April 25, 2018, Introduced by Rep. Iden and referred to the Committee on Regulatory Reform.
A bill to amend 1996 IL 1, entitled
"Michigan gaming control and revenue act,"
by amending sections 7b, 7c, 8, 8a, 9, 9a, 9b, 9c, 10, 12, 12a, 14,
18, and 21 (MCL 432.207b, 432.207c, 432.208, 432.208a, 432.209,
432.209a, 432.209b, 432.209c, 432.210, 432.212, 432.212a, 432.214,
432.218, and 432.221), sections 8, 9, 10, and 14 as amended and
sections 7b, 7c, 8a, 9a, 9b, 9c, 12a, 18, and 21 as added by 1997
PA 69 and section 12 as amended by 2004 PA 306.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 7b. (1) As used in this section:
(a) "Candidate" means both of the following:
(i) That term as defined in section 3 of the Michigan campaign
finance act, 1976 PA 388, MCL 169.203.
(ii) The holder of any state, legislative, or local elective
office.
(b) Except as provided in subsection (6), "committee" means
any of the following:
(i) A candidate committee as that term is defined in section 3
of the Michigan campaign finance act, 1976 PA 388, MCL 169.203.
(ii) A political party committee as that term is defined in
section 11 of the Michigan campaign finance act, 1976 PA 388, MCL
169.211.
(iii) An independent committee as that term is defined in
section 8 of the Michigan campaign finance act, 1976 PA 388, MCL
169.208.
(iv) A committee organized by a legislative caucus of a
chamber of the legislature.
(c) "License" means either a casino license issued under this
act or a supplier's license issued under this act.
(d)
"Licensee" means a person who holds a license. as
defined
in
subdivision (c).
(e) "Officer" means either of the following:
(i) An individual listed as an officer of a corporation,
limited liability company, or limited liability partnership.
(ii) An individual who is a successor to an individual
described in subparagraph (i).
(2) For purposes of this section, a person is considered to
have an interest in a licensee or casino enterprise if any of the
following circumstances exist:
(a) The person holds at least a 1% interest in the licensee or
casino enterprise.
(b) The person is an officer or a managerial employee of the
licensee or casino enterprise as defined by rules promulgated by
the board.
(c) The person is an officer of the person who holds at least
a 1% interest in the licensee or casino enterprise.
(d) The person is an independent committee of the licensee or
casino enterprise.
(3) A licensee is considered to have made a contribution if a
contribution is made by a person who has an interest in the
licensee.
(4) A licensee or person who has an interest in a licensee or
casino enterprise, or the spouse, parent, child, or spouse of a
child of a licensee or person who has an interest in a licensee or
casino enterprise, shall not make a contribution to a candidate or
a committee during the following periods:
(a) The time period during which a casino licensee or
development agreement is being considered by a city or the board.
(b) The term during which the licensee holds a license.
(c) The 3 years following the final expiration or termination
of the licensee's license.
(d) During either of the following, whichever is shorter:
(i) The period beginning on or after the effective
date of
this
amendatory act.July 17, 1997.
(ii) The period beginning 1 year prior to before applying
for
a license.
(5) A licensee or person who has an interest in a licensee or
casino enterprise, or the spouse, parent, child, or spouse of a
child of a licensee or a person who has an interest in a licensee
or casino enterprise, shall not make a contribution to a candidate
or committee through a legal entity that is established, directed,
or controlled by any of the persons described in this subsection
during the time period described in subsection (4).
(6) This section does not apply to a ballot question committee
as that term is defined in section 2 of the Michigan campaign
finance act, 1976 PA 388, MCL 169.202.
Sec. 7c. (1) Each local labor organization that directly
represents casino gaming employees shall register with the board
annually and provide all of the following:
(a) The local labor organization's name, address, and
telephone number.
(b) The name and address of any international labor
organization with which it directly or indirectly maintains an
affiliation or relationship.
(c) All of the following information for the designated
individuals and other personnel of the local labor organization:
(i) The individual's full name and any known alias or
nickname.
(ii) The individual's business address and telephone number.
(iii) The individual's title or other designation in the local
labor organization.
(iv) Unless information is required under subdivision (d)(v),
a brief description of the individual's duties and activities.
(v) The individual's annual compensation, including salary,
allowances, reimbursed expenses, and other direct or indirect
disbursements.
(d) All of the following additional information for each
designated individual of the local labor organization:
(i) The individual's home address and telephone number.
(ii) The individual's date and place of birth.
(iii) The individual's social security Social Security number.
(iv) The date he or she was hired by or first consulted with
or advised the local labor organization.
(v) A detailed description of all of the following:
(A) The individual's duties and activities.
(B) Whether he or she performed the same or similar activities
previously on a labor organization's behalf.
(C) The individual's prior employment or occupational history.
(vi) Excluding minor traffic offenses, a detailed description
of all of the following:
(A) The individual's convictions, including any conviction
that was expunged or set aside, sealed by court order, or for which
he or she received a pardon.
(B) Any criminal offense for which he or she was charged or
indicted but not convicted.
(vii) Whether he or she was ever denied a business, liquor,
gaming,
or professional license or had such a business, liquor,
gaming, or professional license revoked.
