2 PROPOSED ADMINISTRATIVE RULES

 

SOAHR 2009-066 DEPARTMENT OF TREASURY BUREAU OF STATE LOTTERY CHARITABLE GAMING

Filed with the Secretary of State on                                             .

 

These rules take effect 7 days after filing with the Secretary of State.

Draft February 24, 2010

 

(By authority conferred on the commissioner of state lottery by section 13 of 1972 PA 382, MCL 432.113)

 

Draft February 24, 2010

 

R 432.21333, R 432.21401, R 432.21409, R 432.21412, R 432.21415, R 432.21418, R 432.21520, R

432.21811, R 432.22007  of the Michigan Administrative Code are amended, and R 432.21401a, R 432.21814 are added to the Code as follows:

 

PART 3. BINGO

 

R 432.21333  Advertising.

Rule 333. (1) A supplier, manufacturer, or their agent shall not advertise in any manner a licensed gaming event.

(4)(2) Advertising shall include all of the following information: A licensee, lessor, or location may advertise a licensed gaming event using current and accurate information. The advertising shall include all of the following:

(a)   The nName of the licensee.

(b)   The lLicense number.

(c)   The pPurpose for which the net proceeds will be used.

(3)   Advertising shall cease once the gaming event license has expired.

(4)   Advertising via the internet, printed matter, signs, or billboards shall be in the following format:

(a)   Information in subrule (2) of this rule shall appear in the top half of the advertisement.

 

 

(b)   Excluding location name, information in subrule (2) of this rule shall be prominently displayed in the same size font, or larger, as the largest font of any other information contained in the advertisement.

(5)   Information in subrule (2) of this rule shall be continuously visible and readable in television advertising.

(6)   The lessor, location, or licensee shall not advertise the dates or times its location is open for the purpose of conducting a licensed gaming event or the games that will be played at that location unless all the information required in subrule (2) of this rule is contained in the advertising.

(7)   The following items are not considered advertising:

(a)   A message on an answering machine or voicemail by the lessor, location owner, or licensee at a location where a licensed gaming event is going to occur.

(b)   Video, audio, or other means of communication that is broadcast solely within the interior of a location where the licensed gaming event occurs.

(c)   Printed matter contained within the interior of a location where a licensed gaming event occurs and that is intended to be visible only from the interior of the location where the licensed gaming event is going to occur.

(d)   An internet webpage that does not mention days, dates, times, specific games played, or program information.

(8)   Unless approved in writing by the bureau, advertising of a licensed gaming event on the property of a location where a licensed gaming event occurs shall include the requirements in subrule (2) of this rule. The request for approval shall be submitted to the Charitable Gaming Division, 101 East Hillsdale, Box 30023, Lansing, Michigan 48909.

 

PART 4. MILLIONAIRE PARTY

 

R 432.21401 Licensing requirements. Definitions.

Rule 401. A qualified organization applying for a millionaire party license shall meet the requirements of R 432.21204. As used in this part:

(a)   “Gross profit” means the total revenue less chip redemptions and prizes.

(b)   “Millionaire party management” means the handling of cash, chips, and the completion of game records and financial statement.

(c)   “Operation” means those duties other than millionaire party management.

 

R 432.21401a  Licensing requirements.

Rule 401a.  A qualified organization applying for a millionaire party license shall meet the requirements of R 432.21204.

 

R 432.21409  Millionaire party conduct.

Rule 409. (1) Millionaire parties shall only be conducted between the hours of 8 a.m. and 2 a.m.

(2)   The millionaire party license shall be on site and posted in a conspicuous place during the millionaire party occasion.

(3)   A copy of the current license application and any changes shall also be on site and available for review.

(4)   Except for disputed prizes, A all winners shall be determined and all prizes shall be awarded within the hours stated on the license, except for disputed prizes.

(5)   All winners of raffle prizes shall be determined and all prizes awarded as prescribed by R 432.21515.

