Michigan Administrative Code › Department - Treasury › Michigan Gaming Control Board › Michigan Gaming Control Board - Administrative Rules - Casino Gaming (Parts 1-16) › Part 3 - LICENSES › Section R. 432.1324 - Supplier's license application

Current through Vol. 24-12, July 15, 2024
Rule 324.
(1) A
				  person applying for a supplier's license and a person required to be qualified
				  as part of the application shall complete and submit application and disclosure
				  forms in the manner and form prescribed by the board.
(2) Application procedures for a supplier's
				  license are as follows:
(a) Upon application,
				  an applicant shall assume and accept, in writing, under oath, all risk of
				  adverse publicity, notoriety, embarrassment, criticism, financial loss, or
				  other unfavorable or harmful consequences that may occur in connection with the
				  application process or the public disclosure of information submitted with the
				  application.
(b) Upon application,
				  an applicant shall also expressly waive and give up, in writing, under oath,
				  all claims for damages that may result from the application and licensing
				  process.
(c) Upon application, an
				  applicant shall also consent, in writing, under oath, to being subject to the
				  inspections, investigations, audits, searches, and seizures in section
				  4a(1)(c)(i) to (v) of the act, MCL 432.204a, for the duration of the supplier's
				  license for which application is made, if the license is issued.
(d) Upon application, an applicant shall also
				  authorize and consent, in writing, under oath, to release and disclose to the
				  board and its authorized representatives and agents all otherwise confidential
				  records of the applicant that the board requests from the applicant or from
				  third parties, including, without limitation, tax records and financial records
				  held by a federal, state, or local governmental agency, a credit bureau, or a
				  financial institution while applying for, or while holding, a supplier's
				  license under the act and these rules. The applicant and licensee shall also
				  authorize and consent, in writing, under oath, to board disclosure in
				  accordance with section 4c(5) of the act, MCL 432.204c.
(e) The board shall conduct an appropriate
				  background investigation on each applicant and use the information provided in
				  the prescribed application and disclosure form as a basis for its investigation
				  and for evaluating and determining the eligibility, qualifications, and
				  suitability of the applicant to receive the license for which application is
				  made. The board shall make the evaluation and determination under the licensing
				  standards and criteria provided in the act and rules of the board. A
				  misrepresentation or omission in the application is cause for denial,
				  suspension, restriction, or revocation of a license by the board.
(f) A person applying for a supplier license
				  shall provide the name, address, and telephone number of a representative to
				  act as a liaison to the board and shall facilitate, assist, and cooperate with,
				  the board and the state police in their conduct of background investigations
				  under the act and these rules.
(g)
				  The board shall not issue a supplier's license or renewal unless the person
				  applying for the license, and each person required to be qualified as part of
				  the application for issuance or renewal of the license, has completed and filed
				  with the board all required applications, license renewal reports, and
				  disclosure forms, in the manner and form prescribed by the board, and has
				  provided all information, documentation, assurances, waivers, and releases
				  required by the act and these rules.
(h) An applicant shall file all required
				  application forms before the expiration of deadlines established by the
				  board.
(i) An applicant is under a
				  continuing duty to disclose any material changes in the information or
				  documentation provided in or with the application, renewal, and disclosure
				  forms submitted to the board.
(j) A
				  person applying for a supplier license shall request amendment of its
				  application when it knows, or should have known, that there has been a change
				  in any of the following:
(i) The applicant's
				  key persons or the key persons of any holding company or affiliate that has
				  control of the applicant.
(ii) The
				  type of business organization or entity.
(iii) A holding company or
				  affiliate.
(iv) Greater than a 5%
				  change in the capitalization or a 1% change in the debt-to-equity
				  ratio.
(v) Investors or debt
				  holders, or both.
(vi) Source of
				  funds. A publicly traded corporation is considered to have complied with this
				  rule if it has complied with the reporting requirements provided in
				  R
				  432.1406.
(k) A supplier's license application may be
				  withdrawn upon written notice to the board before board action on the
				  application if all background investigation costs of the board have been paid
				  in full by the person applying for a supplier license.
(l) If a supplier's license application is
				  withdrawn, then the person who made the application for the license may not
				  reapply for a license within 1 year from the date of withdrawal unless the
				  board grants leave to reapply on an earlier date.
(m) The board may allow information,
				  documents, or other materials submitted by an applicant in a withdrawn
				  application to be incorporated by reference into a subsequent
				  application.
(n) The board shall
				  not process an application for a supplier's license unless the person making
				  the application has a written agreement with or written statement of intent
				  from a casino licensee, casino license applicant, or holder of a certificate of
				  suitability providing or stating that the applicant will be supplying certain
				  types of goods and services to a casino licensee, casino license applicant, or
				  holder of a certificate of suitability upon receiving a supplier's
				  license.