(viii) Whether a court or governmental agency determined the
individual unsuitable to be affiliated with a labor organization
and the details of that determination.
(ix) Whether the individual was ever subpoenaed as a witness
before a grand jury, legislative committee, administrative body,
crime commission, or similar agency and the details relating to
that subpoena.
(x) A photograph of the individual taken within the previous
60 days.
(xi) For the local labor organization's first filing, a
complete set of the individual's fingerprints.
(e) A written certification under oath by the local labor
organization president, secretary, treasurer, or chief official
that the information provided under this subsection is complete and
accurate. The board shall prescribe the form for this
certification.
(2) A local labor organization may satisfy the information
requirements of subsection (1) by providing to the board copies of
reports
filed with the United States department of labor Department
of Labor under the labor management reporting and disclosure act of
1959, Public Law 86-257, supplemented by any required information
not contained in those reports.
(3) If information required under subsection (1) for a
designated individual changes after registration or if the local
labor organization gains a designated individual after
registration, the local labor organization shall provide the board
with that new information or the information, photograph, and
fingerprints required under subsection (1) for the new designated
individual within 21 days after the information changes.
(4) Notwithstanding section 4c, information provided by a
local labor organization to the board under this section is exempt
from disclosure under the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246.
(5) Upon finding by clear and convincing evidence that grounds
for disqualification under subsection (6) exist, the board may
disqualify an officer, agent, or principal employee of a local
labor organization registered or required to be registered under
this section from performing any of the following functions:
(a) Adjusting grievances for or negotiating or administering
the wages, hours, working conditions, or employment conditions of
casino gaming employees.
(b) Soliciting, collecting, or receiving from casino gaming
employees any dues, assessments, levies, fines, contributions, or
other charges within this state for or on behalf of the local labor
organization.
(c) Supervising, directing, or controlling other officers,
agents, or employees of the local labor organization in performing
functions described in subdivisions (a) and (b).
(6) An individual may be disqualified under subsection (5) for
lacking good moral character only if any of the following apply:
(a) He or she has been indicted or charged with, convicted of,
pled guilty or nolo contendere to, or forfeited bail in connection
with a crime involving gambling, theft, dishonesty, prostitution,
or fraud under the laws of this state, any other state, or the
United States or a local ordinance of a political subdivision of
this
state or another state. Disqualification cannot must not be
based only on crimes that involve soliciting or engaging
prostitution services unless the individual is or has engaged in an
ongoing pattern of that behavior. If the grounds for
disqualification are criminal charges or indictment, at the
individual's request, the board shall defer making a decision on
disqualification while the charge or indictment is pending.
(b) He or she intentionally or knowingly made or caused to be
made a false or misleading statement in a document provided to the
board or its agents or orally to a board member or agent in
connection with an investigation.
(c) He or she engages in criminal or unlawful activities in an
occupational manner or context for economic gain, or is an
associate or member of a group of individuals who operate together
in that fashion, and this behavior creates a reasonable belief that
the behavior adversely affects gambling operations and the public
policy underlying this act. In making a determination under this
subdivision, the board may consider findings or identifications by
the attorney general or department of state police that an
individual is within this category.
(7) A designated individual shall report all information
described in subsection (6)(a) to (c) concerning him or her to the
local labor organization. A local labor organization shall report
all information described in subsection (6)(a) to (c) concerning
its designated individuals of which it has actual knowledge to the
board.
(8) The board may waive any disqualification criterion under
subsection (6) or may rescind a disqualification under subsection
(5), if doing so is consistent with the public policy of this act
and
based on a finding that the interests of justice so require
that waiver or rescission.
(9) The board shall give written notice to an individual it
proposes to disqualify and to the affected labor organization,
stating the reason for the proposed disqualification and describing
any supporting evidence in the board's possession. Within 30 days
after receiving the written notice of proposed disqualification,
the respondent may file with the board a written request for a
hearing,
which shall that must take place promptly. The board shall
conduct the hearing in conformity with the contested case
procedures set forth in the administrative procedures act of 1969,
1969 PA 306, MCL 24.201 to 24.328. A person aggrieved by a final
disqualification has the right to appeal to the circuit court for
the county in which the person resides or has his or her principal
place of business to have the disqualification set aside based on
any ground set forth in section 106 of the administrative
procedures act of 1969, 1969 PA 306, MCL 24.306.
(10) Not later than January 31 of the calendar year after
disqualification and each year after that unless the
disqualification is rescinded or reversed, the disqualified
individual shall provide the board with a sworn statement that he
or she did not perform the functions described in subsection (5)
during the previous year.
(11)
The board may petition in the circuit court for the
county in which the disqualified individual resides or has his or
her principal place of business for an order enforcing the terms of
the disqualification.
(12) A local labor organization that is registered or required
to be registered under this section or any officer, agent, or
principal employee of that organization shall not personally hold
any financial interest in a casino licensee employing casino gaming
employees represented by the organization or person.
(13) This section does not prohibit a local labor organization
from conducting training for or operating a school to train casino
gaming employees, or from entering into an agreement or arrangement
with a casino licensee, supplier, or vendor to provide for the
training of casino gaming employees. A local labor organization
that
conducts such training of
casino gaming employees or operates
such
a school to train casino gaming employees or does not
otherwise qualify as a supplier is not subject to the contribution
prohibitions of section 7b.
