HOUSE BILL No. 4714 April 29, 1997, Introduced by Reps. Fitzgerald, Sikkema, Gustafson, DeVuyst, Goschka, Perricone, Voorhees, Middleton, Jellema, Brackenridge, Cropsey, Raczkowski, Scranton, Kukuk, Jansen, McManus, Gilmer, Green, Godchaux, Rhead, Walberg, Dalman, McNutt, Lowe, Bobier and Llewellyn and referred to the Committee on House Oversight and Ethics. A bill to amend the Initiated Law of 1996, entitled "Michigan gaming control and revenue act," by amending the title and sections 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 13, 14, and 15 (MCL 432.202, 432.203, 432.204, 432.205, 432.206, 432.208, 432.209, 432.210, 432.211, 432.212, 432.213, 432.214, and 432.215) and by adding sections 4a, 4b, 4c, 6a, 7a, 7b, 7c, 8a, 13a, 13b, 13c, 17, 18, 19, 20, 21, 22, 23, and 24; and to repeal acts and parts of acts. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 TITLE 2 An actprovidingTO PROVIDE for the licensing, REGULATION, 3 and control of casino gaming operations, manufacturers and dis- 4 tributors of gaming devices and gamingemployees; providing5 RELATED EQUIPMENT AND SUPPLIES, AND PERSONS WHO PARTICIPATE IN 6 GAMING;forTO PROVIDE the distribution of revenue for public 02697'97 VPW 2 1 education, public safety and economic development; authorizing 2 limited casino operations within theStateSTATE of Michigan; 3and vestingTO VEST authority for the LICENSING, regulation, 4 AND CONTROL of casino gaming inaTHE MICHIGAN gaming control 5 board; TO RESTRICT CERTAIN POLITICAL CONTRIBUTIONS; TO REQUIRE 6 REGISTRATION OF CERTAIN ORGANIZATIONS; TO IMPOSE CERTAIN TAXES 7 AND FEES; TO IMPOSE PENALTIES; TO AUTHORIZE CONSERVATORS UNDER 8 CERTAIN CIRCUMSTANCES; AND TO MAKE AN APPROPRIATION. 9 SEC. 2.Section 2. Definitions.AS USED IN THIS ACT: 10 (A) "ADJUSTED GROSS RECEIPTS" MEANS THE GROSS RECEIPTS LESS 11 WINNINGS PAID TO WAGERERS. 12 (B)(a)"Affiliate" means a person who, directly or indi- 13 rectly, throughone1 or more intermediaries, controls, is con- 14 trolled by, or is under common control with;oris in a part- 15 nership or joint venture relationship with; or is a 16 co-shareholder of a corporation,ora co-member of a limited 17 liability company, OR CO-PARTNER IN A LIMITED LIABILITY 18 PARTNERSHIP with aproposed casino licenseePERSON WHO HOLDS OR 19 APPLIES FOR A CASINO LICENSE UNDER THIS ACT. 20 (C)(b)"Affiliated company" means any form of business 21 organization which controls, is controlled by or is under common 22 control with;oris in a partnership or joint venture relation- 23 ship with; or is a co-shareholder of a corporation,ora 24 co-member of a limited liability company, OR CO-PARTNER IN A 25 LIMITED LIABILITY PARTNERSHIP with aproposed casino gaming26licenseePERSON WHO HOLDS OR APPLIES FOR A CASINO LICENSE UNDER 27 THIS ACT. 02697'97 3 1 (D)(c)"Applicant" means anycompany, affiliate or2affiliated company thatPERSON WHO applies for a licenseto3operate a casinoOR FOR REGISTRATION UNDER THIS ACT. 4 (E)(d)"Board" means the MichiganGaming Control Board5 GAMING CONTROL BOARD. 6 (F)(e)"Casino" means a building in which gaming is 7 conducted. 8 (G) "CASINO ENTERPRISE" MEANS THE BUILDINGS, FACILITIES, OR 9 ROOMS FUNCTIONALLY OR PHYSICALLY CONNECTED TO A CASINO, INCLUDING 10 BUT NOT LIMITED TO ANY BAR, RESTAURANT, HOTEL, COCKTAIL LOUNGE, 11 RETAIL ESTABLISHMENT, OR ARENA OR ANY OTHER FACILITY LOCATED IN A 12 CITY UNDER THE CONTROL OF A CASINO LICENSEE OR AFFILIATED 13 COMPANY. 