DEPARTMENT OF TREASURY

EXECUTIVE DIRECTOR OF THE MICHIGAN GAMING CONTROL BOARD

MILLIONAIRE PARTIES

Filed with the secretary of state on October 24, 2023

These rules become effective immediately after filing with the secretary of state unless

adopted under section 33, 44, or 45a(9) of the administrative procedures act of 1969,

1969 PA 306, MCL 24.233, 24.244, or 24.245a. Rules adopted under these sections

become effective 7 days after filing with the secretary of state.

(By authority conferred on the executive director of the Michigan gaming control board by

section 49 of the Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL

432.149)

R 432.101, R 432.103, R 432.105, R 432.106, R 432.109, R 432.110, R 432.112, R

432.201, R 432.203, R 432.204, R 432.205, R 432.206, R 432.302, R 432.304, R

432.305, R 432.306, R 432.309, R 432.310, R 432.311, R 432.314, R 432.315, R

432.316, R 432.317, R 432.318, R 432.319, R 432.403, and R 432.404 of the Michigan

Administrative Code are amended, and R 432.102, R 432.202, and R 432.301 are

rescinded, as follows:

PART 1. GENERAL PROVISIONS

R 432.101 Definitions.

Rule 101. (1) As used in these rules:

(a) “Act” means the Traxler-McCauley-Law-Bowman bingo act, 1972 PA 382, MCL

432.101 to 432.152.

(b) “Administrative procedures act” means the administrative procedures act of 1969,

1969 PA 306, MCL 24.201 to 24.328.

(c) “Charitable purpose” means 1 or more of the following causes, deeds, or activities

that are beneficial to the general public:

(i) Relief of poverty.

(ii) Advancement of education.

(iii) Advancement of religion.

(iv) Protection of health or relief from disease, suffering, or distress.

(v) Advancement of civic, governmental, or municipal purposes.

(vi) Protection of the environment and conservation of wildlife.

(vii) Defense of human rights and the elimination of prejudice and discrimination.

(viii) Any other purpose that the executive director determines to be beneficial to the

generalpublic.

(d) “Compliance meeting” means a meeting as prescribed by the administrative

procedures act, conducted by the executive director, where the licensee has an opportunity

to show compliance with the act, these rules, terms of probation, directives, public policy

May 15, 2023

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of this state, or any other local, state, or federal law or regulation.

(e) “Compliance meeting notice” means the document issued by the executive director before

the compliance meeting to inform a licensee of the date, time, and location of the compliance

meeting.

(f) “Contested case hearing” means a formal hearing before a hearing officer conducted as

prescribed by the administrative procedures act.

(g) “Contested case hearing notice” means the document issued by the executive director

before the contested case hearing to inform a licensee of the date, time, and location of the

contested case hearing.

(h) “Day” means the standard 24-hour period, except when referring to the issuance of a

millionaire party license, when it means the time period from 8 a.m. of 1 day to 2 a.m. of

the following day.

(i) “General public” means society as a whole or any considerable part of society.

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

does not include the license fee.

(k) “Gross revenue” means the monetary value received by the licensee for all fees charged

to participate in the millionaire party before any deductions for prizes or other expenses.

(l) “Imitation money or chips” means imitation money or chips that have a nominal value

equal to or greater than the value of the currency that they can be exchanged for.

(m) “Informal meeting” means a meeting conducted by the executive director, at his or her

discretion, where the executive director discusses the failure of the licensee to comply with

the act, these rules, terms of probation, directives, public policy of this state, or any other

local, state, or federal law or regulation.

(n) “License” means a millionaire party or supplier license that is issued by the executive

director.

(o) “Millionaire party equipment” means any authorized item used to conduct authorized

games at a millionaire party.

(p) “Millionaire party licensee” means the qualified organization that has been issued a

license to conduct a millionaire party.

(q) “Privately held corporation” means a corporation that does not trade its stock in a stock

exchange or in over-the-counter transactions.

(r) “Probation” means a license status requiring strict compliance with the act, these rules,

directives, public policy of this state, and specific conditions established by the executive

director.

