 432.120, are repealed.

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