Mich. Admin. Code R. 432.1217 - Normal purchasing transactions

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.

Notes

Mich. Admin. Code R. 432.1217

1998-2000 AACS