HOUSE BILL No. 4197 January 30, 1997, Introduced by Reps. Scott, Varga, Kelly, DeHart, Murphy, Hanley, Hale and Vaughn and referred to the Committee on House Oversight and Ethics. A bill to amend 1972 PA 382, entitled "Traxler-McCauley-Law-Bowman bingo act," by amending sections 3 and 7a (MCL 432.103 and 432.107a), section 3 as amended by 1995 PA 275 and section 7a as amended by 1994 PA 118. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 3. (1) "Educational organization" means an organiza- 2 tion within this state that is organized not for pecuniary 3 profit, whose primary purpose is educational in nature and 4 designed to develop the capabilities of individuals by instruc- 5 tion in any public or private elementary or secondary school that 6 complies with the REVISED school code,of 1976, Act No. 451 of7the Public Acts of 1976, being sections 380.1 to 380.1852 of the8Michigan Compiled Laws1976 PA 451, MCL 380.1 TO 380.1852, or 9 any private or public college or university that is organized not 00939'97 VPW 2 1 for pecuniary profit and that is approved by the state board of 2 education. 3 (2) "Fraternal organization" means an organization within 4 this state, except a college fraternity or sorority, that is 5 organized not for pecuniary profit; that is a branch, lodge, or 6 chapter of a national or state organization; and that exists for 7 the common purpose, brotherhood, or other interests of its 8 members. 9 (3) "Licensee" means a person or qualified organization 10 licensed pursuant to this act. 11 (4) "Member" means an individual who qualified for member- 12 ship in a qualified organization pursuant to its bylaws, articles 13 of incorporation, charter, rules, or other written statement. 14 (5) "Person" means a natural person, firm, association, cor- 15 poration, or other legal entity. 16 (6) "Qualified organization" means a bona fide religious, 17 educational, service, senior citizens, fraternal, or veterans' 18 organization that operates without profit to its members and that 19 either has been in existence continuously as an organization for 20 a period of 5 years or is exempt from taxation imposed by the 21 single business tax act,Act No. 228 of the Public Acts of 1975,22being sections 208.1 to 208.145 of the Michigan Compiled Laws23 1975 PA 228, MCL 208.1 TO 208.145. Qualified organizationdoes24notSHALL ALSO include a candidate committee, political com-25mittee, political party committee, ballot question committee,26independent committee, or any other committeeas defined by,27 and organized pursuant to,the Michigan campaign finance act, 00939'97 3 1Act No. 388 of the Public Acts of 1976, being sections 169.2012to 169.282 of the Michigan Compiled Laws1976 PA 388, MCL 3 169.201 TO 169.282. 4 (7) "Religious organization" means any of the following: 5 (a) An organization, church, body of communicants, or group 6 that is organized not for pecuniary profit and that gathers in 7 common membership for mutual support and edification in piety, 8 worship, and religious observances. 9 (b) A society of individuals that is organized not for pecu- 10 niary profit and that unites for religious purposes at a definite 11 place. 12 (c) A church related private school that is organized not 13 for pecuniary profit. 14 (8) "Senior citizens organization" means an organization 15 within this state that is organized not for pecuniary profit, 16 that consists of at least 15 members who are 60 years of age or 17 older, and that exists for their mutual support and for the 18 advancement of the causes of elderly or retired persons. 19 (9) "Service organization" means either of the following: 20 (a) A branch, lodge, or chapter of a national or state 21 organization that is organized not for pecuniary profit and that 22 is authorized by its written constitution, charter, articles of 23 incorporation, or bylaws to engage in a fraternal, civic, or 24 service purpose within the state. 25 (b) A local civic organization that is organized not for 26 pecuniary profit; that is not affiliated with a state or national 27 organization; that is recognized by resolution adopted by the 00939'97 4 1 local governmental subdivision in which the organization conducts 2 its principal activities; whose constitution, charter, articles 3 of incorporation, or bylaws contain a provision for the perpetua- 4 tion of the organization as a nonprofit organization; whose 5 entire assets are pledged to charitable purposes; and whose con- 6 stitution, charter, articles of incorporation, or bylaws contain 7 a provision that all assets, real property, and personal property 8 shall revert to the benefit of the local governmental subdivision 9 that granted the resolution upon dissolution of the 10 organization. 11 (10) "Veterans' organization" means an organization within 12 this state, or a branch, lodge, or chapter within this state of a 13 state organization or of a national organization chartered by the 14 congress of the United States, that is organized not for pecuni- 15 ary profit, the membership of which consists of individuals who 16 were members of the armed services or forces of the United 17 States. 18 Sec. 7a. (1) The bureau may authorize a qualified organiza- 19 tion licensed to conduct a bingo game or a millionaire party to 20 conduct a charity game in conjunction with and at the time and 21 location of the licensed bingo game or the licensed millionaire 22 party. 23 (2) All charity game tickets used in the conduct of a char- 24 ity game shall be purchased by the qualified organization from 25 the bureau or a licensed supplier. The bureau shall determine 26 the number of charity game tickets that constitute a charity 27 game. The bureau also shall determine the price at which the 00939'97 5 1 qualified organization shall resell each charity game ticket and 2 shall have that price printed on each charity game ticket. 3 (3) The bureau or a licensed supplier shall sell charity 4 game tickets to a qualified organization, which is eligible to 5 conduct a charity game, at a percentage to be determined by the 6 bureau,of the gross revenueswhichTHAT are realized by the 7 resale of all the charity game tickets for that game at the price 8 established by the bureau. The percentage retained by the quali- 9 fied organization shall be equal to the percentage received by 10 the bureau for the sale of charity game tickets. A qualified 11 organization which conducts a charity game shall be solely 12 responsible for paying prizes won by purchasers of winning char- 13 ity game tickets. When all charity game tickets are resold for 14 that game, prizes distributed shall have an aggregate value of, 15 as near as practicable, not less than65%60% of the resale 16 value of all the charity game tickets for that charity game. 17 (4) The bureau shall determine the number of winning charity 18 game tickets provided on a random basis for resale for any 1 19 charity game and shall establish the value of the prize won by 20 each winning charity game ticket. 21 (5) A charity game ticket shall not have a price for resale 22 by a qualified organization of less than 30 cents and a charity 23 game shall not have a single maximum prize exceeding$300.0024 $200.00. 25 (6) The bureau shall have a bureau control number for iden- 26 tification purposes imprinted upon each charity game ticket. 00939'97 6 1 (7) A value of prizes awarded for a charity game shall not 2 be included within the prize limitations of a licensed bingo game 3 or millionaire party in conjunction with which the charity game 4 is held. 5 (8) A charity game ticket shall not be sold to a person 6 under 18 years of age. This subsectionshallDOES not prohibit 7 the purchase of a charity game ticket by a person 18 years of age 8 or older for the purpose of making a gift to a person under 18 9 years of age, andshallDOES not prohibit a person under 18 10 years of age from receiving a prize or prizes won in a charity 11 game conducted pursuant to this act. 12 (9) A qualified organization eligible to conduct a charity 13 game shall not advertise the event, except to the extent and in 14 the manner permitted by rule of the commissioner. 15 Enacting section 1. This amendatory act takes effect April 16 1, 1997. 00939'97 Final page. VPW