(s) “Probation violation” means failure to abide by any of the terms of probation.

(t) “Probationary period” means the time interval of probation.

(u) “Terms of probation” means the conditions established at the discretion of the

executive director that must be complied with during the probationary period.

(v) “Violation notice” means a document issued by the executive director, at his or her

discretion, to a licensee charging a violation of the act, these rules, terms of probation,

directives, public policy of this state, or any other local, state, or federal law or regulation.

(w) “Week” means a period of 7 days beginning with Sunday and ending with Saturday.

(x) “Worker” means an individual who assists or participates in the management,

conduct, or operation of a millionaire party. Worker does not include an individual

employed by or an agent of a lessor, location owner, or licensed supplier at a licensed

millionaire party event.

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(2) A term defined in the act has the same meaning when used in these rules.

R 432.102 Rescinded.

R 432.103 Permanent dissolution; utilization of assets; report.

Rule 103. Upon permanent dissolution of a qualified organization, all assets, real

property, and personal property must be utilized for the lawful purpose of the qualified

organization and must not be distributed to any private individual or shareholder. All

remaining assets upon dissolution must be distributed to the local government or another

nonprofit organization as stated in the qualified organization's bylaws, constitution, charter,

or articles of incorporation. The disbursement of remaining assets must be reported to the

executive director in writing.

R 432.105 Violation notice.

Rule 105. (1) The executive director may issue a violation notice to a licensee for failure

to maintain compliance with the act, these rules, terms of probation, directives, public policy

of this state, or any other local, state, or federal law or regulation.

(2) The licensee shall respond to the violation notice in writing within the time period

specified in the notice and inform the executive director what action has been taken to

correct the violation cited. The response must be signed by the principal officer of the

qualified organization or the owner or owners of the licensed supplier cited for the violation.

(3) The executive director may initiate further administrative action if a response to the

notice is not received or the response does not resolve theviolation.

R 432.106 Informal meeting.

Rule 106. (1) The executive director may require the principal officer of the qualified

organization or the owner or owners of the licensed supplier to attend an informal meeting

to discuss violations of the act, these rules, terms of probation, directives, public policy of

this state, or any other local, state, or federal law or regulation. The purpose of this meeting

is to assist the licensee in achieving compliance with the act, these rules, terms of

probation, directives, public policy of this state, or any other local, state, or federal law or

regulation.

(2) A licensee may agree to be placed on probation as a result of the meeting described in

subrule (1) of this rule.

(3) The purpose of the meeting described in subrule (1) of this rule is to forestall the

need to take further action, up to, and including, the conduct of a contested case hearing.

(4) The meeting described in subrule (1) of this rule is not required if the executive director

determines that the violations of the act, these rules, terms of probation, directives, public

policy of this state, or any other local, state, or federal law or regulation warrants action

prescribed by R 432.108 to R 432.110.

R 432.109 Suspension or revocation of license; refusal to renew license.

Rule 109. (1) If the executive director determines that a licensee, location owner, or lessor

is not in compliance with the requirements of the act, these rules, terms of probation,

directives, public policy of this state, or any other local, state, or federal law or regulation,

then the executive director may suspend or revoke, refuse to renew, or suspend the right

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to obtain a license of a qualified organization or supplier.

(2) The executive director may suspend or revoke, refuse to renew, or suspend the right to

obtain a license in accordance with the administrative procedures act for any of the following

reasons:

(a) The failure to ensure full accountability for all gaming assets including, but not

limited to, cash, prizes, millionaire party chips or imitation money, and all money derived

from the millionaire party.

(b) The lack of honesty and integrity of the licensee, location owner, or lessor.

(c) The lack of veracity and accuracy concerning the information submitted on the

application.

(d) The indebtedness of the licensee, location owner, or lessor to the federal, state, or local

government.

(e) A pending lawsuit or bankruptcy proceeding that involves the licensee, location

owner, or lessor and is related to the millionaire party.

