BINGO ACT AMENDMENTS

Senate Bill 435

Sponsor:  Sen. James Barcia

House Committee:  Government Operations

Senate Committee:  Economic Development, Small Business and Regulatory Reform

Complete to 6-26-06

A SUMMARY OF SENATE BILL 453 AS PASSED BY THE SENATE 6-8-06

Senate Bill 435 would amend the Bingo Act (MCL 432.103 et al.) to do the following:

·                     Increase the value of all prizes that may be awarded through large bingo and special bingo from $2,000 to $3,500 for a single occasion and from $500 to $1,100 for a single game.

·                     Require that a qualified organization that may conduct games under the act be tax-exempt under the federal Internal Revenue Code rather than the Single Business Tax Act (unless the organization has been continuously in existence for five years). 

·                     Specify that "prizes" do not include advertising material given away by a qualified organization.

·                     Eliminate a provision prohibiting more than one bingo license from being issued to a qualified organization for any one day.

·                     Eliminate a provision prohibiting more than two bingo licenses from being issued for the same day at any one location. 

·                     Provide that the predetermined amount for the first occasion of a progressive jackpot bingo game could not exceed $500 or half of the card sales. 

·                     Delete a requirement that all bingo cards in progressive jackpot game shall be sold prior to the drawing of the first ball for that game. 

·                     Specify that, on the first bingo occasion, a player could not be required to obtain bingo in less than the allowable number of calls prescribed by the commissioner.  The current minimum number of calls is 50. 

·                     Prohibit a person from receiving a commission, profit, or pay for managing or operating a raffle, except as provided by rule. 

·                     Eliminate the $500 aggregate per-day personal limit on winnings from a millionaire party.

·                     Increase from $500,000 to $1 million the maximum performance bond that suppliers of equipment and tickets may be required to post. 

FISCAL IMPACT:

There is no fiscal impact on the State of Michigan or local units of government. 

                                                                                           Legislative Analyst:   Mark Wolf

                                                                                                   Fiscal Analyst:   Viola Bay Wild

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.