HOUSE BILL No. 5915 June 4, 1998, Introduced by Rep. Gagliardi and referred to the Committee on House Oversight and Ethics. A bill to amend 1931 PA 328, entitled "The Michigan penal code," by amending sections 302 and 303 (MCL 750.302 and 750.303), section 302 as amended by 1989 PA 85 and section 303 as amended by 1996 PA 129. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 302. (1)Keeping and occupying building for gaming,2etc.--Except as provided in subsection (2), any person, or 3hisTHE PERSON'S agent or employee whoshall,directly or 4 indirectly, keep or occupy or assistKEEPS OR OCCUPIES OR 5 ASSISTS in keeping or occupyinganyA common gambling house or 6anyA building or place where gaming is permittedor suffered7 or whoshall suffer or permitPERMITS AN APPARATUS USED FOR 8 GAMING OR GAMBLING on any premises owned, occupied, or controlled 9 by himany apparatus used for gaming or gamblingOR HER or who 06253'98 TLG 2 1shall useUSES such apparatus for gaming or gambling in any 2 place within the state of Michigan,shall beIS guilty of a 3misdemeanorFELONY, punishable by imprisonmentin the county4jailFOR not more than1 year10 YEARS or by a fine of not 5 more than$500.00$100,000.00. 6 (2) This section does not prohibit the FOLLOWING: 7 (A) THE manufacture of gaming or gambling apparatus or the 8 possession of gaming or gambling apparatus by the manufacturer OR 9 ITS SUBSIDIARY of the apparatus solely for sale outside of the 10 state, or for sale to a gambling establishment OR, PURSUANT TO 11 SUBDIVISION (B), A PROPRIETARY SCHOOL OR INSTITUTION OF HIGHER 12 EDUCATION operating within this state in compliance with the laws 13 of this state, if applicable, and in compliance with the laws of 14 the United States, provided the manufacturer meets or exceeds 15 federal government requirements in regard to manufacture, stor- 16 age, and transportation. 17 (B) THE POSSESSION OR USE OF GAMING EQUIPMENT AND SUPPLIES 18 BY A PROPRIETARY SCHOOL OR AN INSTITUTION OF HIGHER EDUCATION FOR 19 EDUCATIONAL OR DEMONSTRATION PURPOSES, IF THE PROPRIETARY SCHOOL 20 OR INSTITUTION OF HIGHER EDUCATION SATISFIES ALL OF THE FOLLOWING 21 CONDITIONS: 22 (i) MAINTAINS A CURRENT ITEMIZED LIST OF ITS DEALING SHOES, 23 GAMING TABLES, ROULETTE WHEELS, AND OTHER GAMBLING GAMES AS THAT 24 TERM IS DEFINED IN SECTION 2 OF THE MICHIGAN GAMING CONTROL AND 25 REVENUE ACT, THE INITIATED LAW OF 1996, MCL 432.202, AND PROVIDES 26 A COPY OF THE LIST TO THE MICHIGAN GAMING CONTROL BOARD. IF ANY 27 GAMING EQUIPMENT OR SUPPLIES ARE DISPOSED OF OR ARE NO LONGER 06253'98 3 1 USED, THE PROPRIETARY SCHOOL OR INSTITUTION OF HIGHER EDUCATION 2 SHALL ADVISE THE MICHIGAN GAMING CONTROL BOARD IN WRITING OF THE 3 DISPOSITION OF THE EQUIPMENT OR SUPPLIES AND AMEND THE CURRENT 4 ITEMIZED LIST ACCORDINGLY. 