Bill Text: MI SB0237 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Gaming: bingo and charitable gaming; millionaire parties; provide for general amendments. Amends 1972 PA 382 (MCL 432.101 - 432.120) by adding art. 2. TIE BAR WITH: SB 0236'19, HB 4538'19
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-21 - Referred To Committee On Regulatory Reform [SB0237 Detail]
Download: Michigan-2019-SB0237-Introduced.html
SENATE BILL No. 237
March 21, 2019, Introduced by Senator BARRETT and referred to the Committee on Regulatory Reform.
A bill to amend 1972 PA 382, entitled
"Traxler-McCauley-Law-Bowman bingo act,"
(MCL 432.101 to 432.120) by adding article 2.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
ARTICLE 2
Sec. 32. (1) As used in this article:
(a) "Bona fide member" means a member who participates in the
qualified organization to further its lawful purposes and the
spouse of such a member.
(b) "Dealer" means an individual who does any of the following
in a millionaire party game:
(i) Performs the act of dealing.
(ii) Assists in supervising the dealers.
(iii) Provides technical advice to the millionaire party
chairperson.
(c) "Demarcated area" means the physical area in which gaming
is conducted at an event.
(d) "Lawful purpose" means a purpose that would qualify an
organization to be exempt from taxation under section 501(c) of the
internal revenue code of 1986, 26 USC 501.
(e) "Lessor" means a person who rents a location to a
millionaire party licensee for the purpose of conducting an event.
(f) "Location owner" means the person that owns a location or
an employee or agent of the person.
(2) The definitions in sections 2, 3, and 3a apply to this
article, unless a term defined in 1 of those sections is defined
differently in this article.
Sec. 33. (1) An applicant for a license to conduct a
millionaire party shall submit to the board a written application
on a form prescribed by the board.
(2) The application under subsection (1) must include all of
the following:
(a) The name and address of the applicant.
(b) The name and address of each officer of the applicant.
(c) If the applicant will not use a dealer from a supplier,
the name of each individual who will serve as a dealer at the event
and, as to each individual, whether the individual has been
convicted of, forfeited bond on a charge of, or pled guilty to any
of the following:
(i) A felony.
(ii) A gambling offense.
(iii) Criminal fraud.
(iv) Forgery.
(v) Larceny.
(vi) Filing a false report with a governmental agency.
(d) The location at which the applicant will conduct the
event.
(e) If the applicant will not use a dealer from a supplier, a
description of the demarcated area for the event and an explanation
of how the demarcated area will be marked.
(f) The dates of the event.
(g) Sufficient facts relating to the applicant's incorporation
or organization to enable the board to determine whether the
applicant is a qualified organization.
Sec. 34. (1) If the board determines that an applicant for a
millionaire party license is a qualified organization and that both
of the following apply, the executive director shall issue a
millionaire party license to the applicant:
(a) The applicant has paid to the board a fee of $50.00 per
day that the applicant proposes to conduct the millionaire party.
(b) There is no reason to deny the issuance of the license
under section 18.
(2) Under extreme hardship conditions as determined by the
board, the board may waive 1 or more of the requirements under
section 3a(d) for a person to be a qualified organization and issue
a millionaire party license to the person if all of the following
conditions are met:
(a) The person is a nonprofit organization.
(b) The entire proceeds of the event, less the actual
reasonable expense of conducting the event, are donated or used for
a lawful purpose or a charitable organization or cause.
(c) None of the individuals connected with the management of
the event is compensated in any manner for his or her
participation.
(d) The person has complied and will comply with all other
provisions of this article and rules promulgated under this
article.
(3) Under extreme hardship conditions as determined by the
board, the board may allow an individual or a group of individuals
to obtain a license to conduct a millionaire party if all of the
following conditions are met:
(a) The entire proceeds of the event, less the actual
reasonable expense of conducting the event, are donated or used for
a lawful purpose or a charitable organization or cause.
(b) None of the individuals connected with the management of
the event is compensated in any manner for his or her
participation.
(c) The individual or group of individuals has complied and
will comply with all other provisions of this article and the rules
promulgated under this article.
(4) A qualified organization may be issued up to 6 millionaire
party licenses in 1 calendar year. Each license is valid for only 1
location as stated on the license.
(5) A millionaire party license may be issued for up to 4
consecutive days.
(6) The board shall not issue more than 1 millionaire party
license to a qualified organization for any 1 day.
(7) A millionaire party license must state that for each day
on which the millionaire party is to be conducted, the licensee may
conduct gaming under the license between the hours of 8 a.m. on
that day and 2 a.m. on the following day.
Sec. 35. (1) A millionaire party licensee shall comply with
this article and the rules promulgated under this article.
