House Introduced Bill 4472

HOUSE BILL No. 4472

April 14, 1999, Introduced by Reps. Koetje, Patterson, Toy, Law, Allen, Richner, Callahan and Vander Roest and referred to the Committee on Gaming and Casino Oversight.

A bill to amend 1972 PA 382, entitled

"Traxler-McCauley-Law-Bowman bingo act,"

by amending the title and sections 2, 4, 5, 6, 7a, 9, 10, 10a,

11, 12, 13, 14, 15, 16, and 18 (MCL 432.102, 432.104, 432.105,

432.106, 432.107a, 432.109, 432.110, 432.110a, 432.111, 432.112,

432.113, 432.114, 432.115, 432.116, and 432.118), sections 2, 4,

5, 9, 10, 10a, 11, 12, 13, 14, 15, and 18 as amended by 1981

PA 229 and section 7a as amended by 1994 PA 118, and by adding

sections 3a, 4a, 5a, 5b, 5c, 5d, 7b, 7c, 7d, 10b, 11a, 11b, and

11c; and to repeal acts and parts of acts.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 TITLE

2 An act to license and regulate the conducting of bingo and

3 certain other forms of gambling; to provide for the conducting of

4 charity games, RAFFLES, AND NUMERAL GAMES; TO PROVIDE FOR

03087'99 TLG
2

1 EXEMPTIONS FROM LICENSING REQUIREMENTS UNDER CERTAIN

2 CIRCUMSTANCES; to impose certain duties and authority upon cer-

3 tain state departments, agencies, and officers; to provide a tax

4 exemption; and to provide penalties.

5 Sec. 2. (1) "ADVERTISING" MEANS ALL PRINTED MATTER, HAND-

6 OUTS, FLYERS, RADIO, TELEVISION, ADVERTISING SIGNS, BILLBOARDS,

7 AND OTHER MEDIA USED TO PROMOTE AN EVENT LICENSED UNDER THIS ACT.

8 (2) (1) "Bingo" means that specific kind of A game of

9 chance commonly known as bingo in which prizes are awarded on the

10 basis of designated numbers or symbols on a card conforming to

11 numbers or symbols selected at random.

12 (3) (2) "Bureau" means the bureau of state lottery as cre-

13 ated by Act No. 239 of the Public Acts of 1972, as amended,

14 being sections 432.1 to 432.47 of the Michigan Compiled Laws THE

15 MCCAULEY-TRAXLER-LAW-BOWMAN-MCNEELY LOTTERY ACT, 1972 PA 239,

16 MCL 432.1 TO 432.47.

17 (4) (3) "Charity game" means the random resale of a series

18 of charity game tickets. by a qualified organization which has

19 purchased the charity game tickets from the bureau or a licensed

20 supplier in conjunction with a licensed bingo game or a licensed

21 millionaire party.

22 (5) (4) "Charity game ticket" means a ticket which

23 COMMONLY REFERRED TO AS A BREAK OPEN TICKET OR PULL-TAB THAT is

24 approved and acquired by the bureau and is distributed and sold

25 by the bureau or a licensed supplier to a qualified organization

26 for random resale in conjunction with a licensed bingo game or a

27 licensed millionaire party whereby upon removal of a portion of

03087'99
3

1 the ticket WHICH IS REMOVED to discover whether the ticket is a

2 winning ticket AND WHETHER the purchaser may be awarded a prize.

3 These tickets are commonly referred to as "break open tickets".

4 (6) (5) "Commissioner" means the commissioner of state

5 lottery as defined by section 3 of Act No. 239 of the Public

6 Acts of 1972 THE MCCAULEY-TRAXLER-LAW-BOWMAN-MCNEELY LOTTERY

7 ACT, 1972 PA 239, MCL 432.3.

8 (6) "Equipment" means the receptacle and numbered objects

9 drawn from it, the master board upon which such objects are

10 placed as drawn, the cards or sheets bearing numbers or other

11 designations to be covered and the objects used to cover them,

12 and the boards or signs, however operated, used to announce or

13 display the numbers or designations as they are drawn. Equipment

14 includes devices and materials customarily used in the operation

15 of a gambling casino on those occasions when a license for the

16 operation of a millionaire party is issued.

17 (7) "Location" means a single building, hall, enclosure, or

18 outdoor area used for the purpose of playing bingo, or conducting

19 a millionaire party pursuant to a license issued under this act.

20 (8) "Special occasion" means a single gathering or session

21 at which a series of successive bingo games or other gambling

22 events authorized by this act are played pursuant to a special

23 license issued under section 7.

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

25 placed upon games of chance customarily associated with a gambl-

26 ing casino through the use of imitation money which has a nominal

03087'99
4

1 value that is greater than the value of the currency for which it

2 was exchanged or is exchangeable.