5 (ii) DOES NOT POSSESS OR DISPOSE OF GAMING EQUIPMENT OR SUP- 6 PLIES DESCRIBED IN THIS SECTION IN VIOLATION OF APPLICABLE STATE 7 AND FEDERAL LAW. 8 (iii) POSSESSES AND USES ONLY CHIPS AND TOKENS THAT ARE DIS- 9 TINCTLY DISSIMILAR TO THE CHIPS AND TOKENS USED BY A CASINO 10 LICENSED UNDER THE MICHIGAN GAMING CONTROL AND REVENUE ACT, THE 11 INITIATED LAW OF 1996, MCL 432.201 TO 432.226, AND SUBMITS REPRE- 12 SENTATIVE SAMPLES OF CHIPS AND TOKENS TO THE MICHIGAN GAMING CON- 13 TROL BOARD FOR APPROVAL BEFORE UTILIZING THEM IN TRAINING. 14 (iv) PERMANENTLY IMPRINTS ITS NAME ON OR AFFIXES ITS NAME TO 15 ALL GAMING EQUIPMENT. 16 (v) PROVIDES ADEQUATE SECURITY FOR THE PROTECTION OF THE 17 GAMING EQUIPMENT, CHIPS, AND TOKENS, INCLUDING, AT A MINIMUM, ALL 18 OF THE FOLLOWING: 19 (A) ENSURING THAT THE GAMING EQUIPMENT IS USED BY A PROPRI- 20 ETARY SCHOOL ONLY FOR THE PURPOSE OF TRAINING STUDENTS IN A GAM- 21 BLING TRADE OR BY AN INSTITUTION OF HIGHER EDUCATION FOR EDUCA- 22 TION OR DEMONSTRATION PURPOSES. 23 (B) OBTAINING WRITTEN APPROVAL FROM THE MICHIGAN GAMING CON- 24 TROL BOARD BEFORE DISPOSING OF ANY GAMING EQUIPMENT, CHIPS, OR 25 TOKENS. 26 (C) REPORTING IN WRITING TO THE MICHIGAN GAMING CONTROL 27 BOARD ANY THEFT, REMOVAL, OR LOSS OF ANY GAMING EQUIPMENT, CHIPS, 06253'98 4 1 OR TOKENS NOT MORE THAN 5 BUSINESS DAYS AFTER THE THEFT, REMOVAL, 2 OR LOSS. 3 (3) AS USED IN THIS SECTION: 4 (A) "CURRENT ITEMIZED LIST" MEANS A LIST THAT IS UPDATED NOT 5 MORE THAN 10 BUSINESS DAYS AFTER A CHANGE IN THE PROPRIETARY 6 SCHOOL'S OR INSTITUTION OF HIGHER EDUCATION'S INVENTORY OF GAMING 7 EQUIPMENT, SUPPLIES, AND GAMBLING GAMES. 8 (B) "EDUCATIONAL OR DEMONSTRATION PURPOSES" DOES NOT INCLUDE 9 A WAGER FOR MONEY, CREDIT, OR ANY OTHER REPRESENTATIVE OF VALUE. 10 (C) "PROPRIETARY SCHOOL" MEANS THAT TERM AS DEFINED UNDER 11 SECTION 1A OF 1943 PA 148, MCL 395.101A. 12 (4) PURSUANT TO SECTION 2 OF CHAPTER 1194, 64 STAT. 1134, 15 13 U.S.C. 1172, APPROVED JANUARY 2, 1951, THE STATE OF MICHIGAN, 14 ACTING BY AND THROUGH DULY ELECTED AND QUALIFIED MEMBERS OF THE 15 LEGISLATURE, DOES DECLARE AND PROCLAIM THAT THE STATE IS EXEMPT 16 FROM CHAPTER 1194, 64 STAT. 1134, 15 U.S.C. 1171 TO 1178. 17 (5) ALL SHIPMENTS OF GAMBLING DEVICES, INCLUDING SLOT 18 MACHINES, TO LICENSED PROPRIETARY SCHOOLS OR INSTITUTIONS OF 19 HIGHER EDUCATION, THE REGISTERING, RECORDING, AND LABELING OF 20 WHICH HAVE BEEN COMPLETED BY THE MANUFACTURER OR DEALER THEREOF 21 IN ACCORDANCE WITH CHAPTER 1194, 64 STAT. 1134, 15 U.S.C. 1171 TO 22 1178, ARE LEGAL SHIPMENTS OF GAMBLING DEVICES INTO THE STATE OF 23 MICHIGAN. 24 Sec. 303. (1) Except as otherwise provided in this section, 25 a person who for hire, gain, or reward, keeps or maintains a 26 gaming room, gaming table, game of skill or chance, or game 27 partly of skill and partly of chance, used for gaming, or who 06253'98 5 1 permits a gaming room, or gaming table, or game to be kept, 2 maintained, or played on premises occupied or controlled by the 3 person, is guilty of amisdemeanorFELONY, punishable by 4 imprisonment for not more than210 years, or a fine of not 5 more than$1,000.00$100,000.00. A person who aids, assists, 6 or abets in the keeping or maintaining of a gaming room, gaming 7 table, or game, is guilty of amisdemeanorFELONY, punishable 8 by imprisonment for not more than210 years, or a fine of not 9 more than$1,000.00$100,000.00. 