Bill Text: MI SB0878 | 2013-2014 | 97th Legislature | Engrossed

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Bill Title: Gaming; bingo and charitable gaming; millionaire parties; provide for general amendments. Amends secs. 2, 3, 3a, 4, 4a, 8, 9, 10, 11b, 11c, 12, 13, 14, 15, 16, 18 & 19 of 1972 PA 382 (MCL 432.102 et seq.); adds art. 2; designates secs. 1 - 20 as art. 1 & repeals secs. 10a, 10b & 20 of 1972 PA 382 (MCL 432.110a et seq.).

Spectrum: Moderate Partisan Bill (Republican 19-5)

Status: (Engrossed - Dead) 2014-04-29 - Referred To Committee On Regulatory Reform [SB0878 Detail]

Download: Michigan-2013-SB0878-Engrossed.html

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SB-0878, As Passed Senate, April 24, 2014

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 878

 

 

 

 

 

 

 

 

 

 

 

 

      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, 11c, 12, 13,

 

14, 15, 16, 18, and 19 (MCL 432.102, 432.103, 432.103a, 432.104,

 

432.104a, 432.108, 432.109, 432.110, 432.111b, 432.111c, 432.112,

 

432.113, 432.114, 432.115, 432.116, 432.118, 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, 16, and 18 as

 

amended and section 11c as added 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

 

 2        Sec. 2. As used in this act:

 

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

 

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

 

 5  1967 PA 150, MCL 32.505.

 

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

 

 7  flyers, radio broadcasts, television broadcasts, advertising

 

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

 

 9  licensed under this act.

 

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

 

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

 

12  symbols conforming to numbers or symbols selected at random.

 

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

 

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

 

15  IL 1, MCL 432.204.

 

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

 

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

 

18  lottery act, 1972 PA 239, MCL 432.5.

 

19        (f) "Charitable purpose" means 1 or more of the following

 

20  causes or activities that are beneficial to the general public:

 

21        (i) Relief of poverty.

 

22        (ii) Advancement of education.

 

23        (iii) Advancement of religion.

 

24        (iv) Protection of health or relief from disease, suffering,

 

25  or distress.

 

26        (v) Advancement of civic, governmental, or municipal

 

 1  purposes.

 

 2        (vi) Protection of the environment and conservation of

 

 3  wildlife.

 

 4        (vii) Defense of human rights and the elimination of

 

 5  prejudice and discrimination.

 

 6        (viii) Any other purpose that the commissioner or director, as

 

 7  applicable, determines to be beneficial to the general public.

 

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

 

 9  of charity game tickets.

 

10        (h) (f) "Charity game ticket" means a ticket commonly

 

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

 

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

 

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

 

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

 

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

 

16        (i) (g) "Commissioner" means the commissioner of state

 

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

 

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

 

19        (j) (h) "Coverall pattern" means a pattern required to win a

 

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

 

21  be called.

 

22        (k) "Day" means the standard 24-hour period, except that

 

23  with respect to the issuance of a license and the conduct of an

 

24  event under the license, day means the time period from 8 a.m. of

 

25  the day on the license to 2 a.m. of the following day.

 

26        (l) "Director" means the executive director of the board,

 

27  appointed under section 4 of the Michigan gaming control and

 

 1  revenue act, 1996 IL 1, MCL 432.204.

 

 2        (m) "Educational organization" means an organization in this

 

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

 

 4  purpose is educational in nature and designed to develop the

 

 5  capabilities of individuals by instruction in any public or

 

 6  private elementary or secondary school that complies with the

 

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

 

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

 

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

 

10  education.

 

11        (n) "Equipment" means the objects and mechanical,

 

12  electromechanical, or electronic devices used to determine or

 

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

 

14        (o) "Event" means, in article 1, an occasion of bingo games,

 

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

 

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

 

17  a millionaire party conducted under a license issued under

 

18  article 2.

 

19        (p) "Fraternal organization" means an organization in this

 

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

 

21  all of the following criteria:

 

22        (i) Is organized not for pecuniary profit.

 

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

 

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

 

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

 

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

 

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

 

 1  1986, 26 USC 501.

 

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

 

 3  interests of its members.

 

 4        (q) "General public" means society as a whole or any

 

 5  considerable part of society.

 

 6        (r) "Gross revenue" means the monetary value received by the

 

 7  licensee for all fees charged to participate in the event before

 

 8  any deductions for prizes or any other expenses.

 

 9        Sec. 3. As used in this act:

 

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

 

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

 

12  primary purpose is educational in nature and designed to develop

 

13  the capabilities of individuals by instruction in any public or

 

14  private elementary or secondary school that complies with the

 

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

 

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

 

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

 

18  education.

 

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

 

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

 

21  meets all of the following criteria:

 

22        (i) Is organized not for pecuniary profit.

 

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

 

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

 

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

 

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

 

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

 

 1  1986, 26 USC 501.

 

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

 

 3  interests of its members.

 

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

 

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

 

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

 

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

 

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

 

 9  through a Michigan progressive jackpot bingo game is not subject

 

10  to these limitations.

 

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

 

12  all prizes awarded through raffle drawings exceeds $500.00 per

 

13  occasion.

 

14        (c) "Lawful purpose" means 1 or more of the authorized

 

15  purposes stated in a qualified organization's written bylaws,

 

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

 

17  file with the bureau of director, as applicable.

 

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

 

19  organization, licensed under this act.

 

20        (e) "Location" means a building, enclosure, part of a

 

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

 

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

 

23  includes all components or buildings that compose 1 architectural

 

24  entity or that serve a unified functional purpose, or a

 

25  racetrack, that is used for the purpose of conducting an event.

 

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

 

27  who manufactures numeral game tickets for sale to suppliers for

 

 1  use in an event.

 

 2        (g) (d) "Member" means an individual who qualified for

 

 3  membership in a qualified organization under its bylaws, articles

 

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

 

 5        (h) (e) "Michigan national guard" and "military" mean those

 

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

 

 7  1967 PA 150, MCL 32.505.

 

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

 

 9  corporation, or other legal entity.

 

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

 

11  (h), either of the following:

 

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

 

13  citizens, fraternal, or veterans' organization that operates

 

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

 

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

 

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

 

17  revenue code of 1986, 26 USC 501.

 

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

 

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

 

20  Michigan national guard whose members are in active service or

 

21  active state service.

 

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

 

23  committee, political committee, political party committee, ballot

 

24  question committee, independent committee, or any other committee

 

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

 

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

 

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

 

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

 

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

 

 3  common membership for mutual support and edification in piety,

 

 4  worship, and religious observances.

 

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

 

 6  pecuniary profit and that unites for religious purposes at a

 

 7  definite place.

 

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

 

 9  for pecuniary profit.

 

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

 

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

 

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

 

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

 

14  advancement of the causes of elderly or retired persons.

 

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

 

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

 

17  organization that is organized not for pecuniary profit and that

 

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

 

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

 

20  service purpose within the state.

 

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

 

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

 

23  organization; that is recognized by resolution adopted by the

 

24  local governmental subdivision in which the organization conducts

 

25  its principal activities; whose constitution, charter, articles

 

26  of incorporation, or bylaws contain a provision for the

 

27  perpetuation of the organization as a nonprofit organization;

 

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

 

 2  constitution, charter, articles of incorporation, or bylaws

 

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

 

 4  property shall revert to the benefit of the local governmental

 

 5  subdivision that granted the resolution upon dissolution of the

 

 6  organization.

 

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

 

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

 

 9  state organization or of a national organization chartered by the

 

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

 

11  pecuniary profit, the membership of which consists of individuals

 

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

 

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

 

14  veterans' organization that is a national organization chartered

 

15  by the congress of the United States.

 

16        (i) "Michigan progressive jackpot" means a bingo game

 

17  conducted in conjunction with a licensed large bingo occasion in

 

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

 

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

 

20  calls. Michigan progressive jackpot may include bingo games

 

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

 

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

 

23  prescribed by the commissioner.

