HOUSE BILL No. 5881

April 25, 2018, Introduced by Rep. Iden and referred to the Committee on Regulatory Reform.

     A bill to amend 1996 IL 1, entitled

"Michigan gaming control and revenue act,"

by amending sections 2, 4, 4a, 4c, 4d, 5, 6, 6a, 6c, and 7a (MCL

432.202, 432.204, 432.204a, 432.204c, 432.204d, 432.205, 432.206,

432.206a, 432.206c, and 432.207a), sections 2, 4, 5, and 6 as

amended and sections 4a, 4c, 4d, 6a, 6c, and 7a as added by 1997 PA

69.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 2. As used in this act:

     (a) "Adjusted gross receipts" means the gross receipts less

winnings paid to wagerers.

     (b) "Affiliate" means a person who, directly or indirectly,

through 1 or more intermediaries, controls, is controlled by, or is

under common control with; is in a partnership or joint venture

relationship with; or is a co-shareholder of a corporation, a co-

member of a limited liability company, or co-partner in a limited

liability partnership with a person who holds or applies for a

casino license under this act.

     (c) "Affiliated company" means any form of business

organization which that controls, is controlled by or is under

common control with; is in a partnership or joint venture

relationship with; or is a co-shareholder of a corporation, a co-

member of a limited liability company, or co-partner in a limited

liability partnership with a person who holds or applies for a

casino license under this act.

     (d) "Agent" means any person who is employed by any agency of

the this state, other than the board, the state police, or the

department of attorney general, who is assigned to perform full-

time services on behalf of or for the benefit of the board

regardless of the title or position held by that person.

     (e) "Applicant" means any person who applies for a license or

for registration under this act. The term applicant As used in

sections 4a(1)(a), 5(1), 5(2), 5(3), 5(4), 6(3), 6(4), 6(5), 6(9),

7a(4), 7a(5), and 7a(11), shall include applicant includes an

affiliate, affiliated company, officer, director, or managerial

employee of the applicant or a person who holds greater than 1%

direct or indirect interest in the applicant. As used in this

subdivision, affiliate and affiliated company do not include a

partnership, a joint venture relationship, a co-shareholder of a

corporation, a co-member of a limited liability company, or a co-

partner in a limited liability partnership that has less than a 1%

direct interest in the applicant and is not involved in the casino

or casino enterprise application as defined in rules promulgated by

the board.

     (f) "Board" means the Michigan gaming control board created

under section 4.

     (g) "Casino" means a building in which gaming is conducted.

     (h) "Casino enterprise" means the buildings, facilities, or

rooms functionally or physically connected to a casino, including

but not limited to any bar, restaurant, hotel, cocktail lounge,

retail establishment, or arena or any other facility located in a

city under the control of a casino licensee or affiliated company.

     (i) "Certified development agreement" means a development

agreement that has been certified by a city and submitted to the

Michigan gaming control board.

     (j) "Chairperson" means the chairperson of the board.

     (k) "Cheat" means to alter the selection of criteria which

that determine the result of a gambling game or the amount or

frequency of payment in a gambling game, in violation of this act

or rules promulgated under this act.

     (l) "City" means a local unit of government other than a

county which that meets all of the following criteria:

     (i) Has a population of at least 800,000 at the time a license

is issued.

     (ii) Is located within 100 miles of any other state or country

in which gaming was permitted on December 5, 1996.

     (iii) Had a majority of voters who expressed approval of

casino gaming in the city.

     (m) "Company" means a sole proprietorship, corporation,

partnership, limited liability partnership, limited liability

company, trust, association, joint stock company, joint venture,

tribal corporation, or other form of business organization.

     (n) "Compensation" means any money, thing of value, or

financial benefit conferred on or received by a person in return

for services rendered, or to be rendered, whether by that person or

another.

     (o) "Conflict of interest" means a situation in which the

private interest of a member, employee or agent of the board may

influence the judgment of the member, employee, or agent in the

performance of his or her public duty under this act. A conflict of

interest includes, but is not limited to, any of the following:

     (i) Any conduct that would lead a reasonable person, knowing

all of the circumstances, to conclude that the member, employee, or

agent of the board is biased against or in favor of an applicant.

     (ii) Acceptance of any form of compensation other than from

the board for any services rendered as part of the official duties

of the member, employee, or agent for the board.

     (iii) Participation in any business being transacted with or

before the board in which the member, employee, or agent of the

board or his or her parent, spouse, or child has a financial

interest.

     (iv) Use of the position, title, or any related authority of

the member, employee, or agent of the board in a manner designed

for personal gain or benefit.

     (v) Demonstration, through work or other action in the

performance of the official duties of the member, employee, or

agent of the board, of any preferential attitude or treatment of

any person.

     (p) "Control" means having a greater than 15% direct or

indirect pecuniary interest in the casino gaming operation with

respect to which the license is sought.

     (q) "Department" means the department of treasury.

     (r) "Development agreement" means a written agreement between

a city and a person naming the person as the designated developer

of a casino in the city and covering certain subjects including,

but not limited to, : approval all of the following:

     (i) Approval by the city of the location of the casino. ;

certification

     (ii) Certification by the city that the applicant has

sufficient financial resources to construct and open the casino

which that it proposes to develop. ; zoning

     (iii) Zoning and site plan requirements. ; utility

     (iv) Utility connection fees. ; infrastructure

     (v) Infrastructure improvements. ; requirements

     (vi) Requirements to utilize local businesses and small

businesses as suppliers. ; employment

     (vii) Employment issues. ; compulsive

     (viii) Compulsive gambling programs. ; insurance

     (ix) Insurance requirements. ; conceptual

     (x) Conceptual design approval. ; reimbursement

     (xi) Reimbursement for predevelopment and infrastructure

costs, traffic engineering, and other transportation costs. ; plans

     (xii) Plans for completion of destination attractions either

within or outside the casino facility and ancillary development

rights.

     (s) "Disciplinary action" is means an action by the board

suspending or revoking a license, or fining, excluding,

reprimanding, or otherwise penalizing a person for violating this

act or rules promulgated by the board.

     (t) "Ex parte communication" means any communication, direct

or indirect, regarding a licensing application, disciplinary

action, or a contested case under this act other than communication

that takes place during a meeting or hearing conducted under this

act.

     (u) "Financial interest" or "financially interested" means any

interest in investments, awarding of contracts, grants, loans,

purchases, leases, sales, or similar matters under consideration or

consummated by the board. A member, employee, or agent of the board

will be is considered to have a financial interest in a matter

under consideration if any either of the following circumstances

exist: exists:

     (i) He or she owns 1% or more of any class of outstanding

securities that are issued by a party to the matter under

consideration or consummated by the board.

     (ii) He or she is employed by or is an independent contractor

for a party to the matter under consideration or consummated by the

board.

     (v) "Gambling game" means any game played with cards, dice,

equipment or a machine, including any mechanical, electromechanical

or electronic device which shall include including computers and

cashless wagering systems, for money, credit, or any representative

of value, including, but not limited to, faro, monte, roulette,

keno, bingo, fan tan, twenty one, blackjack, seven and a half,

klondike, craps, poker, chuck a luck, Chinese chuck a luck (dai

shu), wheel of fortune, chemin de fer, baccarat, pai gow, beat the

banker, panguingui, slot machine, any banking or percentage game,

or any other game or device approved by the board. , but Gambling

game does not include games played with cards in private homes or

residences in which no person makes money for operating the game,

except as a player.

     (w) "Gambling operation" means the conduct of authorized

gambling games in a casino.

     (x) "Gaming" means to deal, operate, carry on, conduct,

maintain or expose or offer for play any gambling game or gambling

operation.