3 (7) "COVERALL PATTERN" MEANS A PATTERN REQUIRED TO WIN A

4 BINGO GAME IN WHICH ALL NUMBERS ON A BINGO CARD ARE REQUIRED TO

5 BE CALLED.

6 SEC. 3A. (1) "EQUIPMENT" MEANS THE OBJECTS AND MECHANICAL

7 OR ELECTROMECHANICAL DEVICES USED TO DETERMINE OR ASSIST IN

8 DETERMINING THE WINNERS OF PRIZES AT EVENTS LICENSED UNDER THIS

9 ACT.

10 (2) "EVENT" MEANS A BINGO, MILLIONAIRE PARTY, RAFFLE, CHAR-

11 ITY GAME, OR NUMERAL GAME LICENSED UNDER THIS ACT.

12 (3) "LARGE BINGO" MEANS A SERIES OF BINGO OCCASIONS THAT

13 OCCUR ON A REGULAR BASIS DURING WHICH THE TOTAL VALUE OF ALL

14 PRIZES AWARDED THROUGH BINGO AT A SINGLE OCCASION DOES NOT EXCEED

15 $2,000.00 AND THE TOTAL VALUE OF ALL PRIZES AWARDED FOR 1 GAME

16 DOES NOT EXCEED $500.00, EXCEPT THAT A PRIZE AWARDED THROUGH A

17 MICHIGAN PROGRESSIVE JACKPOT BINGO GAME SHALL NOT BE SUBJECT TO

18 THESE LIMITATIONS.

19 (4) "LARGE RAFFLE" MEANS AN EVENT WHERE THE TOTAL VALUE OF

20 ALL PRIZES AWARDED THROUGH RAFFLE DRAWINGS EXCEED $500.00 PER

21 OCCASION.

22 (5) "LOCATION" MEANS A BUILDING, ENCLOSURE, PART OF A BUILD-

23 ING OR ENCLOSURE, OR A DISTINCT PORTION OF REAL ESTATE THAT IS

24 USED FOR THE PURPOSE OF CONDUCTING EVENTS LICENSED UNDER THIS

25 ACT. LOCATION ALSO MEANS ALL COMPONENTS OR BUILDINGS THAT COM-

26 PRISE 1 ARCHITECTURAL ENTITY OR THAT SERVE A UNIFIED FUNCTIONAL

27 PURPOSE.

03087'99
5

1 (6) "MANUFACTURER" MEANS A PERSON LICENSED UNDER SECTION 11C

2 WHO MANUFACTURES NUMERAL GAME TICKETS FOR SALE TO SUPPLIERS FOR

3 USE IN AN EVENT.

4 (7) "MICHIGAN PROGRESSIVE JACKPOT" MEANS A BINGO GAME CON-

5 DUCTED IN CONJUNCTION WITH A LICENSED LARGE BINGO OCCASION, WHERE

6 THE VALUE OF THE PRIZE IS CARRIED FORWARD TO THE NEXT BINGO OCCA-

7 SION IF NO PLAYER BINGOS IN A PREDETERMINED NUMBER OF ALLOWABLE

8 CALLS. MICHIGAN PROGRESSIVE JACKPOT MAY INCLUDE BINGO GAMES CON-

9 DUCTED BY MORE THAN 1 LICENSEE THAT ARE LINKED TOGETHER FOR THE

10 PURPOSE OF A COMMON JACKPOT PRIZE AND CONSOLATION PRIZE AS PRE-

11 SCRIBED BY THE COMMISSIONER.

12 (8) "MILLIONAIRE PARTY" MEANS AN EVENT AT WHICH WAGERS ARE

13 PLACED UPON GAMES OF CHANCE CUSTOMARILY ASSOCIATED WITH A GAMBL-

14 ING CASINO THROUGH THE USE OF IMITATION MONEY OR CHIPS THAT HAVE

15 A NOMINAL VALUE EQUAL TO OR GREATER THAN THE VALUE OF THE CUR-

16 RENCY FOR WHICH THEY CAN BE EXCHANGED.

17 (9) "NUMERAL GAME" MEANS THE RANDOM RESALE OF A SERIES OF

18 NUMERAL GAME TICKETS BY A QUALIFIED ORGANIZATION UNDER A NUMERAL

19 GAME LICENSE OR IN CONJUNCTION WITH A LICENSED MILLIONAIRE PARTY

20 OR LARGE RAFFLE.

21 (10) "NUMERAL GAME TICKET" MEANS A PAPER STRIP ON WHICH PRE-

22 PRINTED NUMERALS ARE COVERED BY FOLDING THE STRIP AND BANDING THE

23 FOLDED STRIP WITH A SEPARATE PIECE OF PAPER, IF UPON BREAKING THE

24 PAPER STRIP THAT BANDS THE TICKET, THE PURCHASER DISCOVERS

25 WHETHER THE TICKET IS A WINNING TICKET AND THE PURCHASER MAY BE

26 AWARDED A MERCHANDISE PRIZE.

03087'99
6

1 (11) "OCCASION" MEANS THE HOURS OF THE DAY FOR WHICH A

2 LICENSE IS ISSUED.

3 (12) "PRINCIPAL OFFICER" MEANS THE HIGHEST RANKING OFFICER

4 OF THE QUALIFIED ORGANIZATION ACCORDING TO ITS WRITTEN CONSTITU-

5 TION, CHARTER, ARTICLES OF INCORPORATION, OR BYLAWS.

6 (13) "PRIZE" MEANS ANYTHING OF VALUE, INCLUDING, BUT NOT

7 LIMITED TO, MONEY OR MERCHANDISE THAT IS GIVEN TO A PLAYER FOR

8 ATTENDING OR WINNING A GAME AT AN EVENT. A NONMONETARY ITEM IS

9 VALUED AT ITS RETAIL VALUE.

10 (14) "SINGLE GATHERING" MEANS 1 SCHEDULED ASSEMBLY OR MEET-

11 ING WITH A SPECIFIED BEGINNING AND ENDING TIME THAT IS CONDUCTED

12 OR SPONSORED BY THE QUALIFIED ORGANIZATION. SINGLE GATHERING

13 DOES NOT INCLUDE THE REGULAR OPERATING HOURS OF A CLUB OR SIMILAR

14 FACILITY AND DOES NOT INCLUDE A MEETING CONDUCTED SOLELY FOR THE

15 PURPOSE OF CONDUCTING A RAFFLE.

16 (15) "SMALL BINGO" MEANS A SERIES OF BINGO OCCASIONS THAT

17 OCCUR ON A REGULAR BASIS DURING WHICH THE TOTAL VALUE OF ALL

18 PRIZES AWARDED THROUGH BINGO AT A SINGLE OCCASION DOES NOT EXCEED

19 $300.00 AND THE TOTAL VALUE OF ALL PRIZES AWARDED FOR A SINGLE

20 BINGO GAME DOES NOT EXCEED $25.00.

21 (16) "SMALL RAFFLE" MEANS AN EVENT DURING WHICH THE TOTAL

22 VALUE OF ALL PRIZES AWARDED THROUGH RAFFLE DRAWINGS DOES NOT

23 EXCEED $500.00 DURING 1 OCCASION.

24 (17) "SPECIAL BINGO" MEANS A SINGLE OR CONSECUTIVE SERIES OF

25 BINGO OCCASIONS DURING WHICH THE TOTAL VALUE OF ALL PRIZES

26 AWARDED THROUGH BINGO AT A SINGLE OCCASION DOES NOT EXCEED

03087'99
7

1 $2,000.00 AND THE TOTAL VALUE OF ALL PRIZES AWARDED FOR A SINGLE

2 BINGO GAME DOES NOT EXCEED $500.00.

3 (18) "SUPPLIER" MEANS A PERSON LICENSED UNDER THIS ACT TO

4 RENT, SELL, OR LEASE EQUIPMENT OR TO SELL CHARITY GAME OR NUMERAL

5 GAME TICKETS TO QUALIFIED ORGANIZATIONS LICENSED UNDER THIS ACT.

6 Sec. 4. (1) Each applicant for a license to conduct A

7 bingo, or a millionaire party, RAFFLE, CHARITY GAME, OR NUMERAL

8 GAME shall submit to the commissioner BUREAU a written applica-

9 tion prepared pursuant to and on a form prescribed by rule of

10 the commissioner.

11 (2) The application shall include ALL OF THE FOLLOWING:

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

13 (b) The name and address of its officers EACH OFFICER OF

14 THE APPLICANT ORGANIZATION.

15 (c) The location at which the applicant will conduct bingo

16 or a millionaire party THE EVENT.

17 (d) The day of the week on which the applicant will conduct

18 bingo if a bingo license has been applied for, or the days of the

19 year, not to exceed 2 nonconsecutive days or 3 consecutive days a

20 year, except as provided in section 5(7), on which the applicant

21 will conduct the millionaire party if a millionaire party license

22 has been applied for OR DATES OF THE EVENT.

23 (e) The member or members , of not less than 6 months, of

24 the applicant organization under whom the bingo games or the

25 millionaire party will be conducted WHO WILL BE RESPONSIBLE FOR

26 THE CONDUCT OF THE EVENT.

03087'99
8

1 (f) Sufficient facts relating to its THE APPLICANT'S

2 incorporation or organization to enable the commissioner to

3 determine whether the applicant is a qualified organization.

4 (g) A sworn statement attesting to the nonprofit charter

5 STATUS of the applicant organization, signed by the presiding

6 PRINCIPAL officer and the secretary of that organization.

7 (h) Other information considered advisable by the commis-

8 sioner CONSIDERS NECESSARY.

9 (3) A qualified organization which is licensed to conduct a

10 bingo game or a millionaire party may also sell charity game

11 tickets and conduct a charity game at the time and location of

12 and in conjunction with the licensed bingo game or licensed mil-

13 lionaire party. An additional license shall not be required to

14 sell charity game tickets or to conduct a charity game but a

15 qualified organization which seeks to conduct a charity game

16 shall pay the bureau such fees as the commissioner may

17 determine.

18 SEC. 4A. (1) EXCEPT AS PROVIDED IN SUBSECTIONS (2) AND (3),

19 IF THE COMMISSIONER DETERMINES THAT THE APPLICANT IS A QUALIFIED

20 ORGANIZATION AND IS NOT INELIGIBLE UNDER SECTION 18 AND THE

21 APPLICANT HAS PAID TO THE BUREAU THE APPROPRIATE FEE, THE COMMIS-

22 SIONER MAY ISSUE 1 OR MORE OF THE FOLLOWING LICENSES:

23 LICENSE FEE

24 (A) LARGE BINGO................... $150.00

25 (B) SMALL BINGO................... $ 55.00

26 (C) SPECIAL BINGO................. $ 25.00

03087'99
9

1 (D) MILLIONAIRE PARTY............. $ 50.00 PER DAY

2 (E) LARGE RAFFLE.................. $ 50.00 PER DRAWING DATE

3 (F) SMALL RAFFLE:

