SB-1077, As Passed House, May 30, 2012

SUBSTITUTE FOR

SENATE BILL NO. 1077

      A bill to amend 1972 PA 382, entitled

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

by amending sections 3, 4a, and 12 (MCL 432.103, 432.104a, and

432.112), section 3 as amended by 2009 PA 41 and section 4a as

added and section 12 as amended by 1999 PA 108.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1        Sec. 3. As used in this act:

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

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

 4  primary purpose is educational in nature and designed to develop

 5  the 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

 1  education.

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

 3  this state, except other than a college fraternity or sorority,

 4  that is meets all of the following criteria:

 5        (i) Is organized not for pecuniary profit. ; that is

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

 7  organization ; and that exists or, only for the purpose of

 8  conducting a small raffle or a large raffle under this act, if

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

10  organization, is exempt from taxation under section 501(c) of the

11  internal revenue code of 1986, 26 USC 501.

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

13  interests of its members.

14        (c) "Licensee" means a person or qualified organization

15  licensed under this act.

16        (d) "Member" means an individual who qualified for

17  membership in a qualified organization under its bylaws, articles

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

19        (e) "Michigan national guard" and "military" mean those

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

21  1967 PA 150, MCL 32.505.

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

23  corporation, or other legal entity.

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

25  (h), either of the following:

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

27  citizens, fraternal, or veterans' organization that operates

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

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

 3  or is exempt from taxation under 26 USC 501(c).section 501(c) of

 4  the internal revenue code of 1986, 26 USC 501.

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

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

 7  Michigan national guard whose members are in active service or

 8  active state service.

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

10  committee, political committee, political party committee, ballot

11  question committee, independent committee, or any other committee

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

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

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

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

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

17  common membership for mutual support and edification in piety,

18  worship, and religious observances.

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

20  pecuniary profit and that unites for religious purposes at a

21  definite place.

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

23  for pecuniary profit.

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

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

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

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

 1  advancement of the causes of elderly or retired persons.

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

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

 4  organization that is organized not for pecuniary profit and that

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

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

 7  service purpose within the state.

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

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

10  organization; that is recognized by resolution adopted by the

11  local governmental subdivision in which the organization conducts

12  its principal activities; whose constitution, charter, articles

13  of incorporation, or bylaws contain a provision for the

14  perpetuation of the organization as a nonprofit organization;

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

16  constitution, charter, articles of incorporation, or bylaws

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

18  property shall revert to the benefit of the local governmental

19  subdivision that granted the resolution upon dissolution of the

20  organization.

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

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

23  state organization or of a national organization chartered by the

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

25  pecuniary profit, the membership of which consists of individuals

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

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

 1  veterans' organization that is a national organization chartered

 2  by the congress of the United States.

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

 4  if the commissioner determines that the applicant is a qualified

 5  organization and is not ineligible under section 18 and the

 6  applicant has paid to the bureau the appropriate fee, the

 7  commissioner may issue 1 or more of the following licenses:

8  License Fee

9        (a)   Large bingo.........................$ 150.00

10       (b)   Small bingo.........................$ 55.00

11       (c)   Special bingo.......................$ 25.00

12       (d)   Millionaire party...................$ 50.00 per day

13       (e)   Large raffle........................$ 50.00 per

14             drawing date

15       (f)   Small raffle:

16       (i)    One to 3 drawing dates..............$ 15.00

17       (ii)    Four or more drawing dates..........$ 5.00 per

18             drawing date

19       (g)   Annual charity game.................$ 200.00

20       (h)   Special charity game................$ 15.00 per day

21       (i)   Numeral game........................$ 15.00 per day

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

23  commissioner, the commissioner may waive 1 or more requirements

24  of a qualified organization described in section 3 to permit the

25  licensing of a special bingo, millionaire party, or raffle, if

26  all of the following conditions are met:

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

 2  organization.

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

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

 5  for a charitable purpose, organization, or cause.

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

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

 8  participation.

 9        (d) The organization complies with all other provisions of

10  this act and rules promulgated under this act.

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

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

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

14  millionaire party, or raffle if all of the following conditions

15  are met:

16        (a) The entire proceeds of the event, less the actual

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

18  for a charitable purpose, organization, or cause.

19        (b) None of the individuals connected with the conduct of

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

21  participation.

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

23  other provisions of this act and the rules promulgated under this

24  act.

25        (4) Each event license issued to a qualified organization is

26  valid for only the location included on the license.

27        (5) A license is not assignable or transferable.

 1        (6) The licensee is responsible for ensuring that the events

 2  are conducted in compliance with this act and rules.

 3        (7) A licensee shall only conduct events licensed under this

 4  act during the hours and on the day and date or dates stated on

 5  the license.

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

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

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

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

10  commissioner shall only consider whether the organization meets

11  requirements that are applicable under this act that are

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

13  chapter of a national or state organization.

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

15  administration of this act. The commissioner shall employ

16  personnel as necessary to implement this act.

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

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

19  organization to audit to ensure that the organizations are in

20  compliance with this act.