     (y) "Gross receipts" means the total of all sums money

including valid or invalid checks, currency, tokens, coupons,

vouchers, or instruments of monetary value whether collected or

uncollected, received by a casino licensee from gaming, including

all entry fees assessed for tournaments or other contests, less a

deduction for uncollectible gaming receivables not to exceed the

uncollectible amounts owed as a result of wagers placed at or

through a gambling game or 4% of the total gross receipts,

whichever is less. The A licensee shall not receive the deduction

unless the licensee provides written proof to the state treasurer

of the uncollected gaming receivables and had complied with all

rules promulgated by the board regarding the issuance of credit and

the collection of amounts due under a credit extension.

     (z) "Institutional investor" means any retirement fund

administered by a public agency for the exclusive benefit of

federal, state, or local public employees, an employee benefit

plan, or pension fund that is subject to the employee retirement

income security act of 1974, as amended, an investment company

registered under the investment company act of 1940, title I of

chapter 686, 54 Stat. 789, 15 U.S.C. 80a-1 to 80a-3 and 80a-4 to 15

USC 80a-1 to 80a-64, a collective investment trust organized by a

bank under part 9 of the rules of the comptroller of the currency,

a closed end investment trust, a chartered or licensed life

insurance company or property and casualty insurance company, a

chartered or licensed financial institution, an investment advisor

registered under the investment advisers act of 1940, title II of

chapter 686, 54 Stat. 847, 15 U.S.C. 15 USC 80b-1 to 80b-21, or any

other person as determined by the board may determine for reasons

consistent with this act.

     (aa) "Investigative hearing" means any hearing conducted by

the board or its authorized representative to investigate and

gather information or evidence regarding pending license

applications, applicants, licensees, or alleged or apparent

violations of this act or rules promulgated by the board.

     (bb) "Junket enterprise" means any person other than a casino

licensee or applicant who employs or otherwise engages in the

procurement or referral of persons who may participate in a junket

to a casino licensed under this act or casino enterprise whether or

not those activities occur within the in this state.

     (cc) "Managerial employee" means a person who by virtue of the

level of their 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.

     (dd) "Member" means a board member appointed to the Michigan

gaming control board under this act.

     (ee) "Occupational license" means a license issued by the

board to a person to perform an occupation in a casino or casino

enterprise which that the board has identified as requiring a

license to engage in casino gaming in Michigan.this state.

     (ff) "Person" means an individual, corporation, limited

liability company, association, partnership, limited liability

partnership, trust, entity, or other legal entity.

     (gg) "Supplier" means a person who the board has identified

under rules promulgated by the board as requiring a license to

provide casino licensees or casino enterprises with goods or

services regarding the realty, construction, maintenance, or

business of a proposed or existing casino, casino enterprise, or

related facility on a regular or continuing basis, including, but

not limited to, junket enterprises, security businesses,

manufacturers, distributors, persons who service gaming devices or

equipment, garbage haulers, maintenance companies, food purveyors,

and construction companies.

     (hh) "Vendor" means a person who is not licensed under this

act who supplies any goods or services to a casino licensee or

supplier licensee.

     (ii) "Wagerer" means a person who plays a gambling game

authorized under this act.

     (jj) "Winnings" means the total cash value of all property or

sums money including currency, tokens, or instruments of monetary

value paid to wagerers as a direct result of wagers placed at or

through a gambling game.

     Sec. 4. (1) The Michigan gaming control board is created

within the department of treasury. The board shall have has the

powers and duties specified in this act and all other powers

necessary and proper to fully and effectively execute and

administer this act for the purpose of licensing, regulating, and

enforcing the system of casino gambling established under this act.

     (2) The board shall consist consists of 5 members, not more

than 3 of whom shall may be members of the same political party, to

be appointed by the governor with the advice and consent of the

senate. , 1 of whom The governor shall be designated by the

governor to be designate 1 of the members as chairperson. Each

member shall must be a resident of this state.

     (3) The members shall be appointed for terms of 4 years,

except of those who are first appointed, 1 member shall be

appointed for a term of 2 years, 2 members shall be appointed for a

term of 3 years, and 2 members shall be appointed for a term of 4

years. A member's term shall expire expires on December 31 of the

last year of the member's term. In the event of If there is a

vacancy on the board, the governor shall appoint in like manner a

successor to fill the unexpired term.

     (4) Each member of the board shall must be reimbursed for all

actual and necessary expenses and disbursements incurred in the

execution of official duties.

     (5) A board member shall not hold any other public office for

which he or she shall receive receives compensation other than

necessary travel or other incidental expenses.

     (6) A person who is not of good moral character or who has

been indicted or charged with, convicted of, pled guilty or nolo

contendre contendere to, or forfeited bail concerning a felony or a

misdemeanor involving gambling, theft, dishonesty, or fraud under

the laws of this state, any other state, or the United States or a

local ordinance in any state involving gambling, dishonesty, theft,

or fraud that substantially corresponds to a misdemeanor in that

state shall must not be appointed or remain as a member. of the

board.

     (7) Any member of the board may be removed by the governor for

neglect of duty, misfeasance, malfeasance, nonfeasance, or any

other just cause.

     (8) The governor shall appoint the executive director of the

board to serve a 6-year term. After the effective date of the act

that added this subsection, the The appointment of the executive

director shall require requires the approval of the senate by a

record roll call vote. The executive director shall perform any and

all duties that the board shall assign assigns to him or her. The

executive director shall must be reimbursed for all actual and

necessary expenses incurred by him or her in discharge of his or

her official duties. The executive director shall keep records of

all proceedings of the board and shall preserve all records, books,

documents, and other papers belonging to the board or entrusted to

its care. The executive director shall devote his or her full time

to the duties of the office and shall not hold any other office or

employment. A vacancy in the position of executive director shall

must be filled as provided in this subsection for a new 6-year

term.

     (9) The board shall employ the personnel as may be necessary

to carry out the functions of the board under this act.

     (10) A The governor shall not appoint a person shall not be

appointed to or employed by the board and the board shall not

employ a person if any of the following circumstances exist:

     (a) During the 3 years immediately preceding appointment or

employment, the person held any direct or indirect interest in, or

any employment by, a person who is licensed to operate a casino

under this act or in another jurisdiction, a person who had an

application to operate a casino pending before the board or any

other jurisdiction, or a casino enterprise. However, the board may

employ the person may be employed by the board if his or her

interest in any casino licensee or casino enterprise would not, in

the opinion of the board, interfere with the objective discharge of

the person's employment obligations. However, the board shall not

employ a person shall not be employed by the board if his or her

interest in the casino licensee or casino enterprise constitutes a

controlling interest in that casino licensee or casino enterprise.

     (b) The person or his or her spouse, parent, child, child's

spouse, sibling, or spouse of a sibling is a member of the board of

directors of or a person financially interested in any person

licensed as a casino licensee or casino supplier, any person who

has an application for a license pending before the board, or a

casino enterprise.

     (11) Each member, of the board, the executive director, and

each key employee as determined by the board to be a key employee

shall file with the governor a financial disclosure statement

listing all assets and liabilities, property and business

interests, and sources of income of the member, executive director,

and each key employee and any of their spouses affirming that the

circumstances described in subsection (10) do not apply to the

member, executive director, and key employee. are in compliance

with subsection (10)(a) and (b) of this act. The financial

disclosure statement shall must be under oath and shall be filed at

the time of employment and annually thereafter.

     (12) Each employee of the board shall file with the board a

financial disclosure statement listing all assets and liabilities,

property and business interests, and sources of income of the

employee and his or her spouse. This subsection does not apply to

the executive director or a key employee.

     (13) A member, of the board, executive director, or key

employee shall not hold any direct or indirect interest in, be

employed by, or enter into a contract for services with an

applicant, a person licensed by or registered with the board, or a

casino enterprise for a period of 4 years after the date his or her

membership on the board terminates.