4 (i) ONE TO 3 DRAWING DATES........ $ 15.00

5 (ii) FOUR OR MORE DRAWING DATES... $ 5.00 PER DRAWING DATE

6 (G) ANNUAL CHARITY GAME........... $200.00

7 (H) SPECIAL CHARITY GAME.......... $ 15.00 PER DAY

8 (I) NUMERAL GAME.................. $ 15.00 PER DAY

9 (2) UNDER EXTREME HARDSHIP CONDITIONS AS DETERMINED BY THE

10 COMMISSIONER, THE COMMISSIONER MAY WAIVE 1 OR MORE REQUIREMENTS

11 OF A QUALIFIED ORGANIZATION DESCRIBED IN SECTION 3 TO PERMIT THE

12 LICENSING OF A SPECIAL BINGO, MILLIONAIRE PARTY, OR RAFFLE, IF

13 ALL OF THE FOLLOWING CONDITIONS ARE MET:

14 (A) THE ORGANIZATION APPLYING FOR THE LICENSE IS A NONPROFIT

15 ORGANIZATION.

16 (B) THE ENTIRE PROCEEDS OF THE EVENT, LESS THE ACTUAL REA-

17 SONABLE EXPENSE OF CONDUCTING THE EVENT, ARE DONATED OR USED FOR

18 A CHARITABLE PURPOSE, ORGANIZATION, OR CAUSE.

19 (C) NONE OF THE INDIVIDUALS CONNECTED WITH THE CONDUCT OF

20 THE EVENT IS COMPENSATED IN ANY MANNER FOR HIS OR HER

21 PARTICIPATION.

22 (D) THE ORGANIZATION COMPLIES WITH ALL OTHER PROVISIONS OF

23 THIS ACT AND RULES PROMULGATED UNDER THIS ACT.

24 (3) UNDER EXTREME HARDSHIP CONDITIONS AS DETERMINED BY THE

25 COMMISSIONER, THE COMMISSIONER MAY ALLOW AN INDIVIDUAL OR A GROUP

26 OF INDIVIDUALS TO OBTAIN A LICENSE TO CONDUCT A SPECIAL BINGO,

03087'99
10

1 MILLIONAIRE PARTY, OR RAFFLE IF ALL OF THE FOLLOWING CONDITIONS

2 ARE MET:

3 (A) THE ENTIRE PROCEEDS OF THE EVENT, LESS THE ACTUAL REA-

4 SONABLE EXPENSE OF CONDUCTING THE EVENT, ARE DONATED OR USED FOR

5 A CHARITABLE PURPOSE, ORGANIZATION, OR CAUSE.

6 (B) NONE OF THE INDIVIDUALS CONNECTED WITH THE CONDUCT OF

7 THE EVENT IS COMPENSATED IN ANY MANNER FOR HIS OR HER

8 PARTICIPATION.

9 (C) THE INDIVIDUAL OR GROUP OF INDIVIDUALS COMPLIES WITH ALL

10 OTHER PROVISIONS OF THIS ACT AND THE RULES PROMULGATED UNDER THIS

11 ACT.

12 (4) EACH EVENT LICENSE ISSUED TO A QUALIFIED ORGANIZATION IS

13 VALID FOR ONLY THE LOCATION INCLUDED ON THE LICENSE.

14 (5) A LICENSE IS NOT ASSIGNABLE OR TRANSFERABLE.

15 (6) THE LICENSEE IS RESPONSIBLE FOR ENSURING THAT THE EVENTS

16 ARE CONDUCTED IN COMPLIANCE WITH THIS ACT AND RULES.

17 (7) A LICENSEE SHALL ONLY CONDUCT EVENTS LICENSED UNDER THIS

18 ACT DURING THE HOURS AND ON THE DAY AND DATE OR DATES STATED ON

19 THE LICENSE.

20 Sec. 5. (1) Upon a determination by the commissioner that

21 the applicant is a qualified organization and is not ineligible

22 pursuant to section 18, and upon the applicant's payment to the

23 bureau of a fee of $150.00, the commissioner may issue a license

24 for the conducting of bingo to the applicant. A LARGE OR SMALL

25 BINGO license may be reissued annually upon the submitting of an

26 application for reissuance RENEWAL provided by the commissioner

27 and upon the licensee's payment of $150.00 THE APPROPRIATE

03087'99
11

1 FEE. A SMALL OR LARGE BINGO license expires at 12 midnight on

2 the last day of February.

3 (2) A qualified organization not ineligible pursuant to

4 section 18 may be licensed by the commissioner, upon the

5 applicant's payment to the bureau of a fee of $55.00 to conduct

6 bingo on the same day each week. The aggregate retail value of

7 all prizes or merchandise awarded on a single day shall not

8 exceed $300.00, with the prize for each game not to exceed $25.00

9 in value. A QUALIFIED ORGANIZATION MAY HOLD MORE THAN 1 BINGO

10 LICENSE.

11 (3) A licensee may hold only 1 license and that license is

12 valid for only 1 location. Not more than 7 licensees may conduct

13 bingo during a 7-day period at any 1 location. A SMALL OR LARGE

14 BINGO LICENSE SHALL BE VALID FOR NOT MORE THAN 1 DAY PER WEEK.

15 (4) NOT MORE THAN 10 BINGO LICENSES SHALL BE ISSUED FOR A

16 7-DAY PERIOD AT ANY 1 LOCATION.

17 (5) NOT MORE THAN 1 BINGO LICENSE SHALL BE ISSUED TO A QUAL-

18 IFIED ORGANIZATION FOR ANY 1 DAY.

19 (6) NOT MORE THAN 2 BINGO LICENSES SHALL BE ISSUED FOR THE

20 SAME DAY AT ANY 1 LOCATION.

21 (7) A SPECIAL BINGO LICENSE MAY BE ISSUED FOR UP TO 7 CON-

22 SECUTIVE DAYS.

23 (8) A QUALIFIED ORGANIZATION MAY BE ISSUED UP TO 4 SPECIAL

24 BINGO LICENSES PER CALENDAR YEAR.

25 (4) A license is not assignable or transferable.

26 (5) Upon a determination by the commissioner that the

27 applicant is a qualified organization and is not ineligible

03087'99
12

1 pursuant to section 18, and upon the applicant's payment to the

2 bureau of a fee as set forth in this subsection, the commissioner

3 may issue to the applicant a license for the conducting of a mil-

4 lionaire party. A license may be reissued annually upon the sub-

5 mitting of an application for reissuance provided by the commis-

6 sioner and upon the licensee's payment of a fee as set forth in

7 this subsection. A licensee may hold only 1 license for the con-

8 ducting of a millionaire party. That license shall be valid for

9 only 1 location and is not assignable or transferable. Except as

10 provided in subsection (7), the duration of the gambling event

11 shall not exceed 24 hours for each day for the 2 nonconsecutive

12 days or 72 hours for the 3 consecutive day period. A fee of

13 $50.00 shall be charged for a license issued for each day for the

14 2 nonconsecutive days. A fee of $100.00 shall be charged for a

15 license issued for the 3 consecutive day period. An applicant

16 shall be eligible only for two 24-hour licenses or one 72-hour

17 license per year. Only one 72-hour license shall be issued at

18 the same location in a 7-day period.

19 (6) A qualified organization may concurrently hold a bingo

20 license and a millionaire party license, and may conduct charity

21 games in conjunction with its functions and pursuant to this act

22 under either a bingo license or a millionaire party license.

23 (7) Upon application the commissioner may issue a license

24 for a period which exceeds the 72-hour period set forth in sub-

25 section (5). If an extension is granted it shall not exceed 24

26 hours. A fee of $50.00 shall be charged for each additional

27 24-hour period.

03087'99
13

1 (8) If not ineligible pursuant to section 18, a qualified

2 organization eligible pursuant to section 3 may apply for a mil-

3 lionaire party license to conduct a raffle for a fee as specified

4 in section 5(5). No other games of chance will be required. A

5 qualified organization may, by rule of the commissioner, be

6 excused from the requirement of obtaining a license to conduct a

7 raffle if the total aggregate market value of the prize or prizes

8 to be awarded in the raffle exceeds $100.00 but does not exceed

9 $500.00. However, in lieu of the license, a qualified organiza-

10 tion shall register the raffle on a form provided by the bureau

11 and pay a fee, as may be determined by the commissioner, to cover

12 the cost of registration. Whether licensed or registered, a

13 qualified organization shall comply with the requirements of sec-

14 tions 9 and 10, and with rules promulgated pursuant to the

15 authority granted in sections 12 and 13. If at a single gather-

16 ing all raffle tickets are sold and the drawing is held and the

17 total aggregate market value of the prize or prizes to be awarded

18 is $100.00 or less, then the qualified organization is excused

19 from the requirements of obtaining a license and registering with

20 the commissioner under this act.