 

24        (j) "Millionaire party" means an event at which wagers are

 

25  placed on games of chance customarily associated with a gambling

 

26  casino and described in section 42 through the use of imitation

 

27  money or chips that have a nominal value equal to or greater than

 

 1  the value of the currency for which they can be exchanged.

 

 2        (k) "Numeral game" means the random resale of a series of

 

 3  numeral game tickets.

 

 4        (l) "Numeral game ticket" means a paper strip on which

 

 5  preprinted numerals are covered by folding the strip and banding

 

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

 

 7  breaking the paper that bands the folding strip the purchaser

 

 8  discovers whether the ticket is a winning ticket.

 

 9        (m) "Occasion" means a single day for which a license to

 

10  conduct games is issued under this act.

 

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

 

12  electromechanical devices used to determine or assist in

 

13  determining the winners of prizes at events licensed under this

 

14  act.

 

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

 

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

 

17  act.

 

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

 

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

 

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

 

21  $3,500.00 and the total value of all prizes awarded for 1 game

 

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

 

23  Michigan progressive jackpot bingo game is not subject to these

 

24  limitations.

 

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

 

26  all prizes awarded through raffle drawings exceed $500.00 per

 

27  occasion.

 

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

 

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

 

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

 

 4  act. Location also means all components or buildings that

 

 5  comprise 1 architectural entity or that serve a unified

 

 6  functional purpose.

 

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

 

 8  who manufactures numeral game tickets for sale to suppliers for

 

 9  use in an event.

 

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

 

11  conducted in conjunction with a licensed large bingo occasion,

 

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

 

13  occasion if no player bingos in a predetermined number of

 

14  allowable calls. Michigan progressive jackpot may include bingo

 

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

 

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

 

17  as prescribed by the commissioner.

 

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

 

19  placed upon games of chance customarily associated with a

 

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

 

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

 

22  currency for which they can be exchanged.

 

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

 

24  numeral game tickets by a qualified organization under a numeral

 

25  game license or in conjunction with a licensed millionaire party

 

26  or large raffle.

 

27        (10) "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, if upon breaking

 

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

 

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

 

 5  awarded a merchandise prize.

 

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

 

 7  license is issued.As used in this act:

 

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

 

 9  corporation, or other legal entity.

 

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

 

11  officer of the qualified organization according to its written

 

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

 

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

 

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

 

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

 

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

 

17  material given away by a qualified organization in accordance

 

18  with rules promulgated under this act.

 

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

 

20  (e), either of the following:

 

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

 

22  citizens, fraternal, or veterans' organization that operates

 

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

 

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

 

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

 

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

 

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

 

 1  Michigan national guard whose members are in active service or

 

 2  active state service.

 

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

 

 4  committee, political committee, political party committee, ballot

 

 5  question committee, independent committee, or any other committee

 

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

 

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

 

 8        (f) "Racetrack" means a racetrack licensed under section 9

 

 9  of the horse racing law of 1995, 1995 PA 279, MCL 431.309.

 

10        (g) "Raffle" means an event for which raffle tickets are

 

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

 

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

 

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

 

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

 

15        (h) "Religious organization" means any of the following:

 

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

 

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

 

18  gathers in common membership for mutual support and edification

 

19  in piety, worship, and religious observances.

 

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

 

21  not for pecuniary profit and that unites for religious purposes

 

22  at a definite place.

 

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

 

24  organized not for pecuniary profit.

 

25        (i) "Retail value" means the price at which a merchandise

 

26  item can normally be found for purchase at a retail outlet. For a

 

27  merchandise item that is not normally sold through a retail

 

 1  outlet, retail value means the price at which the item normally

 

 2  is sold in the secondary market or the price that a reasonable

 

 3  seller would ask and that a reasonable purchaser would pay for

 

 4  the item.

 

 5        (j) "Senior citizens organization" means an organization in

 

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

 

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

 

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

 

 9  of the causes of elderly or retired persons.

 

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

 

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

 

12  or state organization that is organized not for pecuniary profit

 

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

 

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

 

15  civic, or service purpose in this state.

 

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

 

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

 

18  state or national organization; that is recognized by resolution

 

19  adopted by the local governmental subdivision in which the

 

20  organization conducts its principal activities; whose

 

21  constitution, charter, articles of incorporation, or bylaws

 

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

 

23  nonprofit organization; whose entire assets are used for

 

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

 

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

 

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

 

27  of the local governmental subdivision that granted the resolution

 

 1  or another nonprofit organization on dissolution of the

 

 2  organization.

 

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

 

 4  meeting with a specified beginning and ending time that is

 

 5  conducted or sponsored by the qualified organization. Single

 

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

 

 7  or similar facility and does not include a meeting conducted

 

 8  solely for the purpose of conducting a raffle.

 

 9        (l) (15) "Small bingo" means a series of bingo occasions that

 

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

 

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

 

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

 

13  a single bingo game does not exceed $25.00.

 

14        (m) (16) "Small raffle" means an event during which the

 

15  total value of all prizes awarded through raffle drawings does

 

16  not exceed $500.00 during 1 occasion.

 

17        (n) (17) "Special bingo" means a single or consecutive

 

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

 

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

 

20  not exceed $3,500.00 and the total value of all prizes awarded

 

21  for a single bingo game does not exceed $1,100.00.

 

22        (o) (18) "Supplier" means a person licensed under this act

 

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

 

24  numeral game tickets to qualified organizations licensed under

 

25  this act.

 

26        (p) "Veterans' organization" means an organization in this

 

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

 

 1  organization or of a national organization chartered by the

 

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

 

 3  pecuniary profit, the membership of which consists of individuals

 

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

 

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

 

 6  veterans' organization that is a national organization chartered

 

 7  by the congress of the United States.

 

 8        (q) "Week" means a period of 7 days beginning with Sunday

 

 9  and ending with Saturday.

 

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

 

11  bingo event, millionaire party, raffle, charity game, or numeral

 

12  game shall submit to the bureau a written application on a form

 

13  prescribed by the commissioner.

 

14        (2) The application under subsection (1) shall include all

 

15  of the following:

 

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

 

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

 

18  organization.

 

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

 

20  event.

 

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

 

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

 

23  will be responsible for the conduct of the event.

 

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

 

25  incorporation or organization to enable the commissioner to

 

26  determine whether the applicant is a qualified organization.

 

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

 

 1  the applicant organization, signed by the principal officer of

 

 2  that the organization.

 

 3        (h) Other information the commissioner considers necessary.

 

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

 

 5  if the commissioner determines that the an applicant under

 

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

 

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

 

 8  appropriate fee, the commissioner may shall issue 1 or more of

 

 9  the following licenses:

 

 

10			License                                Fee
11		(a)	Large bingo.........................$ 150.00
12		(b)	Small bingo.........................$  55.00
13		(c)	Special bingo.......................$  25.00
14		(d)	Millionaire party...................$  50.00 per day
15		(d)(e)	Large raffle........................$  50.00 per
16			drawing date
17		(e)(f)	Small raffle:
18		(i)	One to 3 drawing dates..............$  15.00
19		(ii)	Four or more drawing dates..........$   5.00 per
20			drawing date
21		(f)(g)	Annual charity game.................$ 200.00
22		(g)(h)	Special charity game................$  15.00 per day
23		(h)(i)	Numeral game........................$  15.00 per day

 

 

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

 

25  commissioner, the commissioner may waive 1 or more requirements

 

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

 

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

 

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

 

 1  following conditions are met:

 

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

 

 3  organization.

 

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

 

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

 

 6  for a charitable purpose, organization, or cause.

 

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

 

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

 

 9  participation.

 

10        (d) The organization complies with all other applicable

 

11  provisions of this act and rules promulgated under this

 

12  act.article.

