HB-5881, As Passed Senate, December 20, 2018
SENATE SUBSTITUTE FOR
HOUSE BILL NO. 5881
A bill to amend 1996 IL 1, entitled
"Michigan gaming control and revenue act,"
by amending sections 2, 4, 4a, 4c, 4d, 5, 6, 6a, 6c, 7a, 7c, 8, 9,
9a, 9b, 9c, 12, 12a, 14, 18, 21, and 25 (MCL 432.202, 432.204,
432.204a, 432.204c, 432.204d, 432.205, 432.206, 432.206a, 432.206c,
432.207a, 432.207c, 432.208, 432.209, 432.209a, 432.209b, 432.209c,
432.212, 432.212a, 432.214, 432.218, 432.221, and 432.225),
sections 2, 4, 5, 6, 8, 9, and 14 as amended and sections 4a, 4c,
4d, 6a, 6c, 7a, 7c, 9a, 9b, 9c, 12a, 18, 21, and 25 as added by
1997 PA 69 and section 12 as amended by 2004 PA 306; and to repeal
acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 2. As used in this act:
(a) "Adjusted gross receipts" means the gross receipts less
winnings paid to wagerers.
(b) "Affiliate" means a person who, directly or indirectly,
through
1 or more intermediaries, controls
, is controlled by, or
is
under common control with; is in a partnership or joint venture
relationship
with; or is a co-shareholder of a corporation, a co-
member
of a limited liability company, or co-partner in a limited
liability
partnership with a person who holds or applies for a
casino
license licensee under this act.
(c) "Affiliated company" means any form of business
organization
which that controls, is controlled by or is under
common
control with; is in a partnership or joint venture
relationship
with; or is a co-shareholder of a corporation, a co-
member
of a limited liability company, or co-partner in a limited
liability
partnership with a person who holds or applies for a
casino
license licensee under this act.
(d) "Agent" means any person who is employed by any agency of
the
this state, other than the board, the state police, or the
department of attorney general, who is assigned to perform full-
time services on behalf of or for the benefit of the board
regardless of the title or position held by that person.
(e) "Applicant" means any person who applies for a license or
for
registration under this act. The term applicant As used in
sections
4a(1)(a), 5(1), 5(2), 5(3), 5(4), 6(3), 6(4), 6(5), 6(9),
7a(4),
7a(5), and 7a(11) shall include 5(1)
to (4), 6(3) to (5) and
(9), and 7a(4), (5), and (11), applicant includes an affiliate,
affiliated
company, officer, director, or managerial employee of
the applicant who performs the function of principal executive
officer, principal operations officer, or principal accounting
officer,
or a person who holds greater than 1%
5% direct or
indirect interest in the applicant. As used in this subdivision,
affiliate and affiliated company do not include a partnership, a
joint venture relationship, a co-shareholder of a corporation, a
co-member of a limited liability company, or a co-partner in a
limited
liability partnership that has less than 1% a 5% or less
direct interest in the applicant and is not involved in the casino
or
casino enterprise application as
defined in rules promulgated by
the board.
(f) "Board" means the Michigan gaming control board created
under section 4.
(g) "Casino" means a building or buildings in which gaming is
conducted.
(h) "Casino enterprise" means the buildings, facilities, or
rooms functionally or physically connected to a casino, including
but not limited to any bar, restaurant, hotel, cocktail lounge,
retail establishment, or arena or any other facility located in a
city
under the control of a casino licensee. or affiliated company.
(i) "Certified development agreement" means a development
agreement that has been certified by a city and submitted to the
Michigan
gaming control board.
(j) "Chairperson" means the chairperson of the board.
(k)
"Cheat" means to alter the selection of criteria which
that determine the result of a gambling game or the amount or
frequency of payment in a gambling game, in violation of this act
or rules promulgated under this act.
(l) "City" means a local unit of government other than a
county
which that meets all of the following criteria:
(i) Has a population of at least 800,000 at the time a license
is issued.
(ii) Is located within 100 miles of any other state or country
in which gaming was permitted on December 5, 1996.
(iii) Had a majority of voters who expressed approval of
casino gaming in the city.
(m) "Company" means a sole proprietorship, corporation,
partnership, limited liability partnership, limited liability
company, trust, association, joint stock company, joint venture,
tribal corporation, or other form of business organization.
(n) "Compensation" means any money, thing of value, or
financial benefit conferred on or received by a person in return
for services rendered, or to be rendered, whether by that person or
another.
(o) "Conflict of interest" means a situation in which the
private interest of a member, employee or agent of the board may
influence the judgment of the member, employee, or agent in the
performance of his or her public duty under this act. A conflict of
interest includes, but is not limited to, any of the following:
(i) Any conduct that would lead a reasonable person, knowing
all of the circumstances, to conclude that the member, employee, or
agent of the board is biased against or in favor of an applicant.
(ii) Acceptance of any form of compensation other than from
the board for any services rendered as part of the official duties
of the member, employee, or agent for the board.
(iii) Participation in any business being transacted with or
before the board in which the member, employee, or agent of the
board or his or her parent, spouse, or child has a financial
interest.
(iv) Use of the position, title, or any related authority of
the member, employee, or agent of the board in a manner designed
for personal gain or benefit.
(v) Demonstration, through work or other action in the
performance of the official duties of the member, employee, or
agent of the board, of any preferential attitude or treatment of
any person.
(p) "Control" means having a greater than 15% direct or
indirect pecuniary interest in the casino gaming operation with
respect to which the license is sought.
(q) "Department" means the department of treasury.
(r) "Development agreement" means a written agreement between
a city and a person naming the person as the designated developer
of a casino in the city and covering certain subjects including,
but
not limited to, : approval all of the following:
(i) Approval by the city of the location of the casino. ;
certification
(ii) Certification by the city that the applicant has
sufficient financial resources to construct and open the casino
which
that it proposes to develop. ; zoning
(iii) Zoning and
site plan requirements. ; utility
(iv) Utility connection fees. ; infrastructure
(v) Infrastructure improvements.
; requirements
(vi) Requirements to utilize local businesses and small
businesses
as suppliers. ; employment
(vii) Employment issues. ; compulsive
(viii) Compulsive gambling programs. ; insurance
(ix) Insurance requirements. ; conceptual
(x) Conceptual design approval. ; reimbursement
(xi) Reimbursement for predevelopment and infrastructure
costs,
traffic engineering, and other transportation costs. ;
plans
(xii) Plans for completion of destination attractions either
within or outside the casino facility and ancillary development
rights.
(s)
"Disciplinary action" is means an action by the board
suspending
or revoking a license , or
fining, excluding,
reprimanding, or otherwise penalizing a person for violating this
act or rules promulgated by the board.
(t) "Ex parte communication" means any communication, direct
or indirect, regarding a licensing application, disciplinary
action, or a contested case under this act other than communication
that takes place during a meeting or hearing conducted under this
act.
(u) "Financial interest" or "financially interested" means any
interest in investments, awarding of contracts, grants, loans,
purchases, leases, sales, or similar matters under consideration or
consummated by the board. A member, employee, or agent of the board
will
be is considered to have a financial interest in a matter
under
consideration if any either of the following circumstances
exist:
exists:
(i) He or she owns 1% or more of any class of outstanding
securities that are issued by a party to the matter under
consideration or consummated by the board.
(ii) He or she is employed by or is an independent contractor
for a party to the matter under consideration or consummated by the
board.
(v) "Gambling game" means any game played with cards, dice,
equipment or a machine, including any mechanical, electromechanical
or
electronic device which shall include including computers and
cashless wagering systems, for money, credit, or any representative
of value, including, but not limited to, faro, monte, roulette,
keno, bingo, fan tan, twenty one, blackjack, seven and a half,
klondike, craps, poker, chuck a luck, Chinese chuck a luck (dai
shu), wheel of fortune, chemin de fer, baccarat, pai gow, beat the
banker, panguingui, slot machine, any banking or percentage game,
or
any other game or device approved by the board. , but Gambling
game does not include games played with cards in private homes or
residences in which no person makes money for operating the game,
except as a player.
(w) "Gambling operation" or "casino gambling operation" means
the
conduct of authorized gambling games in a casino.authorized by
the
board.
(x) "Gaming" or "casino gaming" means to deal, operate, carry
on, conduct, maintain or expose or offer for play any gambling game
or gambling operation.
(y)
"Gross receipts" means the total of all sums money
including
valid or invalid checks, currency, tokens, coupons,
vouchers, or instruments of monetary value whether collected or
uncollected, received by a casino licensee from gaming, including
all entry fees assessed for tournaments or other contests, less a
deduction for uncollectible gaming receivables not to exceed the
uncollectible amounts owed as a result of wagers placed at or
through a gambling game or 4% of the total gross receipts,
whichever
is less. The A licensee shall not receive the deduction
unless the licensee provides written proof to the state treasurer
of
the uncollected gaming receivables and had complied with all
rules promulgated by the board regarding the issuance of credit and
the collection of amounts due under a credit extension.
(z) "Institutional investor" means any retirement fund
administered by a public agency for the exclusive benefit of
federal, state, or local public employees, an employee benefit
plan, or pension fund that is subject to the employee retirement
income security act of 1974, as amended, an investment company
registered
under the investment company act of 1940, title I of
chapter
686, 54 Stat. 789, 15 U.S.C. 80a-1 to 80a-3 and 80a-4 to 15
USC 80a-1 to 80a-64, a collective investment trust organized by a
bank under part 9 of the rules of the comptroller of the currency,
a closed end investment trust, a chartered or licensed life
insurance company or property and casualty insurance company, a
chartered or licensed financial institution, an investment advisor
registered
under the investment advisers act of 1940, title II of
chapter
686, 54 Stat. 847, 15 U.S.C. 15
USC 80b-1 to 80b-21, or any
other
person as determined by the board may determine for reasons
consistent with this act.
(aa) "Investigative hearing" means any hearing conducted by
the board or its authorized representative to investigate and
gather information or evidence regarding pending license
applications, applicants, licensees, or alleged or apparent
violations of this act or rules promulgated by the board.
(bb)
"Junket enterprise" means any person other than a casino
licensee
or applicant who employs or otherwise engages in the
procurement
or referral of persons who may participate in a junket
to
a casino licensed under this act or casino enterprise whether or
not
those activities occur within the state.
(bb) (cc)
"Managerial employee"
means a person who by virtue
of
the level of their his or
her remuneration or otherwise holds a
management, supervisory, or policy making position with any
licensee under this act, a vendor, or the board.
(cc) (dd)
"Member" means a board
member appointed to the
Michigan
gaming control board under this
act.
(dd) (ee)
"Occupational license"
means a license issued by the
board to a person to perform in a casino or a casino enterprise an
occupation
in a casino or casino enterprise which that directly
impacts the integrity of gaming and that the board has identified
as
requiring a license to engage in casino gaming in
Michigan.perform the occupation in a casino or casino
enterprise in
this state.
(ee) (ff)
"Person" means an
individual, corporation, limited
liability company, association, partnership, limited liability
partnership,
trust, entity, or other legal entity.
(ff) (gg)
"Supplier" means a person
who the board has
identified under rules promulgated by the board as requiring a
license
to provide casino licensees or casino enterprises with
goods
or services regarding the realty, construction, maintenance,
or
business of a proposed or existing
casino , or
casino enterprise
,
or related facility on a regular or
continuing basis. ,
including,
but 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.
(gg) (hh)
"Vendor" means a person
who is not licensed under
this act who supplies any goods or services to a casino licensee or
supplier licensee.
(hh) (ii)
"Wagerer" means a person
who plays a gambling game
authorized under this act.
(ii) (jj)
"Winnings" means the
total cash value of all
property
or sums money including currency, tokens, or instruments
of monetary value paid to wagerers as a direct result of wagers
placed at or through a gambling game.
Sec. 4. (1) The Michigan gaming control board is created
within
the department of treasury. The board shall have has the
powers and duties specified in this act and all other powers
necessary and proper to fully and effectively execute and
administer this act for the purpose of licensing, regulating, and
enforcing the system of casino gambling established under this act.
(2)
The board shall consist consists
of 5 members, not more
than
3 of whom shall may be members of the same political party, to
be appointed by the governor with the advice and consent of the
senate. ,
1 of whom The governor shall be designated by the
governor
to be designate 1 of the
members as chairperson. Each
member
shall must be a resident of this state.
(3)
The members shall be appointed for terms of 4 years. ,
except
of those who are first appointed, 1 member shall be
appointed
for a term of 2 years, 2 members shall be appointed for a
term
of 3 years and 2 members shall be appointed for a term of 4
years.
A member's term shall expire expires on
December 31 of the
last
year of the member's term. In the event of If there is a
vacancy on the board, the governor shall appoint in like manner a
successor to fill the unexpired term.
(4)
Each member of the board shall must
be reimbursed for all
actual and necessary expenses and disbursements incurred in the
execution of official duties. Beginning January 1, 2023, each
member must receive compensation in the amount of $1,000.00 for
each public board meeting that he or she attends. Beginning January
1, 2023, the chairperson must receive $1,250.00 for each public
board meeting he or she attends, and must be reimbursed for all
actual and necessary expenses and disbursements.
(5)
A board member shall not hold any other public office for
which
he or she shall receive receives
compensation other than
necessary travel or other incidental expenses.
(6) A person who is not of good moral character or who has
been indicted or charged with, convicted of, pled guilty or nolo
contendre
contendere to, or forfeited bail concerning a felony or a
misdemeanor involving gambling, theft, dishonesty, or fraud under
the laws of this state, any other state, or the United States or a
local ordinance in any state involving gambling, dishonesty, theft,
or fraud that substantially corresponds to a misdemeanor in that
state
shall must not be appointed or remain as a member. of
the
board.
(7)
Any member of the board may be removed by the governor for
neglect of duty, misfeasance, malfeasance, nonfeasance, or any
other just cause.
(8) The governor shall appoint the executive director of the
board
to serve a 6-year term. After the effective date of the act
that
added this subsection, the The
appointment of the executive
director
shall require requires the approval of the senate by a
record roll call vote. The executive director shall perform any and
all
duties that the board shall assign assigns to him or her. The
executive
director shall must be reimbursed for all actual and
necessary expenses incurred by him or her in discharge of his or
her official duties. The executive director shall keep records of
all proceedings of the board and shall preserve all records, books,
documents, and other papers belonging to the board or entrusted to
its care. The executive director shall devote his or her full time
to the duties of the office and shall not hold any other office or
employment.