(f) The current or past history of compliance of the licensee, location owner, lessor or

any of its agents, or owners, shareholders of the privately held corporation, partners,

officers, or agent of the licensee with the act, these rules, terms of probation, directives,

public policy of this state, or any other local, state, or federal law or regulation.

(g) Evidence that the licensee, location owner, or lessor possesses illegal gambling

equipment, that illegal gambling equipment is on any of its premises, or that illegal

gambling has occurred at any of its premises.

(h) The submission of a check in payment of a fee that is not paid by the financial

institution that it is drawn from.

(i) The hinderance or obstruction of an authorized representative of the executive director

in the performance of official duties.

(j) The use or submission of false or misleading information by any of the following

means:

(i) An application for or renewal of a license.

(ii) Any document that is submitted to the executive director.

(iii) All records completed in conjunction with the millionaire party.

(iv) Verbal statements to an authorized representative of the executive director by any

owner, shareholder of the privately held corporation, partner, officer, or agent of the

licensee, location owner, orlessor.

(k) The failure to submit complete and accurate financialstatements.

(l) The failure or refusal to provide an authorized representative of the executive director

access to the location.

(m) The failure to promptly produce any book, record, or document as requiredby the

act, these rules, terms of probation, or directives for review by an authorized representative

of the executive director.

(n) Allowing any individual who has been convicted of, becomes convicted of, has

forfeited bond upon a charge of, or has pled guilty to any of the offenses in R 432.203(f)

to work in the operation or management of a millionaire party or to be an officer or agent

of the qualified organization.

(o) Allowing any individual who has been convicted of, becomes convicted of, has

forfeited bond upon a charge of, or has pled guilty to any of the offenses in R 432.203(f)

to work in the operation or management of a licensed supplier, location, or lessor, or to be

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an owner, shareholder of the privately held corporation, partner, officer, or agent of the

licensed supplier, location, or lessor.

(p) The failure to continuously operate as a qualified organization as defined by the

act and as represented to the executive director by means of the information submitted to

the executive director as required by R 432.201, or the failure to continuously operate as

an organization or persons issued a license under section 34 of the act, MCL 432.134.

(q) For activities similar to those enumerated which, at the discretion of the executive

director, merit enforcement action.

R 432.110 Summary suspension proceedings.

Rule 110. (1) To advance the public policy of prohibition against all gambling activities not

conducted in strict conformance with expressed legislative exceptions, including the

regulatory framework established by the act, the executive director may summarily order

the suspension of a license as provided by section 50(1) of the act, MCL 432.150, and in

accordance with section 92 of the administrative procedures act, MCL 24.292, on a

determination that any 1 or more of the following circumstances exist:

(a) The licensee has obtained the license by fraud, misrepresentation, or concealment.

(b) The decision to issue the license was a product of a material mistake of law or fact.

(c) The licensee, location owner, or lessorhas engaged in an act, practice, or courseof conduct

that would operate as a fraud or deceit on an individual or individuals, or has employed a

device, scheme, or artifice to defraud an individual or individuals.

(d) The licensee, location owner, or lessor has repeatedly violated, or repeatedly failed

or refused to comply with, any of the provisions, requirements, limitations, or duties

imposed by the act, these rules, terms of probation, directives, public policy of this state,

or any other local, state, or federal law or regulation.

(e) The licensee, location owner, lessor, or any owner, shareholder of the privately held

corporation, partner, officer, or agent of the licensee, location owner or lessor, has been

charged with or convicted of a violation of the act.

(f) The licensee, location owner, or lessor has or there is reasonable cause to believe the

licensee, location owner, or lessor has engaged in illegal gambling, or a fraud or larceny

offense.

(g) The immediate cessation of the millionaire party by the licensee is necessary for the

protection or preservation of the welfare of the community that these activities are being

conducted in, or for the protection or preservation of public policy of this state, or any other

local, state, or federal law or regulation respecting unlawful gaming activity.

(2) If the executive director summarily suspends a license, then the licensee shall be

afforded a prompt hearing before the executive director on the question forming the basis

of the suspension of the license.

R 432.112 Contested case hearing.

Rule 112. (1) A contested case hearing notice must be issued in accordance with section 71

of the administrative procedures act, MCL 24.271.