 

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

 

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

 

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

 

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

 

17  conditions are met:

 

18        (a) 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        (b) None of the individuals connected with the conduct of

 

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

 

23  participation.

 

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

 

25  other applicable provisions of this act article and the rules

 

26  promulgated under this act.article.

 

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

 

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

 

 2  license.

 

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

 

 4  transferable.

 

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

 

 6  that the events conducted under a license issued under this

 

 7  section are conducted in compliance with the applicable

 

 8  provisions of this act and rules promulgated under this article.

 

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

 

10  licensee shall only conduct events licensed under this act

 

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

 

12  on the license.

 

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

 

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

 

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

 

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

 

17  commissioner shall only consider whether the organization meets

 

18  requirements that are applicable under this act that are

 

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

 

20  chapter of a national or state organization.

 

21        (9) The commissioner shall not deny a license to an

 

22  applicant under section 4 on the basis that the location where

 

23  the event will be held is a racetrack. The commissioner shall not

 

24  deny a license to an applicant under section 4 in order to limit

 

25  the number of days in a week that events may be conducted at a

 

26  racetrack or limit the number of events that may be conducted at

 

27  a racetrack on 1 day to less than 7.

 

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

 

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

 

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

 

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

 

 5  All necessary expenses incurred by the bureau in the

 

 6  administration and enforcement of any activity authorized by this

 

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

 

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

 

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

 

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

 

11  charity game tickets and all fees collected under this act by the

 

12  commissioner or the bureau. At the end of each fiscal year all

 

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

 

14  is attributable to fees and revenue collected under this act by

 

15  the commissioner or the bureau but which that has not been

 

16  expended under this section shall be deposited in the state

 

17  general fund.

 

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

 

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

 

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

 

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

 

22  incurred by the director or board in the administration and

 

23  enforcement of any activity authorized by this act and in the

 

24  initiation, implementation, and ongoing operation of any activity

 

25  authorized by this act shall be financed from the state lottery

 

26  fund. The amount of these necessary expenses shall not exceed the

 

27  amount of the fees collected under this act by the director or

 

 1  the board. At the end of each fiscal year all money, including

 

 2  interest, in the state lottery fund that is attributable to fees

 

 3  and revenue collected under this act by the director or the board

 

 4  but that has not been expended under this section shall be

 

 5  deposited in the state general fund.

 

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

 

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

 

 8  this article shall be devoted exclusively to the lawful purposes

 

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

 

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

 

11  of an event except the following expenses in reasonable amounts

 

12  that the commissioner determines to be reasonable:

 

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

 

14  conducting an event and payment of services reasonably necessary

 

15  for the repair of equipment.

 

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

 

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

 

18        (d) Janitorial services.

 

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

 

20  to conduct the event.

 

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

 

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

 

23  commissioner.

 

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

 

25  3a(d)(ii) shall use the entire net proceeds of an event, after

 

26  paying items of expense incurred in reasonable amounts in

 

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

 

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

 

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

 

 3  activities of the component.

 

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

 

 5  shall participate in the management of an event.

 

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

 

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

 

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

 

 9  game except as provided by rule promulgated under this

 

10  act.article.

 

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

 

12  licensee shall conduct bingo or a millionaire party games only

 

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

 

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

 

15  supplier.

 

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

 

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

 

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

 

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

 

20  advertisement the purposes for which the net proceeds will be

 

21  used by the licensee.

 

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

 

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

 

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

 

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

 

26  indicate in the advertising the purposes for which the net

 

27  proceeds will be used by the licensee.

 

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

 

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

 

 3  tickets, or numeral game tickets to qualified organizations

 

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

 

 5  bureau on a form prescribed by the commissioner.

 

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

 

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

 

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

 

 9  30 of each year.

 

10        (4) The commissioner shall require suppliers authorized to

 

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

 

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

 

13  than $1,000,000.00.

 

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

 

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

 

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

 

17  $.008 for each ticket sold plus 1.0% of the total resale value

 

18  for all charity game tickets sold.

 

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

 

20  the licensed organization an invoice listing the manufacturer and

 

21  serial number of each game.

 

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

 

23  supplier from the a qualified organization for each game of

 

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

 

25  or any portion of 1,000 tickets.

 

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

 

27  supplier for each numeral game sold shall be remitted to the

 

 1  bureau under subsection (7) to the bureau by the fifteenth day of

 

 2  the month following the month in which the numeral game is sold.

 

 3  A The commissioner may assess a late fee of 25% of the amount due

 

 4  may be assessed by the commissioner against any a supplier who

 

 5  fails to remit the fees by the required filing date.

 

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

 

 7  otherwise make available to a qualified organization numeral game

 

 8  tickets that have been obtained from a manufacturer.

 

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

 

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

 

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

 

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

 

13  supplier shall not be involved directly or indirectly with the

 

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

 

15        (11) A supplier shall submit to the bureau a report as

 

16  required by the commissioner regarding the sale or rental of

 

17  equipment and the sale of charity game tickets and numeral game

 

18  tickets.

 

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

 

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

 

21  written application on a form prescribed by the commissioner.

 

22        (2) The annual manufacturer's license fee shall be is

 

23  $300.00.

 

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

 

25  June 30 of each year.

 

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

 

27  the commissioner may be distributed to suppliers within this

 

 1  state.

 

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

 

 3  to suppliers shall be available upon request to an authorized

 

 4  representative of the bureau for inspection or audit and shall be

 

 5  kept by the manufacturer for not less than the calendar year in

 

 6  which the sale is made plus 3 additional years.

 

 7        (6) Each A manufacturer shall submit to the bureau a report

 

 8  as required by the commissioner regarding the sale of numeral

 

 9  game tickets to suppliers.

 

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

 

11  administration of this act. article. The commissioner shall

 

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

 

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

 

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

 

15  organization to audit to ensure that the organizations are in

 

16  compliance with this act.article.

 

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

 

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

 

19  24.201 to 24.328, to implement this act.article.

 

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

 

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

 

22  licensee shall allow a representative authorized by the bureau to

 

23  inspect a record kept under this subsection and all financial

 

24  accounts into which proceeds from events licensed under this act

 

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

 

26  duly authorized representative of the bureau during reasonable

 

27  business hours.

 

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

 

 2  commissioner a financial statement signed by the principal

 

 3  officer of the qualified organization of receipts and expenses

 

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

 

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

 

 6  game, millionaire party, event, raffle, numeral game, or charity

 

 7  game is represented to be used or applied by a licensee under

 

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

 

 9  copy of the financial statement with the attorney general under

 

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

 

11  101, MCL 14.251 to 14.266.

 

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

 

13  authorized representative of the bureau or the department of

 

14  state police or a law enforcement officer of a political

 

15  subdivision of this state to inspect a location at which events

 

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

 

17  a building, enclosure, or portion of real property that the

 

18  licensee intends to conduct an event licensed under this act

 

19  shall be open to inspection use as a location at all times by a

 

20  duly authorized representative of the bureau or by the state

 

21  police or a peace officer of a political subdivision of this

 

22  state.any time.

 

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

 

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

 

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

 

26  the bureau may have encountered, and recommendations for changes

 

27  in this act.

 

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

 

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

 

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

 

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

 

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

 

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

 

 7  prosecution, investigation, or public hearing.

 

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

 

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

 

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

 

11  306, MCL 24.201 to 24.328.

 

12        (3) Upon petition of the commissioner, 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 it

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

23  as a being in contempt of the court.

 

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

 

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

 

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

 

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

 

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

 

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

 

 3  bingo hall licensee.

 

 4        Sec. 18. (1) A licensee whose license is revoked in

 

 5  consequence of for a violation of this act article or a rule

 

 6  promulgated under this act article is ineligible to apply for a

 

 7  license for a period of 2 years.