A vacancy in the position of executive director shall
must be filled as provided in this subsection for a new 6-year
term.
(9)
The board shall employ the personnel as may be necessary
to carry out the functions of the board under this act.
(10)
A The governor shall not
appoint a person shall not be
appointed
to or employed by the board and the board shall not
employ a person if any of the following circumstances exist:
(a)
During the 3 years 1 year immediately preceding
appointment or employment, the person held any direct or indirect
interest in, or any employment by, a person who is licensed to
operate a casino under this act or in another jurisdiction, a
person who had an application to operate a casino pending before
the board or any other jurisdiction, or a casino enterprise.
However,
the board may employ the person may be employed by the
board
if his or her interest in any
casino licensee or casino
enterprise would not, in the opinion of the board, interfere with
the objective discharge of the person's employment obligations.
However,
the board shall not employ a person shall not be employed
by
the board if his or her interest in
the casino licensee or
casino enterprise constitutes a controlling interest in that casino
licensee or casino enterprise.
(b) The person or his or her spouse, parent, child, child's
spouse, sibling, or spouse of a sibling is a member of the board of
directors of or a person financially interested in any person
licensed as a casino licensee or casino supplier, any person who
has an application for a license pending before the board, or a
casino enterprise.
(11)
Each member, of the board, the executive director, and
each
key employee as determined by the board shall file with the
governor a financial disclosure statement listing all assets and
liabilities, property and business interests, and sources of income
of
the member, executive director, and each key or employee
and any
of
their spouses his or her
spouse, and affirming that the
circumstances described in subsection (10) do not apply to the
member,
executive director, and key or
employee. are in compliance
with
subsection (10)(a) and (b) of this act. The financial
disclosure
statement shall must be under oath and shall be filed at
the
time of employment and annually thereafter.
(12) Each employee of the board shall file with the board a
financial disclosure statement listing all assets and liabilities,
property and business interests, and sources of income of the
employee and his or her spouse. This subsection does not apply to
the executive director or a key employee.
(13)
A member, of the board, executive director, or key
employee
board employee shall not hold any direct or indirect
interest in, be employed by, or enter into a contract for services
with
an applicant, a person licensed by or registered with the
board,
or a casino enterprise a
casino licensee for a period of 4 2
years
after the date his or her membership on the board office or
employment
terminates.
(14) An employee of the board shall not acquire any direct or
indirect interest in, be employed by, or enter into a contract for
services with any applicant, person licensed by the board, or
casino enterprise for a period of 2 years after the date his or her
employment with the board is terminated.
(15)
A board member, or a person employed by the board
executive director, or board employee shall not represent any
person
or party other than the this
state before or against the
board for a period of 2 years after the termination of his or her
office or employment with the board.
(16)
A business entity in which a former board member or
employee
or agent has an interest, or any partner, officer, or
employee
of the business entity shall not make any appearance or
representation
that is prohibited to that former member, employee,
or
agent. As used in this subsection, "business entity" means a
corporation,
limited liability company, partnership, limited
liability
partnership, association, trust, or other form of legal
entity.
(16) (17)
The board shall have has general
responsibility for
the implementation of this act. The board's duties include, but are
not limited to, all of the following:
(a) Deciding in a reasonable period of time all casino license
applications.
A casino license applicant shall have has the burden
to
establish by clear and convincing evidence their 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 board. The
criteria
considered appropriate by the board shall must not be
arbitrary, capricious, or contradictory to the expressed provisions
of this act.
(b)
To decide Deciding in reasonable order all license
applications. Except for casino license applicants granted a
hearing under section 6(7), any party aggrieved by an action of the
board denying, suspending, revoking, restricting, or refusing to
renew a license, or imposing a fine, may request a hearing before
the
board. A request for a hearing shall must be made to the board
in writing within 21 days after service of notice of the action of
the
board. Notice of the action of the board shall must be
served
either by personal delivery or by certified mail, postage prepaid,
to
the aggrieved party. Notice served by certified mail shall be is
considered complete on the business day following the date of the
mailing.
(c) Conducting its public meetings in compliance with the open
meetings
act, 1976 PA 267, MCL 15.231 to 15.246.15.261 to 15.275.
(d)
Promulgating the rules as may be necessary to implement,
administer,
and enforce this act. All The
rules promulgated under
this
act shall must not be arbitrary, capricious, or contradictory
to the expressed provisions of this act. The rules may include, but
need not be limited to, rules that do 1 or more of the following:
(i) Govern, restrict, approve, or regulate the casino gaming
authorized in this act.
(ii) Promote the safety, security, and integrity of casino
gaming authorized in this act.
(iii) License and regulate persons participating in or
involved with casino gaming authorized in this act.
(e) Providing for the establishment and collection of all
license and registration fees and taxes imposed by this act and the
rules promulgated by the board.
(f) Providing for the levy and collection of penalties and
fines for the violation of this act and the rules promulgated by
the board.
(g) Being present through its inspectors, agents, auditors,
and
the Michigan department of
state police or department of
attorney general at any time in any casino and related casino
enterprise
for the purpose of certifying the revenue thereof, of
the licensee, receiving complaints from the public, and conducting
other investigations into the conduct of the gambling games and the
maintenance
of the equipment as from time to time the board may
consider
considers necessary and proper to assure compliance with
this act and the rules promulgated by the board and to protect and
promote the overall safety, security, and integrity of casino
gaming authorized in this act.
(h) Reviewing and ruling upon any complaint by a licensee
regarding
any investigative procedures of the this state which that
are unnecessarily disruptive of gambling operations. The need to
inspect
and investigate shall be is
presumed at all times. A
licensee
shall must establish by clear and convincing evidence that
its operations were disrupted, the procedures had no reasonable law
enforcement or regulatory purposes, and the procedures were so
disruptive as to unreasonably inhibit gambling operations.
(i) Holding at least 1 public meeting each quarter of the
fiscal year. In addition, special meetings may be called by the
chairperson
or any 2 board members upon 72 hours' written notice to
each
member. Three members of the board shall constitute a quorum,
except
when that in making determinations on applications for
casino
licenses, when 4 members shall constitute a
quorum. Three
votes
shall be are required in support of final determinations of
the board on applications for casino licenses. The board shall keep
a complete and accurate record of all its meetings and hearings.
Upon order of the board, 1 of the board members or a hearing
officer designated by the board may conduct any hearing provided
for under this act or by the rules promulgated by the board and may
recommend findings and decisions to the board. The board member or
hearing
officer conducting the hearing shall have has all powers
and rights regarding the conduct of hearings granted to the board
under
this act. The record made at the time of the hearing shall
must be reviewed by the board, or a majority of the board, and the
findings
and decision of the majority of the board shall constitute
the
order of the board. in the case.
(j)
Maintaining records which that
are separate and distinct
from the records of any other state board. The board shall make the
records
shall be available for public inspection subject to the
limitations
of this act, and shall the
records must accurately
reflect all board proceedings.
(k) Reviewing the patterns of wagering and wins and losses by
persons
in casinos under this act and make making recommendations
to the governor and the legislature in a written annual report to
the governor and the legislature and additional reports as
requested
by the governor. may
request. The annual report shall
must include a statement of receipts and disbursements by the
board, actions taken by the board, and any additional information
and recommendations that the board considers appropriate or that
the
governor may request.requests.
Sec.
4a. (1) The board shall have has
jurisdiction over and
shall supervise all gambling operations governed by this act. The
board
shall have has all powers necessary and proper to fully and
effectively execute this act, including, but not limited to, the
authority to do all of the following:
(a) Investigate applicants and determine the eligibility of
applicants for licenses or registration and to grant licenses to
applicants in accordance with this act and the rules promulgated
under this act.
(b) Have jurisdiction over and supervise casino gambling
operations authorized by this act and all persons in casinos where
gambling operations are conducted under this act.
(c) Enter through its investigators, agents, auditors, and the
Michigan
department of state police at any time, without a warrant
and without notice to the licensee, the premises, offices, casinos,
casino enterprises, facilities, or other places of business of a
casino licensee or casino supplier licensee, where evidence of the
compliance or noncompliance with this act or rules promulgated by
the board is likely to be found, for the following purposes:
(i) To inspect and examine all premises wherein where casino
gaming or the business of gaming or the business of a supplier is
conducted, or where any records of the activities are prepared.
(ii) To inspect, examine, audit, impound, seize, or assume
physical control of, or summarily remove from the premises all
books, ledgers, documents, writings, photocopies, correspondence,
records, videotapes, including electronically stored records, money
receptacles, other containers and their contents, equipment in
which the records are stored, or other gaming related equipment and
supplies on or around the premises, including counting rooms.
(iii) To inspect the person, and inspect, examine, and seize
personal effects present in a casino facility licensed under this
act,
of any holder of a license or registration issued pursuant to
under this act while that person is present in a licensed casino
facility.
(iv) To investigate and deter alleged violations of this act
or the rules promulgated by the board.
(v) This section is not intended to limit warrantless
inspections except in accordance with constitutional requirements.
(d) Investigate alleged violations of this act or rules
promulgated by the board and to take appropriate disciplinary
action
against a licensee or any other person, or holder of an
occupational
license for a violation, or
institute appropriate
legal action for enforcement, or both.
(e) Adopt standards for the licensing of all persons under
this act, as well as for electronic or mechanical gambling games or
gambling games, and to establish fees for the licenses.
(f) Adopt appropriate standards for all casino gaming
facilities and equipment.
(g) Require that all records of casino and supplier licensees,
including
financial or other statements, shall be kept on the
premises of the casino licensee or supplier licensee in the manner
prescribed by the board.
(h) Require that each casino licensee involved in the
ownership or management of gambling operations submit to the board
an annual balance sheet, profit and loss statement, and a list of
the
stockholders or other persons having a 1% 5% or greater
beneficial
interest in the gambling activities of each the licensee
in addition to any other information the board considers necessary
in order to effectively administer this act and all rules
promulgated by the board and orders and final decisions made under
this act.
(i) Conduct investigative and contested case hearings, issue
subpoenas for the attendance of witnesses and subpoenas duces tecum
for the production of books, ledgers, records, memoranda,
electronically retrievable data, and other pertinent documents and
to administer oaths and affirmations to the witnesses to exercise
and discharge the powers and duties of the board under this act.
The executive director or his or her designee is also authorized to
issue subpoenas and to administer oaths and affirmations to
witnesses.
(j) Prescribe a form to be used by any licensee involved in
the ownership or management of gambling operations as an
application for employment for prospective employees.
(k) Revoke or suspend licenses, impose fines and penalties as
the board considers necessary and in compliance with applicable
laws
of the this state regarding administrative procedures, and
review and decide applications for the renewal of licenses. The
board may suspend a casino license, without notice or hearing upon
a determination that the safety or health of patrons or employees
is jeopardized by continuing a casino's operation. If the board
suspends a license under this subdivision without notice or
hearing,
a prompt postsuspension hearing shall must be held to
determine if the suspension should remain in effect. The suspension
may remain in effect until the board determines that the cause for
suspension has been abated. The board may revoke the casino license
upon a determination that the owner has not made satisfactory
progress toward abating the hazard.
(l) In addition to a disassociated person, eject or exclude or
authorize the ejection or exclusion of a person from a casino if
the person violates this act, rules promulgated by the board, or a
final
orders order of the board or when if the
board determines
that the person's conduct or reputation is such that his or her
presence within the casino gambling facilities may compromise the
honesty
and integrity of the gambling operations or interferes
interfere with the orderly conduct of the gambling operations.
However, the propriety of the ejection or exclusion is subject to a
subsequent hearing by the board.
(m) Suspend, revoke, or restrict licenses and require the
removal of a licensee or an employee of a licensee for a violation
of this act or a rule promulgated by the board or for engaging in a
fraudulent practice, and impose civil penalties of up to $5,000.00
against individuals and up to $10,000.00 or an amount equal to the
daily gross receipts, whichever is greater, against casino
licensees for each violation of this act, any rules promulgated by
the
board, any order of the board, or for any other action which
that the board determines is a detriment or impediment to casino
gambling operations.
(n) Disqualify a person under section 7c(5).
(o) In addition to the authority provided under subdivision
(m), revoke or suspend a casino license or impose any other
disciplinary
action for any either of the following reasons:
(i) The casino licensee has violated the Michigan
liquor
control
act, 1933 (Ex Sess) PA 8, MCL 436.1 to 436.57a, or rules
promulgated
under that act.
(i) (ii) At any
time the licensee no longer meets the
eligibility requirements or suitability determination by the board
for a casino license under this act.
(ii) (iii) The
failure to revoke or suspend the license would
undermine
the public's confidence in the Michigan gaming industry
in this state.
(p) Conduct periodic audits of casinos authorized under this
act.
(q) Establish minimum levels of insurance to be maintained by
licensees.
(r) Delegate the execution of any of its powers under this act
for the purpose of administering and enforcing this act and the
rules promulgated by the board. This subdivision does not apply to
the granting of casino licenses under section 6.
(s) Perform a background check, at the vendor's expense, of
any vendor using the same standards that the board uses in
determining whether to grant a supplier's license.
(t) Review the business practices of a casino licensee
including, but not limited to, the price and quality of goods and
services offered to patrons and take disciplinary action as the
board considers appropriate to prevent practices that undermine the
public's
confidence in the Michigan gaming industry in this state.
(u) Enter into agreements with other jurisdictions to
facilitate, administer, and regulate multijurisdictional gaming by
casino licensees if the gaming under the agreement is conducted
only in the United States.
(v) (u)
Review a licensee if that licensee
is under review or
is otherwise subject to discipline by a regulatory body in any
other jurisdiction for a violation of a gambling law or regulation
in that jurisdiction.
(w) (v)
Take any other action as may be
reasonable or
appropriate to enforce this act and rules promulgated by the board.
(2) The board may seek and shall receive the cooperation and
assistance of the department of state police and department of
attorney general in conducting background investigations of
applicants and in fulfilling its responsibilities under this act.