 

 

(6)   A wager shall not be placed on an athletic event or a game involving personal skill.

(7) A wager shall not be placed on a game, contest, or activity other than an approved game taking place at the location within the hours stated on the license.

(8)  Except when dealing the cards, only bona fide members of the qualified organization holding the millionaire party license may perform any of the following millionaire party management duties:

(a)  Counting, distributing, handling, selling, or redeeming chips.

(b)  Receiving, handling, or counting cash.

(c)  Collecting the house rake.

(d)  Paying out cash prizes.

(e)  Paying millionaire party workers.

(f)  Completing the millionaire party game records and financial statement.

(9) Unless approved in writing by the bureau, a location owner or lessor, a shareholder of a privately held corporate owned or leased location, partner, officer, agent, or employee of a location owner or lessor, or a person residing in the same household as a location owner or lessor, shareholder of a privately held corporate owned or leased location, partner, officer, agent, or employee of a location owner or lessor shall not do any of the following:

(a)  Participate in the millionaire party management at the location in which he or she owns, leases, represents, or works.

(b)  Be an officer of a qualified organization conducting a licensed gaming event at the location in which he or she owns, leases, represents, or works.

(c)  Participate as a player in any gaming event being conducted under the millionaire party license at the location in which he or she owns, leases, represents, or works.

 

 

R 432.21412  Workers.

Rule 412. (1) The recordkeeper is a worker who shall be is a bona fide member of the qualified organization.

(2) A person assisting in the operation of a millionaire party shall be an employee or agent of a millionaire party location or a licensed supplier, except with prior written approval of the bureau. The request for approval shall be submitted to the Charitable Gaming Division, 101 East Hillsdale, Box 30023, Lansing, Michigan 48909.

(3)   A worker shall not play millionaire party games in which they are he or she is working or assisting. A worker may play when not working, after paying admission fees and all other fees in the same manner as other players.

(4)   A person employed by or an agent of the lessor, location, or licensed supplier shall not play millionaire party games at the location where he or she works or assists.

(3)(5) A worker or a person employed by or an agent of the lessor, location, or licensed supplier shall not share in a prize, is prohibited from purchasing purchase, playing, or accepting as a gift, charity game tickets or numeral game tickets offered for sale by the licensee at any time during the day they are he or she is working or assisting.

shall not split a prize with a player or accept tips of any kind.

 

R 432.21415  Accountability; lawful use of proceeds; reasonable expenditures; deposit of proceeds.

 

 

Rule 415. (1) The licensee shall be accountable for all cash, prizes, imitation money or chips, raffle tickets, charity game tickets, and numeral game tickets.

(2)  In accordance with the act, the entire net proceeds of the licensed gaming event shall be devoted exclusively to the lawful purposes of the qualified organization.

(3)  To ensure that all proceeds are used for the lawful purposes of the qualified organization, all financial accounts into which proceeds from the licensed gaming event are deposited or transferred shall be open for review by authorized representatives of the bureau.

(4)  The payment of expenses incurred in connection with the conduct of the licensed gaming event shall be necessary and reasonable, but shall not exceed 50% of the gross profit.  This amount does not include the license fee.

(5)  Each check written from financial accounts into which proceeds from the licensed gaming event are deposited or transferred shall meet all of the following requirements:

(a)  Each check shall be preprinted with the name of the licensee.

(b)   The check shall be signed by an authorized person or persons.

(c)  The check shall be made payable to a specific person, business, partnership, corporation, or account.

(d)  A check shall not be made payable to cash or bearer and shall not be drawn in blank.

(e)   The check shall contain a brief description of the expense on the memo line.

(6)  Electronic transfers of funds derived from the conduct of the licensed gaming event shall be done in accordance with directives of the bureau.