 

 8        (2) A person convicted of an offense under section 17 or any

 

 9  other gambling offense is ineligible to serve as an officer of a

 

10  licensee or to participate in conducting a bingo , a millionaire

 

11  party, event, raffle, numeral game, or charity game for a period

 

12  of 1 year after the conviction becomes final. If the person is

 

13  licensed under this act, article, the person shall forfeit the

 

14  license and is ineligible to apply for the issuance or reissuance

 

15  of the license for a period of 1 year after the conviction

 

16  becomes final.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

26  promulgated under this act.

 

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

 

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

 

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

 

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

 

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

 

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

 

 6  169.241, of the Michigan Compiled Laws, to fundraising events

 

 7  conducted by or for the benefit of a committee that has filed or

 

 8  is required to file a statement of organization pursuant to Act

 

 9  No. 388 of the Public Acts of 1976.under the Michigan campaign

 

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

 

11                            ARTICLE 2

 

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

 

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

 

14  the organization to further its lawful purposes.

 

15        (b) "Charitable gaming service provider" means a person

 

16  licensed as a charitable gaming service provider under section 47

 

17  to rent or sell equipment or provide operation services to

 

18  millionaire party licensees.

 

19        (c) "Lessor" means a person who rents a location to a

 

20  millionaire party licensee for the purpose of conducting an

 

21  event.

 

22        (d) "Management" means handling of cash, chips, and house

 

23  rakes at an event and preparation of game records and financial

 

24  statements for the event.

 

25        (e) "Millionaire party equipment" means any authorized item

 

26  that is used to conduct an authorized game at an event.

 

27        (f) "Operation services" means providing staffing and

 

 1  services commonly associated with games of chance for an event.

 

 2        (g) "Terms of probation" means conditions established at the

 

 3  discretion of the bureau or director, as applicable, that the

 

 4  licensee must comply with while the licensee is on probation

 

 5  under this article.

 

 6        (h) "Worker" means a person who assists or participates in

 

 7  the management, conduct, or operation of an event. Worker does

 

 8  not include an employee or agent of a lessor or charitable gaming

 

 9  service provider.

 

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

 

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

 

12  differently in this article.

 

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

 

14  millionaire party shall submit to the director a written

 

15  application on a form prescribed by the director.

 

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

 

17  the following:

 

18        (a) The name and address of the applicant, identifying the

 

19  principal officer.

 

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

 

21  identifying the principal officer.

 

22        (c) The name of each individual who will serve as

 

23  chairperson of the event under section 40.

 

24        (d) The name of each individual who will serve as record

 

25  keeper of the event under section 41.

 

26        (e) The location at which the applicant will conduct the

 

27  event.

 

 1        (f) If a charitable gaming service provider will be used,

 

 2  the name of the charitable gaming service provider.

 

 3        (g) The day or dates of the event.

 

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

 

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

 

 6        (i) Whether any officer or agent of the applicant, before or

 

 7  during the application process, has been convicted of, forfeited

 

 8  bond on a charge of, or pled guilty to any of the following:

 

 9        (i) A felony.

 

10        (ii) A gambling offense.

 

11        (iii) Criminal fraud.

 

12        (iv) Forgery.

 

13        (v) Larceny.

 

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

 

15        (j) Other information the director considers necessary.

 

16        (3) If an applicant under subsection (1) is a service

 

17  organization, the applicant shall provide proof that its bylaws,

 

18  constitution, or articles of incorporation or the bylaws or

 

19  constitution of its parent organization includes a statement of

 

20  dissolution stating that on dissolution of the organization all

 

21  assets that remain, after satisfying the organization's debts,

 

22  are to be distributed to the local government in which the

 

23  principal place of business of the organization is located or to

 

24  another nonprofit organization.

 

25        (4) An applicant under this section shall submit a copy of

 

26  all of the following documents, or if the applicant has been

 

27  previously licensed to conduct a millionaire party, any of the

 

 1  following documents that have been amended since the applicant

 

 2  was last licensed, with the application:

 

 3        (a) The applicant's constitution.

 

 4        (b) The applicant's bylaws.

 

 5        (c) The applicant's articles of incorporation.

 

 6        (d) Any other qualification document previously submitted.

 

 7        (e) The federal tax-exempt status of the applicant.

 

 8        (5) The director, in his or her discretion, may require an

 

 9  applicant that was previously licensed to conduct a millionaire

 

10  party to submit updated information to assure that the applicant

 

11  continues to be a qualified organization.

 

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

 

13  for a millionaire party license is a qualified organization, has

 

14  paid to the director a fee of $50.00 per day that the applicant

 

15  proposes to conduct the millionaire party, and that there is no

 

16  reason to deny the issuance of the license under subsection (3),

 

17  the director shall issue a millionaire party license to the

 

18  applicant.

 

19        (2) The director shall not issue a millionaire party license

 

20  unless the principal officer of the qualified organization is 18

 

21  years of age or older.

 

22        (3) The director shall consider whether an application under

 

23  section 33 should be denied because of any of the following

 

24  factors:

 

25        (a) The falsity or inaccuracy of any information supplied by

 

26  the applicant.

 

27        (b) Any indebtedness of the applicant to a local, state, or

 

 1  federal governmental agency.

 

 2        (c) Any pending lawsuit or bankruptcy proceeding involving

 

 3  the applicant.

 

 4        (d) The applicant's current or past history of noncompliance

 

 5  with this act and the rules promulgated under this article.

 

 6        (e) Any criminal conviction of an officer or agent of the

 

 7  applicant for any of the following offenses:

 

 8        (i) A violation of this act.

 

 9        (ii) A felony.

 

10        (iii) A gambling offense.

 

11        (iv) Criminal fraud.

 

12        (v) Forgery.

 

13        (vi) Larceny.

 

14        (vii) Filing a false report with a governmental agency.

 

15        (f) Any other factors considered relevant by the director.

 

16        (4) For the purposes of determining whether an applicant is

 

17  a qualified organization, the director shall consider all of the

 

18  following when determining whether a service, fraternal, or

 

19  veteran's organization qualifies as a branch, lodge, or chapter:

 

20        (a) A charter or similar document issued by the national or

 

21  state organization on acceptance of the applicant as a branch,

 

22  lodge, or chapter.

 

23        (b) Conditions established by the national or state

 

24  organization for the revocation or suspension of the charter or

 

25  relationship with the applicant.

 

26        (c) Dues or financial support submitted to the national or

 

27  state organization by the applicant.

 

 1        (d) The degree of control exerted by the national or state

 

 2  organization over the activities of the applicant.

 

 3        (e) Oversight and control, including the auditing of

 

 4  financial records, provided by the national or state organization

 

 5  over the financial affairs of the applicant.

 

 6        (f) Whether standard bylaws were adopted by the applicant or

 

 7  whether bylaws were submitted to the national or state

 

 8  organization for approval.

 

 9        (g) Appointed or elected officers of the applicant who are

 

10  responsible for the activities of the applicant.

 

11        (h) The ability of the applicant, by exercising voting

 

12  privileges or otherwise, to influence activities of the state or

 

13  national organization.

 

14        (5) Under extreme hardship conditions as determined by the

 

15  director, the director may waive 1 or more of the requirements

 

16  under section 3a(d) for a person to be a qualified organization

 

17  and issue a millionaire party license to the person if all of the

 

18  following conditions are met:

 

19        (a) The person is a nonprofit organization.

 

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

 

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

 

22  for a charitable purpose, organization, or cause.

 

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

 

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

 

25  participation.

 

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

 

27  provisions of this act and rules promulgated under this article.

 

 1        (6) Under extreme hardship conditions as determined by the

 

 2  director, the director may allow an individual or a group of

 

 3  individuals to obtain a license to conduct a millionaire party if

 

 4  all of the following 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 management of

 

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

 

10  participation.

 

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

 

12  will comply with all other provisions of this act and the rules

 

13  promulgated under this article.

 

14        (7) The director shall establish criteria under which a

 

15  qualified organization may receive an expedited millionaire party

 

16  license and establish a fee structure for expedited licenses. A

 

17  fee for an expedited millionaire party license shall not exceed

 

18  150% of the standard license fee.