Sec. 4c. (1) Except as otherwise provided in this section, all
information, records, interviews, reports, statements, memoranda,
or
other data supplied to or used by the board shall be are subject
to the freedom of information act, 1976 PA 442, MCL 15.231 to
15.246, except for the following:
(a)
Unless presented during a public hearing, all All the
information, records, interviews, reports, statements,
correspondence, memoranda, documents, or other data supplied to,
created by, or used by the board related to background
investigation
investigations of applicants or licensees and to or
involving
trade secrets, internal controls, and
nonpublic financial
data, surveillance footage, or surveillance or security measures of
the licensees or applicants, or that the applicant, licensee, or
board designates as confidential.
(b) All information, records, interviews, reports, statements,
memoranda, or other data supplied to or used by the board that have
been received from another jurisdiction or local, state, or federal
agency under a promise of confidentiality or if the release of the
information is otherwise barred by the statutes, rules, or
regulations of that jurisdiction or agency or by an
intergovernmental
agreement.
(c) All information provided in an application for license
required under this act.
(d) Any information that would disclose employment schedules,
travel schedules, vehicle information, or other information that
might endanger the physical safety of board employees, or
investigation information.
(2) Notwithstanding subsection (1)(a) or (c), the board shall,
upon
on written request from any person, provide the
following
information
concerning the an applicant or licensee, his or her
products, services or gambling enterprises, and his or her business
holdings if the board has the information in its possession:
(a) The name, business address, and business telephone number.
(b)
An identification of any the
applicant or licensee,
including,
if an the applicant or licensee is not an individual,
its state of incorporation or registration, its corporate officers,
and the identity of its shareholders. If an applicant or licensee
has a registration statement or a pending registration statement
filed
with the securities and exchange commission, Securities and
Exchange Commission, only the names of those persons or entities
holding interest of 5% or more shall be provided.
(c)
An identification of any business, including, if
applicable,
the state of incorporation or registration, in which an
applicant
or licensee or an applicant's or licensee's spouse,
parent,
or child has equity interest of more than 5%.
(d)
Whether an applicant or licensee has been indicted,
convicted,
pleaded guilty or nolo contendere, or forfeited bail
concerning
any criminal offense under the laws of any jurisdiction,
either
felony or misdemeanor, not including traffic violations,
including
the name and location of the court, the date, and
disposition
of the offense.
(e)
Whether an applicant or licensee has had any license or
certification
issued by a licensing authority in Michigan or any
other
jurisdiction denied, restricted, suspended, revoked, or not
renewed
and, if known by the board, a statement describing the
facts
and circumstances concerning the denial, restriction,
suspension,
revocation, or nonrenewal, including the name of the
licensing
authority, the date each action was taken, and the reason
for
each action.
(f)
Whether an applicant or licensee has ever filed, or had
filed
against it, a proceeding for bankruptcy or has ever been
involved
in any formal process to adjust, defer, suspend, or
otherwise
work out the payment of any debt, including the date of
filing,
the name and location of the court, the case, and number of
the
disposition.
(g)
Whether an applicant or licensee has filed, or been served
with,
a complaint or other notice filed with any public body
regarding
the delinquent payment of any tax required under federal,
state,
or local law, including the amount of the tax, type of tax,
the
taxing agency, and time periods involved.
(h)
A statement listing the names and titles of all public
officials
or officers of any city, state, or federal body, agency,
or
entity and relatives of the officials who, directly or
indirectly,
own any financial interest in, have any beneficial
interest
in, are the creditors of, or hold or have any other
interest
in, or any contractual or service relationship with, an
applicant
or licensee under this act.
(i)
Whether an applicant or licensee or the spouse, parent,
child,
or spouse of a child of an applicant or licensee has made,
directly
or indirectly, any political contributions, or any loans,
gifts,
or other payments to any candidate as defined in section 7b
or
officeholder elected in this state, within 5 years prior to the
date
of filing the application, including the amount and the method
of
payment or to a committee established under the Michigan
campaign
finance act, 1976 PA 388, MCL 169.201 to 169.282.
(c) (j)
The name and business telephone
number of any
attorney, counsel, lobbyist agent as that term is defined in
section 5 of 1978 PA 472, MCL 4.415, or any other person
representing
an the applicant or licensee in matters before the
board.
(d) (k)
A summary of the applicant's
development agreement
with
the city, including the applicant's proposed location, the
square footage of any proposed casino, the type of additional
facilities, restaurants, or hotels proposed by the applicant, the
expected economic benefit to the city, the anticipated or actual
number of employees, any statement from the applicant regarding
compliance with federal and state affirmative action guidelines,
the projected or actual admissions, and the projected or actual
adjusted gross receipts.
(e) (l) A
description of the product or service to be supplied
by,
or occupation to be engaged in by, a the licensee.
(3) Except as otherwise provided in this subsection, all
information, records, interviews, reports, statements, memoranda,
or other data provided in a response to a request for proposals for
development
agreements issued by the a
city and all draft
development
agreements being negotiated by the city shall be are
exempt from disclosure under the freedom of information act, 1976
PA 442, MCL 15.231 to 15.246, including but not limited to any of
the following:
(a)
Unless presented during a public hearing, all All
information, records, interviews, reports, correspondence,
statements,
memoranda, documents, or other information data
supplied to, created by, or used by the city related to background
investigation
investigations of applicants for a development
agreement
and to or involving trade secrets, internal controls, and
nonpublic financial data, surveillance, or security measures of the
licensees or applicants, or that the applicant, licensee, or board
designates as confidential.
(b) All records, interviews, reports, statements, memoranda,
or other information supplied to or used by the city that have been
received from another jurisdiction or local, state, or federal
agency under a promise of confidentiality or if the release of the
information is otherwise barred by the statutes, rules, or
regulations of that jurisdiction or agency or by an
intergovernmental agreement.
(c) All information provided in a response to a request for
proposals for development agreements.
(4)
Notwithstanding subsection (3)(a) or (c), the a city
shall, upon request, disclose the following information concerning
the
a response to a request for proposals for development
agreements:
(a) The name, business address, and business telephone number
of the person filing the response.
(b)
An identification of a the
person filing a the response,
including, if the person is not an individual, the state of
incorporation or registration, the corporate officers, and the
identity
of all shareholders or participants. If a the person
filing a response has a registration statement or a pending
registration
statement filed with the securities and exchange
commission,
Securities and Exchange
Commission, the city shall only
provide the names of those persons or entities holding interest of
5% or more.
(c)
An identification of any business, including, if
applicable,
the state of incorporation or registration, in which a
person
filing a response or his or her spouse, parent, or child has
equity
interest of more than 5%.
(d)
Whether a person filing a response has been indicted,
convicted,
pleaded guilty or nolo contendere, or forfeited bail
concerning
any criminal offense under the laws of any jurisdiction,
either
felony or misdemeanor, not including traffic violations,
including
the name and location of the court, the date, and
disposition
of the offense.
(e)
Whether a person filing a response has had any license or
certification
issued by a licensing authority in Michigan or any
other
jurisdiction denied, restricted, suspended, revoked, or not
renewed
and, if known by the city, a statement describing the facts
and
circumstances concerning the denial, restriction, suspension,
revocation,
or nonrenewal, including the name of the licensing
authority,
the date each action was taken, and the reason for each
action.
(f)
Whether a person filing a response has ever filed, or had
filed
against it, a proceeding for bankruptcy or has ever been
involved
in any formal process to adjust, defer, suspend, or
otherwise
work out the payment of any debt, including the date of
filing,
the name and location of the court, the case, and number of
the
disposition.
(g)
Whether a person filing a response has filed, or been
served
with, a complaint or other notice filed with any public body
regarding
the delinquency in the payment of any tax required under
federal,
state, or local law, including the amount, type of tax,
the
taxing agency, and time periods involved.
(h)
A statement listing the names and titles of all public
officials
or officers of any city, state, or federal body, agency,
or
entity and relatives of the officials who, directly or
indirectly,
own any financial interest in, have any beneficial
interest
in, are the creditors of, or hold or have any interest in
or
have any contractual or service relationship with, a person
filing
a response.
(i)
Whether a person filing a response or the spouse, parent,
child,
or spouse of a child of a person filing a response has made,
directly
or indirectly, any political contributions, or any loans,
gifts,
or other payments to any board member or any candidate as
defined
in section 7b or officeholder elected in this state or to a
committee
established under the Michigan campaign finance act, 1976
PA
388, MCL 169.201 to 169.282, within 5 years before the date of
filing
the application, including the amount and the method of
payment.
(c) (j)
The name and business telephone
number of the counsel
representing
a the person filing a response.
(d) (k)
A summary of the development
agreement proposal with
the
city, including the applicant's proposed location, the square
footage
of any the proposed casino, the type of additional
facilities, restaurants, or hotels proposed by the person filing a
response, the expected economic benefit to the city, the
anticipated or actual number of employees, any statement from the
applicant regarding compliance with federal and state affirmative
action guidelines, the projected or actual admissions, and the
projected or actual adjusted gross receipts.
(e) (l) A
description of the product or service to be supplied
by, or occupation to be engaged in by, a person filing a response.
(5) Notwithstanding the provisions of this section, the board
or
the a city may cooperate with and provide all information,
records, interviews, reports, statements, memoranda, or other data
supplied to or used by the board to other jurisdictions or law
enforcement agencies.
Sec. 4d. (1) By January 31 of each year, each member of the
board shall prepare and file with the office of the board, a board
disclosure form in which the member does all of the following:
(a) Affirms that the member or the member's spouse, parent,
child, or child's spouse is not a member of the board of directors
of, financially interested in, or employed by a licensee or
applicant.
(b) Affirms that the member continues to meet any other
criteria for board membership under this act or the rules
promulgated by the board.
(c) Discloses any legal or beneficial interests in any real
property that is or that may be directly or indirectly involved
with gaming or gaming operations authorized by this act.
(d)
Discloses any other information as may be required to
ensure that the integrity of the board and its work is maintained.
(2) By January 31 of each year, each employee of the board
shall prepare and file with the office of the board an employee
disclosure form in which the employee does all of the following:
(a) Affirms the absence of financial interests prohibited by
this act.
(b) Discloses any legal or beneficial interests in any real
property that is or that may be directly or indirectly involved
with gaming or gaming operations authorized by this act.
(c) Discloses whether the employee or the employee's spouse,
parent, child, or child's spouse is financially interested in or
employed by a supplier licensee or an applicant for a supplier's
license under this act.
(d)
Discloses such any other matters as may be required to
ensure that the integrity of the board and its work is maintained.
(3) A member, employee, or agent of the board who becomes
aware that the member, employee, or agent of the board or his or
her spouse, parent, or child is a member of the board of directors
of, financially interested in, or employed by a licensee or an
applicant
shall immediately provide detailed written notice thereof
of the membership, financial interest, or employment to the
chairperson.
(4) A member, employee, or agent of the board who has been
indicted,
charged with, convicted of, pled guilty or nolo contendre
contendere to, or forfeited bail concerning a misdemeanor involving
gambling, dishonesty, theft, or fraud or a local ordinance in any
state involving gambling, dishonesty, theft, or fraud that
substantially corresponds to a misdemeanor in that state, or a
felony under Michigan law, the laws of any other state, or the laws
of the United States, or any other jurisdiction shall immediately
provide detailed written notice of the conviction or charge to the
chairperson.
(5) Any member, employee, or agent of the board who is
negotiating for, or acquires by any means, any interest in any
person who is a licensee or an applicant, or any person affiliated
with such a person, shall immediately provide written notice of the
details of the interest to the chairperson. The member, employee,
or agent of the board shall not act on behalf of the board with
respect to that person.
(6) A member, employee, or agent of the board may not enter
into any negotiations for employment with any person or affiliate
of any person who is a licensee or an applicant, and shall
immediately provide written notice of the details of any such
negotiations or discussions to the chairperson. The member,
employee, or agent of the board shall not take any action on behalf
of the board with respect to that person.
(7) Any member, employee, or agent of the board who receives
an invitation, written or oral, to initiate a discussion concerning
employment or the possibility of employment with a person or
affiliate of a person who is a licensee or an applicant shall
immediately report that he or she received the invitation to the
chairperson. The member, employee, or agent of the board shall not
take action on behalf of the board with respect to the person.
(8) A licensee or applicant shall not knowingly initiate a
negotiation for or discussion of employment with a member,
employee, or agent of the board. A licensee or applicant who
initiates a negotiation or discussion about employment shall
immediately provide written notice of the details of the
negotiation or discussion to the chairperson as soon as he or she
becomes aware that the negotiation or discussion has been initiated
with a member, employee, or agent of the board.
(9) A member, employee, or agent of the board, or former
member, employee, or agent of the board, shall not disseminate or
otherwise disclose any material or information in the possession of
the board that the board considers confidential unless specifically
authorized to do so by the chairperson or the board.
(10) A member, employee, or agent of the board or a parent,
spouse, sibling, spouse of a sibling, child, or spouse of a child
of a member, employee, or agent of the board may not accept any
gift, gratuity, compensation, travel, lodging, or anything of
value, directly or indirectly, from any licensee or any applicant
or affiliate or representative of an applicant or licensee, unless
the acceptance conforms to a written policy or directive that is
issued by the chairperson or the board. Any member, employee, or
agent of the board who is offered or receives any gift, gratuity,
compensation, travel, lodging, or anything of value, directly or
indirectly, from any licensee or any applicant or affiliate or
representative of an applicant or licensee shall immediately
provide written notification of the details to the chairperson.
(11) A licensee or applicant, or affiliate or representative
of an applicant or licensee, may not, directly or indirectly, give
or offer to give any gift, gratuity, compensation, travel, lodging,
or anything of value to any member, employee, or agent of the board
which the member, employee, or agent of the board is prohibited
from accepting under subsection (10).
(12) A member, employee, or agent of the board shall not
engage in any conduct that constitutes a conflict of interest, and
shall immediately advise the chairperson in writing of the details
of any incident or circumstances that would present the existence
of a conflict of interest with respect to the performance of the
board-related work or duty of the member, employee, or agent of the
board.