(2) A millionaire party licensee shall comply with the terms
and requirements of the license.
(3) A millionaire party license is not assignable or
transferrable, and a licensee shall not assign or transfer a
millionaire party license.
Sec. 36. (1) A millionaire party licensee may advertise the
event if the advertising complies with rules promulgated under this
article.
(2) An advertisement under this section must state the
purposes for which the proceeds from the event will be used.
Sec. 37. (1) A millionaire party licensee shall not enter into
an agreement with a location owner or lessor unless the agreement
is expressed in a written rental agreement that is approved by the
board.
(2) A location owner or lessor, a partner, member, director,
officer, agent, or employee of a location owner or lessor, a
shareholder of a privately held corporation that is a location
owner or lessor, or a person residing in the same household as any
of these shall not do any of the following:
(a) Be an officer of a qualified organization conducting a
millionaire party at the location.
(b) Participate as a player in any event being conducted at
the location.
(c) Participate in any aspect of an event being conducted at
the location, including providing dealers, equipment, or workers,
unless all of the following conditions exist:
(i) The location is owned or rented by a qualified
organization and used by the qualified organization on a continual
basis for the regular use of its members.
(ii) The qualified organization is the millionaire party
licensee and is conducting the event.
(iii) The board has granted a waiver for the participation.
Sec. 38. A millionaire party licensee shall only conduct an
event with equipment that it owns, rents from another qualified
organization under a rental agreement approved by the executive
director, or purchases or rents from a supplier.
Sec. 39. (1) If a millionaire party licensee will not use a
dealer from a supplier, the millionaire party licensee shall use
only the following as dealers at an event:
(a) A bona fide member.
(b) An employee of a supplier.
(2) An individual shall not act as a dealer if the individual
has been convicted of, forfeited bond on a charge of, or pled
guilty to any of the following offenses:
(a) A felony.
(b) A gambling offense.
(c) Criminal fraud.
(d) Forgery.
(e) Larceny.
(f) Filing a false report with a governmental agency.
(3) An individual who is not listed as a dealer on the
application for a millionaire party license shall not act as a
dealer at an event conducted under the license.
Sec. 40. (1) At least 2 bona fide members of the millionaire
party licensee, not including any bona fide member acting as a
dealer, must be present at all times during an event.
(2) If fewer than 2 bona fide members are present at any time
during an event, the millionaire party licensee shall immediately
report this to the board. The board may require the licensee to
stop conducting the event.
(3) One of the bona fide members listed on the application for
the millionaire party license shall act as the millionaire party
chairperson. An individual shall not serve as chairperson of
millionaire parties conducted by more than 1 qualified organization
during a calendar year.
(4) A bona fide member of a millionaire party licensee who is
present at the event shall wear a vest, button, or other
distinctive apparel to identify the bona fide member as a member of
the millionaire party licensee and as not being an employee or
agent of the location owner, lessor, or supplier.
(5) Unless permitted by this act, a rule promulgated under
this article, or written authorization of the board, only a bona
fide member of the millionaire party licensee may perform any of
the following duties at an event conducted under the license:
(a) Monitoring a game or verifying that the game is conducted
in conformance with the rules of the game.
(b) Verifying the age of a player.
(6) A bona fide member of a millionaire party licensee shall
not play a game at an event at which the bona fide member is
working or assisting.
(7) A bona fide member of a millionaire party licensee shall
not share in a prize awarded at an event at which the bona fide
member is working or assisting.
(8) A bona fide member of a millionaire party licensee shall
not purchase, play, or accept a charity game ticket or numeral game
ticket offered for sale by the licensee at an event at which the
bona fide member is working or assisting.
(9) A bona fide member of a millionaire party licensee shall
not split a prize with a player or accept a tip of any kind at an
event conducted under the license, unless the tip is a cash tip
given to the bona fide member for serving as a dealer at the event.
Sec. 41. (1) A millionaire party licensee shall ensure that an
event conducted under the license is conducted in compliance with
this article and the rules promulgated under this article.
(2) A millionaire party licensee shall post the license so
that it is conspicuously visible at the location where the event is
being conducted at all times during the event.
(3) A millionaire party licensee shall not conduct gaming
under the license anywhere outside of the demarcated area approved
by the board.
(4) A millionaire party licensee shall ensure that access to
the demarcated area is controlled.
(5) A millionaire party licensee shall not allow an individual
who is less than 18 years old to enter the demarcated area when
gaming is being conducted there.
(6) If the millionaire party licensee will not use a dealer
from a supplier and if alcoholic beverages are served at an event,
an individual in the demarcated area who is 18 years old or older
but less than 21 years old must be identified by wearing a mark
indicating that a member or agent of the millionaire party licensee
has verified the individual's age and identification.