 

19        (8) If a millionaire party license application is canceled

 

20  or denied, the director may retain a portion of the fee submitted

 

21  to cover processing costs.

 

22        (9) The director shall not deny a license to an applicant

 

23  for a millionaire party license on the basis that the location

 

24  where the event will be held is a racetrack. The director shall

 

25  not deny a license to an applicant for a millionaire party

 

26  license in order to limit the number of days in a week that

 

27  events may be conducted at a racetrack or to limit the number of

 

 1  events that may be conducted at a racetrack on 1 day to fewer

 

 2  than the maximum number of events that may be conducted at the

 

 3  same time at the same location under section 35(4).

 

 4        Sec. 35. (1) A qualified organization may be issued up to 4

 

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

 

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

 

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

 

 8  days.

 

 9        (3) The director shall not issue more than 1 millionaire

 

10  party license to a qualified organization for any 1 day.

 

11        (4) The director shall not issue more than 4 millionaire

 

12  party licenses that would allow events to be conducted at the

 

13  same time at the same location. This subsection does not limit

 

14  the number of licenses that may be issued for the same location

 

15  on the same date if not more than 4 events are being conducted at

 

16  any 1 time.

 

17        (5) The director shall indicate in a millionaire party

 

18  license whether the millionaire party licensee will use a

 

19  charitable gaming service provider to provide operation services

 

20  for the events allowed under the license.

 

21        (6) The director may allow a change in the location, day and

 

22  date, or time of an event under an issued millionaire party

 

23  license or may issue a duplicate license. To change the location,

 

24  day and date, or time of an event or obtain a duplicate license,

 

25  the licensee must submit a request to the director in writing

 

26  with a nonrefundable $35.00 fee at least 20 days before the event

 

27  or, if the request is to change the day and date of the event, 20

    Senate Bill No. 878 as amended April 24, 2014

 

 1  days before the proposed new date.

 

 2        (7) A millionaire party licensee shall notify the director

 

 3  in writing at least 10 days before a planned cancellation of an

 

 4  event.

 

 5        Sec. 36. (1) A millionaire party licensee shall comply with

 

 6  this act and the rules promulgated under this article.

 

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

 

 8  and requirements of the license.

 

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

 

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

 

11  millionaire party license.

 

12        (4) A millionaire party licensee may conduct an event under

 

13  its license without using a charitable gaming service provider if

 

14  the operation services for the event are provided by bona fide

 

15  members of the licensee.

    <<(5) A qualified organization that owns equipment shall not

    rent the equipment to or allow the use of the equipment by another

    qualified organization for the conduct of a millionaire party

    without the written approval of the director.

          (6) A qualified organization that owns or rents real property

    shall not rent or provide the property to another qualified

    organization to use as a location without the written approval of

    the director.>>

16        Sec. 37. (1) A millionaire party licensee may advertise the

17  event. The advertising must include the name of the licensee and

18  the license number.

19        (2) A lessor or charitable gaming service provider may

 

20  advertise millionaire parties without specific license

 

21  information if all of the following requirements are met:

 

22        (a) Licensed millionaire parties are conducted at the

 

23  location or by the charitable gaming service provider on an

 

24  ongoing basis.

 

25        (b) The advertisement states that the proceeds from the

 

26  millionaire parties benefit nonprofit organizations. The

 

27  statement required by this subdivision shall be displayed as

 

 1  follows:

 

 2        (i) If the advertising is over the internet, printed matter,

 

 3  or a sign or billboard, in a font that is the same size or larger

 

 4  than that of the body of the advertisement.

 

 5        (ii) If the advertising is televised, in a manner that is

 

 6  easily readable by the viewer continuously during the

 

 7  advertisement.

 

 8        (3) Advertising under this section does not include any of

 

 9  the following:

 

10        (a) A message or greeting on an answering machine or

 

11  voicemail intended to be heard by an individual who telephones a

 

12  licensee, lessor, or charitable gaming service provider.

 

13        (b) Video, audio, or other means of communication that is

 

14  broadcast solely inside a location where an event is being

 

15  conducted.

 

16        (c) Printed matter inside a location where an event is being

 

17  conducted that is intended to be visible only inside the

 

18  location.

 

19        (d) An internet webpage that does not mention the day, date,

 

20  or time of, specify games played at, or give program information

 

21  for an event.

 

22        (e) A sign located at a location that does not mention the

 

23  day, date, or time of, specify games played at, or give program

 

24  information for an event.

 

25        Sec. 38. An event shall be held at a location that meets 1

 

26  or more of the following requirements:

 

27        (a) The location is owned or rented on a continual basis and

 

 1  operated by a qualified organization for the regular use of its

 

 2  members and the equipment used for gaming at the location is

 

 3  owned by the licensee.

 

 4        (b) The location is rented or controlled by a qualified

 

 5  organization for the event and the equipment used for gaming at

 

 6  the location is owned by the licensee.

 

 7        (c) The location is owned or rented on a continual basis and

 

 8  operated by a qualified organization for the regular use of its

 

 9  members and the equipment used for gaming at the location is

 

10  rented from a charitable gaming service provider.

 

11        (d) The location is rented or controlled by a qualified

 

12  organization for the event and the equipment used for gaming at

 

13  the location is rented from a charitable gaming service provider.

 

14        (e) The location is owned, rented, or operated by a

 

15  charitable gaming service provider.

 

16        Sec. 39. The principal officer of a millionaire party

 

17  licensee is responsible for all of the following:

 

18        (a) Ensuring that there is full accountability for all

 

19  gaming assets, including, but not limited to, cash, prizes, chips

 

20  or imitation money, and all money derived from the event.

 

21        (b) Ensuring that the event is conducted in accordance with

 

22  this act and rules promulgated under this article.

 

23        (c) Ensuring that all records related to the event are

 

24  current and accurate.

 

25        (d) Reviewing all reports and correspondence from the

 

26  director.

 

27        (e) Signing and ensuring that financial statements from the

 

 1  event are submitted to the director as required under this act.

 

 2        (f) Responding in writing to violation notices under this

 

 3  act.

 

 4        (g) Ensuring that all workers are qualified to work the

 

 5  event.

 

 6        (h) Ensuring that a chairperson and a record keeper are

 

 7  present at the location where the event is held at any time

 

 8  during the event.

 

 9        Sec. 40. (1) The officers of a millionaire party licensee

 

10  shall designate 1 or more individuals to serve as chairpersons to

 

11  be in charge of and responsible for assuring that the millionaire

 

12  party is conducted in accordance with this act and rules

 

13  promulgated under this article.

 

14        (2) A chairperson is a worker and must have been a bona fide

 

15  member of the licensee for at least 6 months before the event.

 

16        (3) A chairperson must be familiar with this act, rules

 

17  promulgated under this article, and any applicable terms of

 

18  probation.

 

19        (4) At least 1 of the individuals designated as chairperson

 

20  must be present at the location where the event is held at any

 

21  time during the event.

 

22        (5) An individual designated as chairperson shall wear a

 

23  badge on which is printed the word "chairperson", the name of the

 

24  licensee, and the name of the chairperson.

 

25        (6) An individual designated as chairperson shall be in

 

26  charge of the event, supervise and direct all workers, and assure

 

27  that proper receipts are given for all money received during the

 

 1  event, that the receipt of the money is properly recorded, and

 

 2  that the money is properly deposited.

 

 3        (7) An individual designated as a chairperson shall attempt

 

 4  to resolve in accordance with this act, rules promulgated under

 

 5  this article, and event rules any disputes that may occur during

 

 6  the event.

 

 7        (8) The principal officer of a licensee shall immediately

 

 8  notify the director in a writing signed by the principal officer

 

 9  of any change in the chairpersons listed on the application for

 

10  the license.