(2) The executivedirector may establish procedures for the conduct of contested case hearings,

including the submission of evidence by written interrogatory, deposition, request for

admissions, or by other means established by the hearing officer.

(3) There mustbe no discovery other than that allowed by the administrative procedures act.

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(4) When an appearance is made at a contested case hearing, it must be made in person by

the principal officer of the qualified organization, the owner, or owners of the licensed

supplier, or by counsel.

(5) The person or persons that have been served with a contested case hearing notice may

file a written answer before the date set for the contested case hearing or may appear at the

contested case hearing and present an oral statement on the charges contained in the

contested case hearing notice. If written briefs or arguments are presented, then a copy shall

be served on the hearing officer not less than 5 days before the date set for the contested

case hearing.

(6) If the person or persons that have been previously served with a contested case hearing

notice fail to appear at the contested case hearing, then the hearing officer may proceed with

the contested case hearing and may, on the evidence presented, make a decision.

(7) A contested case hearing must not be adjourned or continued except by the hearing

officer. All motions and requests for an adjournment or a continuance must be in writing.

The motion or request must state concisely the reasons why the requested relief is

necessary.

(8) The parties to any contested case hearing may, by stipulation, in writing, and filed

with the hearing officer, agree on the facts or any portion of the facts involved in the

controversy. The stipulation must be regarded and used as evidence in the contested case

hearing. Parties are requested to agree on the facts if practicable.

PART 2. GAMING LICENSING

R 432.201 Qualification requirements.

Rule 201. (1) Each applicant applying for a millionaire party license who has not previously

qualified shall first submit qualification information as required by the executive director.

(2) Each applicant shall provide proof that its bylaws, constitution, articles of incorporation,

or the bylaws or constitution of its parent organization, include a statement of dissolution.

The statement of dissolution must state that all assets of the qualifying organization

remaining upon dissolution, after satisfying its debts, be distributed to the local government

or another nonprofit organization.

(3) The executive director may require a previously qualified organization to submit updated

qualification information to assure the organization's continued eligibility under theact.

(4) In addition to the requirements of the act, the executive director shall consider certain

factors when determining if an applicant or licensee qualifies as a branch, lodge, or chapter.

These factors include, but are not limited to, thefollowing:

(a) Charteror asimilardocumentissued by thenationalor stateorganization upon acceptance

as a branch, lodge, or chapter.

(b) Conditions established by the national or state organization for the revocation or

suspension of the charter or relationship.

(c) Dues or financial support submitted to the national or state organization by the branch,

lodge, or chapter.

(d) Degree of control exerted by the national or state organization over the activities of the

branch, lodge, or chapter.

(e) Oversight and control provided by the national or state organization over the financial

affairs of the branch, lodge, or chapter, including the audit of financial records of the branch,

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lodge, orchapter.

(f) Standard bylaws adopted by the branch, lodge, or chapter or bylaws submitted to the

national or state organization for approval.

(g) Appointed or elected officers of the branch, lodge, or chapter who are responsible for

the activities of the branch, lodge, or chapter.

(h) Ability of the branch, lodge, or chapter to influence activities, normally demonstrated by

voting privileges, at the state or nationallevel.

R 432.202 Rescinded.

R 432.203 Additional eligibility factors.

Rule 203. In addition to the requirements of the act, the executive director shall consider the

following factors when reviewing a millionaire party license application:

(a) The honesty and integrity of the applicant.

(b) The veracity and accuracy of any information supplied to the executive director by the

applicant.

(c) The applicant's indebtedness to local, state, or federal government.

(d) A pending lawsuit or bankruptcy proceeding involving theapplicant.

(e) The applicant's current or past history of compliance with the act, these rules, terms of

probation, directives, public policy of this state, or any other local, state, or federal law or

regulation.

(f) Criminal convictions of the applicant or any individual, officer, or agent of the applicant

for any of the following offenses:

(i) A violation of the act.

(ii) A felony.

(iii) A gambling offense.

(iv) Criminal fraud.

(v) Forgery.