(7)  Cancelled checks written from financial accounts into which proceeds from the licensed gaming event are deposited or transferred shall be returned on a monthly basis to the account holder.  Copies of the checks are acceptable, if legible, and if originals can be made available upon request by the bureau.

(8)  All monies derived from the conduct of the licensed gaming event shall be deposited into the licensee’s financial account within 2 business days of the licensed gaming event or as directed in writing by the bureau.

(9)   Checks shall not be cashed out of the millionaire party start cash or gross revenue.

(10)  Cash pPrize payments and worker compensation are the only allowable cash expenditures from proceeds of the licensed gaming event.  All other millionaire party-related expenses shall be paid by check as prescribed by this rule.

 

R 432.21418  Advertising.

Rule 418. (1) A supplier, manufacturer, or their agent shall not advertise in any manner a licensed gaming event.

  (2) A lessor or location owner may advertise any gaming activity licensed by the bureau  and conducted at the location listed in the bureau approved rental agreement.

  (3) Advertising is permitted by any legal means.

  (4) Expenditures by the millionaire party licensee for advertising the licensed gaming event shall be necessary and reasonable.

(5)(2) Advertising shall include all of the following information: A licensee, lessor, or location may advertise a licensed gaming event using current and accurate information. The advertising shall include all of the following:

(a)   The nName of the licensee.

(b)   The lLicense number.

(c)   The pPurpose for which the net proceeds will be used.

  (d) The personal limitation on winnings as prescribed by the act.

(3)  Advertising shall cease once the gaming event license has expired.

 

 

(4)  Advertising via the internet, printed matter, signs, or billboards shall be in the following format:

(a)  Information in subrule (2) of this rule shall appear in the top half of the advertisement.

(b)  Excluding location name, information in subrule (2) of this rule shall be prominently displayed in the same size font, or larger, as the largest font of any other information contained in the advertisement.

(5)  Information in subrule (2) of this rule shall be continuously visible and readable in television advertising.

(6)  The lessor, location, or licensee shall not advertise the dates or times its location is open for the purpose of conducting a licensed gaming event or the games that will be played at that location unless all the information required in subrule (2) of this rule is contained in the advertising.

(7)   The following items are not considered advertising:

(a)  A message on an answering machine or voicemail by the lessor, location owner, or licensee at a location where a licensed gaming event is going to occur.

(b)  Video, audio, or other means of communication that is broadcast solely within the interior of a location where the licensed gaming event occurs.

(c)  Printed matter contained within the interior of a location where a licensed gaming event occurs and that is intended to be visible only from the interior of the location where the licensed gaming event is going to occur.

(d)  An internet webpage that does not mention days, dates, times, specific games played, or program information.

(e)  A sign located on the property of a location where a licensed gaming event occurs that does not mention days, dates, times, specific games played, or game program information.

 

PART 5. RAFFLE

 

R 432.21520  Advertising.

Rule 520. (1) A supplier, manufacturer, or their agent shall not advertise in any manner a licensed gaming event.

  (2) Advertising is permitted by any legal means.

  (3) Expenditures by the raffle licensee for advertising the licensed gaming event shall be necessary and reasonable.

(4)(2) Advertising shall include all of the following information: A licensee, lessor, or location may advertise a licensed gaming event using current and accurate information. The advertising shall include all of the following:

(a)   The nName of the licensee.

(b)   The lLicense number.

(c)   The pPurpose for which the net proceeds will be used.

(5)(3) The terms “lotto” or “lottery” shall not be used in any manner to describe or advertise a raffle.

 

PART 8. SUPPLIER

 

R 432.21811 Prohibitions.

Rule 811. (1) A licensed supplier or any owner, shareholder of the privately held corporation, partner, officer, person residing in the same household as a licensed supplier, or agent, or employee of a licensed supplier shall not be involved with the management of a licensed gaming event.  This subrule

 

 

shall not apply to the delivery, repair, and set up of the equipment, the provision of training before the start of the licensed gaming event, or technical advice during the licensed gaming event.

