HOUSE BILL No. 5293

 

November 13, 2003, Introduced by Reps. Sheltrown, Brown, Rivet, Adamini and Elkins and referred to the Committee on Regulatory Reform.

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1972 PA 382, entitled                                             

                                                                                

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

                                                                                

    by amending sections 3a, 4, 4a, 14, and 18 (MCL 432.103a,                   

                                                                                

    432.104, 432.104a, 432.114, and 432.118), sections 3a and 4a as             

                                                                                

    added and sections 4, 14, and 18 as amended by 1999 PA 108, and             

                                                                                

    by adding section 7e.                                                       

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

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

                                                                                

2   or electromechanical devices used to determine or assist in                 

                                                                                

3   determining the winners of prizes at events licensed under this             

                                                                                

4   act.                                                                        

                                                                                

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

                                                                                

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

                                                                                

7   act.                                                                        

                                                                                

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

                                                                                


                                                                                

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

                                                                                

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

                                                                                

3   $2,000.00 and the total value of all prizes awarded for 1 game              

                                                                                

4   does not exceed $500.00, except that a prize awarded through a              

                                                                                

5   Michigan progressive jackpot bingo game  shall not be  is not               

                                                                                

6   subject to these limitations.                                               

                                                                                

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

                                                                                

8   all prizes awarded through raffle drawings  exceed  exceeds                 

                                                                                

9   $500.00 per occasion.                                                       

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

13  act.  Location also means all components or buildings that                  

                                                                                

14  comprise 1 architectural entity or that serve a unified                     

                                                                                

15  functional purpose.                                                         

                                                                                

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

                                                                                

17  who manufactures numeral game tickets for sale to suppliers for             

                                                                                

18  use in an event.                                                            

                                                                                

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

                                                                                

20  conducted in conjunction with a licensed large bingo occasion,              

                                                                                

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

                                                                                

22  occasion if no player bingos in a predetermined number of                   

                                                                                

23  allowable calls.  Michigan progressive jackpot may include bingo            

                                                                                

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

                                                                                

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

                                                                                

26  as prescribed by the commissioner.                                          

                                                                                

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


                                                                                

1   placed upon games of chance customarily associated with a                   

                                                                                

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

                                                                                

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

                                                                                

4   currency for which they can be exchanged.                                   

                                                                                

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

                                                                                

6   numeral game tickets by a qualified organization under a numeral            

                                                                                

7   game license or in conjunction with a licensed millionaire party            

                                                                                

8   or large raffle.                                                            

                                                                                

9       (10) "Numeral game ticket" means a paper strip on which                     

                                                                                

10  preprinted numerals are covered by folding the strip and banding            

                                                                                

11  the folded strip with a separate piece of paper, if upon breaking           

                                                                                

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

                                                                                

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

                                                                                

14  awarded a merchandise prize.                                                

                                                                                

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

                                                                                

16  license is issued.                                                          

                                                                                

17      (12) "Poker run" means an activity in which participants pay                

                                                                                

18  admission fees, travel to a number of predetermined destinations,           

                                                                                

19  obtain a card at each destination, and end at a final destination           

                                                                                

20  where the winning participant or participants are determined                

                                                                                

21  based on the cards obtained.                                                

                                                                                

22      (13)  (12)  "Principal officer" means the highest ranking                   

                                                                                

23  officer of the qualified organization according to its written              

                                                                                

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

                                                                                

25      (14)  (13)  "Prize" means anything of value, including, but                 

                                                                                

26  not limited to, money or merchandise that is given to a player              

                                                                                

27  for attending or winning a game at an event.  A nonmonetary item            


                                                                                

1   is valued at its retail value.                                              

                                                                                

2       (15)  (14)  "Single gathering" means 1 scheduled assembly or                

                                                                                

3   meeting with a specified beginning and ending time that is                  

                                                                                

4   conducted or sponsored by the qualified organization.  Single               

                                                                                

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

                                                                                

6   or similar facility and does not include a meeting conducted                

                                                                                

7   solely for the purpose of conducting a raffle.                              

                                                                                

8       (16)  (15)  "Small bingo" means a series of bingo occasions                 

                                                                                

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

                                                                                

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

                                                                                

11  $300.00 and the total value of all prizes awarded for a single              

                                                                                

12  bingo game does not exceed $25.00.                                          

                                                                                

13      (17)  (16)  "Small raffle" means an event during which the                  

                                                                                

14  total value of all prizes awarded through raffle drawings does              

                                                                                

15  not exceed $500.00 during 1 occasion.                                       

                                                                                

16      (18)  (17)  "Special bingo" means a single or consecutive                   

                                                                                

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

                                                                                

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

                                                                                

19  $2,000.00 and the total value of all prizes awarded for a single            

                                                                                

20  bingo game does not exceed $500.00.                                         

                                                                                

21      (19)  (18)  "Supplier" means a person licensed under this act               

                                                                                

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

                                                                                

23  numeral game tickets to qualified organizations licensed under              

                                                                                

24  this act.                                                                   

                                                                                

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

                                                                                

26  bingo, a millionaire party, raffle, charity game,  or  numeral              

                                                                                

27  game, or poker run shall submit to the bureau a written                     


                                                                                

1   application on a form prescribed by the commissioner.                       

                                                                                

2       (2)  The  An application under subsection (1) shall include                 

                                                                                

3   all of the following:                                                       

                                                                                

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

                                                                                

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

                                                                                

6   organization.                                                               

                                                                                

7       (c)  The  Except as provided in section 7e, the location at                 

                                                                                

8   which the applicant will conduct the event.                                 

                                                                                

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

                                                                                

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

                                                                                

11  will be responsible for the conduct of the event.                           