(14) This section does not deny, abridge, or limit in any way
the legitimate rights of casino gaming employees to form, join, or
assist labor organizations, to bargain collectively through
representatives of their own choosing, or to engage in other
concerted activities for the purpose of collective bargaining or
other mutual aid and protection or the free exercise of any other
rights they may have as employees under the laws of the United
States or this state.
(15) This section shall not be expanded or amplified by action
of the board or any other executive or administrative body. The
board and any other executive or administrative body do not have
authority to promulgate interpretive rules or rulings to implement
this section. The board and any other executive or administrative
body do not have authority under this section to require that a
local labor organization or an officer, agent, or principal
employee of a labor organization does either of the following:
(a) Qualify for or obtain a casino, occupational, or
supplier's license or any other license or permit required under
rules promulgated by the board.
(b) Ensure the compliance of any person or entity with the
licensing requirements under this act or under rules promulgated by
the board.
(16) As used in this section:
(a) "Casino gaming employee" means the following and their
supervisors:
(i) Individuals involved in operating a casino gaming pit,
including dealers, shills, clerks, hosts, and junket
representatives.
(ii) Individuals involved in handling money, including
cashiers, change persons, count teams, and coin wrappers.
(iii) Individuals involved in operating gambling games.
(iv) Individuals involved in operating and maintaining slot
machines, including mechanics, floorpersons, and change and payoff
persons.
(v) Individuals involved in security, including guards and
game observers.
(vi) Individuals with duties similar to those described in
subparagraphs (i) to (v). However, casino gaming employee does not
include an individual whose duties are related solely to nongaming
activities such as entertainment, hotel operation, maintenance, or
preparing or serving food and beverages.
(b) "Designated individual" means an officer, agent, principal
employee, or individual performing a function described in
subsection (5).
(17)
Nothing in this This act shall does not preclude
employees from exercising their legal rights to organize themselves
into collective bargaining units.
Sec. 8. (1) The board may issue an occupational license to an
applicant after all of the following have occurred:
(a) The applicant has paid a nonrefundable application fee set
by the board.
(b) The board has determined that the applicant is eligible
for
an occupational license pursuant to under rules promulgated by
the board.
(c) The applicant has paid the biennial license fee in an
amount
to be established by the board.
(2)
It is the burden of the The
applicant to shall establish
by clear and convincing evidence the applicant's eligibility and
suitability as to integrity, moral character, and reputation;
personal probity; financial ability and experience; responsibility;
and
other criteria as may be considered appropriate by the board.
The
board shall not apply criteria considered appropriate by the
board
shall not be that are arbitrary, capricious, or contradictory
to
the expressed provisions of this act. All applications shall
must be made under oath.
(3) To be eligible for an occupational license, an applicant
shall:must meet all of the following:
(a) Be at least 21 years of age if the applicant will perform
any function involved in gaming by patrons.
(b) Be at least 18 years of age if the applicant will perform
only nongaming functions.
(c) Not have been convicted of a felony under the laws of this
state, any other state, or the United States. The board may, in its
sole discretion, waive the requirements in this subdivision if the
conviction occurred more than 10 years before the applicant applies
for a license under this section and the board is convinced of both
of the following:
(i) That the applicant does not pose a threat to the integrity
of gaming.
(ii) That the applicant otherwise meets the requirements of
subsection (2).
(d) Not have been convicted of a misdemeanor involving
gambling, dishonesty, theft, or fraud in any state or any violation
of a local ordinance in any state involving gambling, dishonesty,
theft, or fraud that substantially corresponds to a misdemeanor in
that state. The board may, in its sole discretion, waive the
requirements in this subdivision if the conviction occurred more
than 5 years before the applicant applies for a license under this
section and the board is convinced of both of the following:
(i) That the applicant does not pose a threat to the integrity
of gaming.
(ii) That the applicant otherwise meets the requirements of
subsection (2).
(4)
Each application for an occupational license shall must be
on
a form prescribed by the board and shall contain all information
required by the board. The applicant shall set forth in the
application whether he or she has been issued prior gambling
related licenses; whether he or she has been licensed in any other
state under any other name, and, if so, the name under which the
license was issued and his or her age at the time the license was
issued; and whether or not a permit or license issued to him or her
in any other state has been suspended, restricted, or revoked, and,
if
so, the cause and the duration of each action.suspension,
restriction, or revocation.
(5) Each applicant shall submit with his or her application,
on a form provided by the board, 2 sets of his or her fingerprints
and a photograph. The board shall charge each applicant an
application fee set by the board to cover all actual costs of
administering the act relative to costs generated by each licensee
and all background checks.
(6) The board may, in its discretion, deny an occupational
license to a person who is or does any of the following:
(a) The applicant fails to disclose or states falsely any
information requested in the application.
(b) The applicant is a member of the board.
(c) The applicant has a history of noncompliance with the
casino licensing requirements of any jurisdiction.
