Summary — HB 5062 (Traxler‑McCauley‑Law‑Bowman Bingo Act amendments)
Status & timeline
- Introduced: March 13, 2025 (Rep. Greg Markkanen listed on September 26, 2025 version).
- Read first time: April 7, 2025; later electronically reproduced September 26, 2025 and referred to Committee on Regulatory Reform.
- Bill would amend MCL 432.107a (section 7a) and add new sections 7e, 7f, and 7g.
Purpose
- Authorize qualified organizations (including veterans’ organizations) to conduct charity games using a video charity game ticket dispenser (a device that reads tickets and displays results via video animation), establish how proceeds from those games are allocated, and create two dedicated state funds to support veterans and the gaming dispenser program.
Key provisions and changes
- Allows charity games to be conducted using a charity game ticket dispenser that reads tickets and displays results in video animation (new sec. 7e).
- Bureau (state gaming bureau) to purchase the dispensers and retain 40% of money obtained from sales of charity game tickets under sec. 7e to maintain and expand the program.
- Net proceeds from charity games using dispensers are allocated (sec. 7e(2)):
- 45% to the qualified organization that conducted the game.
- 5% to a “qualified statewide organization” if the conducting organization is a member of one (definitions provided: in-state HQ, nonprofit under IRC 501(c), operating ≥2 years, ≥2 full‑time employees).
- If not a member of a qualified statewide organization, that 5% goes to the Michigan charity gaming service fund (new sec. 7g).
- 50% to the charity game veterans fund (new sec. 7f).
- Bureau responsibilities retained from existing law: set ticket price, number of tickets and winners, and minimum ticket resale price (not less than $0.30); qualified orgs remain responsible for prize payments and games must pay out aggregate prizes of ~60% of resale value when all tickets sold.
- Except where sec. 7e applies, other existing record, control-number, age‑limit (buyers must be ≥18), and prize-limit rules remain in place.
New funds established
- Charity Game Veterans Fund (sec. 7f)
- Created in state treasury; administered by Department of Treasury.
- Primary expenditure: grants to the National Guard Association of Michigan (by appropriation).
- “Designated amount” set at $3,000,000 for fiscal year ending Sept. 30, 2026, adjusted each year by the Detroit Consumer Price Index and rounded to nearest $100.
- If fund receipts in a fiscal year exceed the designated amount, excess is first used to reimburse local taxing units for revenue loss under section 7b of the General Property Tax Act; remaining excess split 50/50 between county veteran affairs offices and the Michigan Veterans Coalition.
- Fund balances carry forward (do not lapse to the general fund).
- Michigan Charity Gaming Service Fund (sec. 7g)
- Created to receive and expend funds, on appropriation, to purchase and maintain charity game ticket dispensers.
- Administered and audited by Department of Treasury; balances carry forward.
Who is affected
- Qualified organizations conducting charity games (including veterans’ organizations).
- Qualified statewide organizations (if applicable).
- Michigan Gaming Bureau (role in purchasing dispensers, setting prices, retaining 40% of sales under sec. 7e).
- Department of Treasury (fund administration and grants).
- National Guard Association of Michigan, county veteran affairs offices, Michigan Veterans Coalition (potential recipients).
- Local taxing units (may be reimbursed for property tax revenue loss under specified conditions).
Procedural/financial notes
- The bill redirects a significant portion of net proceeds from dispenser‑based charity games (50%) to the veterans fund, creates a defined funding mechanism for dispenser purchase/maintenance, and sets a targeted funding level ($3,000,000 in FY 2026, CPI‑adjusted thereafter) for veterans grants before excess is allocated elsewhere.
- The bill references “net proceeds as described in section 9” — implementation will rely on existing statutory definitions and bureau rules for calculations and operational details.