14 (H) "CERTIFIED DEVELOPMENT AGREEMENT" MEANS A DEVELOPMENT 15 AGREEMENT THAT HAS BEEN CERTIFIED BY A CITY AND SUBMITTED TO THE 16 MICHIGAN GAMING CONTROL BOARD. 17 (I) "CHEAT" MEANS TO ALTER THE SELECTION OF CRITERIA WHICH 18 DETERMINE THE RESULT OF A GAMBLING GAME OR THE AMOUNT OR FRE- 19 QUENCY OF PAYMENT IN A GAMBLING GAME, IN VIOLATION OF THIS ACT OR 20 RULES PROMULGATED UNDER THIS ACT. 21 (J)(f)"City" means a local unit of government other than 22 a county which meets all of the following criteria: 23 (i)(1) the city hasHAS a population of at least 800,000 24 at the time a license is issued.;25 (ii)(2) the city isIS located within 100 miles of any 26 other state or country in which gaming is permitted.; and02697'97 4 1 (iii)(3)HAD a majoritytheOF votersof the local2unit of government haveWHO expressed approval of casino gaming 3 in the city. 4 (K)(g)"Company" means a sole proprietorship, corpora- 5 tion, partnership, limited LIABILITY partnership, limited liabil- 6 ity company, trust, association, joint stock company, joint ven- 7 ture, tribal corporation or other form of business organization. 8 (l)(h)"Control" means having a greater than 15% direct 9 or indirect pecuniary interest in the casino gaming operation 10 with respect to which the license is sought. 11 (M)(i)"Department" means theDepartment of Treasury12 DEPARTMENT OF TREASURY. 13 (N)(j)"DevelopmentAgreementAGREEMENT" means a writ- 14 ten agreement between a city and acompanyPERSON namingsuch15companyTHE PERSON as the designated developer of a casino in 16 the city and covering certain subjects including, but not limited 17 to: approval by the city of the location of the casino; certifi- 18 cation by the city that the applicant has sufficient financial 19 resources to construct and open the casino which it proposes to 20 develop; zoning and site plan requirements; utility connection 21 fees; infrastructure improvements; requirements to utilize local 22 businesses and small businesses as suppliers; employment issues; 23 compulsive behavior programs; insurance requirements; conceptual 24 design approval; reimbursement for PREDEVELOPMENT AND INFRASTRUC- 25 TURE COSTS, traffic engineering, and other transportation costs; 26 plans for completion of destination attractions either within or 27 outside the casino facility and ancillary development rights.;02697'97 5 1provided that, in no event, shall the cost of all infrastructure2and pre-development costs exceed $6,000,000.00.3 (O) "DISCIPLINARY ACTION" IS AN ACTION BY THE BOARD SUSPEND- 4 ING OR REVOKING A LICENSE; FINING, EXCLUDING, REPRIMANDING, OR 5 OTHERWISE PENALIZING A PERSON FOR VIOLATING THIS ACT OR RULES 6 PROMULGATED BY THE BOARD. 