Support needed for SB 878: Millionaire Party Rules.
As the legislature returns from break they have several pending issues to resolve and the most important one for MUCC clubs is SB 878: millionaire party rules. This bill needs to be passed by May 10th in order to keep the Michigan Gaming Control Boards (MGCB) proposed rules from taking effect. Let me be clear, if the proposed rules go into effect they will be disastrous for many organizations that use millionaire parties as a source for fundraising!
As many of you probably recall, the MGCB proposed a set of rules that would make the use of poker rooms as a fundraising source much more difficult. However, in March of this year Senator Jones introduced SB 878, which essentially codifies the existing rules, allowing our clubs much more flexibility when using poker rooms to fund raise.
The good news is the Senate passed the bill last week. But, the House of Representatives still has not committed to running SB 878 in time to stop the proposed rules from going into effect. We need your help in order to keep these restrictive rules from taking effect.
Please contact House leadership and ask them to support SB 878!
Representative Jim Stamas: 517-373-1791 or by email at: JimStamas@house.mi.gov
Representative Jase Bolger: 517-373-1787 or by email at: JaseBolger@house.mi.gov
Representative John Walsh: 517-373-3920 or by email at: JohnWalsh@house.mi.gov
Below is a brief analysis of Senate Bill 878:
- SB 878 would codify into statute rules already in existence, and further clarify concerns that have come up over the years.
- Separates Bingo from millionaire parties by creating two articles under the act.
- Establishes application requirements for the charities and gives the review and approval process to the Director, also sets the fee.
- Allows for charities to have 4 millionaire parties a year, with 4 days of gaming for each license.
- Allows for 6 charities to have millionaire parties per location at any point in time.
- Allows for advertisement of the event to be conducted by the charity.
- Authorizes the locations and equipment to be used by charities.
- Establishes duties of the charity to conduct the event, and requires a chairperson and record keeper during the whole process.
- Allows for no more than $15,000 in chips to be issued by a charity in a day.
- Expenses for a millionaire party cannot exceed 50%, and need to go to the lawful purpose of the charity.
- Allows for hired security or persons of a charity to serve as security.
- Annual licensing process and fee for Charitable Gaming Service Providers (CGSP) and stipulates services they are allowed to offer a charity.
- Limits the services a CGSP can provide to those the Director approves them to offer.
- Requires background checks to be conducted by the Gaming Board.
- Requires a CGSP to maintain records.
- Establishes penalties for a violation of this act and outlines the steps a charity or a CGSP can take if they disagree.
- Suspend any rules created within the last year, and grandfather provision for supplies to be considered Charitable Gaming Service Providers.