(13) A member, employee, or agent of the board who is
approached and offered a bribe in violation of section 118 of the
Michigan penal code, 1931 PA 328, MCL 750.118, or this act shall
immediately provide written account of the details of the incident
to the chairperson and to a law enforcement officer of a law
enforcement agency having jurisdiction.
(14) A member, employee, or agent of the board shall disclose
his or her past involvement with any casino interest in the past 5
years and shall not engage in political activity or politically
related activity during the duration of his or her appointment or
employment.
(15) A former member, employee, or agent of the board may
appear before the board as a fact witness about matters or actions
handled by the member, employee, or agent during his or her tenure
as a member, employee, or agent of the board. The member, employee,
or agent of the board shall not receive compensation for such an
appearance other than a standard witness fee and reimbursement for
travel expenses as established by statute or court rule.
(16) A licensee or applicant or any affiliate or
representative of an applicant or licensee shall not engage in ex
parte communications with a member of the board. A member of the
board shall not engage in any ex parte communications with a
licensee or an applicant or with any affiliate or representative of
an applicant or licensee.
(17) Any board member, licensee, or applicant or affiliate or
representative of a board member, licensee, or applicant who
receives any ex parte communication in violation of subsection
(16), or who is aware of an attempted communication in violation of
subsection (16), shall immediately report details of the
communication or attempted communication in writing to the
chairperson.
(18) Any member of the board who receives an ex parte
communication
which that attempts to influence that member's
official action shall disclose the source and content of the
communication to the chairperson. The chairperson may investigate
or initiate an investigation of the matter with the assistance of
the attorney general and the department of state police to
determine if the communication violates subsection (16) or
subsection (17) or other state law. The disclosure under this
section and the investigation shall remain confidential. Following
an investigation, the chairperson shall advise the governor or the
board, or both, of the results of the investigation and may
recommend action as the chairperson considers appropriate.
(19) A new or current employee or agent of the board shall
obtain written permission from the executive director before
continuing outside employment held at the time the employee begins
to
work for the board. Permission The
executive director shall be
denied,
deny permission, or revoke
permission previously granted,
will
be revoked, if the nature of the
work is considered to or does
create
creates a possible conflict of interest or otherwise
interferes with the duties of the employee or agent for the board.
(20) An employee or agent of the board granted permission for
outside employment shall not conduct any business or perform any
activities, including solicitation, related to outside employment
on premises used by the board or during the employee's working
hours for the board.
(21)
Whenever If the chairperson, as an employee of the board,
is required to file disclosure forms or report in writing the
details
of any incident or circumstance pursuant to under this
section,
he or she shall make such filings file those disclosure
forms
or written reports to with the
board.
(22) The chairperson shall report any action he or she has
taken or contemplates taking under this section with respect to an
employee or agent or former employee or former agent to the board
at the next meeting of the board. The board may direct the
executive director to take additional or different action.
(23)
Except as follows, no a member, employee, or agent of the
board
may shall not participate in or wager on any gambling game
conducted by any licensee or applicant or any affiliate of an
applicant
or licensee in Michigan this
state or in any other
jurisdiction:
(a) A member, employee, or agent of the board may participate
in and wager on a gambling game conducted by a licensee under this
act, to the extent authorized by the chairperson or board as part
of the person's surveillance, security, or other official duties
for the board.
(b) A member, employee, or agent of the board shall advise the
chairperson at least 24 hours in advance if he or she plans to be
present in a casino in this state or in another jurisdiction
operated by a licensee or applicant, or affiliate of a licensee or
an applicant, outside the scope of his or her official duties for
the board.
(24) Violation of this section by a licensee or applicant, or
affiliate or representative of a licensee or applicant, may result
in denial of the application of licensure or revocation or
suspension of license or other disciplinary action by the board.
(25) Violation of this section by a member of the board may
result in disqualification or constitute cause for removal under
section 4(7) or other disciplinary action as determined by the
board.
(26) A violation of this section by an employee or agent of
the board will not result in termination of employment if the board
determines that the conduct involved does not violate the purpose
of this act, or require other disciplinary action, including
termination of employment. However, employment will be terminated
as follows:
(a) If, after being offered employment or beginning employment
with the board, the employee or agent intentionally acquires a
financial interest in a licensee or an applicant, or affiliate or
representative of a licensee or applicant, employment with the
board
shall must be terminated.
(b) If a financial interest in a licensee or an applicant, or
affiliate or representative of a licensee or applicant, is acquired
by an employee or agent that has been offered employment with the
board,
or is an employee of the board, or the employee's or
agent's
spouse,
parent, or child, through no
intentional action of the
employee
or agent, the individual shall have has up to 30 days to
divest or terminate the financial interest. Employment may be
terminated if the interest has not been divested after 30 days.
(c)
Employment shall must be terminated if the employee or
agent is a spouse, parent, child, or spouse of a child of a board
member.
(27) Violation of this section does not create a civil cause
of action.
(28) As used in this section:
(a) "Outside employment" includes, but is not limited to any
of, the following:
(i) Operation of a proprietorship.
(ii) Participation in a partnership or group business
enterprise.
(iii) Performance as a director or corporate officer of any
for-profit corporation or banking or credit institution.
(b) "Political activity" or "politically related activity"
includes all of the following:
(i) Using his or her official authority or influence for the
purpose of interfering with or affecting the result of an election.
(ii) Knowingly soliciting, accepting, or receiving a political
contribution from any person.
(iii) Running for the nomination or as a candidate for
election to a partisan political office.
(iv) Knowingly soliciting or discouraging the participation in
any political activity of any person who is either of the
following:
(A) Applying for any compensation, grant, contract, ruling,
license, permit, or certificate pending before the board.
(B) The subject of or a participant in an ongoing audit,
investigation, or enforcement action being carried out by the
board.
Sec. 5. (1) A person may apply to the board for a casino
license
to conduct a casino gambling operation as provided in this
act.
The application shall must
be made under oath on forms
provided
by the board and shall contain information as prescribed
by the board, including but not limited to all of the following:
(a) The name, business address, business telephone number,
social
security Social Security number, and, where applicable, the
federal tax identification number of any applicant.
(b) The identity of every person having a greater than 1%
direct or indirect pecuniary interest in the applicant with respect
to which the license is sought. If the disclosed entity is a trust,
the
application shall must disclose the names and addresses of the
beneficiaries; if a corporation, the names and addresses of all
stockholders and directors; if a partnership, the names and
addresses of all partners, both general and limited; if a limited
liability company, the names and addresses of all members.
(c) An identification of any business, including, if
applicable, the state of incorporation or registration, in which an
applicant or an applicant's spouse, parent, or child has an equity
interest of more than 5%. If an applicant is a corporation,
partnership, or other business entity, the applicant shall identify
any other corporation, partnership, or other business entity in
which it has an equity interest of 5% or more, including, if
applicable, the state of incorporation or registration. An
applicant
can may comply with this subdivision by filing a copy of
the applicant's registration with the securities exchange
commission if the registration contains the information required by
this subdivision.
(d) Whether an applicant has been indicted for, charged with,
arrested for, or convicted of, pleaded guilty or nolo contendere
to, forfeited bail concerning, or had expunged any criminal offense
under the laws of any jurisdiction, either felony or misdemeanor,
not including traffic violations, regardless of whether the offense
has been expunged, pardoned, or reversed on appeal or otherwise,
including the date, the name and location of the court, arresting
agency and prosecuting agency, the case caption, the docket number,
the offense, the disposition, and the location and length of
incarceration.
(e) Whether an applicant has ever applied for or has been
granted any license or certificate issued by a licensing authority
in
Michigan this state or any other jurisdiction that has been
denied, restricted, suspended, revoked, or not renewed and a
statement describing the facts and circumstances concerning the
application, denial, restriction, suspension, revocation, or
nonrenewal, including the licensing authority, the date each action
was taken, and the reason for each action.
(f) Whether an applicant has ever filed or had filed against
it a civil or administrative action or proceeding in bankruptcy or
has ever been involved in any formal process to adjust, defer,
suspend, or otherwise work out the payment of any debt including
the date of filing, the name and location of the court, the case
caption, the docket number, and the disposition.
(g) Whether an applicant has filed, or been served with, a
complaint or other notice filed with any public body, regarding the
delinquency in the payment of, or a dispute over the filings
concerning the payment of, any tax required under federal, state,
or local law, including the amount, type of tax, the taxing agency,
and time periods involved.
(h)
A statement listing the names and titles of all public
officials
or officers of any unit of government, and the spouses,
parents,
and children of those public officials or officers who,
directly
or indirectly, own any financial interest in, have any
beneficial
interest in, are the creditors of or hold any debt
instrument
issued by, or hold or have any interest in any
contractual
or service relationship with, an applicant. As used in
this
subdivision, public official or officer does not include a
person
who would have to be listed solely because of his or her
state
or federal military service.
(i)
Whether an applicant or the spouse, parent, child, or
spouse
of a child of an applicant has made, directly or indirectly,
any
political contribution, or any loans, donations, or other
payments
to any candidate as defined in section 7b or officeholder
elected
in this state or to a committee established under the
Michigan
campaign finance act, 1976 PA 388, MCL 169.201 to 169.282,
within
5 years from the date of the filing of the application,
including
the identity of the board member, candidate, or
officeholder,
the date, the amount, and the method of payment.
(h) (j)
The name and business telephone
number of any
attorney, counsel, lobbyist agent as that term is defined in
section 5 of 1978 PA 472, MCL 4.415, or any other person
representing an applicant in matters before the board.
(i) (k)
A description of any proposed or
approved casino
gaming operation and related casino enterprises, including the
economic benefit to the community, anticipated or actual number of
employees, any statement from an applicant regarding compliance
with federal and state affirmative action guidelines, projected or
actual admissions, projected or actual gross receipts, and
scientific market research.
(j) (l) Financial
information in the manner and form
prescribed by the board.
(2)
Information provided on the application shall must be
used
as
a basis for a thorough background investigation which that the
board shall conduct on each applicant. A false or incomplete
application is cause for denial of a license by the board.
(3)
Applicants shall must submit with their application all
required development agreements and documents, certifications,
resolutions, and letters of support from the governing body that
represents the municipality in which the applicant proposes to
operate a casino.
(4)
Applicants shall must consent in writing to being subject
to the inspections, searches, and seizures provided for in section
4a(1)(c)(i) to (v) and to disclosure to the board and its agents of
otherwise confidential records, including tax records held by any
federal, state, or local agency, or credit bureau or financial
institution, while applying for or holding a license under this
act.
(5)
A nonrefundable application fee of $50,000.00 shall must
be paid at the time of filing to defray the costs associated with
the background investigation conducted by the board. If the costs
of the investigation exceed $50,000.00, the applicant shall pay the
additional amount to the board. All information, records,
interviews, reports, statements, memoranda, or other data supplied
to or used by the board in the course of its review or
investigation
of an application for a license under this act shall
must only be disclosed in accordance with this act. The
information, records, interviews, reports, statements, memoranda,
or
other data shall are not be admissible as evidence, nor
discoverable in any action of any kind in any court or before any
tribunal, board, agency, or person, except for any action
considered necessary by the board.
Sec. 6. (1) The board shall issue a casino license to a person
who applies for a license, who pays the nonrefundable application
fee required under section 5(5) and a $25,000.00 license fee for
the first year of operation, and who the board determines is
eligible and suitable to receive a casino license under this act
and the rules promulgated by the board. It is the burden of the
applicant to establish by clear and convincing evidence its
suitability as to character, reputation, integrity, business
probity, experience, and ability, financial ability and
responsibility,
and other criteria as may be considered appropriate
by the board. The criteria considered appropriate by the board
shall
must not be arbitrary, capricious, or contradictory to
the
expressed provisions of this act. A person is eligible to apply for
a casino license if all of the following criteria are met:
(a) The applicant proposes to locate the casino in a city
where the local legislative body enacted an ordinance approving
casino gaming that may include local ordinances governing casino
operations,
occupational licensees, and suppliers which that are
consistent with this act and rules promulgated by the board.
(b) The applicant entered into a certified development
agreement with the city where the local legislative body enacted an
ordinance approving casino gaming.
(c) The applicant or its affiliates or affiliated companies
has a history of, or a bona fide plan for, either investment or
community involvement in the city where the casino will be located.
(2) A city shall not certify or submit and have pending before
the board more than 3 certified development agreements. If an
applicant is denied a casino license by the board, the city may
then certify a development agreement with another applicant and
submit the certified development agreement to the board. Nothing in
this
act shall be construed to prevent prevents the city from
entering into more than 3 development agreements.
(3)
No The board shall not
issue more than three (3) 3
licenses
shall be issued by the board in any city. A The board
shall
not issue a license shall not be
issued for a casino to be
located on land held in trust by the United States for a federally
recognized Indian tribe. In evaluating the eligibility and
suitability of all applicants under the standards provided in this
act, the board shall establish and apply the standards to all
applicants
in a consistent and uniform manner. In the event that If
more
than three (3) 3 applicants meet the standards for eligibility
and suitability provided for in subsections (4) and (5), the board
shall
first issue licenses shall first be
issued to those eligible
and
suitable applicants which that
submitted any casino gaming
proposal
for voter approval prior to before
January 1, 1995, in the
city in which the casino will be located and the voters approved
the proposal.
(4) An applicant is ineligible to receive a casino license if
any of the following circumstances exist:
(a) The applicant has been convicted of a felony under the
laws of this state, any other state, or the United States. However,
the board may waive the requirements under this subdivision if the
conviction occurred more than 10 years before the applicant applies
for a license under this section and the board is convinced of both
of the following:
(i) That the applicant does not pose a threat to the integrity
of gaming.
(ii) That the applicant otherwise meets the requirements of
this section.
(b) The applicant has been convicted of a misdemeanor
involving gambling, theft, dishonesty, or fraud 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. However, the board may waive the requirements under this
subdivision if the conviction occurred more than 5 years before the
applicant applies for a license under this section and the board is
convinced of both of the following:
(i) That the applicant does not pose a threat to the integrity
of gaming.
(ii) That the applicant otherwise meets the requirements of
this section.
(c) The applicant has submitted an application for a license
under this act that contains false information.
(d) The applicant is a member of the board.
(e) The applicant fails to demonstrate the applicant's ability
to maintain adequate liability and casualty insurance for its
proposed casino.