(vi) Larceny.

(vii) Filing a false report with a governmental agency.

(g) The executive director may consider whether the organization has raised sufficient

funds in the previous calendar year independent and apart from any raised from gaming

under the act. Raising $500.00 unrelated to gaming under the act in the previous calendar

year will satisfy this requirement. Satisfying this requirement does not entitle the

organization to a millionaire party license.

(h) Any other information considered advisable by the executivedirector.

R 432.204 Millionaire party license; terms and conditions.

Rule 204. (1) On the issuance of a millionaire party license, the qualified organization shall

agree to all of the following:

(a) To be bound by and comply with the terms of probation, directives, public policy of

this state, and any other local, state, and federal laws and regulations.

(b)To provide all information requested by the executive director.

(c) To maintain current and accurate records of all operations in conjunction with

millionaire parties in conformity with the act, these rules, terms of probation, and directives.

(d) To conduct the millionaire party in accordance with the information submitted on the

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application approved by the executive director.

(e) To conduct the millionaire party only during the hours and the date or dates stated on

thelicense.

(f) To hold the executive director and the state harmless from any liability, including, but not

limited to, taxes and legal expenses.

(2) An individual shall not refuse to cooperate with, hinder, or obstruct in any way, an

authorized representative of the executive director while the representative is in the

performance of official duties.

R 432.205 Changes to qualification or application information.

Rule 205. (1) A qualified organization shall immediately report to the executive director in

writing any change to the organization's qualification documentation.

(2) A qualified organization shall immediately submit a copy of the appropriate amended

document to the executive director if there is a change in any of the following:

(a) Constitution.

(b) Bylaws.

(c) Articles of incorporation.

(d) Other qualification documents previously submitted to the executive director.

(e) Internal revenue service tax-exempt status.

(3) Changes to the information provided on or attached to the millionaire party license

application must be immediately reported to the executive director in writing.

R 432.206 Request for millionaire party license changes; cancellations.

Rule 206. (1) To change the location, day, date, dates, or time of a millionaire party, a

qualified organization shall submit a request to the executive director in writing not less

than 20 days before the proposed change takes effect.

(2) If a millionaire party cannot be held on thedate approved by the executive director because

of inclement weather or other emergency conditions, the qualified organization may submit a

request to the executive director in writing for a new millionaire party date. The qualified

organization shall also notify the executive director immediately on event cancellation.

(3) If the qualified organization chooses to cancel a millionaire party, it shall give the

executive director written notice of the cancellation not less than 10 days before the scheduled

date of the event.

(4) If a millionaire party license application is cancelled or denied, the executive director

may retain a portion of the original statutory fee submitted to cover processing costs.

PART 3. MILLIONAIRE PARTY

R 432.301 Rescinded.

R 432.302 Licensing and approval.

Rule 302. (1) An application for a license under this act and these rules is a request

by the applicant for the discretionary license. The license is a revocable privilege and

is not a property right. No individual, including a qualified organization, supplier,

lessor, or location owner, shall have any expectation that the executive director will

issue a license.

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(2) The executive director may set a maximum number of licenses that will be issued to

qualifiedorganizationsandmaysetamaximumnumberofdaysthatamillionairepartylicense

may be issued for.

(3) The executive director may stop issuing licenses at any time or for any reason.

R 432.304 Millionaire party chairperson; qualifications and duties.

Rule 304. (1) The chairperson shall be a worker who is a bona fide member of the

qualified organization for not less than 6 months and only serves as a millionaire party

chairperson for 1 qualified organization in a calendar year.

(2) The chairperson shall be familiar with the act, these rules, terms of probation, and

directives.

(3) The chairperson shall be present on the premises continuously during the occasion.

(4) The chairperson shall be readily identifiable to all millionaire party attendees by

wearing a name badge with the word “chairperson” followed by the name of the licensee

and the chairperson'sname.

(5) The chairperson shall be in charge of the millionaire party, supervise and direct all

workers, and be responsible for assuring the proper receipting, recording, and depositing

of all money derived from the millionaire party.