 

11        Sec. 41. (1) The officers of a millionaire party licensee

 

12  shall designate 1 or more individuals to serve as record keepers

 

13  to be responsible for the handling of cash, prizes, chips, and

 

14  imitation money at the event.

 

15        (2) At least 1 of the individuals designated as a record

 

16  keeper must be present at the location where the event is held at

 

17  any time during the event. A record keeper shall give proper

 

18  receipts for all money received during the event and properly

 

19  record the receipt of the money.

 

20        (3) A millionaire party licensee shall not allow an

 

21  individual to act as a record keeper at an event unless the

 

22  individual qualifies as a worker and is a bona fide member of the

 

23  licensee.

 

24        (4) A worker at a millionaire party shall not play games in

 

25  which he or she is working or assisting. A worker may play when

 

26  not working, after paying any admission fee and all other fees in

 

27  the same manner as other players.

 

 1        (5) A worker shall not accept a prize or purchase, play, or

 

 2  accept a charity game ticket or numeral game ticket at an event

 

 3  at which he or she is working or assisting.

 

 4        (6) A worker shall not split a prize with a player or accept

 

 5  any kind of tip.

 

 6        Sec. 42. (1) At an event, the millionaire party licensee

 

 7  shall ensure that the licensee does not receive more than 1 of

 

 8  the following amounts, as applicable, in exchange for imitation

 

 9  money or chips on the day of the event:

 

10        (a) If the licensee does not use a charitable gaming service

 

11  provider for the event, $50,000.00.

 

12        (b) If the licensee uses a charitable gaming service

 

13  provider for the event, $20,000.00.

 

14        (2) A millionaire party licensee may conduct the following

 

15  games at an event held under the license:

 

16        (a) Wheel of fortune.

 

17        (b) Roulette.

 

18        (c) A dice game in which the players compete only against

 

19  the licensee.

 

20        (d) Twenty-one or blackjack.

 

21        (e) Poker, in any form.

 

22        (f) Any other game approved by the director.

 

23        (3) A millionaire party licensee shall not allow an

 

24  individual who is not a bona fide member of the millionaire party

 

25  licensee to participate in the management of the event. An

 

26  individual who is not a bona fide member of the millionaire party

 

27  licensee shall not participate in the management of an event.

 

 1        (4) Except when dealing cards, an individual who is not a

 

 2  bona fide member of the millionaire party licensee shall not

 

 3  perform any of the following millionaire party management duties:

 

 4        (a) Counting, distributing, handling, selling, or redeeming

 

 5  chips.

 

 6        (b) Receiving, handling, or counting cash.

 

 7        (c) Collecting the house rake.

 

 8        (d) Paying out cash prizes.

 

 9        (e) Paying workers.

 

10        (f) Completing game records and the financial statement.

 

11        (5) If an individual who is a bona fide member of the

 

12  millionaire party licensee provides operation services at the

 

13  event, the licensee does not have to perform a background check

 

14  on the individual.

 

15        (6) An employee or agent of a lessor or charitable gaming

 

16  service provider may accept cash tips at a millionaire party

 

17  event.

 

18        Sec. 43. (1) A millionaire party licensee shall devote the

 

19  entire net proceeds of a millionaire party exclusively to the

 

20  lawful purposes of the licensee. A licensee shall not use the net

 

21  proceeds from a millionaire party for the benefit of an

 

22  individual or a director, member, or shareholder of the licensee

 

23  except to directly further the lawful purposes of the licensee. A

 

24  millionaire party licensee shall not incur or pay an item of

 

25  expense in connection with holding or conducting an event except

 

26  the following expenses in amounts that the director determines to

 

27  be reasonable:

 

 1        (a) Purchase of equipment.

 

 2        (b) Repair of equipment.

 

 3        (c) Cash prizes or the purchase of prizes of merchandise.

 

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

 

 5        (e) Janitorial services.

 

 6        (f) The fee required for issuance or reissuance of the

 

 7  license to conduct the event.

 

 8        (g) Security.

 

 9        (h) Reasonable advertising.

 

10        (i) Fees paid to a charitable gaming service provider for

 

11  any of the following:

 

12        (i) Rental of equipment.

 

13        (ii) Operation services.

 

14        (iii) Security.

 

15        (j) Other reasonable expenses incurred by the licensee, not

 

16  inconsistent with this act or rules promulgated under this

 

17  article.

 

18        (2) A millionaire party licensee shall not pay more than 50%

 

19  of the gross profit from an event for expenses, not including

 

20  expenses described in subsection (1)(f). As used in this

 

21  subsection, "gross profit" means the total amount paid by patrons

 

22  to participate in charitable gaming at the event less the amount

 

23  or value of prizes paid.

 

24        Sec. 44. (1) A millionaire party licensee shall not write a

 

25  check on an account into which proceeds from the event are

 

26  deposited or transferred unless the check satisfies all of the

 

27  following requirements:

 

 1        (a) The name of the licensee is preprinted on the check.

 

 2        (b) An authorized individual or individuals sign the check.

 

 3        (c) The check is not made payable to cash or bearer or drawn

 

 4  in blank.

 

 5        (d) The check contains a brief description of the expense on

 

 6  the memo line.

 

 7        (2) A millionaire party licensee shall ensure that canceled

 

 8  checks written on an account into which proceeds from the event

 

 9  are deposited or transferred are returned on a monthly basis to

 

10  the account holder. This subsection is satisfied by the return of

 

11  copies of the checks, if the copies are legible and if the

 

12  originals can be made available to the director on request.

 

13        (3) A millionaire party licensee shall deposit all money

 

14  derived from the conduct of the event into the licensee's

 

15  financial account within 4 business days after the event.

 

16        (4) A millionaire party licensee shall not allow a check to

 

17  be cashed out of the millionaire party start cash or gross

 

18  revenue.

 

19        (5) Except for cash prizes and worker compensation, a

 

20  millionaire party licensee shall not pay any expenditure in cash

 

21  from proceeds of the event. A millionaire party licensee shall

 

22  pay all other expenses related to the event by check as required

 

23  by this section.

 

24        Sec. 45. (1) A millionaire party licensee may assign a

 

25  member to provide security services at an event held under the

 

26  license and pay the member for the services.

 

27        (2) A millionaire party licensee or charitable gaming

 

 1  service provider may contract for security services from a person

 

 2  licensed under the private security business and security alarm

 

 3  act, 1968 PA 330, MCL 338.1051 to 338.1092. A millionaire party

 

 4  licensee or charitable gaming service provider shall pay a person

 

 5  who provides security under this subsection at current market

 

 6  rates. A person who provides security under this subsection shall

 

 7  not participate in any other way in conducting the millionaire

 

 8  party.

 

 9        Sec. 46. (1) An applicant for a license to operate as a

 

10  charitable gaming service provider to qualified organizations

 

11  licensed under this article shall submit a written application to

 

12  the director on a form prescribed by the director.

 

13        (2) An applicant under this section shall disclose to the

 

14  director whether an owner, partner, shareholder, officer, or

 

15  agent of the applicant, or any individual who resides in the same

 

16  household as any of these, has been convicted of, has forfeited

 

17  bond on a charge of, or has plead guilty to any of the following

 

18  offenses:

 

19        (a) A felony.

 

20        (b) A gambling offense.

 

21        (c) Criminal fraud.

 

22        (d) Forgery.

 

23        (e) Larceny.

 

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

 

25        (3) An applicant under this section shall immediately report

 

26  to the director in writing any changes to the information

 

27  provided on an application filed under this section.

 

 1        Sec. 47. (1) If the director determines that an application

 

 2  and supporting information submitted under section 46 comply with

 

 3  this act and rules promulgated under this article, the applicant

 

 4  has paid an annual license fee of $300.00, and there is no reason

 

 5  to deny the issuance of the license under subsection (2), the

 

 6  director shall issue a charitable gaming service provider license

 

 7  to the applicant.

