Michigan Laws 432.207a – Supplier’s license
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Terms Used In Michigan Laws 432.207a
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Applicant: means any person who applies for a license or for registration under this act. See Michigan Laws 432.202
- Bail: Security given for the release of a criminal defendant or witness from legal custody (usually in the form of money) to secure his/her appearance on the day and time appointed.
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Board: means the Michigan gaming control board created under section 4. See Michigan Laws 432.202
- Casino: means a building or buildings in which gaming is conducted. See Michigan Laws 432.202
- casino gaming: means to deal, operate, carry on, conduct, maintain or expose or offer for play any gambling game or gambling operation. See Michigan Laws 432.202
- City: means a local unit of government other than a county that meets all of the following criteria:
(i) Has a population of at least 800,000 at the time a license is issued. See Michigan Laws 432.202Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant. Contract: A legal written agreement that becomes binding when signed. Conviction: A judgement of guilt against a criminal defendant. Credit bureau: An agency that collects individual credit information and sells it for a fee to creditors so they can make a decision on granting loans. Typical clients include banks, mortgage lenders, credit card companies, and other financing companies. (Also commonly referred to as consumer-reporting agency or credit-reporting agency.) Source: OCC Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime. Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other. Fraud: Intentional deception resulting in injury to another. Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases. Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants. Managerial employee: means a person who by virtue of the level of 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. See Michigan Laws 432.202 Member: means a board member appointed to the board under this act. See Michigan Laws 432.202 Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose. Person: means an individual, corporation, limited liability company, association, partnership, limited liability partnership, trust, or other legal entity. See Michigan Laws 432.202 shall not apply: means that the pertinent provision is not operative as to certain persons or things or in conjunction with a particular date or dates. See Michigan Laws 8.4c state: when applied to the different parts of the United States, shall be construed to extend to and include the District of Columbia and the several territories belonging to the United States; and the words "United States" shall be construed to include the district and territories. See Michigan Laws 8.3o Supplier: means a person who the board has identified under rules promulgated by the board as requiring a license to provide casino licensees with goods or services regarding the business of a proposed or existing casino or casino enterprise on a regular or continuing basis. See Michigan Laws 432.202 United States: shall be construed to include the district and territories. See Michigan Laws 8.3o
(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 of a director or managerial employee of the applicant who performs the function of principal executive officer, principal operations officer, or principal accounting officer must be made under oath.
(2) A person who holds a supplier’s license is authorized to sell or lease, and to contract to sell or lease, equipment and supplies to any licensee involved in the ownership or management of gambling operations.
(3) Gambling supplies and equipment must not be distributed unless supplies and equipment conform to standards adopted in rules promulgated by the board.
(4) An applicant is ineligible to receive a supplier’s license if any of the following circumstances exist:
(a) The applicant has been convicted of a felony under the laws of this state, any other state, or the United States. The board may waive the requirements in this subdivision if the conviction occurred more than 10 years before the applicant applies for a license under this section and the board is convinced of both of the following:
(i) That the applicant does not pose a threat to the integrity of gaming.
(ii) That the applicant otherwise meets the requirements of this section.
(b) The applicant has been convicted of a misdemeanor involving gambling, theft, fraud, or dishonesty in any state or a local ordinance in any state involving gambling, dishonesty, theft, or fraud that substantially corresponds to a misdemeanor in that state. The board may waive the requirements in this subdivision if the conviction occurred more than 5 years before the applicant applies for a license under this section and the board is convinced of both of the following:
(i) That the applicant does not pose a threat to the integrity of gaming.
(ii) That the applicant otherwise meets the requirements of this section.
(c) The applicant has submitted an application for license under this act that contains false information.
(d) The applicant is a member of the board.
(e) The applicant holds an elective office in the city or county where the casino is located, state elective office, or federal elective office, or is employed by a city or county where the casino is located or by a gaming regulatory body of a governmental unit in this state, another state, or the federal government. This subdivision does not apply to an elected officer of or an employee of a federally recognized Indian tribe or to a precinct delegate. As used in this subdivision, “state elective office” means that term as defined in section 12 of the Michigan campaign finance act, 1976 PA 388, MCL 169.212.
(f) The board concludes that the applicant lacks the requisite suitability as to integrity, moral character, and reputation; personal and business probity; financial ability and experience; and responsibility.
(g) The applicant fails to meet other criteria considered appropriate by the board. The board shall not apply criteria 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.
(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.
(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 the applicant would undermine the public’s confidence in the gaming industry in this state.
(j) Whether the applicant meets other standards for issuing a supplier’s license contained in a rule promulgated by the board. The board shall not promulgate a rule under this subdivision that is arbitrary, capricious, or contradictory to the expressed provisions of this act.
(6) A supplier 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 operates. A supplier shall permanently affix its name to all its equipment, devices, and supplies for gambling operations. Any supplier’s equipment, devices, or supplies that are used by any person in an unauthorized gambling operation are forfeited to 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 an area approved by the board.
(10) A supplier license issued under this section is valid for 1 year. 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 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 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.