(d) Whether the applicant has been indicted for, charged with,
arrested for, convicted of, pleaded guilty or nolo contendere to,
forfeited bail concerning, or had expunged any criminal offense
under the laws of any jurisdiction, either felony or misdemeanor,
not including traffic violations, regardless of whether the offense
has been expunged, pardoned, or reversed on appeal or otherwise.
(e) The applicant has filed, or had filed against it, a
proceeding for bankruptcy or has ever been involved in any formal
process to adjust, defer, suspend, or otherwise work out the
payment of any debt.
(f) The applicant has a history of noncompliance with any
regulatory requirements in this state or any other jurisdiction.
(g) The applicant has been served with a complaint or other
notice filed with any public body regarding a payment of any tax
required under federal, state, or local law that has been
delinquent
for 1 year or more. years.
(h) The applicant is employed by a governmental unit.
(i) The applicant or affiliate owns more than a 10% ownership
interest in any entity holding a casino license issued under this
act.
(j) The board concludes that the applicant lacks the requisite
suitability as to integrity, moral character, and reputation;
personal probity; financial ability and experience; or
responsibility.
(k) The applicant fails to meet any other criteria that the
board considers appropriate. The board shall not apply criteria
considered
appropriate by the board shall not be that are
arbitrary, capricious, or contradictory to the expressed provisions
of this act.
(l) The applicant is unqualified to perform the duties
required of the license.
(m) The applicant has been found guilty of a violation of this
act.
(n) The applicant has had a prior gambling related license or
license application suspended, restricted, revoked, or denied for
just cause in any other jurisdiction.
(7) The board may suspend, revoke, or restrict any
occupational licensee for any of the following:
(a) Violation of this act.
(b)
Violation of any of the rules rule
promulgated by the
board.
(c)
Any cause which, that, if known to the board, would have
disqualified the applicant from receiving the license.
(d) Default in the payment of any obligation or debt due to
the
state of Michigan.this state.
(e) Any other just cause.
(8)
A license issued pursuant to under
this section shall be
is
valid for a period of 2 years from the
date of issuance.the
license is issued.
(9)
All applicants and licensees shall must consent to the
inspections, searches, and seizures of their person and personal
effects as provided in section 4a(1)(c)(i) to (v) and the providing
of handwriting exemplars, photographs, fingerprints, and
information as authorized in this act and in rules promulgated by
the board.
(10)
An applicant or licensee shall be under has a continuing
duty to provide information requested by the board and to cooperate
in any investigation, inquiry, or hearing conducted by the board.
(11) Failure to provide information requested by the board, to
assist in any investigation, inquiry, or hearing of the board, or
to comply with this act or rules of the board may result in denial,
suspension, or, upon reasonable notice, revocation of a license.
Sec. 8a. Before a casino license is issued, the licensee shall
post
a bond in the sum of $1,000,000.00 to the this state. of
Michigan.
The bond shall must be
used to guarantee that the
licensee faithfully makes the payments, keeps his or her books and
records, makes reports, and conducts his or her casino gaming in
conformity with this act and the rules promulgated by the board.
The
A surety shall not cancel the
bond shall not be canceled by a
unless
the surety on less than has given the board at least 30
days'
days written notice in writing to the board. of the
cancellation. If a bond is canceled and the licensee fails to file
a new bond with the board in the required amount on or before the
effective
date of cancellation, the licensee's license shall must
be revoked. The total and aggregate liability of the surety on the
bond is limited to the amount specified in the bond.
Sec.
9. (1) Minimum The board
shall set minimum and maximum
wagers
on games. shall be set by the board.
(2) Employees of the board, the department of state police,
and the department of attorney general may inspect any casino at
any
time, without notice, for the purpose of determining to
determine whether this act or rules promulgated by the board are
being complied with.
(3) Employees of the board, the department of state police,
and the department of attorney general, and their authorized agents
shall
have the right to be present, at
any time, in the casino or
on adjacent facilities under the control of the licensee.
(4) Gambling equipment and supplies customarily used in
conducting
casino gambling shall must
be purchased or leased only
from suppliers who are licensed under this act.
(5)
Persons licensed under this act shall not
permit no any
form of wagering on gambling games except as permitted by this act.
(6) Wagers may be received only from a person present in a
licensed casino. A person present in a licensed casino shall not
place or attempt to place a wager on behalf of another person who
is not present in the casino.
(7)
Wagering shall must not be conducted with money or other
negotiable currency.
(8) All tokens, chips, or electronic cards used to make wagers
shall
must be purchased from a licensed owner in the casino.
The
tokens, chips, or electronic cards may be purchased by means of an
agreement
under which the owner extends credit to the patron. Such
The tokens, chips, or electronic cards may be used only while in a
casino
and only for the purpose of making wagers on gaming gambling
games.
(9)
A person under age who is
less than 21 shall years old is
not
be permitted in an area of a casino where gaming is being
conducted,
except for a person at least 18 years of age or older
who
is an employee of the gaming operation. An employee under the
age
of who is less than 21 years
old shall not perform any function
involved
in gambling by the patrons. A person under age who is less
than
21 shall years old is not be permitted to make a wager under
this act.
