Michigan Office of Administrative Hearings and Rules

611 W. Ottawa Street

Lansing, MI 48909

Phone: 517-335-8658 Fax: 517-335-9512

AGENCY REPORT TO THE

JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)

1. Agency Information

Agency name:

Treasury

Division/Bureau/Office:

Bureau of State Lottery

Name of person completing this form:

Michael Gallagher

Phone number of person completing this form:

15173736669

E-mail of person completing this form:

gallagherm5@michigan.gov

Name of Department Regulatory Affairs Officer reviewing this form:

Sarah Rowley

2. Rule Set Information

MOAHR assigned rule set number:

2020-84 TY

Title of proposed rule set:

Charitable Gaming

3. Purpose for the proposed rules and background:

These rules allow bingos to be conducted with a random number generator; allow the use of an

alternative method for players to declare a bingo; allow unclaimed raffle prizes for in-house raffles

conducted using a method approved by the bureau to be disbursed to a charitable organization; amend

the compensation a licensee may provide its workers; amend the financial reporting requirements of

licensees; and amend the advertising requirements of licensees.

4. Summary of proposed rules:

The amended rules will allow the following practices, which are not permitted under the current rules.

Conducting bingos using a random number generator instead of physical bingo balls. Permitting an

alternative method for players to declare a bingo (e.g. the use of honking a car horn to conduct

socially distanced games of bingo by players in their cars). Permitting in-house raffles to disburse

unclaimed prizes to a charitable organization under certain conditions. The desired outcome of

promulgating these rules is to allow licensees more flexibility when conducting charitable gaming in

Michigan and to reduce current regulatory burdens.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 2

5. List names of newspapers in which the notice of public hearing was published and

publication dates:

The Notice of Public Hearing was published in The Mining Journal on May 12, 2021, The Muskegon

Chronicle on May 11, 2021 and The Flint Journal on May 11, 2021.

6. Date of publication of rules and notice of public hearing in Michigan Register:

5/1/2021

7. Date, time, and location of public hearing:

5/28/2021 09:00 AM at The public hearing will be held virtually via Microsoft Teams from 9:00 a.m.

until 11:00 a.m. to receive public comments while complying with measures designed to help prevent

the spread of Coronavirus Disease 2019 (COVID 19) and Ingham County Resolution #21-138. , Web

Link: https://bit.ly/3moeJEC Phone Number: 248-509-0316 When prompted, please enter the

following conference ID: 984 413 042#.

8. Provide the link the agency used to post the regulatory impact statement and cost-benefit

analysis on its website:

https://ARS.apps.lara.state.mi.us/Transaction/RFRTransaction?TransactionID=1210

9. List of the name and title of agency representative(s) attending public hearing:

Michael J. Gallagher, Director of Government Affairs Legislative Liaison, Bureau of State Lottery,

Michigan Department of Treasury and Ronald K. Wells, Inspection manager, Charitable Gaming,

Michigan Department of Treasury attended the Public Hearing.

10. Persons submitting comments of support:

No persons participated in the public hearing held virtually via Microsoft Teams. No persons

submitted written comments by mail or electronically.

11. Persons submitting comments of opposition:

No persons participated in the public hearing held virtually via Microsoft Teams. No persons

submitted written comments by mail or electronically.

12. Identify any changes made to the proposed rules based on comments received during the

public comment period:

Name &

Organization public hearing

Comments made at Written

Comments

Agency Rationale Rule number

for change

& citation

changed

None

13.Date report completed:

6/14/2021

MCL 24.242 and 24.245