(f)
The applicant holds an elective office of a governmental
unit
of this state, another state, or the federal government, or is
a
member of or in the city or
county where the casino is located,
state elective office, or federal elective office, or is employed
by a city or county where the casino is located or by a gaming
regulatory body of a governmental unit in this state, another
state,
or the federal government. , or is employed by a
governmental
unit of this state. This section
does not apply to an
elected officer of or an employee of a federally recognized Indian
tribe or to an elected precinct delegate. As used in this
subdivision, "state elective office" means that term as defined in
section 12 of the Michigan campaign finance act, 1976 PA 388, MCL
169.212.
(g) The applicant or affiliate owns more than a 10% ownership
interest in any entity holding a casino license issued under this
act.
(h) The board concludes that the applicant lacks the requisite
suitability as to integrity, moral character, and reputation;
personal and business probity; financial ability and experience;
responsibility; or means to develop, construct, operate, or
maintain the casino proposed in the certified development
agreement.
(i) The applicant fails to meet other criteria considered
appropriate by the board. The criteria considered appropriate by
the
board shall must not be arbitrary, capricious, or contradictory
to the expressed provisions of this act.
(5) In determining whether to grant a casino license to an
applicant, the board shall also consider all of the following:
(a) The integrity, moral character, and reputation; personal
and business probity; financial ability and experience; and
responsibility of the applicant and of any other person or means to
develop, construct, operate, or maintain a casino that either:
(i) Controls, directly or indirectly, the applicant.
(ii) Is controlled, directly or indirectly, by the applicant
or by a person who controls, directly or indirectly, the applicant.
(b) The prospective total revenue to be derived by the state
from the conduct of casino gambling.
(c) The financial ability of the applicant to purchase and
maintain adequate liability and casualty insurance and to provide
an adequate surety bond.
(d) The sources and total amount of the applicant's
capitalization to develop, construct, maintain, and operate the
proposed casino.
(e) Whether the applicant has adequate capitalization to
develop, construct, maintain, and operate for the duration of a
license the proposed casino in accordance with the requirements of
this act and rules promulgated by the board and to responsibly pay
off its secured and unsecured debts in accordance with its
financing agreement and other contractual obligations.
(f) The extent and adequacy of any compulsive gambling
programs that the applicant will adopt and implement if licensed.
(g) The past and present compliance of the applicant and its
affiliates or affiliated companies with casino or casino-related
licensing requirements, casino-related agreements, or compacts with
the
state of Michigan this state or any other jurisdiction.
(h) Whether the applicant has been indicted, charged,
arrested, convicted, pleaded guilty or nolo contendere, forfeited
bail concerning, or had expunged any criminal offense under the
laws of any jurisdiction, either felony or misdemeanor, not
including traffic violations, regardless of whether the offense has
been expunged, pardoned, or reversed on appeal or otherwise.
(i) Whether the applicant has filed, or had filed against it,
a proceeding for bankruptcy or has ever been involved in any formal
process to adjust, defer, suspend, or otherwise work out the
payment of any debt.
(j) Whether the applicant has been served with a complaint or
other notice filed with any public body regarding a payment of any
tax required under federal, state, or local law that has been
delinquent
for 1 year or more. years.
(k) The applicant has a history of noncompliance with the
casino licensing requirements of any jurisdiction.
(l) The applicant has a history of noncompliance with any
regulatory requirements in this state or any other jurisdiction.
(m) Whether at the time of application the applicant is a
defendant in litigation involving its business practices.
(n) Whether awarding a license to an applicant would undermine
the
public's confidence in the Michigan gaming industry in this
state.
(o)
Whether the applicant meets other standards for the
issuance
of issuing a casino license which that the
board may
promulgate by rule. The rules promulgated under this subdivision
shall
must not be arbitrary, capricious, or contradictory to
the
expressed provisions of this act.
(6)
Each applicant shall must submit with its application, on
forms provided by the board, a photograph and 2 sets of
fingerprints
for each person having a greater than 1% 5% direct or
indirect pecuniary interest in the casino, and each person who is
an
officer, a director
, or is a managerial employee of the
applicant who performs the function of principal executive officer,
principal
operation officer, or principal accounting officer.
(7) The board shall review all applications for casino
licenses and shall inform each applicant of the board's decision.
Prior
to Before rendering its decision, the board shall provide a
public investigative hearing at which the applicant for a license
shall
have has the opportunity to present testimony and evidence to
establish its suitability for a casino license. Other testimony and
evidence may be presented at the hearing, but the board's decision
shall
must be based on the whole record before the board and is
not
limited to testimony and evidence submitted at the public
investigative hearing.
(8)
A license shall be is issued for a 1-year period. All
licenses are renewable annually upon payment of the license fee and
upon the transmittal to the board of an annual report to include
information required under rules promulgated by the board.
(9)
All applicants and licensees shall must consent to
inspections, searches, and seizures and the providing of
handwriting exemplar, fingerprints, photographs, and information as
authorized in this act and in rules promulgated by the board.
(10)
Applicants and licensees shall be are under a continuing
duty to provide information requested by the board and to cooperate
in any investigation, inquiry, or hearing conducted by the board.
(11) Failure to provide information requested by the board to
assist in any investigation, inquiry, or hearing of the board, or
failure to comply with this act or rules promulgated by the board,
may result in denial, suspension, or, upon reasonable notice,
revocation of a license.
Sec. 6a. (1) If in the review of an application submitted
under this act the board identifies a deficiency that would require
denial,
the board shall notify give
written notice of the
deficiency
to the applicant. and
the city in writing of the
deficiency.
(2)
The board shall provide the an
applicant a reasonable
period
of time to correct the a deficiency.
Sec. 6c. (1) Unless the board determines that an institutional
investor
may be found is unqualified, an institutional investor
holding either under 10% of the equity securities or debt
securities of a casino licensee's affiliate or affiliated company
which
that is related in any way to the financing of the casino
licensee, if the securities represent a percentage of the
outstanding debt of the affiliate or affiliated company not
exceeding 20%, or a percentage of any issue of the outstanding debt
of the affiliate or affiliated company not exceeding 50%, shall be
granted a waiver of the eligibility and suitability requirements of
section
6 if such securities are those of a publicly traded
corporation
and its holdings of such those securities
were
purchased for investment purposes only and, if requested by the
board, the investor files with the board a certified statement that
it has no intention of influencing or affecting the affairs of the
issuer, the casino licensee, or its affiliate or affiliated
company.
(2) The board may grant a waiver under this section to an
institutional investor holding a higher percentage of securities as
allowed in subsection (1), upon a showing of good cause and if the
conditions specified in subsection (1) are met.
(3) An institutional investor granted a waiver under this
section that subsequently intends to influence or affect the
affairs
of the issuer shall must provide notice to the board and
file an application for a determination of eligibility and
suitability before taking any action that may influence or affect
the affairs of the issuer.
(4) Notwithstanding any provisions of this act, an
institutional investor may vote on all matters that are put to the
vote of the outstanding security holders of the issuer.
(5) If an institutional investor changes its investment intent
or
if the board finds that the institutional investor may be found
is unqualified, no action other than divestiture of the security
holdings shall be taken until there has been compliance with this
act.
(6) The casino licensee or an affiliate or affiliated company
of the casino licensee shall immediately notify the board of any
information concerning an institutional investor holding its equity
or
debt securities which that
may impact the eligibility and
suitability of the institutional investor for a waiver under this
section.
(7) If the board finds that an institutional investor holding
any security of an affiliate or affiliated company of a casino
licensee that is related in any way to the financing of the casino
licensee fails to comply with the requirements of this section, or
if at any time the board finds that, by reason of the extent or
nature of its holdings, an institutional investor is in a position
to exercise a substantial impact upon the controlling interests of
a casino licensee, the board may take any necessary action to
protect the public interest, including requiring this institutional
investor to satisfy the eligibility and suitability requirements
under section 6.
Sec. 7a. (1) The board may issue a supplier's license to a
person who applies for a license and pays a nonrefundable
application fee set by the board, if the board determines that the
applicant is eligible and suitable for a supplier's license and the
applicant pays a $5,000.00 annual license fee. It is the burden of
the applicant to 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
board.
All applications shall of
a director or managerial employee
of the applicant who performs the function of principal executive
officer, principal operations officer, or principal accounting
officer must be made under oath.
(2) A person who holds a supplier's license is authorized to
sell or lease, and to contract to sell or lease, equipment and
supplies to any licensee involved in the ownership or management of
gambling operations.
(3)
Gambling supplies and equipment shall must not be
distributed unless supplies and equipment conform to standards
adopted in rules promulgated by the board.
(4) An applicant is ineligible to receive a supplier's license
if any of the following circumstances exist:
(a) The applicant has been convicted of a felony under the
laws of this state, any other state, or the United States. The
board may waive the requirements in this subdivision if the
conviction occurred more than 10 years before the applicant applies
for a license under this section and the board is convinced of both
of the following:
(i) That the applicant does not pose a threat to the integrity
of gaming.
(ii) That the applicant otherwise meets the requirements of
this section.
(b) The applicant 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. The board may waive the requirements in this subdivision if
the conviction occurred more than 5 years before the applicant
applies for a license under this section and the board is convinced
of both of the following:
(i) That the applicant does not pose a threat to the integrity
of gaming.
(ii) That the applicant otherwise meets the requirements of
this section.
(c) The applicant has submitted an application for license
under
this act which that contains false information.
(d) The applicant is a member of the board.
(e)
The applicant holds an elective office of a governmental
unit
of this state, another state, or the federal government, or is
a
member of or in the city or
county where the casino is located,
state elective office, or federal elective office, or is employed
by a city or county where the casino is located or by a gaming
regulatory body of a governmental unit in this state, another
state,
or the federal government. , or is employed by a
governmental
unit of this state. This
subdivision does not apply to
an elected officer of or an employee of a federally recognized
Indian
tribe or an elected to a precinct delegate. As used in this
subdivision, "state elective office" means that term as defined in
section 12 of the Michigan campaign finance act, 1976 PA 388, MCL
169.212.
(f)
The applicant owns more than a 10% ownership interest in
any
entity holding a casino license issued under this act.
(f) (g)
The board concludes that the
applicant lacks the
requisite suitability as to integrity, moral character, and
reputation; personal and business probity; financial ability and
experience; and responsibility.
(g) (h)
The applicant fails to meet other
criteria considered
appropriate by the board. The board shall not apply criteria
considered
appropriate by the board shall not be that are
arbitrary, capricious, or contradictory to the expressed provisions
of this act.
(5) In determining whether to grant a supplier's license to an
applicant, the board shall consider all of the following:
(a) The applicant's past and present compliance with casino
licensing requirements of this state or any other jurisdiction
pertaining to casino gaming or any other regulated activities.
(b) The integrity, moral character, and reputation; personal
and business probity; financial ability and experience; and
responsibility
of the applicant. or an affiliate of the applicant.
(c) Whether the applicant has been indicted for, charged with,
arrested for, convicted of, pleaded guilty or nolo contendere to,
forfeited bail concerning, or had expunged any criminal offense
under the laws of any jurisdiction, either felony or misdemeanor,
not including traffic violations, regardless of whether the offense
has been expunged, pardoned, or reversed on appeal or otherwise.
(d) Whether the applicant has filed, or had filed against it,
a proceeding for bankruptcy or has ever been involved in any formal
process to adjust, defer, suspend, or otherwise work out the
payment of any debt.
(e) Whether the applicant has been served with a complaint or
other notice filed with any public body regarding a payment of any
tax required under federal, state, or local law that has been
delinquent
for 1 year or more. years.
(f) Whether the applicant has a history of noncompliance with
the casino licensing requirements of any jurisdiction.
(g) Whether the applicant has a history of noncompliance with
any regulatory requirements in this state or any other
jurisdiction.
(h) Whether at the time of application the applicant is a
defendant in litigation involving its business practices.
(i)
Whether awarding a license to an the applicant would
undermine
the public's confidence in the Michigan gaming industry
in this state.
(j)
Whether the applicant meets other standards for the
issuance
of issuing a supplier's license that contained in a rule
promulgated
by the board. may
promulgate by rule. The rules
promulgated
board shall not promulgate a
rule under this
subdivision
shall not be that is arbitrary, capricious, or
contradictory to the expressed provisions of this act.
(6)
Any A person
, including a junket enterprise, that
supplies equipment, devices, supplies, or services to a licensed
casino shall first obtain a supplier's license. A supplier shall
furnish to the board a list of all equipment, devices, and supplies
offered for sale or lease to casino licensees licensed under this
act.
(7) A supplier shall keep books and records of its business
activities with a casino operator, including its furnishing of
equipment, devices, supplies, and services to gambling operations
separate and distinct from any other business that the supplier
might
operate. A supplier shall file a quarterly return with the
board
listing all sales, leases, and services. operates. A supplier
shall permanently affix its name to all its equipment, devices, and
supplies for gambling operations. Any supplier's equipment,
devices, or supplies that are used by any person in an unauthorized
gambling
operation shall be are forfeited to the this state.
(8) A casino licensee who owns its own equipment, devices, and
supplies is not required to obtain a supplier's license.
(9) Any gambling equipment, devices, and supplies provided by
any licensed supplier may be either repaired in the casino or
removed
from the casino to a licensed area.an area approved by the
board.
(10)
A supplier's license shall be issued under this section
is
valid for a 1-year period of 1 year from the date the license is
issued. All licenses are renewable annually upon payment of the
license fee and the transmittal to the board of an annual report to
include information required under rules promulgated by the board.
(11)
All applicants and licensees shall must consent to
inspections, searches, and seizures provided for in section
4a(1)(c)(i) to (v) and to the disclosure to the board and its
agents of confidential records, including tax records, held by any
federal, state, or local agency, credit bureau, or financial
institution and to provide handwriting exemplars, photographs,
fingerprints, and information as authorized in this act and in
rules promulgated by the board.
(12)
Applicants and licensees shall be under have a continuing
duty to provide information requested by the board and to cooperate
in any investigation, inquiry, or hearing conducted by the board.
(13) Failure to provide information requested by the board to
assist in any investigation, inquiry, or hearing of the board, or
failure to comply with this act or rules promulgated by the board,
may result in denial, suspension, or, upon reasonable notice,
revocation of a license.