(6) The chairperson shall attempt to resolve, in accordance with the act, these rules, and

directives, disputes that may occur during the conduct of the millionaire party.

(7) Any change in the chairperson or individuals who are listed on the millionaire party

license application must be immediately submitted to the executive director in writing. The

notification must be signed by the principal officer of the qualified organization.

R 432.305 Minimum age.

Rule 305. (1) Individuals under 18 years of age shall not be allowed to participate in the

millionaire party as players and shall not be allowed to operate millionaire party games or

assist in the conduct of the millionaire party.

(2) Individuals under 18 years of age shall not be allowed to play with, operate, handle,

collect, or distribute any kind of millionaire party equipment.

(3) Individuals under 18 years of age shall not be allowed to sell or purchase raffle tickets,

charity game tickets, or numeral game tickets.

R 432.306 Raffles

Rule 306. Raffles held in conjunction with a millionaire party license must be conducted

as prescribed by rules promulgated pursuant to the act.

R 432.309 Imitation money and chips.

Rule 309. (1) During the conduct of a millionaire party, only imitation money or chips

must be used by the participants. Imitationmoney or chips must be used solely for wagering

or redemption purposes.

(2) Imitationmoney or chips mustnot be used fortipping or the purchase of food, beverages,

raffle tickets, charity game tickets, numeral game tickets, or non-gaming items.

(3) Imitation money or chips must only be sold by the millionaire party licensee.

(4) Imitationmoneyorchipsmustnotbesoldbydealers.

(5) Imitationmoneyorchipsmustonlyberedeemedatauthorizedredemption areas.

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(6) Onlyimitationmoneyandchipsthathavereceivedtheexecutivedirector’spriorapproval

may be used at a millionaire party.

(7) The executive director may set the maximum amount of chips or imitation money

that a millionaire party licensee may sell to an individual at a millionaire party.

(8) Unless otherwise permitted by law, each millionaire party licensee shall not have

more than $20,000.00 in imitation money or chips in a demarcated area.

R 432.310 Millionaire party conduct.

Rule 310. (1) A millionaire party licensee may conduct only those games approved by

the executive director. All games must be conducted pursuant to the rules set by the

executive director. If approved by the executive director, only games marked on the

application can be conducted at an event.

(2) The qualified organization shall perform the duties concerning the millionaire party

as directed by the executive director.

(3) Millionaire parties must only be conducted during the hours and the date or dates stated on

the license.

(4) A copy of the current license application and any changes must be onsite and available

for review.

(5) Unless approved by the executive director, 2 bona fide members shall be present at all

times during an event.

(6) A qualified organization shall provide the names of its bona fide members who will

be participating in the millionaire party to the executive director with its licenseapplication.

(7) Unless allowed by written authorization of the executive director, only bona fide

members of the millionairepartylicenseemay perform any of the following duties at an event

conducted under the license:

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

(f) Ensuring only authorized individuals are present in the demarcated area.

(g) Monitoring the games and verifying all games have been conducted in conformance

with the rules of the game.

(h) Verifying the age of the players.

(i) Any other duty authorized by the executive director.

(8) Except for disputed prizes, all winners shall be determined, and all prizes must be

awarded, within the hours stated on thelicense.

(9) A location owner or lessor, a partner, member, director, officer, agent, or employee

of a location owner or lessor, a shareholder of a privately held corporation that is a location

owner or lessor, or an individual residing in the same household as any of these shall not do

any of the following:

(a) Be an officer of a qualified organization conducting a millionaire party at the location.

(b) Participate as a player in any event being conducted at the location.

(c) Share in a prize, purchase, play, or accept charity game tickets or numeral game tickets

offered for sale at the location by the qualified organization at any time during the day he or

she is working or assisting.

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(d) Split a prize with a player.

(e) Participate in any aspect of an event conducted at the location, including but not

limited to, providing dealers, equipment, or workers, unless all of the following conditions

exist:

(i) The location is owned or rented by the qualified organization and used by the

qualified organization on a continual basis for the regular use of its members.

(ii) The qualified organization is the millionaire party licensee and is conducting the

event.