10 (2) Subsection (1) does not apply to a mechanical amusement 11 device which may, through the application of an element of skill, 12 reward the player with the right to replay the mechanical amuse- 13 ment device at no additional cost if the mechanical amusement 14 device is not allowed to accumulate more than 15 replays at 1 15 time; the mechanical amusement device is designed so that accumu- 16 lated free replays may only be discharged by reactivating the 17 device for 1 additional play for each accumulated free replay; 18 and the mechanical amusement device makes no permanent record, 19 directly or indirectly, of the free replays awarded. 20 (3) Subsection (1) does not apply to a slot machine if the 21 slot machine is 25 years old or older and is not used for gambl- 22 ing purposes. As used in this section, "slot machine" means a 23 mechanical device, an essential part of which is a drum or reel 24 which bears an insignia and which when operated may deliver, as a 25 result of the application of an element of chance, a token or 26 money or property, or by operation of which a person may become 06253'98 6 1 entitled to receive, as a result of the application of an element 2 of chance, a token or money or property. 3 (4) A slot machinewhichTHAT is being used for a gambling 4 purpose in violation of subsection (3) shall be confiscated and 5 turned over to the director of the department of state police for 6 auction. 7 (5) Subsection (1) does not apply to a crane game. As used 8 in this section, "crane game" means an amusement machine acti- 9 vated by the insertion of a coin by which the player uses 1 or 10 more buttons, joysticks, or similar means of control, or a combi- 11 nation of those means of control, to position a mechanical or 12 electromechanical claw, or other retrieval device, over a prize, 13 toy, novelty, or an edible item having a wholesale value of not 14 more than $3.75, and thereby attempts to retrieve the prize, toy, 15 novelty, or edible item. Every prize, toy, or edible item must 16 be retrievable by the claw. A slot machine is not considered a 17 crane game. 18 (6) A person who knowingly alters a crane game that is 19 available for play so that the crane game is not in compliance 20 with the elements of the definition contained in subsection (5) 21 is guilty of a felony, punishable by imprisonment for not more 22 than 2 years, or a fine of not more than $20,000.00, or both. 23 (7) A law enforcement officer may confiscate any crane game 24 that is available for play and is not in compliance with the ele- 25 ments of the definition contained in subsection (5). The confis- 26 cated crane games and their contents shall not be destroyed, 06253'98 7 1 altered, dismantled, sold, or otherwise disposed of except upon 2 order of a court having competent jurisdiction. 