7 (P)(k) "Game"GAMBLING GAME" means any game played with 8 cards, dice, equipment or machine,(including any mechanical, 9 electromechanical or electronic device which shall include com- 10 puters and cashless wagering systems,)for money,orcredit, 11 or any representative of value, including, but not limited to, 12 faro, monte, roulette, keno, bingo, fan tan, twenty one, black- 13 jack, seven and a half, klondike, craps, poker, chuck a luck, 14 Chinese chuck a luck (dai shu), wheel of fortune, chemin de fer, 15 baccarat, pai gow, beat the banker, panguingui, slot machine, 16 VIDEO LOTTERY GAMING TERMINAL, any banking or percentage game or 17 any other game or device approved by the board, but does not 18 include games played with cards in private homes or residences in 19 which no person makes money for operating the game, except as a 20 player. 21 (Q) "GAMBLING OPERATION" MEANS THE CONDUCT OF AUTHORIZED 22 GAMBLING GAMES IN A CASINO. 23 (R)(l)"Gaming" means to deal, operate, carry on, con- 24 duct, maintain or expose OR OFFER for play any GAMBLING game OR 25 GAMBLING OPERATION. 26(m) "Gross Revenue" means the total of all:02697'97 6 1(1) Cash received as winnings;2(2) Cash received in payment for credit extended by the3holder of the casino license to a patron for purposes of gaming;4and5(3) Compensation received for conducting any game in which6the licensee is not party to a wager, less the total of all cash7paid out as losses to patrons. For the purposes hereof, cash or8the value of noncash prizes awarded to patrons in a contest or9tournament are not losses.10"Gross Revenue" does not include:11(1) Counterfeit facsimiles of money, chips, tokens, wagering12instruments or wagering credits;13(2) Coins of other countries which are received in gaming14devices;15(3) Any portion of the face value of any chip, token or16other representative of value won by the holder of a casino17license from a patron for which the holder of a casino license18can demonstrate that it or its affiliate or affiliated company19has not received cash;20(4) Cash taken in fraudulent acts perpetrated against the21holder of a casino license for which the licensee is not22reimbursed.23(5) Cash received as entry fees for contest or tournaments24in which patrons compete for prizes.25 (S) "GROSS RECEIPTS" MEANS THE TOTAL OF ALL SUMS INCLUDING 26 VALID OR INVALID CHECKS, CURRENCY, TOKENS, COUPONS, VOUCHERS, OR 27 INSTRUMENTS OF MONETARY VALUE WHETHER COLLECTED OR UNCOLLECTED, 02697'97 7 1 RECEIVED BY A CASINO LICENSEE FROM GAMING, INCLUDING ALL ENTRY 2 FEES ASSESSED FOR TOURNAMENTS OR OTHER CONTESTS. 3 (T) "INVESTIGATIVE HEARING" MEANS ANY HEARING CONDUCTED BY 4 THE BOARD OR ITS AUTHORIZED REPRESENTATIVE TO INVESTIGATE AND 5 GATHER INFORMATION OR EVIDENCE REGARDING PENDING LICENSE APPLICA- 6 TIONS, APPLICANTS, LICENSEES, OR ALLEGED OR APPARENT VIOLATIONS 7 OF THIS ACT OR RULES PROMULGATED BY THE BOARD. 8 (U) "JUNKET ENTERPRISE" MEANS ANY PERSON OTHER THAN A CASINO 9 LICENSEE OR APPLICANT WHO EMPLOYS OR OTHERWISE ENGAGES IN THE 10 PROCUREMENT OR REFERRAL OF PERSONS WHO MAY PARTICIPATE IN A 11 JUNKET TO A CASINO LICENSED UNDER THIS ACT OR CASINO ENTERPRISE 12 WHETHER OR NOT THOSE ACTIVITIES OCCUR WITHIN THE STATE. 13 (V)(n)"Occupational license" means a license issued by 14 the board to a personor entityto perform an occupation which 15 the board has identified as requiring a license to engage in 16 casinogaming in MichiganGAMBLING OR IN A CASINO ENTERPRISE. 17 (W) "PERSON" MEANS AN INDIVIDUAL, CORPORATION, LIMITED 18 LIABILITY COMPANY, ASSOCIATION, PARTNERSHIP, LIMITED LIABILITY 19 PARTNERSHIP, TRUST, ENTITY, OR OTHER LEGAL ENTITY. 