(iii) The executive director has granted a waiver for the participation.

R 432.311 Hours of operation.

Rule 311. The executive director has sole discretion to set the permissible hours of the

day during which a millionaire party may be conducted.

R 432.314 Dealers.

Rule 314. (1) A dealer shall not be an employee of the location owner or lessor, unless

that individual is a bona fide member of the qualified organization and is dealing during an

event at that organization’s location.

(2) Only those individuals authorized by the executive director may serve as a dealer at

the licensed millionaire party event.

R 432.315 Game records; retention.

Rule 315. (1) Game records pertaining to the millionaire party must be completed and

maintained in a current and accurate manner in accordance with the act, these rules, terms

of probation, and directives. A licensee may be required to complete game records on forms

prescribed by the executive director.

(2) Game records must include a copy of the current license application and anychanges.

(3) Game records and all documents supporting entries made in the records must be available

and onsite at the occasion and at other times to authorized representatives of the executive

director for review.

(4) Game records and all documents and supporting entries made in the records must be

accessed, entered, amended, and submitted by the qualified organization only.

(5) Game records and all documents supporting entries made in the records must be

maintained by the qualified organization for at least the current calendar year plus 3 years

or as directed in writing by the executive director.

(6) An invoice showing the cost per item for all millionaire party equipment must be

available and onsite at the occasion to authorized representatives of the executive director for

review.

(7) Game records and all documents supporting entries made in the records may be removed

by authorized representatives of the executive director for review.

(8) Game records may be maintained using a computer if they cannotbe remotely accessed and

are maintained in accordance with the act, these rules, and directives.

R 432.316 Accountability; lawful use of proceeds; reasonable expenditures; deposit

of proceeds.

Rule 316. (1) The millionaire party licensee is accountable for all cash, prizes, imitation

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money or chips, raffle tickets, charity game tickets, and numeral game tickets.

(2) Theentire net proceeds of the millionaire party must be devoted exclusively to the lawful

purpose of the qualified organization.

(3) To ensure that all proceeds are used for the lawful purpose of the qualified organization,

each qualified organization shall maintain a separate checking account that must be under

its exclusive control. The organization shall only deposit its millionaire party proceeds in

the account and shall only make expenditures as authorized under the act and these rules.

(4) Each check written from the checking account under the qualified organization’s

exclusive control into which proceeds from the millionaire party are deposited must meet

all of the following requirements:

(a) Be preprinted with the name of the licensee.

(b) Be signed by an authorized individual or individuals.

(c) Bemadepayabletoa specificindividual,business,partnership, corporation, or account.

(d) Notbe made payabletocash or bearerandmustnot be drawn in blank.

(e) Containa briefdescriptionof the expenseon the memo line.

(5) Electronic transfers of funds derived from the conduct of the millionaire party must

be done in accordance with directives issued by the executive director.

(6) Cancelled checks written from the checking account under the qualified organization’s

exclusive control into which proceeds from the millionaire party are deposited must 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 on request by the executivedirector.

(7) All money derived from the conduct of the millionaire party mustbe depositedintothe

checking account under the qualified organization’s exclusive control within 2 business days

after the millionaire party or as directed in writing by the executive director.

(8) Checksmustnotbe cashedout of the millionaire partystartcashor gross revenue.

R 432.317 Rent and rental location agreement.

Rule 317. (1) A qualified organization shall not pay a location owner or a lessor more

than $250.00 per day to rent a location for a millionaire party. The rental fee must not

include any consideration or commission from revenues raised from themillionaire party

gaming.

(2) A qualified organization shall not enter into agreements with the location owner or

lessor other than those addressed in the written rental agreement approved by the executive

director.

(3)A location owner or lessor shall not make any payments to, or accept any payments

from, a supplier for anything directly or indirectly related to a millionaire party.

(4) A location owner or lessor shall not make the lease or rental of its demarcated

area dependent on the use of a particular supplier or particular dealers and shall not

vary the rental or lease fee that it charges based on an organization’s use of a particular

supplier or particular dealers.