Sec. 7c. (1) Each local labor organization that directly
represents casino gaming employees shall register with the board
annually
biennially and provide all of the following:
(a) The local labor organization's name, address, and
telephone number.
(b) The name and address of any international labor
organization with which it directly or indirectly maintains an
affiliation or relationship.
(c) All of the following information for the designated
individuals and other personnel of the local labor organization:
(i) The individual's full name and any known alias or
nickname.
(ii) The individual's business address and telephone number.
(iii) The individual's title or other designation in the local
labor organization.
(iv) Unless information is required under subdivision (d)(v),
a brief description of the individual's duties and activities.
(v) The individual's annual compensation, including salary,
allowances, reimbursed expenses, and other direct or indirect
disbursements.
(d) All of the following additional information for each
designated individual of the local labor organization:
(i) The individual's home address and telephone number.
(ii) The individual's date and place of birth.
(iii) The individual's social security Social Security number.
(iv) The date he or she was hired by or first consulted with
or advised the local labor organization.
(v) A detailed description of all of the following:
(A) The individual's duties and activities.
(B) Whether he or she performed the same or similar activities
previously on a labor organization's behalf.
(C) The individual's prior employment or occupational history.
(vi) Excluding minor traffic offenses, a detailed description
of all of the following:
(A) The individual's convictions, including any conviction
that was expunged or set aside, sealed by court order, or for which
he or she received a pardon.
(B) Any criminal offense for which he or she was charged or
indicted but not convicted.
(vii) Whether he or she was ever denied a business, liquor,
gaming,
or professional license or had such a business, liquor,
gaming, or professional license revoked.
(viii) Whether a court or governmental agency determined the
individual unsuitable to be affiliated with a labor organization
and the details of that determination.
(ix) Whether the individual was ever subpoenaed as a witness
before a grand jury, legislative committee, administrative body,
crime commission, or similar agency and the details relating to
that subpoena.
(x) A photograph of the individual taken within the previous
60 days.
(xi) For the local labor organization's first filing, a
complete set of the individual's fingerprints.
(e) A written certification under oath by the local labor
organization president, secretary, treasurer, or chief official
that the information provided under this subsection is complete and
accurate. The board shall prescribe the form for this
certification.
(2) A local labor organization may satisfy the information
requirements of subsection (1) by providing to the board copies of
reports
filed with the United States department of labor Department
of Labor under the labor management reporting and disclosure act of
1959, Public Law 86-257, supplemented by any required information
not contained in those reports.
(3) If information required under subsection (1) for a
designated individual changes after registration or if the local
labor organization gains a designated individual after
registration, the local labor organization shall provide the board
with that new information or the information, photograph, and
fingerprints required under subsection (1) for the new designated
individual within 21 days after the information changes.
(4) Notwithstanding section 4c, information provided by a
local labor organization to the board under this section is exempt
from disclosure under the freedom of information act, 1976 PA 442,
MCL 15.231 to 15.246.
(5) Upon finding by clear and convincing evidence that grounds
for disqualification under subsection (6) exist, the board may
disqualify an officer, agent, or principal employee of a local
labor organization registered or required to be registered under
this section from performing any of the following functions:
(a) Adjusting grievances for or negotiating or administering
the wages, hours, working conditions, or employment conditions of
casino gaming employees.
(b) Soliciting, collecting, or receiving from casino gaming
employees any dues, assessments, levies, fines, contributions, or
other charges within this state for or on behalf of the local labor
organization.
(c) Supervising, directing, or controlling other officers,
agents, or employees of the local labor organization in performing
functions described in subdivisions (a) and (b).
(6) An individual may be disqualified under subsection (5) for
lacking good moral character only if any of the following apply:
(a) He or she has been indicted or charged with, convicted of,
pled guilty or nolo contendere to, or forfeited bail in connection
with a crime involving gambling, theft, dishonesty, prostitution,
or fraud under the laws of this state, any other state, or the
United States or a local ordinance of a political subdivision of
this
state or another state. Disqualification cannot must not be
based only on crimes that involve soliciting or engaging
prostitution services unless the individual is or has engaged in an
ongoing pattern of that behavior. If the grounds for
disqualification are criminal charges or indictment, at the
individual's request, the board shall defer making a decision on
disqualification while the charge or indictment is pending.
(b) He or she intentionally or knowingly made or caused to be
made a false or misleading statement in a document provided to the
board or its agents or orally to a board member or agent in
connection with an investigation.
(c) He or she engages in criminal or unlawful activities in an
occupational manner or context for economic gain, or is an
associate or member of a group of individuals who operate together
in that fashion, and this behavior creates a reasonable belief that
the behavior adversely affects gambling operations and the public
policy underlying this act. In making a determination under this
subdivision, the board may consider findings or identifications by
the attorney general or department of state police that an
individual is within this category.
(7) A designated individual shall report all information
described in subsection (6)(a) to (c) concerning him or her to the
local labor organization. A local labor organization shall report
all information described in subsection (6)(a) to (c) concerning
its designated individuals of which it has actual knowledge to the
board.
(8) The board may waive any disqualification criterion under
subsection (6) or may rescind a disqualification under subsection
(5), if doing so is consistent with the public policy of this act
and
based on a finding that the interests of justice so require
that waiver or rescission.
(9) The board shall give written notice to an individual it
proposes to disqualify and to the affected labor organization,
stating the reason for the proposed disqualification and describing
any supporting evidence in the board's possession. Within 30 days
after receiving the written notice of proposed disqualification,
the respondent may file with the board a written request for a
hearing,
which shall that must take place promptly. The board shall
conduct the hearing in conformity with the contested case
procedures set forth in the administrative procedures act of 1969,
1969 PA 306, MCL 24.201 to 24.328. A person aggrieved by a final
disqualification has the right to appeal to the circuit court for
the county in which the person resides or has his or her principal
place of business to have the disqualification set aside based on
any ground set forth in section 106 of the administrative
procedures act of 1969, 1969 PA 306, MCL 24.306.
(10) Not later than January 31 of the calendar year after
disqualification and each year after that unless the
disqualification is rescinded or reversed, the disqualified
individual shall provide the board with a sworn statement that he
or she did not perform the functions described in subsection (5)
during the previous year.
(11)
The board may petition in the circuit court for the
county in which the disqualified individual resides or has his or
her principal place of business for an order enforcing the terms of
the disqualification.
(12) A local labor organization that is registered or required
to be registered under this section or any officer, agent, or
principal employee of that organization shall not personally hold
any financial interest in a casino licensee employing casino gaming
employees represented by the organization or person.
(13) This section does not prohibit a local labor organization
from conducting training for or operating a school to train casino
gaming employees, or from entering into an agreement or arrangement
with a casino licensee, supplier, or vendor to provide for the
training of casino gaming employees. A local labor organization
that
conducts such training of
casino gaming employees or operates
such
a school to train casino gaming employees or does not
otherwise qualify as a supplier is not subject to the contribution
prohibitions
of under section 7b.
(14) This section does not deny, abridge, or limit in any way
the legitimate rights of casino gaming employees to form, join, or
assist labor organizations, to bargain collectively through
representatives of their own choosing, or to engage in other
concerted activities for the purpose of collective bargaining or
other mutual aid and protection or the free exercise of any other
rights they may have as employees under the laws of the United
States or this state.
(15) This section shall not be expanded or amplified by action
of the board or any other executive or administrative body. The
board and any other executive or administrative body do not have
authority to promulgate interpretive rules or rulings to implement
this section. The board and any other executive or administrative
body do not have authority under this section to require that a
local labor organization or an officer, agent, or principal
employee of a labor organization does either of the following:
(a) Qualify for or obtain a casino, occupational, or
supplier's license or any other license or permit required under
rules promulgated by the board.
(b) Ensure the compliance of any person or entity with the
licensing requirements under this act or under rules promulgated by
the board.
(16) As used in this section:
(a) "Casino gaming employee" means the following and their
supervisors:
(i) Individuals involved in operating a casino gaming pit,
including
dealers, shills, clerks, and hosts.
, and junket
representatives.
(ii) Individuals involved in handling money, including
cashiers, change persons, count teams, and coin wrappers.
(iii) Individuals involved in operating gambling games.
(iv) Individuals involved in operating and maintaining slot
machines, including mechanics, floorpersons, and change and payoff
persons.
(v) Individuals involved in security, including guards and
game observers.
(vi) Individuals with duties similar to those described in
subparagraphs (i) to (v). However, casino gaming employee does not
include an individual whose duties are related solely to nongaming
activities such as entertainment, hotel operation, maintenance, or
preparing or serving food and beverages.
(b) "Designated individual" means an officer, agent, principal
employee, or individual performing a function described in
subsection (5).
(17)
Nothing in this This act shall does not preclude
employees from exercising their legal rights to organize themselves
into collective bargaining units.
Sec. 8. (1) The board may issue an occupational license to an
applicant after all of the following have occurred:
(a) The applicant has paid a nonrefundable application fee set
by the board.
(b) The board has determined that the applicant is eligible
for
an occupational license pursuant to under rules promulgated by
the board.
(c) The applicant has paid the biennial license fee in an
amount
to be established by the board.
(2)
It is the burden of the The
applicant to shall establish
by clear and convincing evidence the applicant's eligibility and
suitability as to integrity, moral character, and reputation;
personal probity; financial ability and experience; responsibility;
and
other criteria as may be considered appropriate by the board.
The
board shall not apply criteria considered appropriate by the
board
shall not be that are arbitrary, capricious, or contradictory
to
the expressed provisions of this act. All applications shall
must be made under oath.
(3) To be eligible for an occupational license, an applicant
shall:must meet all of the following:
(a) Be at least 21 years of age if the applicant will perform
any function involved in gaming by patrons.
(b) Be at least 18 years of age if the applicant will perform
only nongaming functions.
(c) Not have been convicted of a felony under the laws of this
state, any other state, or the United States. The board may waive
the requirements in this subdivision if the conviction occurred
more than 10 years before the applicant applies for a license under
this section and the board is convinced of both of the following:
(i) That the applicant does not pose a threat to the integrity
of gaming.
(ii) That the applicant otherwise meets the requirements of
subsection (2).
(d) Not have been convicted of a misdemeanor involving
gambling, dishonesty, theft, or fraud in any state or any violation
of a local ordinance in any state involving gambling, dishonesty,
theft, or fraud that substantially corresponds to a misdemeanor in
that state. The board may waive the requirements in this
subdivision if the conviction occurred more than 5 years before the
applicant applies for a license under this section and the board is
convinced of both of the following:
(i) That the applicant does not pose a threat to the integrity
of gaming.
(ii) That the applicant otherwise meets the requirements of
subsection (2).
(4)
Each application for an occupational license shall must be
on
a form prescribed by the board and shall contain all information
required by the board. The applicant shall set forth in the
application whether he or she has been issued prior gambling
related licenses; whether he or she has been licensed in any other
state under any other name, and, if so, the name under which the
license was issued and his or her age at the time the license was
issued; and whether or not a permit or license issued to him or her
in any other state has been suspended, restricted, or revoked, and,
if
so, the cause and the duration of each action.suspension,
restriction, or revocation.
(5) Each applicant shall submit with his or her application,
on a form provided by the board, 2 sets of his or her fingerprints
and a photograph. The board shall charge each applicant an
application fee set by the board to cover all actual costs of
administering the act relative to costs generated by each licensee
and all background checks.
(6) The board may, in its discretion, deny an occupational
license to a person who is or does any of the following:
(a) The applicant fails to disclose or states falsely any
information requested in the application.
(b) The applicant is a member of the board.
(c) The applicant has a history of noncompliance with the
casino licensing requirements of any jurisdiction.
(d) Whether the applicant has been indicted for, charged with,
arrested for, convicted of, pleaded guilty or nolo contendere to,
forfeited bail concerning, or had expunged any criminal offense
under the laws of any jurisdiction, either felony or misdemeanor,
not including traffic violations, regardless of whether the offense
has been expunged, pardoned, or reversed on appeal or otherwise.
(e) The applicant has filed, or had filed against it, a
proceeding for bankruptcy or has ever been involved in any formal
process to adjust, defer, suspend, or otherwise work out the
payment of any debt.
(f) The applicant has a history of noncompliance with any
regulatory requirements in this state or any other jurisdiction.
(g) The applicant has been served with a complaint or other
notice filed with any public body regarding a payment of any tax
required under federal, state, or local law that has been
delinquent
for 1 year or more. years.
(h) The applicant is employed by a governmental unit of this
state.
(i)
The applicant or affiliate owns more than a 10% ownership
interest
in any entity holding a casino license issued under this
act.
(i) (j)
The board concludes that the
applicant lacks the
requisite suitability as to integrity, moral character, and
reputation; personal probity; financial ability and experience; or
responsibility.
(j) (k)
The applicant fails to meet any
other criteria that
the board considers appropriate. The board shall not apply criteria
considered
appropriate by the board shall not be that are
arbitrary, capricious, or contradictory to the expressed provisions
of this act.
(k) (l) The
applicant is unqualified to perform the duties
required of the license.
(l) (m)
The applicant has been found guilty
of a violation of
this act.
(m) (n)
The applicant has had a prior
gambling related license
or license application suspended, restricted, revoked, or denied
for just cause in any other jurisdiction.
(7) The board may suspend, revoke, or restrict any
occupational licensee for any of the following:
(a) Violation of this act.
(b)
Violation of any of the rules rule
promulgated by the
board.
(c)
Any cause which, that, if known to the board, would have
disqualified the applicant from receiving the license.
(d) Default in the payment of any obligation or debt due to
the
state of Michigan.this state.
(e) Any other just cause.
(8)
A license issued pursuant to under
this section shall be
is
valid for a period of 2 years from the
date of issuance.the
license is issued.
(9)
All applicants and licensees shall must consent to the
inspections, searches, and seizures of their person and personal
effects as provided in section 4a(1)(c)(i) to (v) and the providing
of handwriting exemplars, photographs, fingerprints, and
information as authorized in this act and in rules promulgated by
the board.
(10)
An applicant or licensee shall be under has a continuing
duty to provide information requested by the board and to cooperate
in any investigation, inquiry, or hearing conducted by the board.