(2)  A licensed supplier or any owner, shareholder of the privately held corporation, partner, officer, person residing in the same household as the licensed supplier, or agent of the licensed supplier shall not be involved, directly or indirectly, in the leasing or rental of a location for a licensed gaming event, except with prior written approval of the bureau. The request for approval shall be submitted to the Charitable Gaming Division, 101 East Hillsdale, Box 30023, Lansing, Michigan 48909.

  (3) A person employed by or an agent of the licensed supplier shall not receive any compensation, food, beverage, or tips as prescribed by R 432.21412 to R 432.21413. A licensed supplier or any owner, shareholder of the privately held corporation, partner, officer, person residing in the same household as the licensed supplier, or agent of the licensed supplier shall not advertise in any manner any licensed gaming event.

 

R 432.21814 Advertising.

Rule 814. (1) A licensed supplier may advertise a licensed gaming event using current and accurate information.  The advertising shall include all of the following:

(a)   Name of the licensee.

(b)   License number.

(c)   Purpose for which the net proceeds will be used.

(2)  Advertising shall cease once the gaming event license has expired.

(3)  Advertising via the internet, printed matter, signs, or billboards shall be in the following format:

(a)  Information in subrule (1) of this rule shall appear in the top half of the advertisement.

(b)  Excluding location and supplier name, information in subrule (1) of this rule shall be prominently displayed in the same size font, or larger, as the largest font of any other information contained in the advertisement.

(4)  Information in subrule (1) of this rule shall be continuously visible and readable in television advertising.

(5)   The following items are not considered advertising:

(a)  A message on an answering machine or voicemail by the supplier licensee.

(b)  Video, audio, or other means of communication that is broadcast solely within the interior of a location where the licensed gaming event occurs.

(c)  Printed matter contained within the interior of a location where a licensed gaming event occurs and that is intended to be visible only from the interior of the location where the licensed gaming event is going to occur.

(d)  An internet webpage that does not mention days, dates, times, specific games played, or program information.

 

PART 10. HALL

 

 

 

R 432.22007  Advertising.

Rule 1007. (1) A hall licensee may advertise a licensed gaming event using current and accurate information. The advertising shall include all of the following:by any legal means any gaming activity licensed by the bureau and conducted at the location listed on the license.

  (2) Advertising shall include all of the following information:

(a)   The nName of the licensee.

 

 

(b)   The lLicense number.

(c)   The pPurpose for which the net proceeds will be used.

(2)  Advertising via the internet, printed matter, signs, or billboards shall be in the following format:

(a)  Information in subrule (1) of this rule shall appear in the top half of the advertisement.

(b)  Excluding location name, information in subrule (1) of this rule shall be prominently displayed in the same size font, or larger, as the largest font of any other information contained in the advertisement.

(3)  Information in subrule (1) of this rule shall be continuously visible and readable in television advertising.

(4)  The hall licensee shall not advertise the dates or times its location is open for the purpose of conducting a licensed gaming event or the games that will be played at that location unless all the information required in subrule (1) of this rule is contained in the advertising.

(5)   The following items are not considered advertising:

(a)  A message on an answering machine or voicemail by the hall licensee.

(b)  Video, audio, or other means of communication that is broadcast solely within the interior of a location where the licensed gaming event occurs.

(c)  Printed matter contained within the interior of a location where a licensed gaming event occurs and that is intended to be visible only from the interior of the location where the licensed gaming event is going to occur.

(d)  An internet webpage that does not mention days, dates, times, specific games played, or program information.

(6)  Advertising of a licensed gaming event by the hall licensee on the property of a location where a licensed gaming event occurs shall include the requirements provided in subrule (1) of this rule, except with prior written approval of the bureau.  The request for approval shall be submitted to the Charitable Gaming Division, 101 East Hillsdale, Box 30023, Lansing, Michigan 48909.