Michigan Administrative Code › Department - Treasury › Michigan Gaming Control Board › Michigan Gaming Control Board - Administrative Rules - Casino Gaming (Parts 1-16) › Part 2 - GENERAL PROVISIONS › Section R. 432.1217 - Normal purchasing transactions

Current through Vol. 24-12, July 15, 2024
Rule 217.
(1) A
				  casino licensee or casino license applicant shall submit, for approval by the
				  board, an internal control procedure regarding purchasing
				  transactions.
(2) The internal
				  control procedure shall include a statement of policy regarding ethical
				  standards and compliance with state and federal laws. The statement shall
				  prohibit purchasing and contracting personnel from accepting gifts and
				  gratuities from suppliers of goods or services, except in accordance with a
				  written policy submitted with the internal control procedures.
(3) The internal control procedures submitted
				  shall include, but not be limited to, all of the following information:
(a) The manner in which purchase requisitions
				  will be issued.
(b) The amounts
				  that can be authorized by various positions or level of personnel.
(c) Requirements for the competitive bidding
				  process, including the number of bids required.
(d) Procedures for issuing and approving
				  blanket purchase orders.
(e)
				  Procedures and approval regarding emergency purchases.
(f) Criteria for qualifying approved vendors
				  of goods or services based on such factors as the following:
(i) Quality of the product or service to be
				  provided.
(ii) Suitability of the
				  vendor of the goods or services.
(iii) Price.
(iv) Any other criteria the board deems
				  necessary to ensure compliance with the act and this rule.
(g) Documentation that goods or services
				  acquired were obtained on the basis of a price that is commercially reasonable
				  considering the criteria set forth in subdivision (f) of this rule.
(h) Procedures and approval process for the
				  acquisition of goods or services that are unique and not easily acquired
				  through the normal competitive bid process.
(i) Procedures to ensure that vendor files
				  maintained by the casino licensee or casino license applicant contain all
				  forms, documentation, and approvals required by the internal control
				  procedures.
(j) A prohibition
				  against the purchase or lease of gaming equipment or supplies from other than a
				  supplier that is licensed under the act.
(k) Procedures for the approval of contracts
				  or transactions in an amount that is more than $50,000.00.
(l) The minimum dollar amount of contracts or
				  transactions with 1 vendor in a 12-month period that require approval by the
				  licensee's authorized representative. The amount shall not be more than
				  $150,000.00.
(m) A written policy
				  regarding the acceptance of gifts or gratuities by purchasing and contracting
				  personnel from suppliers of goods or services.
(n) Any other internal control procedure the
				  board deems necessary to ensure compliance with the act and these rules and
				  prevent money laundering, kickbacks and other unlawful or commercially
				  unreasonable transactions.