21 SEC. 5A. RECREATIONAL BINGO MAY BE CONDUCTED BY A SENIOR

22 CITIZENS CLUB, GROUP, OR HOME CONSISTING OF MEMBERS WHO ARE 60

23 YEARS OF AGE OR OLDER WITHOUT OBTAINING A LICENSE IF ALL OF THE

24 FOLLOWING CONDITIONS ARE MET:

25 (A) THE BINGO IS CONDUCTED SOLELY FOR THE AMUSEMENT AND REC-

26 REATION OF THE MEMBERS AND GUESTS OF THE SENIOR CITIZENS CLUB,

27 GROUP, OR HOME AND NOT USED FOR FUND-RAISING.

03087'99
14

1 (B) ONLY MEMBERS, GUESTS OF MEMBERS, AND EMPLOYEES OF THE

2 SENIOR CITIZENS CLUB, GROUP, OR HOME MAY PARTICIPATE IN THE OPER-

3 ATION OF THE BINGO.

4 (C) PLAYERS ARE NOT CHARGED MORE THAN 25 CENTS FOR A BINGO

5 CARD, AND THE AGGREGATE RETAIL VALUE OF ALL PRIZES AND MERCHAN-

6 DISE AWARDED IN A SINGLE DAY DOES NOT EXCEED $100.00.

7 (D) ALL REVENUE FROM THE BINGO IS USED FOR PRIZES AND REA-

8 SONABLE EXPENSES INCURRED IN OPERATING THE BINGO, AND NO PERSON

9 IS COMPENSATED SOLELY FOR PARTICIPATING IN THE CONDUCT OF THE

10 BINGO.

11 SEC. 5B. (1) ALL LAWS APPLYING TO THE SEATING OF PERSONS

12 WITH DISABILITIES APPLY AT LICENSED BINGO GAMES.

13 (2) A PERSON MAY BE CHAIRPERSON FOR MORE THAN 1 BINGO ONLY

14 IF THE ADDITIONAL BINGO LICENSES, FOR WHICH THE PERSON WILL ACT

15 AS CHAIRPERSON, ARE GRANTED TO THE SAME QUALIFIED ORGANIZATION.

16 SEC. 5C. (1) THE VALUE OF A PRIZE OR CONSOLATION PRIZE

17 AWARDED DURING A MICHIGAN PROGRESSIVE JACKPOT BINGO GAME IS NOT

18 SUBJECT TO THE PRIZE LIMITATIONS OF SECTION 3A(4).

19 (2) THE PRIZE AWARDED TO THE WINNER OF A MICHIGAN PROGRES-

20 SIVE JACKPOT BINGO GAME MAY BE A PREDETERMINED AMOUNT THAT SHALL

21 NOT EXCEED $500.00 ON THE FIRST BINGO OCCASION.

22 (3) IF A MICHIGAN PROGRESSIVE JACKPOT PRIZE IS NOT WON IN

23 THE PREDETERMINED NUMBER OF ALLOWABLE CALLS, THE GAME SHALL BE

24 PLAYED TO ITS CONCLUSION FOR A PREDETERMINED CONSOLATION PRIZE

25 THAT SHALL NOT EXCEED $100.00.

26 (4) IF A MICHIGAN PROGRESSIVE JACKPOT PRIZE IS NOT WON IN

27 THE PREDETERMINED NUMBER OF ALLOWABLE CALLS, THE ENTIRE PRIZE

03087'99
15

1 AMOUNT SHALL BE CARRIED FORWARD TO THE NEXT SCHEDULED BINGO

2 OCCASION.

3 (5) WHEN A MICHIGAN PROGRESSIVE JACKPOT PRIZE HAS BEEN CAR-

4 RIED FORWARD FROM A PREVIOUS BINGO OCCASION, THE NEW PRIZE AMOUNT

5 SHALL INCLUDE THE ENTIRE AMOUNT CARRIED FORWARD, PLUS 50% OF THE

6 CARD SALES FOR THE MICHIGAN PROGRESSIVE JACKPOT BINGO GAME FOR

7 THE CURRENT BINGO OCCASION.

8 (6) NO ARRANGEMENT OF NUMBERS OTHER THAN A COVERALL PATTERN

9 SHALL BE REQUIRED OR ALLOWED TO WIN A MICHIGAN PROGRESSIVE JACK-

10 POT BINGO GAME.

11 (7) A MICHIGAN PROGRESSIVE JACKPOT BINGO GAME SHALL BE

12 PLAYED ONLY ON BINGO CARDS THAT ARE APPROVED BY THE

13 COMMISSIONER.

14 (8) ALL CARDS FOR THE MICHIGAN PROGRESSIVE JACKPOT BINGO

15 GAME SHALL BE SOLD BY THE LICENSEE AT A UNIFORM PRICE WITH NO

16 DISCOUNT FOR THE PURCHASE OF MORE THAN 1 CARD.

17 (9) ALL BINGO CARDS USED IN THE MICHIGAN PROGRESSIVE JACKPOT

18 BINGO GAME SHALL BE SOLD PRIOR TO THE DRAWING OF THE FIRST BALL

19 FOR THAT GAME.

20 (10) WHENEVER A MICHIGAN PROGRESSIVE JACKPOT BINGO GAME IS

21 CONDUCTED, THE LICENSEE SHALL POST A NOTICE AND ANNOUNCE THE FOL-

22 LOWING INFORMATION:

23 (A) THE MAXIMUM NUMBER OF ALLOWABLE CALLS IN WHICH THE

24 PLAYER MUST COMPLETE A COVERALL PATTERN IN ORDER TO WIN A

25 MICHIGAN PROGRESSIVE JACKPOT PRIZE ON THAT OCCASION.

03087'99
16

1 (B) THE PRIZE AMOUNT OFFERED TO THE WINNER OF THE MICHIGAN

2 PROGRESSIVE JACKPOT GAME AND THE CONSOLATION PRIZE FOR THAT BINGO

3 OCCASION.

4 (C) THE DATE THE NEXT BINGO OCCASION WILL OCCUR IN THAT PAR-

5 TICULAR PROGRESSION IF THE JACKPOT IS NOT AWARDED.

6 (11) A MICHIGAN PROGRESSIVE JACKPOT BINGO GAME SHALL BE CON-

7 DUCTED IN THE FOLLOWING MANNER:

8 (A) ON THE FIRST BINGO OCCASION A PLAYER SHALL NOT BE

9 REQUIRED TO OBTAIN BINGO IN LESS THAN 50 NUMBERS CALLED TO WIN

10 THE JACKPOT PRIZE.

11 (B) THE NUMBER OF ALLOWABLE CALLS REQUIRED TO WIN THE JACK-

12 POT SHALL BE INCREASED BY 1 NUMBER ON EACH SUCCESSIVE BINGO OCCA-

13 SION IN A PARTICULAR PROGRESSION.

14 (C) ONCE A MICHIGAN PROGRESSIVE JACKPOT BINGO GAME HAS BEEN

15 STARTED, THE PROGRESSIVE JACKPOT PRIZE SHALL BE OFFERED AT EACH

16 SUCCESSIVE BINGO OCCASION FOR THAT LICENSEE UNTIL THE JACKPOT

17 PRIZE HAS BEEN WON.

18 (D) A MICHIGAN PROGRESSIVE JACKPOT PROGRESSION SHALL ONLY BE

19 TERMINATED OR INTERRUPTED BY 1 OF THE FOLLOWING:

20 (i) DETERMINING A WINNER OF THE MICHIGAN PROGRESSIVE JACKPOT

21 PRIZE.

22 (ii) EXPIRATION, SUSPENSION, REVOCATION, OR SURRENDER OF THE

23 LICENSE TO CONDUCT BINGO.

24 (iii) A PREVIOUSLY ANNOUNCED SCHEDULED INTERRUPTION, SUCH AS

25 A LEGAL HOLIDAY OR OTHER TEMPORARY CLOSING.

26 (iv) A VALID EMERGENCY CONDITION UNDER WHICH THE LICENSEE IS

27 UNABLE TO CONDUCT THE GAME.

03087'99
17

1 (12) ONLY 1 MICHIGAN PROGRESSIVE JACKPOT BINGO GAME SHALL BE

2 IN PROGRESS AT 1 TIME PER BINGO OCCASION.

3 (13) PRIZES FOR A MICHIGAN PROGRESSIVE JACKPOT BINGO GAME

4 SHALL BE AWARDED AS FOLLOWS:

5 (A) THE MICHIGAN PROGRESSIVE JACKPOT PRIZE SHALL BE AWARDED

6 TO THE PLAYER OR PLAYERS WHO COMPLETE THE COVERALL PATTERN WITHIN

7 THE PREDESIGNATED NUMBER OF ALLOWABLE CALLS.

8 (B) A CONSOLATION PRIZE SHALL BE AWARDED ON EACH BINGO OCCA-

9 SION AT WHICH A MICHIGAN PROGRESSIVE JACKPOT GAME IS PLAYED,

10 EXCEPT ON THE BINGO OCCASION THAT THE JACKPOT PRIZE IS WON.

11 (C) THE CONSOLATION PRIZE SHALL BE AWARDED TO THE PLAYER OR

12 PLAYERS WHO COMPLETE A COVERALL CARD PATTERN ON EACH BINGO OCCA-

13 SION, REGARDLESS OF THE NUMBER OF CALLS IN EXCESS OF THE PREDES-

14 IGNATED NUMBER OF ALLOWABLE CALLS REQUIRED TO WIN THE MICHIGAN