R 432.318 Security.

Rule 318. The qualified organization may hire security officers. Any security services

the location provides must be included in the rental fee as approved by the executive

director.

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R 432.319 Advertising.

Rule 319. (1) Expenditures by the millionaire party licensee for advertising the

millionaire party must be necessary and reasonable.

(2) A millionaire party licensee may advertise a millionaire party by using current and

accurate information. The advertising must include all of the following:

(a) Name of the millionaire party licensee.

(b) License number.

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

(d) Date or dates of the millionaire party licensee’s event.

(e) Location name.

(3) Advertising must cease once the millionaire party license has expired.

(4) In an advertisement via the internet, printed matter, signs, or billboards, information

in subrule (2)(a-e) of this rule must be prominently displayed in the same size font, or

larger, as the largest font of the other information contained in the advertisement

(5) Information in subrule (2) of this rule must be continuously visible and readable in

television advertising.

(6) The lessor, location owner, or millionaire party licensee shall not advertise the dates

or times the location is open for the purpose of conducting a millionaire party 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

millionaire party licensee at a location where a millionaire party will occur.

(b) Video, audio, or other means of communication that is broadcast solely within the

interior of a location where the millionaire party occurs.

(c) Printed matter contained within the interior of a location where a millionaire party

occurs and that is intended to be visible only from the interior of the location where the

millionaire party will 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 millionaire party occurs that does

not mention days, dates, times, specific games played, or game program information.

PART 4. SUPPLIERS

R 432.403 Supplier license renewal; supplier license void on ownership

change.

Rule 403. (1) A supplier license is renewable annually upon the submission of a renewal

application, provided by, or approved in writing by the executive director, unless

summarily suspended, suspended, denied, or revoked by the executive director.

(2) If the ownership changes or any portion of ownership of the privately held corporation,

partnership, or sole proprietorship acting as a licensed supplier changes, except for deletion of

owners or changes in percentage of ownership, then the license issued to that privately held

corporation, partnership, or sole proprietorship is void and must be returned to the

executive director without delay.

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R 432.404 Supplier license terms and conditions.

Rule 404. (1) Upon the issuance of a supplier license, the licensed supplier agrees to all of

the following terms and conditions:

(a) To be bound by and comply with the act, these rules, terms of probation, directives,

public policy of this state, and any other local, state, and federal laws and regulations.

(b) To not assign or transfer the supplier license. A privately held corporation, partnership,

or sole proprietorship acting as a licensed supplier shall not attempt to sell or transfer an

interest in the business without the prior written approval of the executive director.

(c) To immediately report to the executive director in writing any change in the information

stated on, or attached to, the supplier license application.

(d) To only accept checks from a licensee's account for the payment of equipment or dealers.

(e) To not reveal investigative information to any licensee.

(f) To hold the executive director and this state harmless from any liability, including, but

not limited to, taxes and legal expenses.

(2) The location the licensed supplier does business, including supplemental storage

locations or where an applicant or licensed supplier intends to do business or store

equipment, must be open to inspection by an authorized representative of the executive

director during reasonable businesshours.

(3) An individual shall not refuse to cooperate with, hinder, or obstruct in any way, an

authorized representative of the executive director while the representative is performing

official duties.

(4) A licensed supplier shall not require any licensee to enter into an exclusive purchase

agreement with that licensed supplier.

(5) A licensed supplier may rent or sell authorized equipment to qualified organizations

for a reasonable rate as approved by the executive director.

(6) A licensed supplier may provide dealers to a qualified organization.

(7) A licensed supplier shall not make a payment to, or accept a payment from, either

directly or indirectly, a location owner or lessor for anything related to a millionaire party.

(8) Notwithstanding R 432.314(2), if a licensed supplier provides the dealers, the licensed

supplier shall be responsible for the actions of the dealers, including compliance with the

act, these rules, terms of probation, directives, public policy of this state, and any other

local, state, and federal laws and regulations.

(9) The executive director may deny, summarily suspend, suspend, revoke, or refuse to renew

a supplier license as prescribed by R 432.108 to R 432.110.