HOUSE BILL No. 4865 June 4, 1997, Introduced by Rep. Brewer and referred to the Committee on House Oversight and Ethics. A bill to amend the Initiated Law of 1996, entitled "Michigan gaming control and revenue act," by amending section 6 (MCL 432.206). THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 SEC. 6. (1)Section 6. Casino Licenses. (a)The board 2 shall issue a license to operate a casino to an applicant upon a 3 determination by the board that the applicant is eligible for a 4 casino license. The board shall find that an applicant is eligi- 5 ble for a casino license if all of the following criteria are 6 met: 7 (A)(1)Prior to the date of application: (i) the1 OF 8 THE FOLLOWING CIRCUMSTANCES EXISTED: 9 (i) THE applicant or its affiliates or affiliated companies 10 was the initiator of any casino gaming proposal submitted for 03246'97 VPW 2 1 voter approval in the city in which the casino will be located 2 and the voters approved the proposal.; or (ii) the3 (ii) THE applicant was selected by the city pursuant to a 4 competitive bidding process. 5 (B)(2)The applicant proposes to locate the casino in a 6 city where the local legislative body enacted an ordinance 7 approving casino gaming, which ordinance may include local regu- 8 lations governing casino operations, occupational licensees and 9 suppliers which are consistent with the rules promulgated by the 10 board. 11 (C)(3)The applicant entered into a development agreement 12 with the city where the local legislative body enacted an ordi- 13 nance approving casino gaming.; and14 (D)(4)The applicant or its affiliates or affiliated com- 15 panies has a history of, or a bona fide plan for, either invest- 16 ment or community involvement in the city where the casino will 17 be located. 18 (E) THE APPLICANT HAS SHOWN BY CLEAR AND CONVINCING EVIDENCE 19 THAT THE APPLICANT POSSESSES THE NECESSARY INTEGRITY, GOOD CHAR- 20 ACTER AND REPUTATION, PERSONAL AND BUSINESS PROBITY, AND BUSINESS 21 AND FINANCIAL EXPERIENCE AND MEANS TO BE LICENSED TO DEVELOP, 22 CONSTRUCT, OPERATE, OR MAINTAIN THE CASINO PROPOSED IN THE DEVEL- 23 OPMENT AGREEMENT. 24 (F) THE APPLICANT HAS SHOWN BY CLEAR AND CONVINCING EVIDENCE 25 THAT EACH PERSON WHO CONTROLS THE APPLICANT, DIRECTLY OR INDI- 26 RECTLY, POSSESSES THE NECESSARY INTEGRITY, GOOD CHARACTER AND 03246'97 3 1 REPUTATION, PERSONAL AND BUSINESS PROBITY, AND BUSINESS AND 2 FINANCIAL EXPERIENCE TO BE LICENSED. 3 (2)(b)No more thanthree (3)3 licenses shall be 4 issued AND IN EFFECT by the board in any city. In the event that 5 more thanthree (3)3 applicants meet the criteria provided for 6 inSection 6(a) of this ActTHIS SECTION, licenses shall first 7 be issued to applicantswhichWHO submitted any casino gaming 8 proposal for voter approval prior to January 1, 1995, in the city 9 in which the casino will be located and the voters approved the 10 proposal. NOTHING IN THIS ACT SHALL BE CONSTRUED TO PREVENT THE 11 BOARD FROM ISSUING A NEW LICENSE TO REPLACE A REVOKED OR NONRE- 12 NEWED LICENSE IF ONLY 3 LICENSES ARE IN EFFECT AT THE SAME TIME. 13 (3)(c)An applicant which is licensed by the board shall 14 pay an annual license fee of $25,000.00. 