15 PROGRESSIVE JACKPOT BINGO GAME.

16 (14) THE JACKPOT PRIZE SHALL BE AWARDED BY A CHECK WRITTEN

17 FROM THE LICENSEE'S FINANCIAL ACCOUNT.

18 (15) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, ALL OTHER

19 PROVISIONS OF THIS ACT OR RULES PROMULGATED UNDER THIS ACT APPLY

20 TO THE CONDUCT OF A MICHIGAN PROGRESSIVE JACKPOT GAME.

21 (16) IF AN ORGANIZATION'S BINGO LICENSE WILL EXPIRE OR IS

22 SUSPENDED, REVOKED, OR SURRENDERED BEFORE THE LAST BINGO OCCASION

23 OF A PARTICULAR PROGRESSION, THE JACKPOT PRIZE SHALL BE AWARDED

24 AND THE WINNER DETERMINED ON THE LAST AUTHORIZED BINGO OCCASION

25 REGARDLESS OF THE NUMBER OF CALLS REQUIRED TO DETERMINE THE

26 WINNER.

03087'99
18

1 SEC. 5D. (1) A QUALIFIED ORGANIZATION MAY APPLY FOR AN

2 UNLIMITED NUMBER OF SMALL AND LARGE RAFFLE LICENSES.

3 (2) ONLY 1 SMALL RAFFLE LICENSE MAY BE ISSUED FOR A LOCATION

4 EACH DAY.

5 (3) ALL DRAWING LOCATIONS SHALL BE THE SAME IF A SMALL

6 RAFFLE LICENSE IS ISSUED FOR MORE THAN 1 DATE.

7 (4) A QUALIFIED ORGANIZATION IS EXCUSED FROM THE REQUIRE-

8 MENTS OF OBTAINING A LICENSE UNDER THIS ACT IF THE QUALIFIED

9 ORGANIZATION IS SPONSORING A SINGLE GATHERING AND CONDUCTS A

10 RAFFLE BEFORE WHICH THERE IS NO PRESALE OF TICKETS AND THE TOTAL

11 AGGREGATE MARKET VALUE OF THE PRIZE OR PRIZES TO BE AWARDED THAT

12 DAY IS $100.00 OR LESS.

13 Sec. 6. (1) Each bingo EVENT license shall contain the

14 name and address of the licensee, the location at which the

15 licensee is permitted to conduct bingo THE EVENT, the day OR

16 DAYS of the week OR THE DATES on which the licensee is permitted

17 to conduct bingo THE EVENT, THE TIME DURING WHICH THE EVENT

18 WILL BE CONDUCTED, and the expiration date of the FOR A LARGE

19 OR SMALL BINGO LICENSE OR AN ANNUAL CHARITY GAME license.

20 (2) The bingo licensee shall display the license conspicu-

21 ously at the location where bingo THE EVENT is being conducted

22 at all times during the conduct of the games EVENT.

23 (3) Each millionaire party license shall contain the name

24 and address of the licensee, the address at which the licensee is

25 permitted to conduct the millionaire party, and the days of the

26 year on which the licensee is permitted to conduct the event.

27 The licensee shall display the license conspicuously at the

03087'99
19

1 location where the operation is being conducted at all times

2 during the conduct of the event.

3 Sec. 7a. (1) The bureau may authorize a qualified organi-

4 zation licensed to conduct a bingo game or a millionaire party to

5 conduct a charity game in conjunction with and at the time and

6 location of the licensed bingo game or the licensed millionaire

7 party. (2) All charity game tickets used in the conduct of a

8 charity game shall be purchased by the qualified organization

9 from the bureau or a licensed supplier.

10 (2) The bureau shall determine the number of charity game

11 tickets that constitute a charity game.

12 (3) The bureau also shall determine the price at which the

13 qualified organization shall resell each charity game ticket and

14 shall have that price printed on each charity game ticket.

15 (4) (3) The bureau or a licensed supplier shall sell

16 charity game tickets to a qualified organization , which THAT

17 is eligible to conduct a charity game , at a percentage, to be

18 determined by the bureau, of the gross revenues which THAT are

19 realized by the resale of all the charity game tickets for that

20 game at the price established by the bureau.

21 (5) The percentage retained by the qualified organization

22 shall be equal to the percentage received by the bureau for the

23 sale of charity game tickets.

24 (6) A qualified organization which THAT conducts a charity

25 game shall be solely responsible for paying prizes won by pur-

26 chasers of winning charity game tickets.

03087'99
20

1 (7) When all charity game tickets FOR A SINGLE CHARITY GAME

2 are resold, for that game, prizes distributed shall have an

3 aggregate value of, as near as practicable, not less than 60% of

4 the resale value of all the charity game tickets for that charity

5 game.

6 (8) (4) The bureau shall determine the number of winning

7 charity game tickets provided on a random basis for resale for

8 any 1 charity game and shall establish the value of the prize won

9 by each winning charity game ticket.

10 (9) (5) A charity game ticket shall not have a price for

11 resale by a qualified organization of less than 30 cents. and a

12 charity game shall not have a single maximum prized exceeding

13 $200.00.

14 (10) (6) The bureau shall have a bureau control number for

15 identification purposes imprinted upon each charity game ticket.

16 (11) (7) A value of prizes awarded for a charity game

17 shall not be included within the prize limitations of a licensed

18 bingo game or millionaire party in conjunction with which the

19 charity game is held.

20 (12) (8) A charity game ticket shall not be sold to a

21 person under 18 years of age. This subsection shall not prohibit

22 the purchase of a charity game ticket by a person 18 years of age

23 or older for the purpose of making a gift to a person under 18

24 years of age, and shall not prohibit a person under 18 years of

25 age from receiving a prize or prizes won in a charity game con-

26 ducted pursuant to this act.

03087'99
21

1 (9) A qualified organization eligible to conduct a charity

2 game shall not advertise the event, except to the extent and in

3 the manner permitted by rule of the commissioner.