(11) Failure to provide information requested by the board, to
assist in any investigation, inquiry, or hearing of the board, or
to comply with this act or rules of the board may result in denial,
suspension, or, upon reasonable notice, revocation of a license.
Sec.
9. (1) Minimum The board
shall set minimum and maximum
wagers
on games. shall be set by the board.
(2) Employees of the board, the department of state police,
and the department of attorney general may inspect any casino at
any
time, without notice, for the purpose of determining to
determine whether this act or rules promulgated by the board are
being complied with.
(3) Employees of the board, the department of state police,
and the department of attorney general, and their authorized agents
shall
have the right to be present, at
any time, in the casino or
on adjacent facilities under the control of the licensee.
(4) Gambling equipment and supplies customarily used in
conducting
casino gambling shall must
be purchased or leased only
from suppliers who are licensed under this act.
(5)
Persons licensed under this act shall not
permit no any
form of wagering on gambling games except as permitted by this act.
(6)
Wagers may be received only from a person present in a
licensed
casino. A person present in a
licensed casino shall not
place or attempt to place a wager on behalf of another person who
is not present in the casino.
(7)
Wagering shall must not be conducted with money or other
negotiable currency unless otherwise approved by the board.
(8)
All tokens, chips, or electronic cards used to make wagers
shall
must be purchased from a licensed owner in the casino.
licensee.
The tokens, chips, or electronic
cards may be purchased
by means of an agreement under which the owner extends credit to
the
patron. Such tokens, The chips, or electronic cards may be used
only
while in a casino and only for the
purpose of making wagers on
gaming
gambling games.
(9)
A person under age who is
less than 21 shall years old is
not
be permitted in an area of a casino where gaming is being
conducted,
except for a person at least 18 years of age or older
who
is an employee of the gaming operation. An employee under the
age
of who is less than 21 years
old shall not perform any function
involved
in gambling by the patrons. A person under age who is less
than
21 shall years old is not be permitted to make a wager under
this act.
(10)
Managerial employees of casino licensees pursuant to this
act
shall be under an affirmative duty to A managerial employee of
a
casino licensee shall report to the
board, and the Michigan
department of state police, in writing, within 24 hours, illegal or
suspected
illegal activity or activity which that is in violation
of this act or of rules promulgated by the board.
(11) In addition to the requirements of this section, gambling
shall
must be conducted in accordance with the rules
promulgated by
the board.
(12)
Unless approved by the city, a casino shall must not
be
located within 1,000 feet of any of the following:
(a) A church or other place of worship.
(b) A school, college, or university.
(c) A financial institution or a branch of a financial
institution.
(d) A pawnshop.
(13)
As used in subsection (12), this
section, "financial
institution" means a state or nationally chartered bank, a state or
federally chartered savings and loan association, a state or
federally chartered savings bank, a state or federally chartered
credit union, or any entity that provides check-cashing services.
(14) A casino licensee shall not employ an individual who has
been convicted of a felony in the previous 5 years as a managerial
employee
who has been convicted of a felony in the previous 5 years
to
work in a casino.
Sec. 9a. (1) A person who holds a casino license shall not
install, own, or operate or allow another person to install, own,
or operate an electronic funds transfer terminal on the premises of
the casino that is less than 50 feet from any game in the casino.
(2) A person who holds a casino license shall not install,
own, or operate or allow another person to install, own, or operate
on the premises of the casino a game that is played with a device
that allows a player to operate the game by transferring funds
electronically from a credit or debit card.
(3) As used in this section, "electronic funds transfer
terminal" means an information processing device used for the
purpose of executing deposit account transactions between financial
institutions and their customers by either the direct transmission
of electronic impulses or the recording of electronic impulses for
delayed processing. The fact that a device is used for other
purposes does not prevent it from being an electronic funds
transfer terminal except a player's mobile or other personal device
is not an electronic funds transfer terminal.
Sec.
9b. (1) A Except as
provided in section 12, a person who
holds a casino license issued under this act shall not televise or
allow any other person to televise simulcast horse races on the
premises of the casino.
(2) As used in this section, "simulcast" means the live
transmission of video and audio signals conveying a horse race held
either in or outside of this state.
Sec. 9c. (1) A person who holds a casino license issued
pursuant
to under this act shall conspicuously post at each
entrance and exit of the casino, on each electronic funds transfer
terminal, and at each credit location a visually prominent sign on
which is printed a toll-free compulsive gaming helpline number.
(2) A person who holds a casino license issued under this act
shall include a toll-free compulsive gaming helpline number on all
of its printed advertisement and promotional materials.
Sec.
12. (1) A Except as
otherwise provided in subsections
(15) and (16), a wagering tax is imposed on the adjusted gross
receipts
received by the a casino licensee from gaming authorized
under this act at the rate of 18%. If a city exercises either of
the options in subsection (4), the tax rate under this subsection
shall
be is 8.1% and must
be deposited in the state school aid
fund
to
provide additional funds for K-12 classroom education. If the a
city rescinds or is otherwise unable to exercise 1 of the options
in
subsection (4), the tax rate under this subsection shall be is
18%.
A tax rate of 18% imposed under this subsection shall cover
covers any period for which the city does not or is unable to
exercise 1 of the options in subsection (4).
(2) The state casino gaming fund is created in the department.
of
treasury. The fund shall be
administered by the department in
accordance with this act. Except as provided in sections 12a and
13, the taxes imposed under this section plus all other fees,
fines,
and charges imposed by the this
state shall under this act
must
be deposited into the state casino
gaming fund. The A casino
licensee
shall remit the wagering tax is to
be remitted daily by
the
holder of a casino license to the
department of treasury daily
by
electronic wire transfer of funds. The state department shall
remit the city's portion of the wagering tax to the city daily by
electronic wire transfer of funds as provided by this act.
(3)
If the state imposes a wagering tax imposed under
subsection
(1) equal to is 18% of adjusted gross receipts, money in
the state casino gaming fund that is not from a tax imposed under
subsections
(5) to (8) shall must be allocated as follows:
(a) 55% to the city in which a casino is located for use in
connection with the following:
(i) The hiring, training, and deployment of street patrol
officers.
(ii) Neighborhood and downtown economic development programs
designed to create local jobs.
(iii) Public safety programs such as emergency medical
services, fire department programs, and street lighting.
(iv) Anti-gang and youth development programs.
(v) Other programs that are designed to contribute to the
improvement of the quality of life in the city.
(vi) Relief to the taxpayers of the city from 1 or more taxes
or fees imposed by the city.
(vii) The costs of capital improvements.
(viii) Road repairs and improvements.
(b) 45% to the state to be deposited in the state school aid
fund established by section 11 of article IX of the state
constitution of 1963 to provide additional funds for K-12 classroom
education.
(4) A city in which a casino licensee is located may do 1 of
the following:
(a) In the development agreement into which the city is
entitled to enter, include a provision that requires the licensee
located in the city to pay the city a payment equal to 9.9% of the
adjusted gross receipts received by the licensee from gaming
authorized under this act.
(b) By ordinance, levy, assess, and collect an excise tax upon
licensees located in the city at a rate of 9.9% of the adjusted
gross receipts received by the licensee from gaming authorized
under this act.
(5) Subject to subsections (6) to (8), a wagering tax in
addition to the tax imposed in subsection (1) is imposed on the
adjusted gross receipts received by a licensee from gaming
authorized under this act at the rate of 6%. Money from the tax
imposed under this subsection that has been deposited in the state
casino
gaming fund shall must be allocated 1/3 to the city in which
the licensee's casino is located for use in connection with the
purposes listed in subsection (3)(a), 7/12 to the general fund, and
1/12 to the Michigan agriculture equine industry development fund.
The city may collect its share of the tax under this subsection
directly using 1 of the methods in subsection (4). For a period
during which the licensee is paying the city's share of the tax
under this subsection directly to the city under either of the
methods in subsection (4), the payment to the state casino gaming
fund
under this subsection shall be is
4% and shall must be
allocated 7/8 to the general fund and 1/8 to the Michigan
agriculture equine industry development fund.
(6) Subject to subsections (7) and (8), and unless an act of
God, a war, a disaster, or an act of terrorism directly and
substantially
impacts the ability of the a
casino licensee to
complete construction of its casino and casino enterprise, if a
casino licensee is not fully operational by each of the following
dates,
the tax on the casino licensee under subsection (5) shall be
is as follows:
(a) July 1, 2009, 7%, allocated 1/2 to the general fund, 1/14
to the Michigan agriculture equine industry development fund, and
3/7 to the city in which the licensee's casino is located.
(b) July 1, 2010, 8%, allocated 7/16 to the general fund, 1/16
to the Michigan agriculture equine industry development fund, and
1/2 to the city in which the licensee's casino is located.
(c) July 1, 2011, 9%, allocated 7/18 to the general fund, 1/18
to the Michigan agriculture equine industry development fund, and
5/9 to the city in which the licensee's casino is located.
(7) Subject to subsection (8), and irrespective of whether
there has been an increase under subsection (6), after a casino
licensee has been fully operational for 30 consecutive days, the
casino licensee may apply to the board for certification under this
subsection. If the board determines that a casino licensee that
makes an application under this subsection has been fully
operational and in compliance with its development agreement that
is in existence on July 1, 2004 or a subsequent original
development agreement, for at least 30 consecutive days, the board
shall certify the casino licensee under this subsection, and the
tax imposed on the casino licensee under subsection (5), as
adjusted, if applicable, by subsection (6), shall be, retroactive
to the first day of the 30 consecutive day period that the casino
licensee
was fully operational, reduced to 1% and shall must be
allocated entirely to the city where the licensee operates its
casino.
(8) If the McCauley-Traxler-Law-Bowman-McNeely lottery act,
1972 PA 239, MCL 432.1 to 432.47, is amended to allow the operation
of video lottery at horse racetracks in this state, and if video
lottery is being conducted at horse racetracks in this state, the
casino licensee is no longer obligated to pay the wagering tax
under subsections (5) to (7).
(9) Notwithstanding section 9b, if the McCauley-Traxler-Law-
Bowman-McNeely lottery act, 1972 PA 239, MCL 432.1 to 432.47, is
amended to allow the operation of video lottery at horse racetracks
in this state, and if video lottery is being conducted at horse
racetracks in this state, a casino licensee may, after obtaining
approval from the board, apply to the racing commissioner for
authorization to simulcast horse races under the horse racing law
of 1995, 1995 PA 279, MCL 431.301 to 431.336. A casino licensee
that
is authorized under this subsection shall display and allow
wagering
on simulcast horse races only at the licensee's casino and
shall comply with all applicable provisions of the horse racing law
of 1995, 1995 PA 279, MCL 431.301 to 431.336, rules promulgated
under that act, and the written permit to conduct simulcasting and
any related order issued to the casino licensee by the racing
commissioner. Simulcasting and wagering under this subsection are
under the primary control of the racing commissioner, and the
racing commissioner may revoke or suspend the authorization of or
take other disciplinary action against the casino licensee for
failing to comply with a law, rule, permit, or order as required by
this subsection. However, the simulcasting and wagering under this
subsection is part of the licensee's casino operation under this
act and subject to the same control by the board as are other parts
of the licensee's casino operation. The board may take disciplinary
action under section 4a against a casino licensee for failure to
comply with a law, rule, permit, or order as required by this
subsection.
(10) A casino licensee is entitled to the same commission from
money wagered on horse races simulcast by the licensee as a race
meeting licensee is entitled to receive from wagering on simulcast
horse races under the horse racing law of 1995, 1995 PA 279, MCL
431.301 to 431.336. The same taxes, fees, and other deductions
shall
must be subtracted and paid from the licensee's
commission as
are subtracted and paid from a race meeting licensee's commission
under the horse racing law of 1995, 1995 PA 279, MCL 431.301 to
431.336.
(11) Payments to a city under 1 of the methods in subsection
(4)
shall must be made in a manner, at those times, and subject to
reporting requirements and penalties and interest for delinquent
payment as may be provided for in the development agreement if the
payment is required under a development agreement, or by ordinance
if the payment is required for a tax levied by the city. Payments
required under the method described in subsection (4)(a) may be in
addition
to any other payments which that
may be required in the
development agreement for the conveyance of any interest in
property, the purchase of services, or the reimbursement of
expenses. Payments to a city under the method described in
subsection
(4) shall must be used by the city for the purposes
listed in subsection (3)(a).
(12) Approval by the city of a development agreement or
adoption of an ordinance approving either casino gaming or the levy
of a local excise tax does not constitute the granting of a
franchise or license by the city for purposes of any statutory,
charter, or constitutional provision.
(13) The taxes imposed under this section and any tax imposed
under
section 13(2) shall must be administered by the department of
treasury in accordance with 1941 PA 122, MCL 205.1 to 205.31, and
this act. In case of conflict between the provisions of 1941 PA
House Bill No. 5881 as amended December 20, 2018
122, MCL 205.1 to 205.31, and this act, the provisions of this act
prevail.
(14)
Funds from this act shall must
not be used to supplant
existing state appropriations or local expenditures.
(15) If internet gaming is authorized and regulated by another
law of this state, any taxes, payments, and fees relating to
internet wagers received by a casino licensee and internet gaming
are subject to that other law of this state and no other tax,
payment, or fee may be imposed by agreement or otherwise on a
casino licensee or a political subdivision of this state for
internet wagers received by a casino licensee or internet gaming.<< THIS
SUBSECTION does not IMPAIR THE CONTRACTUAL RIGHTS UNDER AN EXISTING DEVELOPMENT AGREEMENT BETWEEN A CITY AND A CASINO LICENSEE.>>
(16) Except as otherwise provided in subsection (15), and in
lieu of the taxes and fees otherwise imposed under this act, a
wagering tax of 8% is imposed on the adjusted gross receipts
received by a casino licensee from sports betting or internet
gaming and no other tax or fee may be imposed by agreement or
otherwise on a casino licensee by this state or a political
subdivision of this state for sports betting or internet gaming.<< THIS
SUBSECTION DOES NOT IMPAIR THE CONTRACTUAL RIGHTS UNDER AN EXISTING DEVELOPMENT AGREEMENT BETWEEN A CITY AND A CASINO LICENSEE.>>
(17) Notwithstanding subsections (15) and (16), if a casino
licensee provides a wagerer with a device to conduct internet
gaming while at the casino, the 19% wagering tax otherwise provided
under this section is imposed on the adjusted gross receipts
received by the casino licensee from the wagerer's internet gaming
on the device.
