Mich. Admin. Code R. 432.1324 - Supplier's license application

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.

Notes

Mich. Admin. Code R. 432.1324

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