(10)
Managerial employees of casino licensees pursuant to this
act
shall be under an affirmative duty to A managerial employee of
a
casino licensee shall report to the
board, and the Michigan
department of state police, in writing, within 24 hours, illegal or
suspected
illegal activity or activity which that is in violation
of this act or of rules promulgated by the board.
(11) In addition to the requirements of this section, gambling
shall
must be conducted in accordance with the rules
promulgated by
the board.
(12)
Unless approved by the city, a casino shall must not
be
located within 1,000 feet of any of the following:
(a) A church or other place of worship.
(b) A school, college, or university.
(c) A financial institution or a branch of a financial
institution.
(d) A pawnshop.
(13)
As used in subsection (12), this
section, "financial
institution" means a state or nationally chartered bank, a state or
federally chartered savings and loan association, a state or
federally chartered savings bank, a state or federally chartered
credit union, or any entity that provides check-cashing services.
(14) A casino licensee shall not employ an individual who has
been convicted of a felony in the previous 5 years as a managerial
employee
who has been convicted of a felony in the previous 5 years
to
work in a casino.
Sec. 9a. (1) A person who holds a casino license shall not
install, own, or operate or allow another person to install, own,
or operate an electronic funds transfer terminal on the premises of
the casino that is less than 50 feet from any game in the casino.
(2) A person who holds a casino license shall not install,
own, or operate or allow another person to install, own, or operate
on the premises of the casino a game that is played with a device
that allows a player to operate the game by transferring funds
electronically from a credit card or a debit card.
(3) As used in this section, "electronic funds transfer
terminal" means an information processing device used for the
purpose of executing deposit account transactions between financial
institutions and their customers by either the direct transmission
of electronic impulses or the recording of electronic impulses for
delayed processing. The fact that a device is used for other
purposes does not prevent it from being an electronic funds
transfer terminal.
Sec. 9b. (1) A person who holds a casino license issued under
this act shall not televise or allow any other person to televise
simulcast horse races on the premises of the casino.
(2) As used in this section, "simulcast" means the live
transmission of video and audio signals conveying a horse race held
either in or outside of this state.
Sec. 9c. (1) A person who holds a casino license issued
pursuant
to under this act shall conspicuously post at each
entrance and exit of the casino, on each electronic funds transfer
terminal, and at each credit location a visually prominent sign on
which is printed a toll-free compulsive gaming helpline number.
(2) A person who holds a casino license issued under this act
shall include a toll-free compulsive gaming helpline number on all
of its printed advertisement and promotional materials.
Sec.
10. Alcoholic beverages shall must
only be sold or
distributed
in a casino pursuant to as
provided in the Michigan
liquor
control act, 1933 (Ex Sess) PA 8, MCL 436.1 to 436.58.code
of
1998, 1998 PA 58, MCL 436.1101 to 436.2303.
Sec. 12. (1) A wagering tax is imposed on the adjusted gross
receipts
received by the a casino licensee from gaming authorized
under this act at the rate of 18%. If a city exercises either of
the options in subsection (4), the tax rate under this subsection
shall
be is 8.1% and must
be deposited in the state school aid
fund
to
provide additional funds for K-12 classroom education. If the a
city rescinds or is otherwise unable to exercise 1 of the options
in
subsection (4), the tax rate under this subsection shall be is
18%.
A tax rate of 18% imposed under this subsection shall cover
covers any period for which the city does not or is unable to
exercise 1 of the options in subsection (4).
(2) The state casino gaming fund is created in the department.
of
treasury. The fund shall be administered
by the department in
accordance with this act. Except as provided in sections 12a and
13, the taxes imposed under this section plus all other fees,
fines,
and charges imposed by the this
state shall under this act
must
be deposited into the state casino
gaming fund. The A casino
licensee
shall remit the wagering tax is to
be remitted daily by
the
holder of a casino license to the
department of treasury daily
by
electronic wire transfer of funds. The state department shall
remit the city's portion of the wagering tax to the city daily by
electronic wire transfer of funds as provided by this act.
(3)
If the state imposes a wagering tax imposed under
subsection
(1) equal to is 18% of adjusted gross receipts, money in
the state casino gaming fund that is not from a tax imposed under
subsections
(5) to (8) shall must be allocated as follows:
(a) 55% to the city in which a casino is located for use in
connection with the following:
(i) The hiring, training, and deployment of street patrol
officers.
(ii) Neighborhood and downtown economic development programs
designed to create local jobs.
(iii) Public safety programs such as emergency medical
services, fire department programs, and street lighting.
(iv) Anti-gang and youth development programs.
(v) Other programs that are designed to contribute to the
improvement of the quality of life in the city.
(vi) Relief to the taxpayers of the city from 1 or more taxes
or fees imposed by the city.
(vii) The costs of capital improvements.
(viii) Road repairs and improvements.
(b) 45% to the state to be deposited in the state school aid
fund established by section 11 of article IX of the state
constitution of 1963 to provide additional funds for K-12 classroom
education.
(4) A city in which a casino licensee is located may do 1 of
the following:
(a) In the development agreement into which the city is
entitled to enter, include a provision that requires the licensee
located in the city to pay the city a payment equal to 9.9% of the
adjusted gross receipts received by the licensee from gaming
authorized under this act.