4 SEC. 7B. (1) THE COMMISSIONER MAY ISSUE AN ANNUAL CHARITY

5 GAME LICENSE TO A QUALIFIED ORGANIZATION FOR A LOCATION OWNED AND

6 OPERATED BY THE QUALIFIED ORGANIZATION FOR THE REGULAR USE OF ITS

7 MEMBERS, OR RENTED OR LEASED ON A CONTINUAL BASIS FOR THE REGULAR

8 USE OF ITS MEMBERS.

9 (2) A QUALIFIED ORGANIZATION MAY BE ISSUED ONLY 1 ANNUAL

10 CHARITY GAME LICENSE PER YEAR.

11 (3) AN ANNUAL CHARITY GAME LICENSE SHALL EXPIRE AT 12 MID-

12 NIGHT ON JULY 31 OF EACH YEAR.

13 (4) AN ANNUAL CHARITY GAME LICENSE MAY BE REISSUED ANNUALLY

14 IF THE QUALIFIED ORGANIZATION SUBMITS AN APPLICATION FOR RENEWAL

15 PROVIDED BY THE COMMISSIONER AND PAYS THE APPROPRIATE FEE.

16 (5) A QUALIFIED ORGANIZATION MAY BE ISSUED UP TO 8 SPECIAL

17 CHARITY GAME LICENSES PER CALENDAR YEAR.

18 (6) A SPECIAL CHARITY GAME LICENSE MAY BE ISSUED FOR UP TO 4

19 CONSECUTIVE DAYS.

20 (7) A QUALIFIED ORGANIZATION THAT IS LICENSED TO CONDUCT

21 BINGO, A MILLIONAIRE PARTY, OR LARGE RAFFLE MAY ALSO SELL CHARITY

22 GAME TICKETS AND CONDUCT A CHARITY GAME AT THE SAME TIME AND

23 LOCATION AND IN CONJUNCTION WITH THE LICENSED BINGO, MILLIONAIRE

24 PARTY, OR LARGE RAFFLE WITHOUT OBTAINING AN ADDITIONAL LICENSE.

25 (8) THE COMMISSIONER SHALL PROMULGATE RULES FOR THE LICENS-

26 ING, SELLING, AND PLAYING OF, AND FINANCIAL RECORD KEEPING FOR,

27 CHARITY GAMES.

03087'99
22

1 SEC. 7C. (1) A NUMERAL GAME LICENSE MAY BE ISSUED TO A

2 QUALIFIED ORGANIZATION TO CONDUCT A NUMERAL GAME AT A SPECIFIC

3 LOCATION FOR UP TO 7 CONSECUTIVE DAYS.

4 (2) A QUALIFIED ORGANIZATION THAT IS LICENSED TO CONDUCT A

5 MILLIONAIRE PARTY OR A LARGE RAFFLE MAY ALSO SELL NUMERAL GAME

6 TICKETS AND CONDUCT A NUMERAL GAME AT THE TIME AND LOCATION AND

7 IN CONJUNCTION WITH THE EVENT WITHOUT OBTAINING AN ADDITIONAL

8 LICENSE.

9 SEC. 7D. (1) ALL NUMERAL GAME TICKETS USED IN THE CONDUCT

10 OF A NUMERAL GAME SHALL BE PURCHASED BY THE QUALIFIED ORGANIZA-

11 TION FROM A SUPPLIER. THE LOGO OR NAME OF THE MANUFACTURER AND

12 THE SERIAL NUMBER MUST BE VISIBLE BEFORE BREAKING THE BAND ON THE

13 TICKET.

14 (2) THE VALUE OF MERCHANDISE PRIZES OFFERED AT A NUMERAL

15 GAME SHALL BE A MINIMUM OF 50% OF THE IDEAL GROSS RECEIPTS FROM

16 THE GAME. FOR THE PURPOSES OF THIS SUBSECTION, "IDEAL GROSS

17 RECEIPTS" MEANS THE TOTAL AMOUNT OF RECEIPTS THAT WOULD BE

18 RECEIVED IF EVERY INDIVIDUAL TICKET IN A SERIES IS SOLD AT FACE

19 VALUE.

20 (3) WINNING NUMBERS FOR A NUMERAL GAME SHALL BE DETERMINED

21 BY USE OF A SERIES OF COMMON ENDING NUMBERS CONTAINED WITHIN THE

22 POOL OF NUMBERS MAKING UP THE NUMERAL GAME. THE WINNING NUMBERS

23 MAY NOT BE DETERMINED RANDOMLY.

24 (4) THE PRIZE LIST, ASSOCIATED WINNING NUMBERS, THE TOTAL

25 NUMBER OF TICKETS OFFERED, AND RULES OF PLAY SHALL BE POSTED

26 BEFORE THE NUMERAL GAME IS OFFERED FOR SALE OR ANY TICKETS ARE

27 OPENED.

03087'99
23

1 (5) A NUMERAL GAME TICKET SHALL NOT BE SOLD TO A PERSON

2 UNDER 18 YEARS OF AGE. THIS SUBSECTION SHALL NOT PROHIBIT THE

3 PURCHASE OF A NUMERAL GAME TICKET BY A PERSON 18 YEARS OF AGE OR

4 OLDER FOR THE PURPOSE OF MAKING A GIFT TO A PERSON UNDER 18 YEARS

5 OF AGE, AND SHALL NOT PROHIBIT A PERSON UNDER 18 YEARS OF AGE

6 FROM RECEIVING A PRIZE OR PRIZES WON IN A NUMERAL GAME CONDUCTED

7 UNDER THIS ACT.

8 (6) THE LICENSEE SHALL HAVE AVAILABLE FOR INSPECTION BY AN

9 AUTHORIZED REPRESENTATIVE OF THE BUREAU A COPY OF THE INVOICE

10 FROM THE SUPPLIER SHOWING THE MANUFACTURER'S NAME AND SERIAL

11 NUMBER FOR EACH NUMERAL GAME BEING CONDUCTED AT THE SITE WHERE

12 THE NUMERAL GAME IS BEING CONDUCTED.

13 Sec. 9. The entire net proceeds of a bingo game or a mil-

14 lionaire party AN EVENT shall be devoted exclusively to the

15 lawful purposes of the licensee. The entire net proceeds of a

16 charity game shall be devoted exclusively to the lawful purposes

17 of the qualified organization which conducted the charity game.

18 An A LICENSEE SHALL NOT INCUR OR PAY AN item of expense shall

19 not be incurred or paid in connection with the holding, operat-

20 ing, or conducting of bingo or a millionaire party AN EVENT

21 except the following bona fide expenses in reasonable amounts:

22 (a) The purchase or rental of equipment necessary for con-

23 ducting a bingo game or a millionaire party, AN EVENT and pay-

24 ment of services reasonably necessary for the repair of

25 equipment.

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

03087'99
24

1 (c) Rental of the location at which bingo or a millionaire

2 party THE EVENT is conducted.

3 (d) Janitorial services.

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

5 to conduct bingo or a millionaire party THE EVENT.

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

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

8 commissioner.

9 Sec. 10. (1) A person other than a bona fide ONLY A

10 member of the qualified organization shall not participate in

11 the management of bingo, a millionaire party, or a charity

12 game. Persons other than bona fide members of the qualified

13 organization may participate in the operation of bingo, a mil-

14 lionaire party, or a charity game as provided by rule of the

15 commissioner AN EVENT.

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

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

18 of bingo, a millionaire party, or a charity game except as pro-

19 vided by rule of the commissioner PROMULGATED UNDER THIS ACT.

20 (3) Except by special permission of the commissioner, A

21 LICENSEE SHALL CONDUCT bingo , OR a millionaire party , or a

22 charity game shall not be conducted ONLY with any equipment

23 which is not owned, being purchased, or being rented at a rea-

24 sonable rate by the qualified organization THAT IT OWNS, USES

25 UNDER A BUREAU-APPROVED RENTAL CONTRACT, OR IS PURCHASING OR

26 RENTING AT A REASONABLE RATE FROM A SUPPLIER.

03087'99
25

1 (4) Except as provided in section 5(2), the aggregate

2 retail value of all prizes or merchandise awarded in a single day

3 of bingo shall not exceed $2,000.00, and the prize awarded for 1

4 game shall not exceed $500.00 cash or its equivalent. A prize of

5 merchandise shall not be redeemable or convertible into cash

6 directly or indirectly.

7 (4) (5) A licensee shall not advertise bingo except to the

8 extent and in the manner permitted by rule of the commissioner

9 PROMULGATED UNDER THIS ACT. If the commissioner permits a

10 licensee to advertise bingo, the licensee shall indicate in the

11 advertisement the purposes for which the net proceeds will be

12 used by the licensee.

13 (6) Except as provided in section 10a(c), the aggregate

14 market value of all prizes or merchandise awarded in 1 day of a

15 millionaire party shall not exceed $2,000.00. A person partici-

16 pating in the event shall not be awarded prizes or merchandise

17 having an aggregate value greater than $500.00. Personal limita-

18 tion on winnings shall be given at the location of the event. A

19 prize of merchandise shall not be redeemable or convertible into

20 cash directly or indirectly.

21 (5) (7) A millionaire party may be described in the

22 licensee's advertising as a Las Vegas party. The holder of a

23 millionaire party license shall not advertise the event, except

24 to the extent and in the manner permitted by rule of the

25 commissioner PROMULGATED UNDER THIS ACT. If the commissioner

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

27 indicate in the advertising the purposes for which the net

03087'99
26

1 proceeds will be used by the licensee, and shall give notice of

2 the $500.00 personal limitation on winnings required by

3 subsections (6) SECTION 10A(E).

4 Sec. 10a. In ALL OF THE FOLLOWING APPLY IN the conduct of

5 a millionaire party:

6 (a) A person less than 18 years of age shall not be permit-

7 ted to wager.

8 (b) A wager may not be placed on a contest other than a game

9 of chance taking place at the location and during the time period

10 approved for the event, and in no event may SHALL a wager be

11 placed upon an athletic event or upon a game involving personal

12 skill.

13 (c) Only games of chance in which participants compete

14 against the licensee shall be permitted; participants in the

15 games shall not be permitted to directly compete against each

16 other, other than as participants in an auction sale or a raffle,

17 as defined by the commissioner, which is held in conjunction with

18 a millionaire party. The prizes awarded at a raffle are not

19 subject to the limitations of section 10(6).

20 (C) (d) The licensee under the millionaire party license

21 shall be responsible for insuring that the requirements of this

22 section are complied with MET.

23 (D) A QUALIFIED ORGANIZATION SHALL NOT RECEIVE MORE THAN

24 $15,000.00 IN EXCHANGE FOR IMITATION MONEY OR CHIPS IN 1 DAY OF A

25 MILLIONAIRE PARTY.

26 (E) A PERSON PARTICIPATING IN A MILLIONAIRE PARTY SHALL NOT

27 BE AWARDED PRIZES HAVING AN AGGREGATE VALUE GREATER THAN $500.00

03087'99
27

1 PER DAY. THE VALUE OF RAFFLE, CHARITY GAME, AND NUMERAL GAME

2 PRIZES AWARDED AT THE MILLIONAIRE PARTY IS NOT SUBJECT TO THE

3 LIMITATIONS OF THIS SECTION. A NOTICE OF PERSONAL LIMITATION ON

4 WINNINGS SHALL BE GIVEN TO THE PARTICIPANT OR POSTED AT THE LOCA-

5 TION OF THE EVENT.

6 SEC. 10B. (1) A QUALIFIED ORGANIZATION MAY BE ISSUED UP TO

7 4 MILLIONAIRE PARTY LICENSES IN 1 CALENDAR YEAR. EACH LICENSE

8 SHALL ONLY BE VALID FOR 1 LOCATION.

9 (2) A MILLIONAIRE PARTY LICENSE MAY BE ISSUED FOR UP TO 4

10 CONSECUTIVE DAYS.

11 (3) THE BUREAU SHALL NOT ISSUE MORE THAN 1 MILLIONAIRE PARTY

12 LICENSE TO A QUALIFIED ORGANIZATION FOR ANY 1 DAY.

13 Sec. 11. State or local taxes of any kind shall not be

14 imposed upon the recipient of a prize, whether merchandise or

15 money, awarded by a licensee during a bingo game, a millionaire

16 party, or a charity game EVENT conducted in conformity with this

17 act.