15 (4)(d)Any applicant or any applicantwhichTHAT has an 16 affiliate or affiliated companywhich has been convicted ofFOR 17 WHICH ANY OF THE FOLLOWING CIRCUMSTANCES EXIST IS INELIGIBLE TO 18 RECEIVE A LICENSE: 19 (A)(1) AnyTHE APPLICANT HAS BEEN CONVICTED OF A felony 20in any state; orUNDER THE LAWS OF THIS STATE, ANY OTHER STATE, 21 OR THE UNITED STATES. 22 (B)(2) anyTHE APPLICANT HAS BEEN CONVICTED OF A misde- 23 meanor involving gambling, THEFT, DISHONESTY, or fraud in any 24 state.;25(3) any violation of a local ordinance involving gambling26or fraud which ordinance corresponds to a misdemeanor in any27state; shall be ineligible to receive a casino license.03246'97 4 1 (C) THE APPLICANT HAS SUBMITTED AN APPLICATION FOR A LICENSE 2 UNDER THIS ACT THAT CONTAINS FALSE INFORMATION. 3 (D) A PERSON TO WHOM SUBDIVISION (A), (B), OR (C) APPLIES IS 4 AN OFFICER, DIRECTOR, OR KEY EMPLOYEE OF THE APPLICANT OR IS A 5 PERSON WHO HOLDS GREATER THAN 1% DIRECT OR INDIRECT INTEREST IN 6 THE APPLICANT. 7 (5) THE BOARD MAY REVIEW THE CITY'S CERTIFICATION THAT AN 8 APPLICANT HAS SUFFICIENT FINANCIAL RESOURCES AND BUSINESS 9 EXPERIENCE. 10 (6) A LICENSE TO OPERATE A CASINO UNDER THIS ACT IS A REVO- 11 CABLE PRIVILEGE GRANTED BY THE STATE AND IS NOT A PROPERTY 12 RIGHT. UPON THE TERMINATION OF ANY MATERIAL AGREEMENT PERTAINING 13 TO THE CASINO OR THE CASINO ENTERPRISE BETWEEN THE CASINO 14 LICENSEE AND THE CITY IN WHICH THE CASINO IS LOCATED, THE BOARD 15 UPON REQUEST OF THE CITY SHALL REVOKE THE LICENSE OF SUCH 16 LICENSEE TO OPERATE THE CASINO. 17 (7) ANY CHANGE IN THE OWNERSHIP OR CONTROL OF A CASINO 18 LICENSEE REQUIRING THE APPROVAL OF THE BOARD SHALL ALSO REQUIRE 19 THE APPROVAL OF THE CITY. 20 (8) NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT, UPON 21 THE REVOCATION OF A CASINO LICENSE, UPON, IN THE DISCRETION OF 22 THE BOARD, THE SUSPENSION OF A CASINO LICENSE FOR A PERIOD OF IN 23 EXCESS OF 120 DAYS, OR UPON THE BOARD'S FAILURE OR REFUSAL TO 24 RENEW A CASINO LICENSE, NOTWITHSTANDING THE PENDENCY OF ANY 25 APPEAL OF THE REFUSAL OR FAILURE TO RENEW, THE BOARD SHALL 26 APPOINT A CONSERVATOR TO, AMONG OTHER THINGS, TAKE OVER AND INTO 27 HIS OR HER POSSESSION AND CONTROL ALL THE PROPERTY AND BUSINESS 03246'97 5 1 OF THE LICENSEE RELATING TO THE CASINO. THIS SUBSECTION SHALL 2 NOT APPLY IN ANY INSTANCE IN WHICH THE CASINO FOR WHICH THE 3 CASINO LICENSE HAD BEEN ISSUED HAS NOT BEEN IN OPERATION AND OPEN 4 TO THE PUBLIC. A PERSON SHALL NOT BE APPOINTED AS CONSERVATOR 5 UNLESS THE BOARD IS SATISFIED THAT THE PERSON IS QUALIFIED TO 6 PERFORM THE DUTIES OF A CONSERVATOR. A CASINO SHALL NOT BE OPER- 7 ATED BY A CONSERVATOR FOR MORE THAN 1 YEAR. 03246'97 Final page. VPW