(b) By ordinance, levy, assess, and collect an excise tax upon
licensees located in the city at a rate of 9.9% of the adjusted
gross receipts received by the licensee from gaming authorized
under this act.
(5) Subject to subsections (6) to (8), a wagering tax in
addition to the tax imposed in subsection (1) is imposed on the
adjusted gross receipts received by a licensee from gaming
authorized under this act at the rate of 6%. Money from the tax
imposed under this subsection that has been deposited in the state
casino
gaming fund shall must be allocated 1/3 to the city in which
the licensee's casino is located for use in connection with the
purposes listed in subsection (3)(a), 7/12 to the general fund, and
1/12 to the Michigan agriculture equine industry development fund.
The city may collect its share of the tax under this subsection
directly using 1 of the methods in subsection (4). For a period
during which the licensee is paying the city's share of the tax
under this subsection directly to the city under either of the
methods in subsection (4), the payment to the state casino gaming
fund
under this subsection shall be is
4% and shall must be
allocated 7/8 to the general fund and 1/8 to the Michigan
agriculture equine industry development fund.
(6) Subject to subsections (7) and (8), and unless an act of
God, a war, a disaster, or an act of terrorism directly and
substantially
impacts the ability of the a
casino licensee to
complete construction of its casino and casino enterprise, if a
casino licensee is not fully operational by each of the following
dates,
the tax on the casino licensee under subsection (5) shall be
is as follows:
(a) July 1, 2009, 7%, allocated 1/2 to the general fund, 1/14
to the Michigan agriculture equine industry development fund, and
3/7 to the city in which the licensee's casino is located.
(b) July 1, 2010, 8%, allocated 7/16 to the general fund, 1/16
to the Michigan agriculture equine industry development fund, and
1/2 to the city in which the licensee's casino is located.
(c) July 1, 2011, 9%, allocated 7/18 to the general fund, 1/18
to the Michigan agriculture equine industry development fund, and
5/9 to the city in which the licensee's casino is located.
(7) Subject to subsection (8), and irrespective of whether
there has been an increase under subsection (6), after a casino
licensee has been fully operational for 30 consecutive days, the
casino licensee may apply to the board for certification under this
subsection. If the board determines that a casino licensee that
makes an application under this subsection has been fully
operational and in compliance with its development agreement that
is in existence on July 1, 2004 or a subsequent original
development agreement, for at least 30 consecutive days, the board
shall certify the casino licensee under this subsection, and the
tax imposed on the casino licensee under subsection (5), as
adjusted, if applicable, by subsection (6), shall be, retroactive
to the first day of the 30 consecutive day period that the casino
licensee
was fully operational, reduced to 1% and shall must be
allocated entirely to the city where the licensee operates its
casino.
(8) If the McCauley-Traxler-Law-Bowman-McNeely lottery act,
1972 PA 239, MCL 432.1 to 432.47, is amended to allow the operation
of video lottery at horse racetracks in this state, and if video
lottery is being conducted at horse racetracks in this state, the
casino licensee is no longer obligated to pay the wagering tax
under subsections (5) to (7).
(9) Notwithstanding section 9b, if the McCauley-Traxler-Law-
Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to 432.47, is
amended to allow the operation of video lottery at horse racetracks
in this state, and if video lottery is being conducted at horse
racetracks in this state, a casino licensee may, after obtaining
approval from the board, apply to the racing commissioner for
authorization to simulcast horse races under the horse racing law
of 1995, 1995 PA 279, MCL 431.301 to 431.336. A casino licensee
that is authorized under this subsection shall display and allow
wagering on simulcast horse races only at the licensee's casino and
shall comply with all applicable provisions of the horse racing law
of 1995, 1995 PA 279, MCL 431.301 to 431.336, rules promulgated
under that act, and the written permit to conduct simulcasting and
any related order issued to the casino licensee by the racing
commissioner. Simulcasting and wagering under this subsection are
under the primary control of the racing commissioner, and the
racing commissioner may revoke or suspend the authorization of or
take other disciplinary action against the casino licensee for
failing to comply with a law, rule, permit, or order as required by
this subsection. However, the simulcasting and wagering under this
subsection is part of the licensee's casino operation under this
act and subject to the same control by the board as are other parts
of the licensee's casino operation. The board may take disciplinary
action under section 4a against a casino licensee for failure to
comply with a law, rule, permit, or order as required by this
subsection.
(10) A casino licensee is entitled to the same commission from
money wagered on horse races simulcast by the licensee as a race
meeting licensee is entitled to receive from wagering on simulcast
horse races under the horse racing law of 1995, 1995 PA 279, MCL
431.301 to 431.336. The same taxes, fees, and other deductions
shall
must be subtracted and paid from the licensee's
commission as
are subtracted and paid from a race meeting licensee's commission
under the horse racing law of 1995, 1995 PA 279, MCL 431.301 to
431.336.
(11) Payments to a city under 1 of the methods in subsection
(4)
shall must be made in a manner, at those times, and subject to
reporting requirements and penalties and interest for delinquent
payment as may be provided for in the development agreement if the
payment is required under a development agreement, or by ordinance
if the payment is required for a tax levied by the city. Payments
required under the method described in subsection (4)(a) may be in
addition
to any other payments which that
may be required in the
development agreement for the conveyance of any interest in
property, the purchase of services, or the reimbursement of
expenses. Payments to a city under the method described in
subsection
(4) shall must be used by the city for the purposes
listed in subsection (3)(a).