18 SEC. 11A. (1) EACH APPLICANT FOR A LICENSE OR RENEWAL OF A

19 LICENSE TO OPERATE A BINGO HALL UNDER THIS ACT SHALL SUBMIT A

20 WRITTEN APPLICATION TO THE BUREAU ON A FORM PRESCRIBED BY RULE

21 PROMULGATED UNDER THIS ACT.

22 (2) IF THE COMMISSIONER DETERMINES THAT AN APPLICANT IS ELI-

23 GIBLE AND THE FACILITY MEETS THE STANDARDS ESTABLISHED BY RULE

24 PROMULGATED UNDER THIS ACT AND THE APPLICANT PAYS AN APPROPRIATE

25 FEE, THE BUREAU MAY ISSUE A BINGO HALL LICENSE TO OPERATE A

26 FACILITY THAT WILL BE RENTED TO BINGO LICENSEES.

03087'99
28

1 (3) A BINGO HALL LICENSE EXPIRES AT 12 MIDNIGHT ON THE LAST

2 DAY OF FEBRUARY, OR IF THE APPLICANT DOES NOT OWN THE FACILITY,

3 ON THE EXPIRATION DATE OF THEIR LEASE OR RENTAL AGREEMENT IF THAT

4 DATE IS PRIOR TO THE LAST DAY OF FEBRUARY OF THE CURRENT LICENS-

5 ING PERIOD.

6 (4) THE BINGO HALL LICENSING FEE IS $50.00 ANNUALLY FOR EACH

7 LARGE OR SMALL BINGO OCCASION FOR WHICH THE BINGO HALL WILL BE

8 RENTED DURING ANY 1 WEEK.

9 (5) TO INCREASE THE NUMBER OF LARGE OR SMALL BINGO OCCASIONS

10 CONDUCTED UNDER A BINGO HALL LICENSEE'S ORIGINAL OR RENEWAL

11 APPLICATION, A HALL LICENSEE SHALL SUBMIT A WRITTEN REQUEST ON A

12 FORM PROVIDED BY THE COMMISSIONER, PLUS AN ADDITIONAL $50.00 FOR

13 EACH ADDITIONAL LARGE OR SMALL BINGO OCCASION THAT WILL BE CON-

14 DUCTED DURING THE WEEK.

15 SEC. 11B. (1) EACH APPLICANT FOR A LICENSE OR RENEWAL OF A

16 LICENSE TO OPERATE AS A SUPPLIER OF EQUIPMENT, CHARITY GAME TICK-

17 ETS, OR NUMERAL GAME TICKETS TO QUALIFIED ORGANIZATIONS LICENSED

18 UNDER THIS ACT SHALL SUBMIT A WRITTEN APPLICATION TO THE BUREAU

19 ON A FORM PRESCRIBED BY THE COMMISSIONER.

20 (2) THE APPLICANT SHALL PAY AN ANNUAL LICENSE FEE OF $300.00

21 AT THE TIME OF THE APPLICATION.

22 (3) A SUPPLIER'S LICENSE EXPIRES AT 12 MIDNIGHT ON SEPTEMBER

23 30 OF EACH YEAR.

24 (4) THE COMMISSIONER SHALL REQUIRE SUPPLIERS AUTHORIZED TO

25 SELL CHARITY GAME TICKETS, NUMERAL GAME TICKETS, OR BOTH, TO POST

26 A PERFORMANCE BOND OF NOT LESS THAN $50,000.00 AND NOT GREATER

27 THAN $500,000.00.

03087'99
29

1 (5) A SUPPLIER SHALL REMIT TO THE BUREAU AN AMOUNT EQUAL TO

2 THE QUALIFIED ORGANIZATION'S PURCHASE PRICE OF THE CHARITY GAME

3 TICKETS LESS AN AMOUNT THAT SHALL NOT BE LESS THAN THE SUM OF

4 $.008 FOR EACH TICKET SOLD PLUS 1.0% OF THE TOTAL RESALE VALUE

5 FOR ALL CHARITY GAME TICKETS SOLD.

6 (6) FOR EACH NUMERAL GAME SOLD, THE SUPPLIER SHALL ISSUE TO

7 THE LICENSED ORGANIZATION AN INVOICE LISTING THE MANUFACTURER AND

8 SERIAL NUMBER OF EACH GAME.

9 (7) THE FEE COLLECTED BY A SUPPLIER FROM THE QUALIFIED

10 ORGANIZATION FOR EACH GAME OF NUMERAL TICKETS SOLD SHALL BE $5.00

11 PER 1,000 TICKETS OR ANY PORTION OF 1,000 TICKETS.

12 (8) THE FEES COLLECTED BY THE SUPPLIER FOR EACH NUMERAL GAME

13 SOLD SHALL BE REMITTED TO THE BUREAU BY THE FIFTEENTH DAY OF THE

14 MONTH FOLLOWING THE MONTH IN WHICH THE NUMERAL GAME IS SOLD. A

15 LATE FEE OF 25% OF THE AMOUNT DUE MAY BE ASSESSED BY THE COMMIS-

16 SIONER AGAINST ANY SUPPLIER WHO FAILS TO REMIT THE FEES BY THE

17 REQUIRED FILING DATE.

18 (9) A SUPPLIER SHALL ONLY DISPLAY, OFFER FOR SALE, SELL, OR

19 OTHERWISE MAKE AVAILABLE TO A QUALIFIED ORGANIZATION NUMERAL GAME

20 TICKETS THAT HAVE BEEN OBTAINED FROM A MANUFACTURER.

21 (10) A PERSON WHO IS DIRECTLY OR INDIRECTLY CONNECTED TO THE

22 SALE, RENTAL, OR DISTRIBUTION OF BINGO OR MILLIONAIRE PARTY

23 EQUIPMENT, OR THE SALE OF CHARITY GAME TICKETS OR NUMERAL GAME

24 TICKETS, OR A PERSON RESIDING IN THE SAME HOUSEHOLD AS THE SUP-

25 PLIER SHALL NOT BE INVOLVED DIRECTLY OR INDIRECTLY WITH THE

26 RENTAL OR LEASING OF A FACILITY USED FOR AN EVENT.

03087'99
30

1 (11) A SUPPLIER SHALL SUBMIT TO THE BUREAU A REPORT AS

2 REQUIRED BY THE COMMISSIONER REGARDING THE SALE OR RENTAL OF

3 EQUIPMENT AND THE SALE OF CHARITY GAME TICKETS AND NUMERAL GAME

4 TICKETS.

5 SEC. 11C. (1) EACH APPLICANT FOR A LICENSE OR RENEWAL OF A

6 LICENSE TO ACT AS A MANUFACTURER SHALL SUBMIT TO THE BUREAU A

7 WRITTEN APPLICATION ON A FORM PRESCRIBED BY THE COMMISSIONER.

8 (2) THE ANNUAL LICENSE FEE SHALL BE $300.00.

9 (3) THE LICENSE EXPIRES AT 12 MIDNIGHT ON JUNE 30 OF EACH

10 YEAR.

11 (4) ONLY NUMERAL GAMES AND NUMERAL GAME TICKETS APPROVED BY

12 THE COMMISSIONER MAY BE DISTRIBUTED TO SUPPLIERS WITHIN THIS

13 STATE.

14 (5) ALL RECORDS SUPPORTING THE SALE OF NUMERAL GAME TICKETS

15 TO SUPPLIERS SHALL BE AVAILABLE UPON REQUEST TO AN AUTHORIZED

16 REPRESENTATIVE OF THE BUREAU FOR INSPECTION OR AUDIT AND SHALL BE

17 KEPT BY THE MANUFACTURER FOR NOT LESS THAN THE CALENDAR YEAR IN

18 WHICH THE SALE IS MADE PLUS 3 ADDITIONAL YEARS.

19 (6) EACH MANUFACTURER SHALL SUBMIT TO THE BUREAU A REPORT AS

20 REQUIRED BY THE COMMISSIONER REGARDING THE SALE OF NUMERAL TICK-

21 ETS TO SUPPLIERS.

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

23 administration of this act. The commissioner shall employ per-

24 sonnel as necessary to implement this act.

