Mich. Admin. Code R. 432.1306 - Casino license application

Rule 306.

(1) A person applying for a casino license and a person required to be qualified as part of the application shall complete and submit an application and disclosure form or forms in the manner and form prescribed by the board. .

(2) The casino license application procedures 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 and disclosure form or forms.

(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 under section 4a(1)(c)(i) to (v) of the act, MCL 432.204a, for the duration of the casino license for which application is made.

(d) Upon applying for, or while holding, a casino license under the act and these rules, an applicant or licensee 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 that the board requests that are in the possession or control of the applicant or a third party, including, without limitation, tax records, financial records, business records or other records pertaining to the applicant or licensee held by a federal, state, or local governmental agency or by a credit bureau or financial institution. 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 a background investigation on an applicant. The board shall also use the information provided in the application and disclosure form or forms as a basis for a background investigation and to evaluate and determine the eligibility, qualifications, and suitability of the applicant to receive the casino license under the licensing standards and criteria provided in the act and these rules. A misrepresentation or omission in the application is cause for the denial, suspension, restriction, or revocation of a casino license by the board.

(f) An applicant shall provide the name, address, and telephone number of a representative to act as a liaison to the board. The applicant shall facilitate, assist, and cooperate with the board and the state police in their conduct of background investigations of the applicant under the act and these rules.

(g) The board shall not issue or renew a casino license unless the applicant and each person required to be qualified as part of the application for issuance or request for renewal of the license has completed and filed with the board all required applications, license renewal forms, 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 required application forms before the expiration of deadlines established by the board.

(i) An applicant is under a continuing duty to disclose any material or substantive 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 casino license shall request an amendment to its application if 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 its holding companies or affiliates that have control of the applicant.

(ii) Type of business organization or entity.

(iii) An adverse change of more than 2 percentage points in capitalization or debt to equity ratio.

(iv) Investors or debt holders, or both.

(v) The source of funds. A publicly traded corporation is considered to have complied with this subdivision if it has complied with the reporting requirements in R 432.1406.

(k) A casino 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 applicant.

(l) If a casino license application is withdrawn, then the person who made the application for the license may not reapply for a casino license within 1 year from the date of withdrawal unless the board grants leave to reapply at 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.

Notes

Mich. Admin. Code R. 432.1306

1998-2000 AACS; 2019 MR 9, Eff. 5/17/2019