 

 8        (2) The director shall consider whether an application under

 

 9  section 46 should be denied because of any of the following

 

10  factors:

 

11        (a) The falsity or inaccuracy of any information supplied by

 

12  the applicant.

 

13        (b) Any indebtedness of the applicant to a local, state, or

 

14  federal governmental agency.

 

15        (c) Any pending lawsuit or bankruptcy proceeding involving

 

16  the applicant or any owner, partner, shareholder, or officer of

 

17  the applicant.

 

18        (d) The current or past history of noncompliance of the

 

19  applicant or any owner, partner, shareholder, member, director,

 

20  officer, or agent of the applicant, or of any individual who

 

21  resides in the same household as any of these, with this act and

 

22  rules promulgated under this article.

 

23        (e) Criminal convictions of the applicant or any owner,

 

24  partner, shareholder, member, director, officer, or agent of the

 

25  applicant, or of any individual who resides in the same household

 

26  as any of these, for any of the following offenses:

 

27        (i) A violation of the act.

    Senate Bill No. 878 as amended April 24, 2014

 

 1        (ii) A felony.

 

 2        (iii) A gambling offense.

 

 3        (iv) Criminal fraud.

 

 4        (v) Forgery.

 

 5        (vi) Larceny.

 

 6        (vii) Filing a false report with a governmental agency.

 

 7        (f) Any other factors considered relevant by the director.

          <<(3) The director shall not issue a charitable gaming

    service provider license to a qualified organization.>>

 8        Sec. 48. (1) A charitable gaming service provider license

 

 9  expires at midnight on September 30, and is renewable annually on

 

10  the submission of a renewal application, prescribed by the

 

11  director, unless the license is summarily suspended, suspended,

 

12  denied, or revoked by the director.

 

13        (2) If the ownership or any portion of ownership of the

 

14  corporation, limited liability company, partnership, or sole

 

15  proprietorship acting as a charitable gaming service provider

 

16  changes, not including the departure of an owner or a change in

 

17  percentage of ownership, the license issued to the corporation,

 

18  partnership, or sole proprietorship is void and the charitable

 

19  gaming service provider shall return the license to the director

 

20  without delay.

 

21        (3) A charitable gaming service provider license shall state

 

22  that the charitable gaming service provider is licensed to do

 

23  either of the following:

 

24        (a) Rent or sell equipment.

 

25        (b) Provide operation services.

 

26        Sec. 49. (1) A charitable gaming service provider shall

 

27  comply with this act and the rules promulgated under this

 

 1  article.

 

 2        (2) A charitable gaming service provider shall comply with

 

 3  the terms and requirements of its license.

 

 4        (3) A charitable gaming service provider license is not

 

 5  assignable or transferrable, and a licensee shall not assign or

 

 6  transfer a charitable gaming service provider license.

 

 7        Sec. 50. (1) A charitable gaming service provider shall only

 

 8  conduct games that the millionaire party licensee is authorized

 

 9  to conduct and that the millionaire party licensee has agreed

 

10  that the charitable gaming service provider may conduct.

 

11        (2) A charitable gaming service provider shall hold the

 

12  millionaire party licensee harmless from any loss from the

 

13  conduct of a game over the course of an event.

 

14        (3) A charitable gaming service provider shall not charge a

 

15  millionaire party an amount that would result in a violation of

 

16  section 43(2).

 

17        (4) An authorized representative of the director may inspect

 

18  the location at which a charitable gaming service provider

 

19  conducts gaming or intends to conduct gaming or uses to store

 

20  equipment during reasonable business hours.

 

21        (5) A person shall not refuse to cooperate with, hinder, or

 

22  obstruct in any way an authorized representative of the director

 

23  while the representative is performing official duties.

 

24        (6) A charitable gaming service provider shall not require a

 

25  millionaire party licensee to enter into an exclusive contract

 

26  with the charitable gaming service provider.

 

27        (7) A charitable gaming service provider or an owner,

 

 1  partner, shareholder, member, director, officer, agent, or

 

 2  employee of a charitable gaming service provider, or an

 

 3  individual who resides in the same household as any of these,

 

 4  shall not be involved with the management of an event. This

 

 5  subsection does not apply to the delivery, repair, and set up of

 

 6  equipment, training before the start of the event, or technical

 

 7  advice during the event.

 

 8        (8) An individual convicted of a criminal offense under this

 

 9  act or any other gambling offense is ineligible to be an owner,

 

10  partner, shareholder, member, director, officer, agent, or

 

11  employee of a charitable gaming service provider for 1 year after

 

12  the conviction becomes final.

 

13        (9) An owner, partner, shareholder, member, director,

 

14  officer, employee, or agent of a charitable gaming service

 

15  provider shall not wager on a game at an event for which the

 

16  charitable gaming service provider is providing operation

 

17  services.

 

18        Sec. 51. (1) Before hiring a prospective employee, a

 

19  charitable gaming service provider shall request the board to

 

20  conduct a background check of the prospective employee to

 

21  determine whether the prospective employee has been convicted of

 

22  a criminal offense or has any criminal charges pending against

 

23  him or her.

 

24        (2) A charitable gaming service provider shall submit a fee

 

25  of $25.00 and any fee charged by the department of state police

 

26  under subsection (3)(b) with a request for a background check

 

27  under this section.

 

 1        (3) The board shall conduct a background check under this

 

 2  section as follows:

 

 3        (a) The prospective employee shall submit fingerprints to

 

 4  the board for the purpose of obtaining criminal history record

 

 5  information. The board shall submit the fingerprints obtained

 

 6  under this subdivision to the department of state police for a

 

 7  state criminal history record check. The department of state

 

 8  police shall forward the fingerprints to the federal bureau of

 

 9  investigation for a national criminal history record check.

 

10        (b) The fingerprint-based criminal history check under this

 

11  section must be conducted in a manner prescribed by the

 

12  department of state police. The department of state police shall

 

13  conduct the fingerprint-based criminal history check and provide

 

14  a report of the results to the board. The department of state

 

15  police may charge a fee for the fingerprint-based criminal

 

16  history check, as provided under section 3 of 1935 PA 120, MCL

 

17  28.273.

 

18        (c) The department of state police shall store and maintain

 

19  all fingerprints submitted under this subsection in an automated

 

20  fingerprint identification system database that provides for an

 

21  automatic notification when a subsequent criminal arrest

 

22  fingerprint card submitted into the system matches a set of

 

23  fingerprints previously submitted in accordance with this

 

24  subsection. When there is a match, the department of state police

 

25  shall immediately notify the board and the board shall take the

 

26  appropriate action. After the federal bureau of investigation

 

27  implements a similar automatic notification system, the federal

 

 1  bureau of investigation shall store and maintain all fingerprints

 

 2  submitted under this subsection in an automated fingerprint

 

 3  identification system database that provides for an automatic

 

 4  notification when a subsequent criminal arrest fingerprint card

 

 5  submitted into the system matches a set of fingerprints

 

 6  previously submitted in accordance with this subsection. When

 

 7  there is a match, the department of state police shall

 

 8  immediately forward notification to the board, and the board

 

 9  shall take the appropriate action.

 

10        (d) Any criminal history information kept on file by the

 

11  board under this section is exempt from disclosure under section

 

12  13(1)(d) of the freedom of information act, 1976 PA 442, MCL

 

13  15.243.

 

14        (4) If the director has not notified the charitable gaming

 

15  service provider whether the prospective employee is qualified to

 

16  be employed under this article within 10 days after the board is

 

17  advised of the prospective hiring under this section, the

 

18  charitable gaming service provider may begin to train the

 

19  prospective employee.

 

20        (5) If the director has not notified the charitable gaming

 

21  service provider whether the prospective employee is qualified to

 

22  be employed under this article within 30 days after the board is

 

23  advised of the prospective hiring under this section, the

 

24  charitable gaming service provider may consider the employee to

 

25  be qualified under this act and employ the employee, unless the

 

26  director later notifies the charitable gaming service provider of

 

27  a negative determination.