20 (X) "SUPPLIER" MEANS A PERSON WHO THE BOARD HAS IDENTIFIED 21 UNDER RULES PROMULGATED BY THE BOARD AS REQUIRING A LICENSE TO 22 PROVIDE CASINO LICENSEES OR CASINO ENTERPRISES WITH GOODS OR 23 SERVICES REGARDING THE REALTY, CONSTRUCTION, MAINTENANCE, OR 24 BUSINESS OF A PROPOSED OR EXISTING CASINO, CASINO ENTERPRISE, OR 25 RELATED FACILITY ON A REGULAR OR CONTINUING BASIS, INCLUDING, BUT 26 NOT LIMITED TO, JUNKET ENTERPRISES, SECURITY BUSINESSES, 27 MANUFACTURERS, DISTRIBUTORS, PERSONS WHO SERVICE GAMING DEVICES 02697'97 8 1 OR EQUIPMENT, GARBAGE HAULERS, MAINTENANCE COMPANIES, FOOD 2 PURVEYORS, AND CONSTRUCTION COMPANIES. 3 (Y) "WAGERER" MEANS A PERSON WHO PLAYS A GAMBLING GAME 4 AUTHORIZED UNDER THIS ACT. 5 (Z) "WINNINGS" MEANS THE TOTAL CASH VALUE OF ALL PROPERTY OR 6 SUMS INCLUDING VALID OR INVALID CHECKS, CURRENCY, TOKENS, COU- 7 PONS, VOUCHERS, OR INSTRUMENTS OF MONETARY VALUE PAID OR CREDITED 8 TO WAGERERS. 9 SEC. 3. (1)Section 3. Casino Gaming Authorized. (a)10 Casino gaming isherebyauthorized to the extent that it is 11carried outCONDUCTED in accordance withthe provisions of12 this act. 13 (2)(b)This act does not apply totheany of the 14 following: 15 (a) The pari-mutuel system of wagering used or intended to 16 be used in connection withhorse-raceRACE meetings as autho- 17 rized under the HORSE racing law of1980 Act No. 527 of the18Public Acts of 1980 being sections 431.61 to 431.88 of the19Michigan Compiled Laws; lottery1995, 1995 PA 279, MCL 431.301 20 TO 431.336. 21 (B) LOTTERY games authorized under the 22mccauley-traxler-law-bowman-mcneely23 MCCAULEY-TRAXLER-LAW-BOWMAN-MCNEELY lottery act,Act No. 239 of24the Public Acts of 1972 being sections 432.1 to 432.47 of the25Michigan Compiled Laws; bingo1972 PA 239, MCL 432.1 TO 432.47. 26 (C) BINGO OR MILLIONAIRE PARTIES authorized under the 27traxler-mccauley-law-bowmanTRAXLER-MCCAULEY-LAW-BOWMAN bingo 02697'97 9 1 act,Act No. 382 of Public Acts of 1972 being sections 432.1012to 432.120 of the Michigan Compiled Laws; millionaire parties3authorized under the traxler-mccauley-law-bowman bingo act, Act4No. 382 of the Public Acts of 1972 being sections 432.101 to5432.120 of the Michigan Compiled Laws and gambling1972 PA 382, 6 MCL 432.101 TO 432.120. 7 (D) GAMBLING on Native American land and land held in trust 8 by the United States for a federally recognized Indian tribe on 9 which gaming may be conducted under the IndianGaming Regulatory10Act, 25 USC B2701 et seq. ("IGRA"), which gaming shall be gov-11erned by IGRA and various tribal state compacts entered into by12and between the State of Michigan and various Native American13tribesGAMING REGULATORY ACT, PUBLIC LAW 100-497, 102 14 STAT. 2467. 15 (3)(c) All other acts and parts of actsANY OTHER LAW 16 THAT IS inconsistent with this actdoDOES not apply to casino 17 gaming as provided for by this act. 18 (4) THIS ACT AND RULES PROMULGATED BY THE BOARD SHALL APPLY 19 TO ALL PERSONS WHO ARE LICENSED OR OTHERWISE PARTICIPATE IN 20 GAMING UNDER THIS ACT. 21 SEC. 4. (1)Section 4. Michigan Gaming Control Board (a)22There is hereby established a michiganTHE MICHIGAN gaming con- 23 trol boardwhich shall be a Type I agencyIS CREATED within the 24 department of treasury.pursuant to the executive organization25act of 1965, Act. No. 380 of the Public Acts of 