                                                                                

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

                                                                                

13  incorporation or organization to enable the commissioner to                 

                                                                                

14  determine whether the applicant is a qualified organization.                

                                                                                

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

                                                                                

16  the applicant organization, signed by the principal officer of              

                                                                                

17  that organization.                                                          

                                                                                

18      (h) Other information required by this act or that the                      

                                                                                

19  commissioner considers necessary.                                           

                                                                                

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

                                                                                

21  if the commissioner determines that the applicant is a qualified            

                                                                                

22  organization and is not ineligible under section 18 and the                 

                                                                                

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

                                                                                

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

                                                                                

25              License                  Fee                                    

                                                                                

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

                                                                                

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


                                                                                

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

                                                                                

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

                                                                                

3        (e) Large raffle...............  $ 50.00 per drawing date              

                                                                                

4        (f) Small raffle: .............                                        

                                                                                

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

                                                                                

6        (ii) Four or more drawing dates  $  5.00 per drawing date               

                                                                                

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

                                                                                

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

                                                                                

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

                                                                                

10       (j) Poker run..................  $ 50.00                               

                                                                                

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

                                                                                

12  commissioner, the commissioner may waive 1 or more requirements             

                                                                                

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

                                                                                

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

                                                                                

15  all of the following conditions are met:                                    

                                                                                

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

                                                                                

17  organization.                                                               

                                                                                

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

                                                                                

22  event is compensated in any manner for his or her participation.            

                                                                                

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

                                                                                

24  this act and rules promulgated under this act.                              

                                                                                

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

                                                                                

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

                                                                                

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


                                                                                

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                       

                                                                                

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

                                                                                

5   for a charitable purpose, organization, or cause.                           

                                                                                

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

                                                                                

7   event is compensated in any manner for his or her participation.            

                                                                                

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

                                                                                

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

                                                                                

10  act.                                                                        

                                                                                

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

                                                                                

12  valid for only the location included on the license.                        

                                                                                

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

                                                                                

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

                                                                                

15  are conducted in compliance with this act and rules.                        

                                                                                

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

                                                                                

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

                                                                                

18  the license.                                                                

                                                                                

19      Sec. 7e.  (1) The commissioner may issue a poker run license                

                                                                                

20  to a qualified organization.                                                

                                                                                

21      (2) The application for a poker run license shall include, in               

                                                                                

22  addition to the requirements of section 4, all of the following:            

                                                                                

23      (a) Instead of a location, the exact address of each                        

                                                                                

24  destination and the route that the participants will follow.                

                                                                                

25      (b) A statement that the qualified organization will hold                   

                                                                                

26  this state and its agencies, departments, commissions, and                  

                                                                                

27  employees harmless from any liability for personal injury, death,           


                                                                                

1   or property damage that may result from the operation of the                

                                                                                

2   poker run.                                                                  

                                                                                

3       (c) A statement that the qualified organization will obtain                 

                                                                                

4   written agreement from each participant as required by subsection           

                                                                                

5   (3).                                                                        

                                                                                

6       (3) A qualified organization conducting a poker run shall                   

                                                                                

7   obtain a written agreement from each participant in the poker run           

                                                                                

8   that the participant will not consume intoxicating liquor and               

                                                                                

9   will abide by all traffic or other applicable laws, ordinances,             

                                                                                

10  and regulations during the poker run.  The qualified organization           

                                                                                

11  shall ensure that a participant complies with the agreement.                

                                                                                

12      Sec. 14.  (1) Each licensee shall keep a record of each                     

                                                                                

13  event as required by the commissioner.  The record and all                  

                                                                                

14  financial accounts into which proceeds from events licensed under           

                                                                                

15  this act are deposited or transferred shall be open to inspection           

                                                                                

16  by a duly authorized representative of the bureau during                    

                                                                                

17  reasonable business hours.                                                  

                                                                                

18      (2) Each licensee shall file with the commissioner a                        

                                                                                

19  financial statement signed by the principal officer of the                  

                                                                                

20  qualified organization of receipts and expenses related to the              

                                                                                

21  conduct of each event as may be required by rule promulgated                

                                                                                

22  under this act.  If the revenue from a bingo game, millionaire              

                                                                                

23  party, raffle, numeral game,  or  charity game, or poker run is             

                                                                                

24  represented to be used or applied by a licensee for a charitable            

                                                                                

25  purpose, the licensee shall file a copy of the financial                    

                                                                                

26  statement with the attorney general under the supervision of                

                                                                                

27  trustees for charitable purposes act, 1961 PA 101, MCL 14.251 to            


                                                                                

1   14.266.                                                                     

                                                                                

2       (3) The location at which events licensed under this act are                

                                                                                

3   conducted or at which an applicant or licensee intends to conduct           

                                                                                

4   an event licensed under this act shall be open to inspection at             

                                                                                

5   all times by  a duly  an authorized representative of the bureau            

                                                                                

6   or by the state police or a peace officer of a political                    

                                                                                

7   subdivision of this state.                                                  

                                                                                

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

                                                                                

9   consequence of a violation of this act or a rule promulgated                

                                                                                

10  under this act is ineligible to apply for a license for a period            

                                                                                

11  of 2 years.                                                                 

                                                                                

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

                                                                                

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

                                                                                

14  licensee or to participate in conducting bingo, a millionaire               

                                                                                

15  party, raffle, numeral game,  or  charity game, or poker run for            

                                                                                

16  a period of 1 year after the conviction becomes final.  If the              

                                                                                

17  person is licensed under this act, the person shall forfeit the             

                                                                                

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

                                                                                

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

                                                                                

20  becomes final.