     (14) An employee of the board shall not acquire any direct or

indirect interest in, be employed by, or enter into a contract for

services with any applicant, person licensed by the board, or

casino enterprise for a period of 2 years after the date his or her

employment with the board is terminated.

     (15) A board member or a person employed by the board shall

not represent any person or party other than the this state before

or against the board for a period of 2 years after the termination

of his or her office or employment with the board.

     (16) A business entity in which a former board member or

employee or agent of the board has an interest, or any partner,

officer, or employee of the business entity shall not make any

appearance or representation that is prohibited to that former

member, employee, or agent. As used in this subsection, "business

entity" means a corporation, limited liability company,

partnership, limited liability partnership, association, trust, or

other form of legal entity.

     (17) The board shall have has general responsibility for the

implementation of this act. The board's duties include, but are not

limited to, all of the following:

     (a) Deciding in a reasonable period of time all casino license

applications. A casino license applicant shall have has the burden

to establish by clear and convincing evidence their 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. The

criteria considered appropriate by the board shall must not be

arbitrary, capricious, or contradictory to the expressed provisions

of this act.

     (b) To decide Deciding in reasonable order all license

applications. Except for casino license applicants granted a

hearing under section 6(7), any party aggrieved by an action of the

board denying, suspending, revoking, restricting, or refusing to

renew a license, or imposing a fine, may request a hearing before

the board. A request for a hearing shall must be made to the board

in writing within 21 days after service of notice of the action of

the board. Notice of the action of the board shall must be served

either by personal delivery or by certified mail, postage prepaid,

to the aggrieved party. Notice served by certified mail shall be is

considered complete on the business day following the date of the

mailing.

     (c) Conducting its public meetings in compliance with the open

meetings act, 1976 PA 267, MCL 15.231 to 15.246.15.261 to 15.275.

     (d) Promulgating the rules as may be necessary to implement,

administer, and enforce this act. All The rules promulgated under

this act shall must not be arbitrary, capricious, or contradictory

to the expressed provisions of this act. The rules may include, but

need not be limited to, rules that do 1 or more of the following:

     (i) Govern, restrict, approve, or regulate the casino gaming

authorized in this act.

     (ii) Promote the safety, security, and integrity of casino

gaming authorized in this act.

     (iii) License and regulate persons participating in or

involved with casino gaming authorized in this act.

     (e) Providing for the establishment and collection of all

license and registration fees and taxes imposed by this act and the

rules promulgated by the board.

     (f) Providing for the levy and collection of penalties and

fines for the violation of this act and the rules promulgated by

the board.

     (g) Being present through its inspectors, agents, auditors,

and the Michigan department of state police or department of

attorney general at any time in any casino and related casino

enterprise for the purpose of certifying the revenue thereof, of

the licensee, receiving complaints from the public, and conducting

other investigations into the conduct of the gambling games and the

maintenance of the equipment as from time to time the board may

consider considers necessary and proper to assure compliance with

this act and the rules promulgated by the board and to protect and

promote the overall safety, security, and integrity of casino

gaming authorized in this act.

     (h) Reviewing and ruling upon any complaint by a licensee

regarding any investigative procedures of the this state which that

are unnecessarily disruptive of gambling operations. The need to

inspect and investigate shall be is presumed at all times. A

licensee shall must establish by clear and convincing evidence that

its operations were disrupted, the procedures had no reasonable law

enforcement or regulatory purposes, and the procedures were so

disruptive as to unreasonably inhibit gambling operations.

     (i) Holding at least 1 public meeting each quarter of the

fiscal year. In addition, special meetings may be called by the

chairperson or any 2 board members upon 72 hours' written notice to

each member. Three members of the board shall constitute a quorum,

except when that in making determinations on applications for

casino licenses, when 4 members shall constitute a quorum. Three

votes shall be are required in support of final determinations of

the board on applications for casino licenses. The board shall keep

a complete and accurate record of all its meetings and hearings.

Upon order of the board, 1 of the board members or a hearing

officer designated by the board may conduct any hearing provided

for under this act or by the rules promulgated by the board and may

recommend findings and decisions to the board. The board member or

hearing officer conducting the hearing shall have has all powers

and rights regarding the conduct of hearings granted to the board

under this act. The record made at the time of the hearing shall

must be reviewed by the board, or a majority of the board, and the

findings and decision of the majority of the board shall constitute

the order of the board. in the case.

     (j) Maintaining records which that are separate and distinct

from the records of any other state board. The board shall make the

records shall be available for public inspection subject to the

limitations of this act, and shall the records must accurately

reflect all board proceedings.

     (k) Reviewing the patterns of wagering and wins and losses by

persons in casinos under this act and make making recommendations

to the governor and the legislature in a written annual report to

the governor and the legislature and additional reports as

requested by the governor. may request. The annual report shall

must include a statement of receipts and disbursements by the

board, actions taken by the board, and any additional information

and recommendations that the board considers appropriate or that

the governor may request.requests.

     Sec. 4a. (1) The board shall have has jurisdiction over and

shall supervise all gambling operations governed by this act. The

board shall have has all powers necessary and proper to fully and

effectively execute this act, including, but not limited to, the

authority to do all of the following:

     (a) Investigate applicants and determine the eligibility of

applicants for licenses or registration and to grant licenses to

applicants in accordance with this act and the rules promulgated

under this act.

     (b) Have jurisdiction over and supervise casino gambling

operations authorized by this act and all persons in casinos where

gambling operations are conducted under this act.

     (c) Enter through its investigators, agents, auditors, and the

Michigan department of state police at any time, without a warrant

and without notice to the licensee, the premises, offices, casinos,

casino enterprises, facilities, or other places of business of a

casino licensee or casino supplier licensee, where evidence of the

compliance or noncompliance with this act or rules promulgated by

the board is likely to be found, for the following purposes:

     (i) To inspect and examine all premises wherein where casino

gaming or the business of gaming or the business of a supplier is

conducted, or where any records of the activities are prepared.

     (ii) To inspect, examine, audit, impound, seize, or assume

physical control of, or summarily remove from the premises all

books, ledgers, documents, writings, photocopies, correspondence,

records, videotapes, including electronically stored records, money

receptacles, other containers and their contents, equipment in

which the records are stored, or other gaming related equipment and

supplies on or around the premises, including counting rooms.

     (iii) To inspect the person, and inspect, examine, and seize

personal effects present in a casino facility licensed under this

act, of any holder of a license or registration issued pursuant to

under this act while that person is present in a licensed casino

facility.

     (iv) To investigate and deter alleged violations of this act

or the rules promulgated by the board.

     (v) This section is not intended to limit warrantless

inspections except in accordance with constitutional requirements.

     (d) Investigate alleged violations of this act or rules

promulgated by the board and to take appropriate disciplinary

action against a licensee or any other person, or holder of an

occupational license for a violation, or institute appropriate

legal action for enforcement, or both.

     (e) Adopt standards for the licensing of all persons under

this act, as well as for electronic or mechanical gambling games or

gambling games, and to establish fees for the licenses.

     (f) Adopt appropriate standards for all casino gaming

facilities and equipment.

     (g) Require that all records of casino and supplier licensees,

including financial or other statements, shall be kept on the

premises of the casino licensee or supplier licensee in the manner

prescribed by the board.

     (h) Require that each casino licensee involved in the

ownership or management of gambling operations submit to the board

an annual balance sheet, profit and loss statement, and a list of

the stockholders or other persons having a 1% or greater beneficial

interest in the gambling activities of each the licensee in

addition to any other information the board considers necessary in

order to effectively administer this act and all rules promulgated

by the board and orders and final decisions made under this act.

     (i) Conduct investigative and contested case hearings, issue

subpoenas for the attendance of witnesses and subpoenas duces tecum

for the production of books, ledgers, records, memoranda,

electronically retrievable data, and other pertinent documents and

to administer oaths and affirmations to the witnesses to exercise

and discharge the powers and duties of the board under this act.