25 (2) The commissioner by rule shall regulate the holding,

26 operation, or conducting of bingo, millionaire parties, and

03087'99
31

1 charity games AN EVENT UNDER THIS ACT including, BUT NOT LIMITED

2 TO, ALL OF the following:

3 (a) The method of play and selection of winners.

4 (b) The type of equipment to be used.

5 (c) The maximum charge per card or price for participation

6 in a bingo game, for a day, or for a special occasion.

7 (C) (d) The games of chance and other activities that may

8 be conducted. during a millionaire party.

9 (3) The commissioner shall promulgate rules requiring the

10 licensing of all persons selling, leasing, or distributing equip-

11 ment used in conducting bingo, a millionaire party, or a charity

12 game. Licensed suppliers shall be authorized to sell charity

13 game tickets only upon approval of the commissioner according to

14 rules promulgated by the commissioner. The commissioner shall

15 require suppliers authorized to sell charity game tickets to post

16 a performance bond which shall be an amount not less than

17 $50,000.00 and not greater than $100,000.00. Qualified organiza-

18 tions licensed to conduct bingo or a millionaire party shall

19 obtain equipment only from licensed suppliers and shall obtain

20 charity game tickets only from the bureau or a licensed

21 supplier. A licensed supplier shall remit to the bureau an

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

23 the charity game tickets less an amount which shall be not less

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

25 resale value for all charity game tickets sold. A supplier shall

26 pay an annual license fee of $300.00 to the bureau.

03087'99
32

1 Sec. 13. (1) The commissioner shall promulgate rules to

2 implement this act pursuant to Act No. 306 of the Public Acts

3 of 1969, as amended, being sections 24.201 to 24.315 of the

4 Michigan Compiled Laws.

5 (2) To facilitate the earliest possible implementation of

6 this act with regard to charity games, the commissioner may adopt

7 and promulgate temporary rules which shall not be subject to

8 chapter 3 of Act No. 306 of the Public Acts of 1969, as amended.

9 Temporary rules shall be filed in the office of the secretary of

10 state and become effective after the date of filing as determined

11 by the commissioner. Temporary rules shall not be effective

12 after December 31, 1982.

13 (3) Rules adopted and promulgated by the commissioner shall

14 insure THE ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306,

15 MCL 24.201 TO 24.328, TO IMPLEMENT THIS ACT AND TO ENSURE the

16 integrity and honest operation of ALL bingo games, millionaire

17 parties, RAFFLES, NUMERAL GAMES, and charity games and shall be

18 ARE consistent with the legislative objective that ALL bingo,

19 millionaire parties, RAFFLES, NUMERAL GAMES, and charity games

20 shall be conducted in a friendly, social, and noncommercial

21 manner.

22 (4) Charity game tickets shall not be sold by the bureau

23 other than at or from the bureau's central or regional offices.

24 Sec. 14. (1) Each licensee shall keep a record of bingo

25 games, millionaire parties, and charity games conducted within

26 the previous year EACH EVENT as provided by rule of REQUIRED

27 BY the commissioner. The record AND ALL FINANCIAL ACCOUNTS INTO

03087'99
33

1 WHICH PROCEEDS FROM EVENTS LICENSED UNDER THIS ACT ARE DEPOSITED

2 OR TRANSFERRED shall be open to inspection by a duly authorized

3 employee REPRESENTATIVE of the bureau during reasonable busi-

4 ness hours. Upon the request of the commissioner, the state

5 auditor general or a certified public accountant firm appointed

6 by the auditor general shall examine and conduct a postaudit of a

7 licensee's records, accounts, and transactions related to the

8 operation of the bingo game, millionaire party, or charity

9 game.

10 (2) Annually each EACH licensee shall file with the com-

11 missioner a financial statement SIGNED BY THE PRINCIPAL OFFICER

12 OF THE QUALIFIED ORGANIZATION of receipts and expenses related to

13 the conducting of the bingo game, millionaire party, or charity

14 game in such detail CONDUCT OF EACH EVENT as may be required by

15 rule of the commissioner PROMULGATED UNDER THIS ACT. Where

16 IF the revenue from a bingo game, millionaire party, RAFFLE,

17 NUMERAL GAME, or charity game is represented to be used or

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

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

20 general pursuant to Act No. 101 of the Public Acts of 1961, as

21 amended, being sections 14.251 to 14.266 of the Michigan Compiled

22 Laws UNDER THE SUPERVISION OF TRUSTEES FOR CHARITABLE PURPOSES

23 ACT, 1961 PA 101, MCL 14.251 TO 14.266.

24 (3) The location at which the bingo, millionaire party, or

25 charity game is being EVENTS LICENSED UNDER THIS ACT ARE con-

26 ducted or at which an applicant or licensee intends to conduct

27 the bingo, millionaire party, or charity game AN EVENT LICENSED

03087'99
34

1 UNDER THIS ACT shall be open to inspection at all times by a duly

2 authorized employee REPRESENTATIVE of the bureau or by the

3 state police or a peace officer of a political subdivision of

4 this state.

5 Sec. 15. Annually the commissioner shall report to the gov-

6 ernor and the legislature about the operation of bingo, million-

7 aire parties, and charity games EVENTS LICENSED UNDER THIS ACT

8 within this state, abuses which THAT the bureau may have

9 encountered, and recommendations for changes in this act.

10 Sec. 16. (1) The commissioner may DENY, suspend, SUMMARILY

11 SUSPEND, or revoke any license issued pursuant to UNDER this

12 act if the licensee or any AN officer, director, agent, member,

13 or employee of the licensee violates this act or rule promulgated

14 hereunder UNDER THIS ACT. THE COMMISSIONER MAY SUMMARILY SUS-

15 PEND A LICENSE FOR A PERIOD OF NOT MORE THAN 60 DAYS PENDING

16 PROSECUTION, INVESTIGATION, OR PUBLIC HEARING.

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

18 considered a contested case and shall be governed by Act No. 306

19 of the Public Acts of 1969, as amended THE ADMINISTRATIVE PROCE-

20 DURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO 24.328. The com-

21 missioner may suspend a license for a period not to exceed 60

22 days pending any prosecution, investigation or public hearing.

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

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

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

26 records, and other evidence before it in any A matter over

27 which it has jurisdiction, control, or supervision. If a person

03087'99
35

1 subpoenaed to attend in any such proceeding or hearing fails to

2 obey the command of the subpoena without reasonable cause, or if

3 a person in attendance in any such proceeding or hearing refuses,

4 without lawful cause, to be examined or to answer a legal or per-

5 tinent question or to exhibit any A book, account, record, or

6 other document when ordered to do so by the court, THAT PERSON

7 may be punished as a contempt of the court.

8 (4) WITH APPROVAL OF THE COMMISSIONER, A HALL LICENSEE, IN

9 LIEU OF A SUSPENSION OF ITS LICENSE, MAY ELECT TO PAY A FINE

10 EQUAL TO THE AMOUNT OF RENT THAT WOULD HAVE BEEN PAID BY THE

11 BINGO LICENSEES DURING THE PERIOD OF THE SUSPENSION. THIS FINE

12 SHALL BE PAID TO THE BUREAU ON OR BEFORE THE DATE AGREED TO IN

13 THE SUSPENSION AGREEMENT ENTERED INTO BY THE BUREAU AND THE HALL

14 LICENSEE.

15 Sec. 18. (1) A licensee whose license is revoked in conse-

16 quence of a violation of this act or a rule promulgated under

17 this act is ineligible , TO APPLY FOR A LICENSE for a period of

18 1 year after the revocation, to apply for a license or to con-

19 duct a charity game exempted from licensing requirements by sec-

20 tion 4(3) 2 YEARS.

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

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

23 licensee or to participate in conducting bingo, a millionaire

24 party, RAFFLE, NUMERAL GAME, or a charity game for a period of

25 1 year after the conviction becomes final. If the person is

26 licensed pursuant to UNDER this act, the person shall forfeit

27 the license and is ineligible to apply for the issuance or

03087'99
36

1 reissuance of the license for a period of 1 year after the

2 conviction becomes final.

3 (3) If a license is suspended, in addition to other penal-

4 ties which may be imposed, the commissioner may declare the vio-

5 lator ineligible to conduct a game of bingo, a millionaire party,

6 or charity game or to apply for a license under this act for a

7 period not exceeding 1 year.

8 (4) The licensee shall return its license to the commis-

9 sioner on or before the effective date of a suspension, revoca-

10 tion, or forfeiture. Whether returned or not, the license shall

11 not be valid beyond the effective date of the suspension, revoca-

12 tion, or forfeiture.

13 Enacting section 1. Section 7 of the

14 Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL 432.107,

15 is repealed.

03087'99 Final page. TLG