(12) Approval by the city of a development agreement or
adoption of an ordinance approving either casino gaming or the levy
of a local excise tax does not constitute the granting of a
franchise or license by the city for purposes of any statutory,
charter, or constitutional provision.
(13) The taxes imposed under this section and any tax imposed
under
section 13(2) shall must be administered by the department of
treasury in accordance with 1941 PA 122, MCL 205.1 to 205.31, and
this act. In case of conflict between the provisions of 1941 PA
122, MCL 205.1 to 205.31, and this act, the provisions of this act
prevail.
(14)
Funds from this act shall must
not be used to supplant
existing state appropriations or local expenditures.
(15) As used in this section:
(a) "Fully operational" means that a certificate of occupancy
has been issued to the casino licensee for the operation of a hotel
with not fewer than 400 guest rooms and, after issuance of the
certificate of occupancy, the casino licensee's casino, casino
enterprise, and 400-guest-room hotel have been opened and made
available for public use at their permanent location and maintained
in that status.
(b) "Michigan agriculture equine industry development fund"
means the Michigan agriculture equine industry development fund
created in section 20 of the horse racing law of 1995, 1995 PA 279,
MCL 431.320.
Sec. 12a. (1) In addition to application and license fees
described in this act, all regulatory and enforcement costs,
compulsive gambling programs, casino-related programs and
activities, casino-related legal services provided by the attorney
general, and the casino-related expenses of the department of state
police
shall must be paid by casino licensees as provided by this
section.
(2) The total annual assessment for the first year in which
any casino licensee under this act begins operating a casino in
this
state shall be is $25,000,000.00.
(3) The total annual assessment required under this subsection
shall
must be adjusted each year by multiplying the annual
assessment for the immediately preceding year by the Detroit
consumer
price index Consumer Price
Index for the immediately
preceding
year. As used in this subsection, "Detroit consumer price
index"
Consumer Price Index" means the annual consumer price index
for Detroit consumers as defined and reported by the United States
department
Department of labor, bureau Labor, Bureau of labor
statistics.Labor Statistics.
(4)
On or before the date the a
casino licensee begins
operating
the its casino and annually on that date thereafter, each
the casino licensee shall pay to the state treasurer an equal share
of
the total annual assessment required under this section. In no
event
shall a A casino's assessment must not exceed 1/3 of the
total annual assessment required under this section.
(5) From the amount collected under subsection (4),
$2,000,000.00
shall must be deposited in the compulsive gaming
prevention fund.
(6) The state services fee fund is created in the department
of
treasury and shall be
administered by the department shall
administer the state services fee fund in accordance with this act.
(7)
Except as provided in subsections (5) and (8), all funds
money
collected under this section shall must be
deposited in the
state
services fee fund. Distributions from the fund shall must be
made by the legislature through the appropriations process.
(8)
The balance of the state services fee fund shall must not
exceed
$65,000,000.00. If the funds money
collected under this
section would cause the balance to exceed the limitation of this
subsection,
the surplus funds shall money
must be credited in equal
shares against each casino licensee's annual assessment made under
this
section. 12a.
(9)
The funds money collected under this section and deposited
in
the state services fee fund shall does not revert to the
general
fund
at the close of the fiscal year but shall remain remains in
the fund.
Sec. 14. Within 30 days after the end of each quarter of each
fiscal year each casino licensee shall transmit to the board and to
the city in which the licensee's casino is located an audit of the
financial
condition of the licensee's total operations. All audits
shall
An audit under this section
must be conducted by a certified
public accountant in a manner and form prescribed by the board.
Each
The certified public accountant shall that performs the audit
must
be registered in the this state
of Michigan under article 7 of
the
occupational code, 1980 PA 299, MCL 339.701 to 339.715. 339.720
to
339.736. The licensee shall pay the compensation for each the
certified
public accountant shall be paid directly by the licensee
to the certified public accountant.
Sec. 18. (1) A person is guilty of a felony punishable by
imprisonment for not more than 10 years or a fine of not more than
$100,000.00,
or both, and shall be is barred from receiving or
maintaining a license under this act for doing any of the
following:
(a)
Conducting a gambling operation where in which wagering is
used or to be used without a license issued by the board.
(b)
Conducting a gambling operation where in which wagering is
permitted other than in the manner specified in section 9.
(c) Knowingly making a false statement on an application for
any
a license provided in under this
act or a written document
provided under oath in support of a proposal for a development
agreement.
(d) Knowingly providing false testimony to the board or its
authorized representative while under oath.
(e) Willfully failing to report, pay, or truthfully account
for
any a license fee or tax imposed by this act or willfully
attempt
attempting in any way to evade or defeat the license fee,
tax,
or payment. A person convicted under this subsection shall
subdivision
is also be subject to a penalty
of 3 times the amount
of the licensee fee or tax not paid.
(f) Making a political contribution in violation of section
7b. of
this act.