(18) (15)
As used in this section:
(a) "Fully operational" means that a certificate of occupancy
has been issued to the casino licensee for the operation of a hotel
with not fewer than 400 guest rooms and, after issuance of the
certificate of occupancy, the casino licensee's casino, casino
enterprise, and 400-guest-room hotel have been opened and made
available for public use at their permanent location and maintained
in that status.
(b) "Michigan agriculture equine industry development fund"
means the Michigan agriculture equine industry development fund
created in section 20 of the horse racing law of 1995, 1995 PA 279,
MCL 431.320.
Sec. 12a. (1) In addition to application and license fees
described in this act, all regulatory and enforcement costs,
compulsive gambling programs, casino-related programs and
activities, casino-related legal services provided by the attorney
general, and the casino-related expenses of the department of state
police
shall must be paid by casino licensees as provided by this
section.
(2) The total annual assessment for the first year in which
any casino licensee under this act begins operating a casino in
this
state shall be is $25,000,000.00.
(3) The total annual assessment required under this subsection
shall
must be adjusted each year by multiplying the annual
assessment for the immediately preceding year by the Detroit
consumer
price index Consumer Price
Index for the immediately
preceding
year. As used in this subsection, "Detroit consumer price
index"
Consumer Price Index" means the annual consumer price index
for Detroit consumers as defined and reported by the United States
department
Department of labor, bureau Labor, Bureau of labor
statistics.Labor Statistics.
(4)
On or before the date the a
casino licensee begins
operating
the its casino and annually on that date thereafter, each
the casino licensee shall pay to the state treasurer an equal share
of
the total annual assessment required under this section. In no
event
shall a A casino's assessment must not exceed 1/3 of the
total annual assessment required under this section.
(5) From the amount collected under subsection (4),
$2,000,000.00
shall must be deposited in the compulsive gaming
prevention fund.
(6) The state services fee fund is created in the department
of
treasury and shall be
administered by the department shall
administer the state services fee fund in accordance with this act.
(7)
Except as provided in subsections (5) and (8), all funds
money
collected under this section shall must be
deposited in the
state
services fee fund. Distributions from the fund shall must be
made by the legislature through the appropriations process.
(8)
The balance of the state services fee fund shall must not
exceed
$65,000,000.00. If the funds money
collected under this
section would cause the balance to exceed the limitation of this
subsection,
the surplus funds shall money
must be credited in equal
shares against each casino licensee's annual assessment made under
this
section. 12a.
(9)
The funds money collected under this section and deposited
in
the state services fee fund shall does not revert to the
general
fund
at the close of the fiscal year but shall remain remains in
the fund.
Sec.
14. Within 30 90 days after the end of each quarter of
each fiscal year each casino licensee shall transmit to the board
and to the city in which the licensee's casino is located an audit
of
the financial condition of the licensee's total operations. All
audits
shall An audit under this
section must be conducted by a
certified public accountant in a manner and form prescribed by the
board.
Each The certified public accountant shall that performs the
audit
must be registered in the this state
of Michigan under
article
7 of the occupational code, 1980 PA 299, MCL 339.701 to
339.715.
339.720 to 339.736. The licensee
shall pay the
compensation
for each the certified public accountant shall be paid
directly
by the licensee to the certified public accountant.
Sec. 18. (1) A person is guilty of a felony punishable by
imprisonment for not more than 10 years or a fine of not more than
$100,000.00,
or both, and shall be is barred from receiving or
maintaining a license under this act for doing any of the
following:
(a)
Conducting a gambling operation where in which wagering is
used or to be used without a license issued by the board.
(b)
Conducting a gambling operation where in which wagering is
permitted other than in the manner specified in section 9.
(c) Knowingly making a false statement on an application for
any
a license provided in under this
act or a written document
provided under oath in support of a proposal for a development
agreement.
(d) Knowingly providing false testimony to the board or its
authorized representative while under oath.
(e) Willfully failing to report, pay, or truthfully account
for
any a license fee or tax imposed by this act or willfully
attempt
attempting in any way to evade or defeat the license fee,
tax,
or payment. A person convicted under this subsection shall
subdivision
is also be subject to a penalty
of 3 times the amount
of the licensee fee or tax not paid.
(f) Making a political contribution in violation of section
7b. of
this act.
(2) A person commits a felony punishable by imprisonment for
not more than 10 years or a fine of not more than $100,000.00, or
both,
and, in addition, shall be is
barred for life from a gambling
operation under the jurisdiction of the board if the person does
any of the following:
(a) Offers, promises, or gives anything of value or benefit to
a person who is connected with a licensee or affiliated company,
including, but not limited to, an officer or employee of a casino
licensee or holder of an occupational license pursuant to an
agreement or arrangement or with the intent that the offer,
promise, or thing of value or benefit will influence the actions of
the person to whom the offer, promise, or gift was made in order to
affect or attempt to affect the outcome of a gambling game, or to
influence official action of a member of the board.
(b) Solicits or knowingly accepts or receives a promise of
anything of value or benefit while the person is employed by or
connected with a licensee, including, but not limited to, an
officer or employee of a casino licensee or holder of an
occupational license, pursuant to an understanding or arrangement
or with the intent that the promise or thing of value or benefit
will influence the actions of the person to affect or attempt to
affect the outcome of a gambling game.
(c) Offers, promises, or gives anything of value or benefit to
a
member, employee, or agent of the board or an official of any a
state or local agency or governmental body with the intent that the
offer, promise, or thing of value or benefit will influence the
official action of the person to whom the offer, promise, or gift
was made pertaining to a city development agreement, or
administrating, licensing, regulating, or enforcing this act.
(d) Solicits or knowingly accepts or receives a promise of
anything of value or benefit while the person is a member,
employee, or agent of the board, or an official of any state or
local agency or governmental body, pursuant to an understanding or
arrangement or with the intent that the promise or thing of value
or benefit will influence the official action of the member,
employee, or agent of the board or official of the state or local
governmental body pertaining to a city development agreement, or
enforcing this act.
(e) Except as otherwise provided by the board, uses or
possesses
with the intent to use a device to assist in doing that
does any of the following:
(i) Projecting Projects the outcome of a
gambling game.
(ii) Keeping Keeps track of the cards
played in a gambling
game.
(iii) Analyzing Analyzes the probability of
the occurrence of
an event relating to a gambling game.
(iv) Analyzing Analyzes the strategy for
playing or betting to
be used in a gambling game.
(f) Cheats at a gambling game.
(g) Manufactures, sells, or distributes cards, chips, dice, a
game, or a device that is intended to be used to violate this act.
(h) Alters or misrepresents the outcome of a gambling game on
which wagers have been made after the outcome is determined but
before it is revealed to the players.
(i) Places a bet after acquiring knowledge, not available to
all players, of the outcome of the gambling game that is the
subject of the bet or to aid a person in acquiring the knowledge
for the purpose of placing a bet contingent on that outcome.
(j) Claims, collects, takes, or attempts to claim, collect, or
take
money or anything of value in or from the a gambling games,
game, with intent to defraud, without having made a wager
contingent
on winning a the gambling game, or claims, collects, or
takes an amount of money or thing of value of greater value than
the amount won.
(k)
Uses counterfeit chips or tokens in a gambling game.
(l) Possesses a key or device designed for the purpose of
opening, entering, or affecting the operation of a gambling game,
drop box, or an electronic or mechanical device connected with the
gambling
game or for removing coins, tokens, chips, or other
contents of a gambling game. This subdivision does not apply to a
gambling
casino licensee or employee of a gambling casino licensee
acting in furtherance of the employee's employment.
(3) A person, or an affiliate of a person, is guilty of a
misdemeanor punishable by imprisonment for not more than 1 year in
a county jail or a $10,000.00 fine, or both, for doing any of the
following:
(a) Knowingly making a wager if the person is under 21 years
of age or permitting a person under 21 years of age to make a
wager.
(b) Willfully failing to appear before or provide an item to
the board at the time and place specified in a subpoena or summons
issued by the board or executive director.
(c) Willfully refusing, without just cause, to testify or
provide items in answer to a subpoena, subpoena duces tecum or
summons issued by the board or executive director.
(d) Conducting or permitting a person who is not licensed
pursuant
to under this act to conduct activities required to be
licensed under the casino, occupational, and suppliers licensee
provisions in this act or in rules promulgated by the board.
(e)
Knowingly violates or aids or abets in the violation of
the
provisions of section 7b. of this act.
(f) Leasing, pledging, borrowing, or loaning money against a
casino, supplier, or occupational license.
(4) The possession of more than 1 of the devices described in
subsection (2)(e) permits a rebuttable presumption that the
possessor intended to use the devices for cheating.
(5)
An action to prosecute any a
crime described in this
section may, in the discretion of the attorney general or county
prosecuting attorney, be tried in the county in which the crime
occurred
or in the county of Ingham
County.
Sec.
21. When If the board is authorized or required by law to
consider some aspect of criminal history record information for the
purpose of carrying out its statutory powers and responsibilities,
the board shall, in the form and manner required by the department
of
state police and the federal bureau of investigation, Federal
Bureau of Investigation, cause to be conducted a criminal history
record investigation to obtain any information currently or
subsequently contained in the files of the department of state
police
or the federal bureau of investigation. Federal Bureau of
Investigation. The department of state police shall provide all
criminal record information requested by the board for any person
who is an applicant for or a holder of a license under this act.
Sec. 25. (1) The board shall create a list of disassociated
persons. The board shall, with the assistance of casino licensees,
inform each patron of the list of disassociated persons and explain
how the patron may add his or her name to the list.
(2) The board may add an individual's name to the list of
disassociated persons if the individual has notified the board in
writing of his or her pledge not to visit a casino in this state by
filing an application for placement on the list of disassociated
persons with the board.
(3) The board shall create and make available an application
for placement on the list of disassociated persons. The application
shall
must include all of the following information about the
individual who is applying:
(a) Full name and all aliases.
(b) Physical description including height, weight, hair and
eye color, skin color, and any other noticeable physical
characteristics.
(c) Occupation.
(d) Current home and work addresses and phone numbers.
(e)
Social security Security number.
(f) Date of birth.
(g) Statement that the individual believes he or she is a
problem gambler and is seeking treatment.
(h) A photograph suitable for the board and casino licensees
to use to identify the individual.
(i) Other information that the board considers necessary.
(4)
An individual's name shall must
be placed on the list of
disassociated persons after all of the following have occurred:
(a) The individual has submitted an application to be placed
on
the list of disassociated persons to the Michigan gaming control
board.
(b) The application has been verified by a representative of
the board.
(c) The individual has signed an affidavit in which he or she
affirms that he or she wishes to be placed on the list of
disassociated persons and authorizing the board to release the
contents of his or her application to all casino licensees in this
state.
(d)
The individual signs a form releasing the this state, of
Michigan,
the board, and the casino licensees
from any injury the
individual suffers as a consequence of placing his or her name on
the list of disassociated persons.
(e) The individual signs a form stating that he or she
understands and authorizes all of the following:
(i) That a criminal complaint for trespassing will be filed
against him or her if he or she is found on the premises of a
casino in this state and he or she will be immediately removed from
the casino premises.
(ii) That if he or she enters a casino and wins any money, the
board will confiscate the winnings.
(5) An individual who has his or her name placed on the list
of
disassociated persons shall must
remain on the list for the
remainder of his or her life.
(6) After an application has been submitted to the board, the
chairperson of the board shall file a notice of placement on the
list of disassociated persons with the board at the next closed
session. Information contained in an application under subsection
(4) is exempt from disclosure under section 4c of this act and is
not
open for public inspection. The information shall must be
disclosed to the board, each casino licensee in this state, the
department of attorney general, and the department of state police.
(7)
The list of disassociated persons shall must be provided
to each casino licensee, the department of attorney general, and
the department of state police.
(8) Each casino licensee in this state shall submit to the
board a plan for disseminating the information contained in the
applications for placement on the list of disassociated persons.
The
board shall approve the plan. The plan shall must be
designed
to
safeguard the confidentiality of the information but shall must
include dissemination to all of the following:
(a) The general casino manager or the managerial employee who
has responsibility over the entire casino operations.
(b) All security and surveillance personnel.
(c) The department of state police.
(9)
A Except as otherwise
provided in this subsection, a
casino licensee shall not extend credit, offer check cashing
privileges, or offer coupons to, or market its services, or send
advertisements to, or otherwise solicit the patronage in the casino
of, those persons whose names are on the list of disassociated
persons. A casino licensee may market or advertise its services,
other than by direct mail, for the casino licensee's nongaming
amenities, such as hotels, restaurants, and event centers.
(10) The casino licensee shall keep a computer record of each
individual whose name is on the list of disassociated persons. If a
casino licensee identifies a person whose name is on the list of
disassociated persons on the premises of a casino, the licensee
shall immediately notify the board, a representative of the board,
or a representative of the department of state police who is on the
premises
of the casino. After the licensee confirms that the
individual
has filed an affidavit under this section, the licensee
shall
do all of the following:
(a)
Immediately remove the individual from the casino
premises.
(b)
Report the incident to the prosecutor for the county in
which
the casino is located.
(11) A casino licensee who violates this act is subject to
disciplinary action by the board.
(12) The board shall promulgate rules to implement and
administer this act.
(13) An individual who has placed his or her name on the list
of disassociated persons who enters a casino in this state is
guilty of criminal trespassing punishable by imprisonment for not
more than 1 year, a fine of not more than $1,000.00, or both.
(14) This act does not create any right or cause of action on
behalf of the individual whose name is placed on the list of
disassociated
persons against the this state, of Michigan, the
board, or a casino licensee.
(15)
Any winnings collected by the board under this act shall
must be deposited into the compulsive gaming prevention fund.
Enacting section 1. Sections 8a and 10 of the Michigan gaming
control and revenue act, 1996 IL 1, MCL 432.208a and 432.210, are
repealed.
Enacting section 2. This amendatory act does not take effect
unless House Bill No. 4926 of the 99th Legislature is enacted into
law.