1965 being sec-26tions 16.101 to 16.732 of the Michigan Compiled Laws and which27shall have the powers and duties specified in this act.THE 02697'97 10 1 BOARD SHALL HAVE THE POWERS AND DUTIES SPECIFIED IN THIS ACT AND 2 ALL OTHER POWERS NECESSARY AND PROPER TO FULLY AND EFFECTIVELY 3 EXECUTE AND ADMINISTER THIS ACT FOR THE PURPOSE OF LICENSING, 4 REGULATING, AND ENFORCING THE SYSTEM OF CASINO GAMBLING ESTAB- 5 LISHED UNDER THIS ACT. 6 (2)(1)The board shall consist of 5 members, not more 7 than 3 of whom shall be members of the same political party, to 8 be appointed by the governor with the advice and consent of the 9 senate, 1 OF WHOM SHALL BE DESIGNATED BY THE GOVERNOR TO BE 10 CHAIRPERSON.The governor shall appoint the initial board11within 60 days of the effective date of this actEACH MEMBER 12 SHALL BE A RESIDENT OF THIS STATE. 13 (3)(2)The members shall be appointed for terms of 4 14 years, except of those who are first appointed, 1 member shall be 15 appointed for a term of 2 years, 2 members shall be appointed for 16 a term of 3 years and 2 members shall be appointed for a term of 17 4 years. In the event of a vacancyor vacancies in the member-18ship ofON the board, the governor shall appoint in like manner 19 a successoror successorsto fill the unexpired term.The20governor shall designate 1 of its members to act as chairperson21of the board.22 (4) EACH MEMBER OF THE BOARD SHALL BE REIMBURSED FOR ALL 23 ACTUAL AND NECESSARY EXPENSES AND DISBURSEMENTS INCURRED IN THE 24 EXECUTION OF OFFICIAL DUTIES. 25 (5) A BOARD MEMBER SHALL NOT HOLD ANY OTHER PUBLIC OFFICE 26 FOR WHICH HE OR SHE SHALL RECEIVE COMPENSATION OTHER THAN 27 NECESSARY TRAVEL OR OTHER INCIDENTAL EXPENSES. 02697'97 11 1 (6) A PERSON WHO IS NOT OF GOOD MORAL CHARACTER OR WHO HAS 2 BEEN CONVICTED OF, OR IS UNDER INDICTMENT FOR, OR FORMALLY 3 CHARGED WITH ANY FELONY OR A MISDEMEANOR INVOLVING GAMBLING, 4 THEFT, DISHONESTY, OR FRAUD UNDER THE LAWS OF THIS STATE, ANY 5 OTHER STATE, OR THE UNITED STATES SHALL NOT BE APPOINTED AS A 6 MEMBER OF THE BOARD. 7 (7)(3)Any member of the board may be removed by the gov- 8 ernor for NEGLECT OF DUTY, MISFEASANCE, MALFEASANCE, NONFEASANCE, 9 OR ANY OTHER JUST cause. 10(b) The board shall enforce and supervise the administra-11tion of this act. The board shall employ personnel as necessary12to implement this act.13(c) The board shall promulgate rules which shall be neces-14sary for the implementation of this act pursuant to the adminis-15trative procedures act of 1969, Act No. 306 of the Public Acts of161969, being sections 224.201 to 24.238 of the Michigan Compiled17Laws.18(d) The business of the board shall be conducted at public19meetings held in compliance with the open meetings act, Act20No. 267 of the Public Acts of 1976, being sections 15.231 to2115.246 of the Michigan Compiled Laws.22(e) A writing prepared, owned, used, in the possession of or23retained by the board in the performance of an official function24shall be made available to the public in compliance with the25freedom of information act, Act No. 442 of the Public Acts of261976, being sections 15.231 to 15.246 of the Michigan Compiled27Laws.02697'97 12 1(f) The board may suspend or revoke any license issued2pursuant to this act if the licensee or any