(2) A person commits a felony punishable by imprisonment for
not more than 10 years or a fine of not more than $100,000.00, or
both,
and, in addition, shall be is
barred for life from a gambling
operation under the jurisdiction of the board if the person does
any of the following:
(a) Offers, promises, or gives anything of value or benefit to
a person who is connected with a licensee or affiliated company,
including, but not limited to, an officer or employee of a casino
licensee or holder of an occupational license pursuant to an
agreement or arrangement or with the intent that the offer,
promise, or thing of value or benefit will influence the actions of
the person to whom the offer, promise, or gift was made in order to
affect or attempt to affect the outcome of a gambling game, or to
influence official action of a member of the board.
(b) Solicits or knowingly accepts or receives a promise of
anything of value or benefit while the person is employed by or
connected with a licensee, including, but not limited to, an
officer or employee of a casino licensee or holder of an
occupational license, pursuant to an understanding or arrangement
or with the intent that the promise or thing of value or benefit
will influence the actions of the person to affect or attempt to
affect the outcome of a gambling game.
(c) Offers, promises, or gives anything of value or benefit to
a
member, employee, or agent of the board or an official of any a
state or local agency or governmental body with the intent that the
offer, promise, or thing of value or benefit will influence the
official action of the person to whom the offer, promise, or gift
was made pertaining to a city development agreement, or
administrating, licensing, regulating, or enforcing this act.
(d) Solicits or knowingly accepts or receives a promise of
anything of value or benefit while the person is a member,
employee, or agent of the board, or an official of any state or
local agency or governmental body, pursuant to an understanding or
arrangement or with the intent that the promise or thing of value
or benefit will influence the official action of the member,
employee, or agent of the board or official of the state or local
governmental body pertaining to a city development agreement, or
enforcing this act.
(e) Except as otherwise provided by the board, uses or
possesses
with the intent to use a device to assist in doing that
does any of the following:
(i) Projecting Projects the outcome of a
gambling game.
(ii) Keeping Keeps track of the cards
played in a gambling
game.
(iii) Analyzing Analyzes the probability of
the occurrence of
an event relating to a gambling game.
(iv) Analyzing Analyzes the strategy for
playing or betting to
be used in a gambling game.
(f) Cheats at a gambling game.
(g) Manufactures, sells, or distributes cards, chips, dice, a
game, or a device that is intended to be used to violate this act.
(h) Alters or misrepresents the outcome of a gambling game on
which wagers have been made after the outcome is determined but
before it is revealed to the players.
(i) Places a bet after acquiring knowledge, not available to
all players, of the outcome of the gambling game that is the
subject of the bet or to aid a person in acquiring the knowledge
for the purpose of placing a bet contingent on that outcome.
(j) Claims, collects, takes, or attempts to claim, collect, or
take
money or anything of value in or from the a gambling games,
game, with intent to defraud, without having made a wager
contingent
on winning a the gambling game, or claims, collects, or
takes an amount of money or thing of value of greater value than
the amount won.
(k) Uses counterfeit chips or tokens in a gambling game.
(l) Possesses a key or device designed for the purpose of
opening, entering, or affecting the operation of a gambling game,
drop box, or an electronic or mechanical device connected with the
gambling game or for removing coins, tokens, chips, or other
contents of a gambling game. This subdivision does not apply to a
gambling licensee or employee of a gambling licensee acting in
furtherance of the employee's employment.
(3) A person, or an affiliate of a person, is guilty of a
misdemeanor punishable by imprisonment for not more than 1 year in
a county jail or a $10,000.00 fine, or both, for doing any of the
following:
(a) Knowingly making a wager if the person is under 21 years
of age or permitting a person under 21 years of age to make a
wager.
(b) Willfully failing to appear before or provide an item to
the board at the time and place specified in a subpoena or summons
issued by the board or executive director.
(c) Willfully refusing, without just cause, to testify or
provide items in answer to a subpoena, subpoena duces tecum or
summons issued by the board or executive director.
(d) Conducting or permitting a person who is not licensed
pursuant
to under this act to conduct activities required to be
licensed under the casino, occupational, and suppliers licensee
provisions in this act or in rules promulgated by the board.
(e)
Knowingly violates violating
or aids or abets aiding or
abetting
in the violation of the provisions
of section 7b. of this
act.
(f) Leasing, pledging, borrowing, or loaning money against a
casino, supplier, or occupational license.
(4) The possession of more than 1 of the devices described in
subsection (2)(e) permits a rebuttable presumption that the
possessor intended to use the devices for cheating.
(5)
An action to prosecute any a
crime described in this
section may, in the discretion of the attorney general or county
prosecuting attorney, be tried in the county in which the crime
occurred
or in the county of Ingham
County.
Sec.
21. When If the board is authorized or required by law to
consider some aspect of criminal history record information for the
purpose of carrying out its statutory powers and responsibilities,
the board shall, in the form and manner required by the department
of
state police and the federal bureau of investigation, Federal
Bureau of Investigation, cause to be conducted a criminal history
record investigation to obtain any information currently or
subsequently contained in the files of the department of state
police
or the federal bureau of investigation. Federal Bureau of
Investigation. The department of state police shall provide all
criminal record information requested by the board for any person
who is an applicant for or a holder of a license under this act.