The executive director or his or her designee is also authorized to

issue subpoenas and to administer oaths and affirmations to

witnesses.

     (j) Prescribe a form to be used by any licensee involved in

the ownership or management of gambling operations as an

application for employment for prospective employees.

     (k) Revoke or suspend licenses, impose fines and penalties as

the board considers necessary and in compliance with applicable

laws of the this state regarding administrative procedures, and

review and decide applications for the renewal of licenses. The

board may suspend a casino license, without notice or hearing upon

a determination that the safety or health of patrons or employees

is jeopardized by continuing a casino's operation. If the board

suspends a license under this subdivision without notice or

hearing, a prompt postsuspension hearing shall must be held to

determine if the suspension should remain in effect. The suspension

may remain in effect until the board determines that the cause for

suspension has been abated. The board may revoke the casino license

upon a determination that the owner has not made satisfactory

progress toward abating the hazard.

     (l) In addition to a disassociated person, eject or exclude or

authorize the ejection or exclusion of a person from a casino if

the person violates this act, rules promulgated by the board, or a

final orders order of the board or when if the board determines

that the person's conduct or reputation is such that his or her

presence within the casino gambling facilities may compromise the

honesty and integrity of the gambling operations or interferes

interfere with the orderly conduct of the gambling operations.

However, the propriety of the ejection or exclusion is subject to a

subsequent hearing by the board.

     (m) Suspend, revoke, or restrict licenses and require the

removal of a licensee or an employee of a licensee for a violation

of this act or a rule promulgated by the board or for engaging in a

fraudulent practice, and impose civil penalties of up to $5,000.00

against individuals and up to $10,000.00 or an amount equal to the

daily gross receipts, whichever is greater, against casino

licensees for each violation of this act, any rules promulgated by

the board, any order of the board, or for any other action which

that the board determines is a detriment or impediment to casino

gambling operations.

     (n) Disqualify a person under section 7c(5).

     (o) In addition to the authority provided under subdivision

(m), revoke or suspend a casino license or impose any other

disciplinary action for any of the following reasons:

     (i) The casino licensee has violated the Michigan liquor

control act, 1933 (Ex Sess) PA 8, MCL 436.1 to 436.57a, code of

1998, 1998 PA 58, MCL 436.1101 to 436.2303, or rules promulgated

under that act.

     (ii) At any time the licensee no longer meets the eligibility

requirements or suitability determination by the board for a casino

license under this act.

     (iii) The failure to revoke or suspend the license would

undermine the public's confidence in the Michigan gaming industry

in this state.

     (p) Conduct periodic audits of casinos authorized under this

act.

     (q) Establish minimum levels of insurance to be maintained by

licensees.

     (r) Delegate the execution of any of its powers under this act

for the purpose of administering and enforcing this act and the

rules promulgated by the board. This subdivision does not apply to

the granting of casino licenses under section 6.

     (s) Perform a background check, at the vendor's expense, of

any vendor using the same standards that the board uses in

determining whether to grant a supplier's license.

     (t) Review the business practices of a casino licensee

including, but not limited to, the price and quality of goods and

services offered to patrons and take disciplinary action as the

board considers appropriate to prevent practices that undermine the

public's confidence in the Michigan gaming industry in this state.

     (u) Review a licensee if that licensee is under review or is

otherwise subject to discipline by a regulatory body in any other

jurisdiction for a violation of a gambling law or regulation in

that jurisdiction.

     (v) Take any other action as may be reasonable or appropriate

to enforce this act and rules promulgated by the board.

     (2) The board may seek and shall receive the cooperation and

assistance of the department of state police and department of

attorney general in conducting background investigations of

applicants and in fulfilling its responsibilities under this act.

     Sec. 4c. (1) Except as otherwise provided in this section, all

information, records, interviews, reports, statements, memoranda,

or other data supplied to or used by the board shall be are subject

to the freedom of information act, 1976 PA 442, MCL 15.231 to

15.246, except for the following:

     (a) Unless presented during a public hearing, all the

information, records, interviews, reports, statements, memoranda,

or other data supplied to, created by, or used by the board related

to background investigation of applicants or licensees and to trade

secrets, internal controls, and security measures of the licensees

or applicants.

     (b) All information, records, interviews, reports, statements,

memoranda, or other data supplied to or used by the board that have

been received from another jurisdiction or local, state, or federal

agency under a promise of confidentiality or if the release of the

information is otherwise barred by the statutes, rules, or

regulations of that jurisdiction or agency or by an

intergovernmental agreement.

     (c) All information provided in an application for license

required under this act.

     (2) Notwithstanding subsection (1)(a) or (c), the board shall,

upon written request from any person, provide the following

information concerning the an applicant or licensee, his or her

products, services or gambling enterprises, and his or her business

holdings if the board has the information in its possession:

     (a) The name, business address, and business telephone number.

     (b) An identification of any the applicant or licensee,

including, if an the applicant or licensee is not an individual,

its state of incorporation or registration, its corporate officers,

and the identity of its shareholders. If an applicant or licensee

has a registration statement or a pending registration statement

filed with the securities and exchange commission, Securities and

Exchange Commission, only the names of those persons or entities

holding interest of 5% or more shall be provided.

     (c) An identification of any business, including, if

applicable, the state of incorporation or registration, in which an

the applicant or licensee or an the applicant's or licensee's

spouse, parent, or child has equity interest of more than 5%.

     (d) Whether an the applicant or licensee has been indicted,

convicted, pleaded guilty or nolo contendere, or forfeited bail

concerning any criminal offense under the laws of any jurisdiction,

either felony or misdemeanor, not including traffic violations,

including the name and location of the court, the date, and the

disposition of the offense.

     (e) Whether an the applicant or licensee has had any license

or certification issued by a licensing authority in Michigan this

state or any other jurisdiction denied, restricted, suspended,

revoked, or not renewed and, if known by the board, a statement

describing the facts and circumstances concerning the denial,

restriction, suspension, revocation, or nonrenewal, including the

name of the licensing authority, the date each action was taken,

and the reason for each action.

     (f) Whether an the applicant or licensee has ever 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, including the date of

filing, the name and location of the court, the case, and number of

the disposition.

     (g) Whether an the applicant or licensee has filed, or been

served with, a complaint or other notice filed with any public body

regarding the delinquent payment of any tax required under federal,

state, or local law, including the amount of the tax, type of tax,

the taxing agency, and time periods involved.

     (h) A statement listing the names and titles of all public

officials or officers of any city, state, or federal body, agency,

or entity and relatives of the officials who, directly or

indirectly, own any financial interest in, have any beneficial

interest in, are the creditors of, or hold or have any other

interest in, or any contractual or service relationship with, an

the applicant or licensee. under this act.

     (i) Whether an the applicant or licensee or the spouse,

parent, child, or spouse of a child of an the applicant or licensee

has made, directly or indirectly, any political contributions, or

any loans, gifts, or other payments to any candidate as that term

is defined in section 7b or officeholder elected in this state,

within 5 years prior to before the date of filing the application,

including the amount and the method of payment or to a committee

established under the Michigan campaign finance act, 1976 PA 388,

MCL 169.201 to 169.282.

     (j) The name and business telephone number of any attorney,

counsel, lobbyist agent as that term is defined in section 5 of

1978 PA 472, MCL 4.415, or any other person representing an the

applicant or licensee in matters before the board.

     (k) A summary of the applicant's development agreement with

the city, including the applicant's proposed location, the square

footage of any proposed casino, the type of additional facilities,

restaurants, or hotels proposed by the applicant, the expected

economic benefit to the city, the anticipated or actual number of

employees, any statement from the applicant regarding compliance

with federal and state affirmative action guidelines, the projected

or actual admissions, and the projected or actual adjusted gross

receipts.