officer, director,3agent, member, or employee of a licensee violates this act or4rules promulgated hereunder. Proceedings authorized by this act5shall be conducted in accordance with and subject to the adminis-6trative procedures act of 1969, Act No. 306 of the Public Acts of71969 being sections 24.201 to 24.238 of the Michigan Compiled8Laws.9(g) A quorum consists of 3 members. All board business10shall be conducted by not less than a quorum.11(h) A board member shall not receive a salary for being a12board member, but shall be reimbursed for his or her reasonable,13actual and necessary expenses incurred in the performance of his14or her duties as a board member.15(i) There is appropriated for the fiscal year ending16September 30, 1997, $1,000,000.00 for the purpose of funding the17operations of the board.18 (8) THE GOVERNOR SHALL APPOINT THE EXECUTIVE DIRECTOR OF THE 19 BOARD TO SERVE A 4-YEAR TERM. THE EXECUTIVE DIRECTOR SHALL PER- 20 FORM ANY AND ALL DUTIES THAT THE BOARD SHALL ASSIGN HIM OR HER. 21 THE EXECUTIVE DIRECTOR SHALL BE REIMBURSED FOR ALL ACTUAL AND 22 NECESSARY EXPENSES INCURRED BY HIM OR HER IN DISCHARGE OF HIS OR 23 HER OFFICIAL DUTIES. THE EXECUTIVE DIRECTOR SHALL KEEP RECORDS 24 OF ALL PROCEEDINGS OF THE BOARD AND SHALL PRESERVE ALL RECORDS, 25 BOOKS, DOCUMENTS, AND OTHER PAPERS BELONGING TO THE BOARD OR 26 ENTRUSTED TO ITS CARE. THE EXECUTIVE DIRECTOR SHALL DEVOTE HIS 02697'97 13 1 OR HER FULL TIME TO THE DUTIES OF THE OFFICE AND SHALL NOT HOLD 2 ANY OTHER OFFICE OR EMPLOYMENT. 3 (9) THE BOARD SHALL EMPLOY PERSONNEL AS MAY BE NECESSARY TO 4 CARRY OUT THE FUNCTIONS OF THE BOARD UNDER THIS ACT. 5 (10) A PERSON SHALL NOT BE APPOINTED TO OR EMPLOYED BY THE 6 BOARD IF ANY OF THE FOLLOWING CIRCUMSTANCES EXIST: 7 (A) DURING THE 3 YEARS IMMEDIATELY PRECEDING APPOINTMENT OR 8 EMPLOYMENT, THE PERSON HELD ANY DIRECT OR INDIRECT INTEREST IN, 9 OR ANY EMPLOYMENT BY, A PERSON WHO IS LICENSED TO OPERATE A 10 CASINO UNDER THIS ACT OR IN ANOTHER JURISDICTION, A PERSON WHO 11 HAD AN APPLICATION TO OPERATE A CASINO PENDING BEFORE THE BOARD 12 OR ANY OTHER JURISDICTION, OR A CASINO ENTERPRISE. HOWEVER, THE 13 PERSON MAY BE EMPLOYED BY THE BOARD IF HIS OR HER INTEREST IN ANY 14 CASINO LICENSEE OR CASINO ENTERPRISE WOULD NOT, IN THE OPINION OF 15 THE BOARD, INTERFERE WITH THE OBJECTIVE DISCHARGE OF THE PERSON'S 16 EMPLOYMENT OBLIGATIONS. HOWEVER, A PERSON SHALL NOT BE EMPLOYED 17 BY THE BOARD IF HIS OR HER INTEREST IN THE CASINO LICENSEE OR 18 CASINO ENTERPRISE CONSTITUTES A CONTROLLING INTEREST IN THAT 19 CASINO LICENSEE OR CASINO ENTERPRISE. 20 (B) THE PERSON OR HIS OR HER SPOUSE, CHILD, SIBLING, OR 21 PARENT IS A MEMBER OF THE BOARD OF DIRECTORS OF OR A PERSON 22 FINANCIALLY INTERESTED IN ANY PERSON LICENSED AS A CASINO 23 LICENSEE OR CASINO SUPPLIER, ANY PERSON WHO HAS AN APPLICATION 24 FOR THE LICENSE PENDING BEFORE THE BOARD, OR A CASINO 25 ENTERPRISE. 26 (11) EACH MEMBER OF THE BOARD AND THE EXECUTIVE DIRECTOR 27 SHALL FILE WITH THE GOVERNOR A FINANCIAL DISCLOSURE STATEMENT 02697'97 14 1 LISTING ALL ASSETS AND LIABILITIES, PROPERTY AND BUSINESS 2 INTERESTS, AND SOURCES OF INCOME OF THE MEMBER OR EXECUTIVE 3 DIRECTOR AND HIS OR HER SPOUSE AFFIRMING THAT THE MEMBER OR EXEC- 4 UTIVE DIRECTOR IS IN COMPLIANCE WITH SECTION 4(9)(A) AND (B) OF 5 THIS ACT. THE FINANCIAL DISCLOSURE STATEMENT SHALL BE UNDER OATH 6 AND SHALL BE FILED AT THE TIME OF EMPLOYMENT AND ANNUALLY 7 THEREAFTER. 