3 (8) The following notice shall be conspicuously posted on 4 the front of every crane game located in this state: "This game 5 is not licensed or regulated by the state of Michigan." 6 (9) SUBSECTION (1) DOES NOT APPLY TO THE POSSESSION OR USE 7 OF GAMING EQUIPMENT AND SUPPLIES BY A PROPRIETARY SCHOOL OR AN 8 INSTITUTION OF HIGHER EDUCATION FOR EDUCATIONAL OR DEMONSTRATION 9 PURPOSES, IF THE PROPRIETARY SCHOOL OR INSTITUTION OF HIGHER EDU- 10 CATION SATISFIES ALL OF THE FOLLOWING CONDITIONS: 11 (A) MAINTAINS A CURRENT ITEMIZED LIST OF ITS DEALING SHOES, 12 GAMING TABLES, ROULETTE WHEELS, AND OTHER GAMBLING GAMES AS THAT 13 TERM IS DEFINED IN SECTION 2 OF THE MICHIGAN GAMING CONTROL AND 14 REVENUE ACT, THE INITIATED LAW OF 1996, MCL 432.202, AND PROVIDES 15 A COPY OF THE LIST TO THE MICHIGAN GAMING CONTROL BOARD. IF ANY 16 GAMING EQUIPMENT OR SUPPLIES ARE DISPOSED OF OR ARE NO LONGER 17 USED, THE PROPRIETARY SCHOOL OR INSTITUTION OF HIGHER EDUCATION 18 SHALL ADVISE THE MICHIGAN GAMING CONTROL BOARD IN WRITING OF THE 19 DISPOSITION OF THE EQUIPMENT OR SUPPLIES AND AMEND THE CURRENT 20 ITEMIZED LIST ACCORDINGLY. 21 (B) DOES NOT POSSESS OR DISPOSE OF GAMING EQUIPMENT OR SUP- 22 PLIES DESCRIBED IN THIS SECTION IN VIOLATION OF APPLICABLE STATE 23 AND FEDERAL LAW. 24 (C) POSSESSES AND USES ONLY CHIPS AND TOKENS THAT ARE DIS- 25 TINCTLY DISSIMILAR TO THE CHIPS AND TOKENS USED BY A CASINO 26 LICENSED IN THE MICHIGAN GAMING CONTROL AND REVENUE ACT, THE 27 INITIATED LAW OF 1996, MCL 432.201 TO 432.226, AND SUBMITS 06253'98 8 1 REPRESENTATIVE SAMPLES OF CHIPS AND TOKENS TO THE MICHIGAN GAMING 2 CONTROL BOARD FOR APPROVAL BEFORE UTILIZING THEM IN TRAINING. 3 (D) PERMANENTLY IMPRINTS ITS NAME ON OR AFFIXES ITS NAME TO 4 ALL GAMING EQUIPMENT. 5 (E) PROVIDES ADEQUATE SECURITY FOR THE PROTECTION OF THE 6 GAMING EQUIPMENT, CHIPS, AND TOKENS, INCLUDING, AT A MINIMUM, ALL 7 OF THE FOLLOWING: 8 (i) ENSURING THAT THE GAMING EQUIPMENT IS USED BY A PROPRI- 9 ETARY SCHOOL ONLY FOR THE PURPOSE OF TRAINING STUDENTS IN A GAM- 10 BLING TRADE OR BY AN INSTITUTION OF HIGHER EDUCATION FOR EDUCA- 11 TION OR DEMONSTRATION PURPOSES. 12 (ii) OBTAINING WRITTEN APPROVAL FROM THE MICHIGAN GAMING 13 CONTROL BOARD BEFORE DISPOSING OF ANY GAMING EQUIPMENT, CHIPS, OR 14 TOKENS. 15 (iii) REPORTING IN WRITING TO THE MICHIGAN GAMING CONTROL 16 BOARD ANY THEFT, REMOVAL, OR LOSS OF ANY GAMING EQUIPMENT, CHIPS, 17 OR TOKENS NOT MORE THAN 5 BUSINESS DAYS AFTER THE THEFT, REMOVAL, 18 OR LOSS. 19 (10) AS USED IN THIS SECTION: 20 (A) "CURRENT ITEMIZED LIST" MEANS A LIST THAT IS UPDATED NOT 21 MORE THAN 10 BUSINESS DAYS AFTER A CHANGE IN THE PROPRIETARY 22 SCHOOL'S OR INSTITUTION OF HIGHER EDUCATION'S INVENTORY OF GAMING 23 EQUIPMENT, SUPPLIES, AND GAMBLING GAMES. 24 (B) "EDUCATIONAL OR DEMONSTRATION PURPOSES" DOES NOT INCLUDE 25 A WAGER FOR MONEY, CREDIT, OR ANY OTHER REPRESENTATIVE OF VALUE. 26 (C) "PROPRIETARY SCHOOL" MEANS THAT TERM AS DEFINED UNDER 27 SECTION 1A OF 1943 PA 148, MCL 395.101A. 06253'98