     (l) A description of the product or service to be supplied by,

or occupation to be engaged in by, a the licensee.

     (3) Except as otherwise provided in this subsection, all

information, records, interviews, reports, statements, memoranda,

or other data provided in a response to a request for proposals for

development agreements issued by the a city and all draft

development agreements being negotiated by the city shall be are

exempt from disclosure under the freedom of information act, 1976

PA 442, MCL 15.231 to 15.246, including but not limited to any of

the following:

     (a) Unless presented during a public hearing, all records,

interviews, reports, statements, memoranda, or other information

supplied to, created by, or used by the city related to background

investigation of applicants for a development agreement and to

trade secrets, internal controls, and security measures of the

licensees or applicants.

     (b) All records, interviews, reports, statements, memoranda,

or other information supplied to or used by the city that have been

received from another jurisdiction or local, state, or federal

agency under a promise of confidentiality or if the release of the

information is otherwise barred by the statutes, rules, or

regulations of that jurisdiction or agency or by an

intergovernmental agreement.

     (c) All information provided in a response to a request for

proposals for development agreements.

     (4) Notwithstanding subsection (3)(a) or (c), the a city

shall, upon request, disclose the following information concerning

the a response to a request for proposals for development

agreements:

     (a) The name, business address, and business telephone number

of the person filing the response.

     (b) An identification of a the person filing a the response,

including, if the person is not an individual, the state of

incorporation or registration, the corporate officers, and the

identity of all shareholders or participants. If a the person

filing a response has a registration statement or a pending

registration statement filed with the securities and exchange

commission, Securities and Exchange Commission, the city shall only

provide the names of those persons or entities holding interest of

5% or more.

     (c) An identification of any business, including, if

applicable, the state of incorporation or registration, in which a

the person filing a response or his or her spouse, parent, or child

has equity interest of more than 5%.

     (d) Whether a the person filing a response has been indicted,

convicted, pleaded guilty or nolo contendere, or forfeited bail

concerning any criminal offense under the laws of any jurisdiction,

either felony or misdemeanor, not including traffic violations,

including the name and location of the court, the date, and the

disposition of the offense.

     (e) Whether a the person filing a response has had any license

or certification issued by a licensing authority in Michigan this

state or any other jurisdiction denied, restricted, suspended,

revoked, or not renewed and, if known by the city, a statement

describing the facts and circumstances concerning the denial,

restriction, suspension, revocation, or nonrenewal, including the

name of the licensing authority, the date each action was taken,

and the reason for each action.

     (f) Whether a the person filing a response has ever 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, including the date of

filing, the name and location of the court, the case, and number of

the disposition.

     (g) Whether a the person filing a response has filed, or been

served with, a complaint or other notice filed with any public body

regarding the delinquency in the payment of any tax required under

federal, state, or local law, including the amount, type of tax,

the taxing agency, and time periods involved.

     (h) A statement listing the names and titles of all public

officials or officers of any city, state, or federal body, agency,

or entity and relatives of the officials who, directly or

indirectly, own any financial interest in, have any beneficial

interest in, are the creditors of, or hold or have any interest in

or have any contractual or service relationship with, a the person

filing a response.

     (i) Whether a the person filing a response or the spouse,

parent, child, or spouse of a child of a the person filing a

response has made, directly or indirectly, any political

contributions, or any loans, gifts, or other payments to any board

member or any candidate as that term is defined in section 7b or

officeholder elected in this state or to a committee established

under the Michigan campaign finance act, 1976 PA 388, MCL 169.201

to 169.282, within 5 years before the date of filing the

application, including the amount and the method of payment.

     (j) The name and business telephone number of the counsel

representing a the person filing a response.

     (k) A summary of the development agreement proposal with the

city, including the applicant's proposed location, the square

footage of any the proposed casino, the type of additional

facilities, restaurants, or hotels proposed by the person filing a

response, the expected economic benefit to the city, the

anticipated or actual number of employees, any statement from the

applicant regarding compliance with federal and state affirmative

action guidelines, the projected or actual admissions, and the

projected or actual adjusted gross receipts.

     (l) A description of the product or service to be supplied by,

or occupation to be engaged in by, a person filing a response.

     (5) Notwithstanding the provisions of this section, the board

or the a city may cooperate with and provide all information,

records, interviews, reports, statements, memoranda, or other data

supplied to or used by the board to other jurisdictions or law

enforcement agencies.

     Sec. 4d. (1) By January 31 of each year, each member of the

board shall prepare and file with the office of the board, a board

disclosure form in which the member does all of the following:

     (a) Affirms that the member or the member's spouse, parent,

child, or child's spouse is not a member of the board of directors

of, financially interested in, or employed by a licensee or

applicant.

     (b) Affirms that the member continues to meet any other

criteria for board membership under this act or the rules

promulgated by the board.

     (c) Discloses any legal or beneficial interests in any real

property that is or that may be directly or indirectly involved

with gaming or gaming operations authorized by this act.

     (d) Discloses any other information as may be required to

ensure that the integrity of the board and its work is maintained.

     (2) By January 31 of each year, each employee of the board

shall prepare and file with the office of the board an employee

disclosure form in which the employee does all of the following:

     (a) Affirms the absence of financial interests prohibited by

this act.

     (b) Discloses any legal or beneficial interests in any real

property that is or that may be directly or indirectly involved

with gaming or gaming operations authorized by this act.

     (c) Discloses whether the employee or the employee's spouse,

parent, child, or child's spouse is financially interested in or

employed by a supplier licensee or an applicant for a supplier's

license under this act.

     (d) Discloses such any other matters as may be required to

ensure that the integrity of the board and its work is maintained.

     (3) A member, employee, or agent of the board who becomes

aware that the member, employee, or agent of the board or his or

her spouse, parent, or child is a member of the board of directors

of, financially interested in, or employed by a licensee or an

applicant shall immediately provide detailed written notice thereof

of the membership, financial interest, or employment to the

chairperson.

     (4) A member, employee, or agent of the board who has been

indicted, charged with, convicted of, pled guilty or nolo contendre

contendere to, or forfeited bail concerning a misdemeanor involving

gambling, dishonesty, theft, or fraud or a local ordinance in any

state involving gambling, dishonesty, theft, or fraud that

substantially corresponds to a misdemeanor in that state, or a

felony under Michigan law, the laws of any other state, or the laws

of the United States, or any other jurisdiction shall immediately

provide detailed written notice of the conviction or charge to the

chairperson.

     (5) Any member, employee, or agent of the board who is

negotiating for, or acquires by any means, any interest in any

person who is a licensee or an applicant, or any person affiliated

with such a person, shall immediately provide written notice of the

details of the interest to the chairperson. The member, employee,

or agent of the board shall not act on behalf of the board with

respect to that person.

     (6) A member, employee, or agent of the board may not enter

into any negotiations for employment with any person or affiliate

of any person who is a licensee or an applicant, and shall

immediately provide written notice of the details of any such

negotiations or discussions to the chairperson. The member,

employee, or agent of the board shall not take any action on behalf

of the board with respect to that person.

     (7) Any member, employee, or agent of the board who receives

an invitation, written or oral, to initiate a discussion concerning

employment or the possibility of employment with a person or

affiliate of a person who is a licensee or an applicant shall

immediately report that he or she received the invitation to the

chairperson. The member, employee, or agent of the board shall not

take action on behalf of the board with respect to the person.

     (8) A licensee or applicant shall not knowingly initiate a

negotiation for or discussion of employment with a member,

employee, or agent of the board. A licensee or applicant who

initiates a negotiation or discussion about employment shall

immediately provide written notice of the details of the

negotiation or discussion to the chairperson as soon as he or she

becomes aware that the negotiation or discussion has been initiated

with a member, employee, or agent of the board.

