SUPPLIER LICENSE UNDER GAMING ACT: 

MODIFY ELIGIBILITY

House Bill 5881 as introduced

Sponsor:  Rep. Brandt Iden

Committee:  Regulatory Reform

Complete to 9-26-18

SUMMARY:

House Bill 5881 would amend the Michigan Gaming Control and Revenue Act (Initiated Law 1 of 1996) to expand the pool of persons eligible to obtain a supplier license to include an applicant who had a felony or a misdemeanor conviction, under certain conditions.

A supplier provides casino licensees or casino enterprises with goods or services regarding the construction, maintenance, or business of a proposed or existing casino, casino enterprise, or related facility on a regular or continuing basis. A licensed supplier is authorized to sell, or lease, equipment and supplies to any licensee involved in the ownership or management of gambling operations. A supplier includes, but is not limited to, junket enterprises, security businesses, manufacturers, distributors, persons who service gaming devices or equipment, garbage haulers, maintenance companies, food purveyors, and construction companies.

Currently, an applicant for a supplier’s license must establish by clear and convincing evidence its suitability as to integrity, moral character, and reputation; personal and business probity; financial ability and experience; responsibility; and other criteria considered appropriate by the Michigan Gaming Control Board. An applicant that has been convicted of a felony under Michigan law, or any other state’s law or federal law, is ineligible for a license, as is an applicant who has been convicted of a misdemeanor involving gambling, theft, fraud, or dishonesty in any state or a local ordinance in any state involving gambling, dishonesty, theft, or fraud that substantially corresponds to a misdemeanor in that state.

Under the bill, the Board, in its sole discretion, may waive the requirement of not having a felony or misdemeanor conviction if the conviction occurred more than 10 years (felony) or 5 years (misdemeanor) before the applicant applies for a supplier license and the Board is convinced of both of the following:

·         That the applicant does not pose a threat to the integrity of gaming.

·         That the applicant otherwise meets the requirements described above (integrity, financial ability and experience, etc.).

Further, the bill would make numerous revisions of an editorial or technical nature to update, standardize, or clarify language in the Act.

MCL 432.202 et al.

FISCAL IMPACT:

The bill would have no discernible fiscal impact on state or local government. 

                                                                                        Legislative Analyst:   Susan Stutzky

                                                                                                Fiscal Analyst:   Ben Gielczyk

■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.