(7) A millionaire party licensee shall not receive more than
$25,000.00 in exchange for imitation money or chips on any day
under the license. However, if the licensee conducts the
millionaire party without using dealers from a supplier and owns
the location at which the millionaire party is held and if the
license is for fewer than 4 days of gaming, the daily limit under
this subsection is determined by dividing $100,000.00 by the number
of days of gaming allowed under the license.
(8) A millionaire party licensee may conduct a charity game as
provided in section 7b and may conduct a numeral game as provided
in section 7c. If a millionaire party licensee conducts a charity
game or a numeral game, the bureau has sole enforcement and
supervision authority over the conduct of the game, as provided in
article 1.
Sec. 42. (1) A millionaire party licensee shall not pay an
expense related to an event unless all of the following apply:
(a) The expense is incurred in connection with the conduct of
the event.
(b) The expense is necessary and reasonable and falls into 1
of the following categories of expense:
(i) The purchase or rental of equipment necessary for
conducting the event and payment of services reasonably necessary
for the repair of equipment.
(ii) Cash prizes or the purchase of prizes of merchandise.
(iii) Janitorial services.
(iv) The fee required for issuance or reissuance of a license
to conduct the event.
(v) Other reasonable expenses incurred by the licensee, not
inconsistent with this act, as permitted by rule promulgated under
this article.
(c) The expense is itemized.
(2) A millionaire party licensee shall not accept any
compensation in connection with an event unless the compensation is
expressly authorized by this article or a rule promulgated under
this article.
(3) A millionaire party licensee shall not expend more than
45% of the gross profit from an event to pay expenses incurred in
connection with the event.
(4) A person shall not accept any commission, salary, pay,
profit, or wage for participating in the management or operation of
a millionaire party except as allowed under a rule promulgated
under this article.
Sec. 43. (1) A millionaire party licensee shall keep a record
of each event as required by the board.
(2) The millionaire party licensee shall allow an authorized
representative of the board to inspect during reasonable business
hours a record kept under subsection (1) and all financial accounts
into which proceeds from the event are deposited.
(3) A millionaire party licensee shall file with the executive
director a financial statement signed by the principal 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 related to the conduct of each event as required by rule
promulgated under this article.
(4) A millionaire party licensee and a location owner or
lessee shall allow an authorized representative of the executive
director or the state police or a peace officer of a political
subdivision in which the event is being conducted to inspect the
location, or an intended location, during business hours.
Sec. 46. (1) A person that applies for a license or renewal of
a license to operate as a supplier to millionaire party licensees
shall submit a written application to the board on a form
prescribed by the board.
(2) An applicant under this section shall pay an annual
license fee of $300.00 at the time of the application.
(3) If an applicant under this section wishes to provide
dealers to millionaire party licensees, the applicant shall include
with its application a list containing the name of each individual
who will work for the applicant as a dealer at millionaire parties
and, as to each individual, whether the individual has been
convicted of, forfeited bond on a charge of, or pled guilty to any
of the following:
(a) A felony.
(b) A gambling offense.
(c) Criminal fraud.
(d) Forgery.
(e) Larceny.
(f) Filing a false report with a governmental agency.
(4) If, after the application is submitted as described in
subsection (1) or after the suppliers license is issued, there are
any changes in the individuals who will work for the supplier as
dealers at millionaire parties, the supplier shall immediately
provide an updated list containing all of the information required
under subsection (3).
(5) A supplier licensed under this section shall submit to the
board reports as required by the board regarding the supplier's
activities under this article.
(6) A supplier's license expires at 12 midnight on September
30 of each year.
Sec. 48. The board shall enforce and supervise the
administration of this article. The executive director shall employ
personnel as necessary to implement this article.
Sec. 49. (1) Any rules promulgated by the board under this act
before the effective date of the amendatory act that added this
article are rescinded.
(2) The board shall promulgate rules pursuant to the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to
24.328, to implement this article.
Sec. 50. (1) The board may deny, suspend, summarily suspend,
or revoke a license issued under this article if the licensee or an
officer, director, agent, member, or employee of the licensee
violates this article or a rule promulgated under this article. The
board may summarily suspend a license for a period of not more than
60 days pending prosecution, investigation, or public hearing.
(2) A proceeding to suspend or revoke a license is a contested
case and must be conducted in accordance with the administrative
procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328.
Sec. 51. The board shall report annually to the governor and
the legislature about any activities related to qualified
organizations and the operation of events licensed under this
article.
Enacting section 1. This amendatory act does not take effect
unless Senate Bill No. 236
of the 100th Legislature is enacted into law.