     (9) A member, employee, or agent of the board, or former

member, employee, or agent of the board, shall not disseminate or

otherwise disclose any material or information in the possession of

the board that the board considers confidential unless specifically

authorized to do so by the chairperson or the board.

     (10) A member, employee, or agent of the board or a parent,

spouse, sibling, spouse of a sibling, child, or spouse of a child

of a member, employee, or agent of the board may not accept any

gift, gratuity, compensation, travel, lodging, or anything of

value, directly or indirectly, from any licensee or any applicant

or affiliate or representative of an applicant or licensee, unless

the acceptance conforms to a written policy or directive that is

issued by the chairperson or the board. Any member, employee, or

agent of the board who is offered or receives any gift, gratuity,

compensation, travel, lodging, or anything of value, directly or

indirectly, from any licensee or any applicant or affiliate or

representative of an applicant or licensee shall immediately

provide written notification of the details to the chairperson.

     (11) A licensee or applicant, or affiliate or representative

of an applicant or licensee, may not, directly or indirectly, give

or offer to give any gift, gratuity, compensation, travel, lodging,

or anything of value to any member, employee, or agent of the board

which the member, employee, or agent of the board is prohibited

from accepting under subsection (10).

     (12) A member, employee, or agent of the board shall not

engage in any conduct that constitutes a conflict of interest, and

shall immediately advise the chairperson in writing of the details

of any incident or circumstances that would present the existence

of a conflict of interest with respect to the performance of the

board-related work or duty of the member, employee, or agent of the

board.

     (13) A member, employee, or agent of the board who is

approached and offered a bribe in violation of section 118 of the

Michigan penal code, 1931 PA 328, MCL 750.118, or this act shall

immediately provide written account of the details of the incident

to the chairperson and to a law enforcement officer of a law

enforcement agency having jurisdiction.

     (14) A member, employee, or agent of the board shall disclose

his or her past involvement with any casino interest in the past 5

years and shall not engage in political activity or politically

related activity during the duration of his or her appointment or

employment.

     (15) A former member, employee, or agent of the board may

appear before the board as a fact witness about matters or actions

handled by the member, employee, or agent during his or her tenure

as a member, employee, or agent of the board. The member, employee,

or agent of the board shall not receive compensation for such an

appearance other than a standard witness fee and reimbursement for

travel expenses as established by statute or court rule.

     (16) A licensee or applicant or any affiliate or

representative of an applicant or licensee shall not engage in ex

parte communications with a member of the board. A member of the

board shall not engage in any ex parte communications with a

licensee or an applicant or with any affiliate or representative of

an applicant or licensee.

     (17) Any board member, licensee, or applicant or affiliate or

representative of a board member, licensee, or applicant who

receives any ex parte communication in violation of subsection

(16), or who is aware of an attempted communication in violation of

subsection (16), shall immediately report details of the

communication or attempted communication in writing to the

chairperson.

     (18) Any member of the board who receives an ex parte

communication which that attempts to influence that member's

official action shall disclose the source and content of the

communication to the chairperson. The chairperson may investigate

or initiate an investigation of the matter with the assistance of

the attorney general and the department of state police to

determine if the communication violates subsection (16) or

subsection (17) or other state law. The disclosure under this

section and the investigation shall remain confidential. Following

an investigation, the chairperson shall advise the governor or the

board, or both, of the results of the investigation and may

recommend action as the chairperson considers appropriate.

     (19) A new or current employee or agent of the board shall

obtain written permission from the executive director before

continuing outside employment held at the time the employee begins

to work for the board. Permission The executive director shall be

denied, deny permission, or revoke permission previously granted,

will be revoked, if the nature of the work is considered to or does

create creates a possible conflict of interest or otherwise

interferes with the duties of the employee or agent for the board.

     (20) An employee or agent of the board granted permission for

outside employment shall not conduct any business or perform any

activities, including solicitation, related to outside employment

on premises used by the board or during the employee's working

hours for the board.

     (21) Whenever If the chairperson, as an employee of the board,

is required to file disclosure forms or report in writing the

details of any incident or circumstance pursuant to under this

section, he or she shall make such filings file those disclosure

forms or written reports to with the board.

     (22) The chairperson shall report any action he or she has

taken or contemplates taking under this section with respect to an

employee or agent or former employee or former agent to the board

at the next meeting of the board. The board may direct the

executive director to take additional or different action.

     (23) Except as follows, no a member, employee, or agent of the

board may shall not participate in or wager on any gambling game

conducted by any licensee or applicant or any affiliate of an

applicant or licensee in Michigan this state or in any other

jurisdiction:

     (a) A member, employee, or agent of the board may participate

in and wager on a gambling game conducted by a licensee under this

act, to the extent authorized by the chairperson or board as part

of the person's surveillance, security, or other official duties

for the board.

     (b) A member, employee, or agent of the board shall advise the

chairperson at least 24 hours in advance if he or she plans to be

present in a casino in this state or in another jurisdiction

operated by a licensee or applicant, or affiliate of a licensee or

an applicant, outside the scope of his or her official duties for

the board.

     (24) Violation of this section by a licensee or applicant, or

affiliate or representative of a licensee or applicant, may result

in denial of the application of licensure or revocation or

suspension of license or other disciplinary action by the board.

     (25) Violation of this section by a member of the board may

result in disqualification or constitute cause for removal under

section 4(7) or other disciplinary action as determined by the

board.

     (26) A violation of this section by an employee or agent of

the board will not result in termination of employment if the board

determines that the conduct involved does not violate the purpose

of this act, or require other disciplinary action, including

termination of employment. However, employment will be terminated

as follows:

     (a) If, after being offered employment or beginning employment

with the board, the employee or agent intentionally acquires a

financial interest in a licensee or an applicant, or affiliate or

representative of a licensee or applicant, employment with the

board shall must be terminated.

     (b) If a financial interest in a licensee or an applicant, or

affiliate or representative of a licensee or applicant, is acquired

by an employee or agent that has been offered employment with the

board, an employee of the board, or the employee's or agent's

spouse, parent, or child, through no intentional action of the

employee or agent, the individual shall have has up to 30 days to

divest or terminate the financial interest. Employment may be

terminated if the interest has not been divested after 30 days.

     (c) Employment shall must be terminated if the employee or

agent is a spouse, parent, child, or spouse of a child of a board

member.

     (27) Violation of this section does not create a civil cause

of action.

     (28) As used in this section:

     (a) "Outside employment" includes, but is not limited to any

of, the following:

     (i) Operation of a proprietorship.

     (ii) Participation in a partnership or group business

enterprise.

     (iii) Performance as a director or corporate officer of any

for-profit corporation or banking or credit institution.

     (b) "Political activity" or "politically related activity"

includes all of the following:

     (i) Using his or her official authority or influence for the

purpose of interfering with or affecting the result of an election.

     (ii) Knowingly soliciting, accepting, or receiving a political

contribution from any person.

     (iii) Running for the nomination or as a candidate for

election to a partisan political office.

     (iv) Knowingly soliciting or discouraging the participation in

any political activity of any person who is either of the

following:

     (A) Applying for any compensation, grant, contract, ruling,

license, permit, or certificate pending before the board.

     (B) The subject of or a participant in an ongoing audit,

investigation, or enforcement action being carried out by the

board.

     Sec. 5. (1) A person may apply to the board for a casino

license to conduct a casino gambling operation as provided in this

act. The application shall must be made under oath on forms

provided by the board and shall contain information as prescribed

by the board, including but not limited to all of the following:

     (a) The name, business address, business telephone number,

social security Social Security number, and, where applicable, the

federal tax identification number of any applicant.

