April 25, 2018, Introduced by Rep. Iden and referred to the Committee on Regulatory Reform.
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, and 7a (MCL
432.202, 432.204, 432.204a, 432.204c, 432.204d, 432.205, 432.206,
432.206a, 432.206c, and 432.207a), sections 2, 4, 5, and 6 as
amended and sections 4a, 4c, 4d, 6a, 6c, and 7a as added by 1997 PA
69.
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 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 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 applicant includes an
affiliate, affiliated company, officer, director, or managerial
employee of the applicant or a person who holds greater than 1%
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 a 1%
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 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" means the conduct of authorized
gambling games in a casino.
(x) "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 in this state.
(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.
(dd)
"Member" means a board member appointed to the Michigan
gaming
control board under this act.
(ee) "Occupational license" means a license issued by the
board to a person to perform an occupation in a casino or casino
enterprise
which that the board has identified as requiring a
license
to engage in casino gaming in Michigan.this state.
(ff) "Person" means an individual, corporation, limited
liability company, association, partnership, limited liability
partnership, trust, entity, or other legal entity.
(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, 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.
(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.
(ii) "Wagerer" means a person who plays a gambling game
authorized under this act.
(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.
(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 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 to be a key employee
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 employee and any of their spouses affirming that the
circumstances described in subsection (10) do not apply to the
member,
executive director, and key 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 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 for a period of 4 years after the date his or her
membership on the board 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 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 of the board 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.
(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% 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 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, code of
1998, 1998 PA 58, MCL 436.1101 to 436.2303, or rules promulgated
under that act.
(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.
(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) 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.
(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 the
information, records, interviews, reports, statements, memoranda,
or other data supplied to, created by, or used by the board related
to background investigation of applicants or licensees and to trade
secrets, internal controls, and security measures of the licensees
or applicants.
(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.
(2) Notwithstanding subsection (1)(a) or (c), the board shall,
upon 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
the
applicant or licensee or an the applicant's
or licensee's
spouse, parent, or child has equity interest of more than 5%.
(d)
Whether an the 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 the
disposition of the offense.
(e)
Whether an the applicant or licensee has had any license
or
certification issued by a licensing authority in Michigan this
state 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 the 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 the 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
the
applicant or licensee. under
this act.
(i)
Whether an the applicant or licensee or the spouse,
parent,
child, or spouse of a child of an the applicant or licensee
has made, directly or indirectly, any political contributions, or
any loans, gifts, or other payments to any candidate as that term
is defined in section 7b or officeholder elected in this state,
within
5 years prior to before 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.
(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.
(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.
(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 records,
interviews, reports, statements, memoranda, or other information
supplied to, created by, or used by the city related to background
investigation of applicants for a development agreement and to
trade secrets, internal controls, and security measures of the
licensees or applicants.
(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
the person filing a response or his or her spouse, parent, or child
has equity interest of more than 5%.
(d)
Whether a the 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 the
disposition of the offense.
(e)
Whether a the person filing a response has had any license
or
certification issued by a licensing authority in Michigan this
state 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 the 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 the 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 the person
filing a response.
(i)
Whether a the person filing a response or the spouse,
parent,
child, or spouse of a child of a the 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 that term is 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.
(j) The name and business telephone number of the counsel
representing
a the person filing a response.
(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.
(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, 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, 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, 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 that term is 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.
(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.
(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.
(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.
(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.
(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 employed 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 employee of
a federally recognized Indian tribe or to an elected precinct
delegate.
(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% direct or
indirect pecuniary interest in the casino, and each person who is
an officer, director, or managerial employee of the applicant.
(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.which the casino is or is proposed to be
located.
(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 those 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 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, in its sole discretion, 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, in its sole discretion, 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 employed 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
employee of a federally recognized Indian tribe or an elected
precinct delegate.
(f) The applicant owns more than a 10% ownership interest in
any entity holding a casino license issued under this act.
(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.
(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 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. operates. A supplier shall file a quarterly return
with the board listing all sales, leases, and services. 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.
(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.