    Senate Bill No. 878 as amended April 23, 2014

 

 1        (6) An individual may request preliminary approval under

 

 2  this section before a charitable gaming service provider

 

 3  indicates an intent to hire the individual by submitting to the

 

 4  board any documents necessary to conduct a background check and

 

 5  the fee required under subsection (2).

          <<(7) This section takes effect 90 days after the effective

    date of the amendatory act that added this section.>>

 6        Sec. 52. (1) <<A

 

 7                                           >> charitable gaming

 

 8  service provider shall maintain current and accurate records of

 

 9  all operations in conjunction with the purchase, sale, or rental

 

10  of millionaire party equipment and the provision of operation

 

11  services as required by this act.

 

12        (2) An authorized representative of the director may review

 

13  the records described in subsection (1) and all documents

 

14  supporting entries made in the records at the location.

 

15        (3) A charitable gaming service provider shall keep the

 

16  records described in subsection (1) and all documents supporting

 

17  entries made in the records for at least the calendar year in

 

18  which the event occurred and the 3 following years.

 

19        (4) A charitable gaming service provider shall report to the

 

20  director, on a form prescribed by the director, the type and

 

21  total amount of sales and rentals of millionaire party equipment.

 

22        Sec. 53. A person shall not act as a charitable gaming

 

23  service provider unless the person is licensed as a charitable

 

24  gaming service provider under this article.

 

25        Sec. 54. (1) If the director determines that a licensee

 

26  under this article has violated this act or the rules promulgated

 

27  under this article, the director may proceed with licensing

 

 1  sanctions as provided in this article and section 92 of the

 

 2  administrative procedures act of 1969, 1969 PA 306, MCL 24.292.

 

 3        (2) In determining a proper sanction for a violation of this

 

 4  act or rules promulgated under this article, the director shall

 

 5  consider whether the violation was inadvertent or intentional and

 

 6  what the consequences of the violation were. For a violation, the

 

 7  director may order 1 or more of the following:

 

 8        (a) That the licensee receive a written warning.

 

 9        (b) That the licensee be placed on probation under section

 

10  55.

 

11        (c) For a first violation, that the licensee pay a fine of

 

12  up to $1,000.00 and, if the violation threatened the public

 

13  health, safety, or welfare or public trust, that the license be

 

14  suspended under section 56 for up to 30 days.

 

15        (d) For a second violation in a 2-year period, that the

 

16  licensee pay a fine of up to $2,000.00 and, if the violation

 

17  threatened the public health, safety, or welfare or public trust,

 

18  that the license be suspended under section 56 for up to 60 days.

 

19        (e) For a third violation in a 2-year period, that the

 

20  licensee pay a fine of up to $3,000.00 and, if the violation

 

21  threatened the public health, safety, or welfare or public trust,

 

22  that the license be suspended under section 56 for up to 90 days.

 

23        (f) For a fourth or subsequent violation in a 2-year period,

 

24  that the licensee pay a fine of up to $4,000.00 and, at the

 

25  director's discretion, that the licensee be prohibited from

 

26  holding events for up to 2 years. If a 2-year suspension is

 

27  imposed under this subdivision, the director shall not issue a

 

 1  license to the qualified organization or charitable gaming

 

 2  service provider unless the organization or charitable gaming

 

 3  service provider demonstrates to the director the changes that

 

 4  have been put in place to ensure that violations will not

 

 5  continue.

 

 6        Sec. 55. (1) The director may place a millionaire party

 

 7  licensee or charitable gaming service provider on probation or

 

 8  may condition the renewal of a license with terms of probation as

 

 9  provided in section 54.

 

10        (2) The continuation of a probationary license under this

 

11  section is conditioned on strict compliance with this act, rules

 

12  promulgated under this article, and terms of probation.

 

13        (3) It is a violation of probation under this section if the

 

14  licensee fails to comply with this act, rules promulgated under

 

15  this article, or terms of probation.

 

16        (4) The director may summarily suspend a probationary

 

17  license issued under this section as provided in section 56 if

 

18  the licensee violates this act, rules promulgated under this

 

19  article, and terms of probation.

 

20        Sec. 56. (1) The director may deny, suspend, summarily

 

21  suspend, or revoke a license issued under this article if the

 

22  licensee or an officer, director, agent, member, or employee of

 

23  the licensee violates this act or a rule promulgated under this

 

24  article. The director may summarily suspend a license for a

 

25  period of not more than 60 days pending prosecution,

 

26  investigation, or public hearing.

 

27        (2) A proceeding to suspend or revoke a license under this

 

 1  article is a contested case governed by chapter 4 of the

 

 2  administrative procedures act of 1969, 1969 PA 306, MCL 24.271 to

 

 3  24.287.

 

 4        (3) On petition of the director, the circuit court after a

 

 5  hearing may issue subpoenas to compel the attendance of witnesses

 

 6  and the production of documents, papers, books, records, and

 

 7  other evidence before the director in a matter over which the

 

 8  director has jurisdiction, control, or supervision. If a person

 

 9  subpoenaed to attend in any such proceeding or hearing fails to

 

10  obey the command of the subpoena without reasonable cause, or if

 

11  a person in attendance in any such proceeding or hearing refuses,

 

12  without lawful cause, to be examined or to answer a legal or

 

13  pertinent question or to exhibit a book, account, record, or

 

14  other document when ordered to do so by the court, that person

 

15  may be punished as being in contempt of the court.

 

16        Sec. 57. (1) A licensee whose license is revoked for a

 

17  violation of this article or a rule promulgated under this

 

18  article is ineligible to apply for a license for 2 years.

 

19        (2) A person convicted of an offense under section 17 or any

 

20  other gambling offense is ineligible to serve as an officer of a

 

21  licensee or to participate in conducting a millionaire party for

 

22  1 year after the conviction becomes final. If the person is

 

23  licensed under this article, the person shall forfeit the license

 

24  and is ineligible to apply for the issuance or reissuance of the

 

25  license for 1 year after the conviction becomes final.

 

26        Sec. 58. (1) If the director issues a licensing sanction

 

27  against a licensee under section 54, the licensee may request a

 

 1  hearing before the board. A licensee must request a hearing under

 

 2  this section in writing by filing the request with the board

 

 3  within 10 days after the licensee receives notice of the license

 

 4  sanction.

 

 5        (2) Following a determination by the board after a hearing

 

 6  under subsection (1), a licensee may request judicial review of

 

 7  the determination under chapter 6 of the administrative

 

 8  procedures act of 1969, 1969 PA 306, MCL 24.301 to 24.306.

 

 9        Sec. 59. (1) Administrative rules relating to the conduct of

 

10  millionaire parties that were promulgated and in effect on June

 

11  11, 2012, remain in effect, are considered to be rules

 

12  promulgated under this article, and are applicable to the

 

13  director, the board, any applicant under this article, a

 

14  licensee, and any other person until rules are promulgated under

 

15  subsection (4). However, if a provision of a rule referred to in

 

16  this subsection conflicts with this article, this article

 

17  prevails. If the rules referred to in this subsection are

 

18  rescinded before this article takes effect, the director, the

 

19  board, any applicant under this article, a licensee, and any

 

20  other person shall treat the rules in accordance with this

 

21  subsection as if not rescinded.

 

22        (2) Any provision of a rule referred to under subsection (1)

 

23  that relates to a supplier is applicable to a charitable gaming

 

24  service provider as provided under subsection (1).

 

25        (3) Any administrative rules relating to millionaire parties

 

26  promulgated after June 11, 2012 and before rules are promulgated

 

27  under subsection (4) are rescinded.

 

 1        (4) Within 1 year after the effective date of this article,

 

 2  the director shall promulgate rules pursuant to the

 

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

 

 4  24.328, to implement this article.

 

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

 

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

 

 7  432.110b, and 432.120, are repealed.