     (b) The identity of every person having a greater than 1%

direct or indirect pecuniary interest in the applicant with respect

to which the license is sought. If the disclosed entity is a trust,

the application shall must disclose the names and addresses of the

beneficiaries; if a corporation, the names and addresses of all

stockholders and directors; if a partnership, the names and

addresses of all partners, both general and limited; if a limited

liability company, the names and addresses of all members.

     (c) An identification of any business, including, if

applicable, the state of incorporation or registration, in which an

applicant or an applicant's spouse, parent, or child has an equity

interest of more than 5%. If an applicant is a corporation,

partnership, or other business entity, the applicant shall identify

any other corporation, partnership, or other business entity in

which it has an equity interest of 5% or more, including, if

applicable, the state of incorporation or registration. An

applicant can may comply with this subdivision by filing a copy of

the applicant's registration with the securities exchange

commission if the registration contains the information required by

this subdivision.

     (d) Whether an applicant has been indicted, charged, arrested,

convicted, pleaded guilty or nolo contendere, 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, including

the date, the name and location of the court, arresting agency and

prosecuting agency, the case caption, the docket number, the

offense, the disposition, and the location and length of

incarceration.

     (e) Whether an applicant has ever applied for or has been

granted any license or certificate issued by a licensing authority

in Michigan this state or any other jurisdiction that has been

denied, restricted, suspended, revoked, or not renewed and a

statement describing the facts and circumstances concerning the

application, denial, restriction, suspension, revocation, or

nonrenewal, including the licensing authority, the date each action

was taken, and the reason for each action.

     (f) Whether an applicant has ever filed or had filed against

it a civil or administrative action or proceeding in bankruptcy or

has ever been involved in any formal process to adjust, defer,

suspend, or otherwise work out the payment of any debt including

the date of filing, the name and location of the court, the case

caption, the docket number, and the disposition.

     (g) Whether an applicant has filed, or been served with, a

complaint or other notice filed with any public body, regarding the

delinquency in the payment of, or a dispute over the filings

concerning the payment of, any tax required under federal, state,

or local law, including the amount, type of tax, the taxing agency,

and time periods involved.

     (h) A statement listing the names and titles of all public

officials or officers of any unit of government, and the spouses,

parents, and children of those public officials or officers who,

directly or indirectly, own any financial interest in, have any

beneficial interest in, are the creditors of or hold any debt

instrument issued by, or hold or have any interest in any

contractual or service relationship with, an applicant. As used in

this subdivision, "public official or officer" does not include a

person who would have to be listed solely because of his or her

state or federal military service.

     (i) Whether an applicant or the spouse, parent, child, or

spouse of a child of an applicant has made, directly or indirectly,

any political contribution, or any loans, donations, or other

payments to any candidate as that term is defined in section 7b or

officeholder elected in this state or to a committee established

under the Michigan campaign finance act, 1976 PA 388, MCL 169.201

to 169.282, within 5 years from the date of the filing of the

application, including the identity of the board member, candidate,

or officeholder, the date, the amount, and the method of payment.

     (j) The name and business telephone number of any attorney,

counsel, lobbyist agent as that term is defined in section 5 of

1978 PA 472, MCL 4.415, or any other person representing an

applicant in matters before the board.

     (k) A description of any proposed or approved casino gaming

operation and related casino enterprises, including the economic

benefit to the community, anticipated or actual number of

employees, any statement from an applicant regarding compliance

with federal and state affirmative action guidelines, projected or

actual admissions, projected or actual gross receipts, and

scientific market research.

     (l) Financial information in the manner and form prescribed by

the board.

     (2) Information provided on the application shall must be used

as a basis for a thorough background investigation which that the

board shall conduct on each applicant. A false or incomplete

application is cause for denial of a license by the board.

     (3) Applicants shall must submit with their application all

required development agreements and documents, certifications,

resolutions, and letters of support from the governing body that

represents the municipality in which the applicant proposes to

operate a casino.

     (4) Applicants shall must consent in writing to being subject

to the inspections, searches, and seizures provided for in section

4a(1)(c)(i) to (v) and to disclosure to the board and its agents of

otherwise confidential records, including tax records held by any

federal, state, or local agency, or credit bureau or financial

institution, while applying for or holding a license under this

act.

     (5) A nonrefundable application fee of $50,000.00 shall must

be paid at the time of filing to defray the costs associated with

the background investigation conducted by the board. If the costs

of the investigation exceed $50,000.00, the applicant shall pay the

additional amount to the board. All information, records,

interviews, reports, statements, memoranda, or other data supplied

to or used by the board in the course of its review or

investigation of an application for a license under this act shall

must only be disclosed in accordance with this act. The

information, records, interviews, reports, statements, memoranda,

or other data shall are not be admissible as evidence, nor

discoverable in any action of any kind in any court or before any

tribunal, board, agency, or person, except for any action

considered necessary by the board.

     Sec. 6. (1) The board shall issue a casino license to a person

who applies for a license, who pays the nonrefundable application

fee required under section 5(5) and a $25,000.00 license fee for

the first year of operation, and who the board determines is

eligible and suitable to receive a casino license under this act

and the rules promulgated by the board. It is the burden of the

applicant to establish by clear and convincing evidence its

suitability as to character, reputation, integrity, business

probity, experience, and ability, financial ability and

responsibility, and other criteria as may be considered appropriate

by the board. The criteria considered appropriate by the board

shall must not be arbitrary, capricious, or contradictory to the

expressed provisions of this act. A person is eligible to apply for

a casino license if all of the following criteria are met:

     (a) The applicant proposes to locate the casino in a city

where the local legislative body enacted an ordinance approving

casino gaming that may include local ordinances governing casino

operations, occupational licensees, and suppliers which that are

consistent with this act and rules promulgated by the board.

     (b) The applicant entered into a certified development

agreement with the city where the local legislative body enacted an

ordinance approving casino gaming.

     (c) The applicant or its affiliates or affiliated companies

has a history of, or a bona fide plan for, either investment or

community involvement in the city where the casino will be located.

     (2) A city shall not certify or submit and have pending before

the board more than 3 certified development agreements. If an

applicant is denied a casino license by the board, the city may

then certify a development agreement with another applicant and

submit the certified development agreement to the board. Nothing in

this act shall be construed to prevent prevents the city from

entering into more than 3 development agreements.

     (3) No The board shall not issue more than three (3) 3

licenses shall be issued by the board in any city. A The board

shall not issue a license shall not be issued for a casino to be

located on land held in trust by the United States for a federally

recognized Indian tribe. In evaluating the eligibility and

suitability of all applicants under the standards provided in this

act, the board shall establish and apply the standards to all

applicants in a consistent and uniform manner. In the event that If

more than three (3) 3 applicants meet the standards for eligibility

and suitability provided for in subsections (4) and (5), the board

shall first issue licenses shall first be issued to those eligible

and suitable applicants which that submitted any casino gaming

proposal for voter approval prior to before January 1, 1995, in the

city in which the casino will be located and the voters approved

the proposal.

     (4) An applicant is ineligible to receive a casino 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.

     (b) The applicant has been convicted of a misdemeanor

involving gambling, theft, dishonesty, or fraud 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.

     (c) The applicant has submitted an application for a license

under this act that contains false information.

     (d) The applicant is a member of the board.

     (e) The applicant fails to demonstrate the applicant's ability

to maintain adequate liability and casualty insurance for its

proposed casino.

     (f) The applicant holds an elective office of a governmental

unit of this state, another state, or the federal government, or is

a member of or employed by a gaming regulatory body of a

governmental unit in this state, another state, or the federal

government, or is employed by a governmental unit of this state.

This section does not apply to an elected officer of or employee of

a federally recognized Indian tribe or to an elected precinct

delegate.

     (g) The applicant or affiliate owns more than a 10% ownership

interest in any entity holding a casino license issued under this

act.

     (h) 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;

responsibility; or means to develop, construct, operate, or

maintain the casino proposed in the certified development

agreement.

     (i) The applicant fails to meet other criteria considered

appropriate by the board. The criteria considered appropriate by

the board shall must not be arbitrary, capricious, or contradictory

to the expressed provisions of this act.

     (5) In determining whether to grant a casino license to an

applicant, the board shall also consider all of the following:

     (a) The integrity, moral character, and reputation; personal

and business probity; financial ability and experience; and

responsibility of the applicant and of any other person or means to

develop, construct, operate, or maintain a casino that either:

     (i) Controls, directly or indirectly, the applicant.

     (ii) Is controlled, directly or indirectly, by the applicant

or by a person who controls, directly or indirectly, the applicant.

     (b) The prospective total revenue to be derived by the state

from the conduct of casino gambling.

     (c) The financial ability of the applicant to purchase and

maintain adequate liability and casualty insurance and to provide

an adequate surety bond.

     (d) The sources and total amount of the applicant's

capitalization to develop, construct, maintain, and operate the

proposed casino.

     (e) Whether the applicant has adequate capitalization to

develop, construct, maintain, and operate for the duration of a

license the proposed casino in accordance with the requirements of

this act and rules promulgated by the board and to responsibly pay

off its secured and unsecured debts in accordance with its

financing agreement and other contractual obligations.

     (f) The extent and adequacy of any compulsive gambling

programs that the applicant will adopt and implement if licensed.

     (g) The past and present compliance of the applicant and its

affiliates or affiliated companies with casino or casino-related

licensing requirements, casino-related agreements, or compacts with

the state of Michigan this state or any other jurisdiction.

     (h) Whether the applicant has been indicted, charged,

arrested, convicted, pleaded guilty or nolo contendere, 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.

     (i) 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.

     (j) 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. years.

     (k) The applicant has a history of noncompliance with the

casino licensing requirements of any jurisdiction.

     (l) The applicant has a history of noncompliance with any

regulatory requirements in this state or any other jurisdiction.

     (m) Whether at the time of application the applicant is a

defendant in litigation involving its business practices.

     (n) Whether awarding a license to an applicant would undermine

the public's confidence in the Michigan gaming industry in this

state.

     (o) Whether the applicant meets other standards for the

issuance of issuing a casino license which that the board may

promulgate by rule. The rules promulgated under this subdivision

shall must not be arbitrary, capricious, or contradictory to the

expressed provisions of this act.

     (6) Each applicant shall must submit with its application, on

forms provided by the board, a photograph and 2 sets of

fingerprints for each person having a greater than 1% direct or

indirect pecuniary interest in the casino, and each person who is

an officer, director, or managerial employee of the applicant.

     (7) The board shall review all applications for casino

licenses and shall inform each applicant of the board's decision.

Prior to Before rendering its decision, the board shall provide a

public investigative hearing at which the applicant for a license

shall have has the opportunity to present testimony and evidence to

establish its suitability for a casino license. Other testimony and

evidence may be presented at the hearing, but the board's decision

shall must be based on the whole record before the board and is not

limited to testimony and evidence submitted at the public

investigative hearing.

     (8) A license shall be is issued for a 1-year period. All

licenses are renewable annually upon payment of the license fee and

upon the transmittal to the board of an annual report to include

information required under rules promulgated by the board.

     (9) All applicants and licensees shall must consent to

inspections, searches, and seizures and the providing of

handwriting exemplar, fingerprints, photographs, and information as

authorized in this act and in rules promulgated by the board.

     (10) Applicants and licensees shall be are under a continuing

duty to provide information requested by the board and to cooperate

in any investigation, inquiry, or hearing conducted by the board.

     (11) 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.

     Sec. 6a. (1) If in the review of an application submitted

under this act the board identifies a deficiency that would require

denial, the board shall notify give written notice of the

deficiency to the applicant and the city in writing of the

deficiency.which the casino is or is proposed to be located.

     (2) The board shall provide the an applicant a reasonable

period of time to correct the a deficiency.

     Sec. 6c. (1) Unless the board determines that an institutional

investor may be found is unqualified, an institutional investor

holding either under 10% of the equity securities or debt

securities of a casino licensee's affiliate or affiliated company

which that is related in any way to the financing of the casino

licensee, if the securities represent a percentage of the

outstanding debt of the affiliate or affiliated company not

exceeding 20%, or a percentage of any issue of the outstanding debt

of the affiliate or affiliated company not exceeding 50%, shall be

granted a waiver of the eligibility and suitability requirements of

section 6 if such those securities are those of a publicly traded

corporation and its holdings of such those securities were

purchased for investment purposes only and, if requested by the

board, the investor files with the board a certified statement that

it has no intention of influencing or affecting the affairs of the

issuer, the casino licensee, or its affiliate or affiliated

company.

     (2) The board may grant a waiver under this section to an

institutional investor holding a higher percentage of securities as

allowed in subsection (1), upon a showing of good cause and if the

conditions specified in subsection (1) are met.

     (3) An institutional investor granted a waiver under this

section that subsequently intends to influence or affect the

affairs of the issuer shall must provide notice to the board and

file an application for a determination of eligibility and

suitability before taking any action that may influence or affect

the affairs of the issuer.

     (4) Notwithstanding any provisions of this act, an

institutional investor may vote on all matters that are put to the

vote of the outstanding security holders of the issuer.

     (5) If an institutional investor changes its investment intent

or if the board finds that the institutional investor may be found

is unqualified, no action other than divestiture of the security

holdings shall be taken until there has been compliance with this

act.

     (6) The casino licensee or an affiliate or affiliated company

of the casino licensee shall immediately notify the board of any

information concerning an institutional investor holding its equity

or debt securities which that may impact the eligibility and

suitability of the institutional investor for a waiver under this

section.

     (7) If the board finds that an institutional investor holding

any security of an affiliate or affiliated company of a casino

licensee that is related in any way to the financing of the casino

licensee fails to comply with the requirements of this section, or

if at any time the board finds that, by reason of the extent or

nature of its holdings, an institutional investor is in a position

to exercise a substantial impact upon the controlling interests of

a casino licensee, the board may take any necessary action to

protect the public interest, including requiring this institutional

investor to satisfy the eligibility and suitability requirements

under section 6.

     Sec. 7a. (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 shall 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 shall 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, in its sole discretion, 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, in its sole discretion, 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 which that contains false information.

     (d) The applicant is a member of the board.

     (e) The applicant holds an elective office of a governmental

unit of this state, another state, or the federal government, or is

a member of or employed by a gaming regulatory body of a

governmental unit in this state, another state, or the federal

government, or is employed by a governmental unit of this state.

This subdivision does not apply to an elected officer of or

employee of a federally recognized Indian tribe or an elected

precinct delegate.

     (f) The applicant owns more than a 10% ownership interest in

any entity holding a casino license issued under this act.

     (g) 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.

     (h) The applicant fails to meet other criteria considered

appropriate by the board. The board shall not apply criteria

considered appropriate by the board shall not be 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 or an affiliate 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. years.

     (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 an the applicant would

undermine the public's confidence in the Michigan gaming industry

in this state.

     (j) Whether the applicant meets other standards for the

issuance of issuing a supplier's license that contained in a rule

promulgated by the board. may promulgate by rule. The rules

promulgated board shall not promulgate a rule under this

subdivision shall not be that is arbitrary, capricious, or

contradictory to the expressed provisions of this act.

     (6) Any person, including a junket enterprise, 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

might operate. operates. A supplier shall file a quarterly return

with the board listing all sales, leases, and services. 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 shall be are forfeited to the 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 a licensed area.

     (10) A supplier's license shall be issued under this section

is valid for a 1-year period of 1 year from the date the license is

issued. 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 shall 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 shall be under 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.