8 (12) EACH EMPLOYEE OF THE BOARD SHALL FILE WITH THE BOARD A 9 FINANCIAL DISCLOSURE STATEMENT LISTING ALL ASSETS AND LIABILI- 10 TIES, PROPERTY AND BUSINESS INTERESTS, AND SOURCES OF INCOME OF 11 THE EMPLOYEE AND HIS OR HER SPOUSE. 12 (13) A MEMBER OF THE BOARD SHALL NOT HOLD ANY DIRECT OR 13 INDIRECT INTEREST IN, BE EMPLOYED BY, OR ENTER INTO A CONTRACT 14 FOR SERVICES WITH AN APPLICANT, A PERSON LICENSED BY OR REGIS- 15 TERED WITH THE BOARD, OR A CASINO ENTERPRISE FOR A PERIOD OF 4 16 YEARS AFTER THE DATE HIS OR HER MEMBERSHIP ON THE BOARD 17 TERMINATES. 18 (14) AN EMPLOYEE OF THE BOARD SHALL NOT ACQUIRE ANY DIRECT 19 OR INDIRECT INTEREST IN, ACCEPT EMPLOYMENT WITH, OR ENTER INTO 20 ANY CONTRACT FOR SERVICES WITH ANY APPLICANT, PERSON LICENSED BY 21 THE BOARD, OR CASINO ENTERPRISE FOR A PERIOD OF 2 YEARS AFTER THE 22 DATE HIS OR HER EMPLOYMENT WITH THE BOARD IS TERMINATED. 23 (15) A BOARD MEMBER OR A PERSON EMPLOYED BY THE BOARD SHALL 24 NOT REPRESENT ANY PERSON OR PARTY OTHER THAN THE STATE BEFORE OR 25 AGAINST THE BOARD FOR A PERIOD OF 2 YEARS AFTER THE TERMINATION 26 OF HIS OR HER OFFICE OR EMPLOYMENT WITH THE BOARD. 02697'97 15 1 (16) A BUSINESS ENTITY IN WHICH A FORMER BOARD MEMBER OR 2 EMPLOYEE OR AGENT HAS AN INTEREST, OR ANY PARTNER, OFFICER, OR 3 EMPLOYEE OF THE BUSINESS ENTITY SHALL NOT MAKE ANY APPEARANCE OR 4 REPRESENTATION THAT IS PROHIBITED TO THAT FORMER MEMBER, EMPLOY- 5 EE, OR AGENT. AS USED IN THIS SUBSECTION, "BUSINESS ENTITY" 6 MEANS A CORPORATION, LIMITED LIABILITY COMPANY, PARTNERSHIP, 7 LIMITED LIABILITY PARTNERSHIP, ASSOCIATION, TRUST, OR OTHER FORM 8 OF LEGAL ENTITY. 9 (17) THE BOARD SHALL HAVE GENERAL RESPONSIBILITY FOR THE 10 IMPLEMENTATION OF THIS ACT. THE BOARD'S DUTIES INCLUDE, BUT ARE 11 NOT LIMITED TO, ALL OF THE FOLLOWING: 12 (A) DECIDING IN A REASONABLE PERIOD OF TIME ALL CASINO 13 LICENSE APPLICATIONS. THE BOARD SHALL PROVIDE A HEARING PURSUANT 14 TO THE CONTESTED CASE PROVISIONS OF THE ADMINISTRATIVE PROCEDURES 15 ACT OF 1969, 1969 PA 306, MCL 24.201 TO 24.328, IN ALL CASES 16 INVOLVING CASINO LICENSE APPLICATIONS. A CASINO LICENSE APPLI- 17 CANT SHALL HAVE THE BURDEN TO ESTABLISH BY CLEAR AND CONVINCING 18 EVIDENCE THEIR SUITABILITY AS TO MORAL CHARACTER, REPUTATION, 19 INTEGRITY, BUSINESS PROBITY, ABILITY, AND EXPERIENCE, FINANCIAL 20 ABILITY AND RESPONSIBILITY, AND OTHER CRITERIA CONSIDERED APPRO- 21 PRIATE BY THE BOARD. 22 (B) DECIDING ALL OTHER LICENSE OR REGISTRATION APPLICATIONS 23 IN A REASONABLE PERIOD OF TIME. THE EXECUTIVE DIRECTOR SHALL 24 PREPARE A PROPOSAL FOR DECISION FOR EACH APPLICANT WHICH SHALL BE 25 SERVED ON THE APPLICANT BY EITHER PERSONAL DELIVERY OR CERTIFIED 26 MAIL. SERVICE BY CERTIFIED MAIL IS COMPLETE ON THE BUSINESS DAY 27 FOLLOWING THE DATE THE NOTICE WAS MAILED. THE PROPOSAL FOR 02697'97 16 1 DECISION SHALL BECOME THE FINAL ORDER OF THE BOARD UNLESS, WITHIN 2 15 DAYS OF SERVICE OF THE PROPOSAL FOR DECISION, THE APPLICANT 3 REQUESTS A HEARING BEFORE THE BOARD OR IF 2 MEMBERS OF THE BOARD 4 REQUEST A HEARING WITHIN THE SAME TIME PERIOD. THE HEARING SHALL 5 BE CONDUCTED PURSUANT TO THE CONTESTED CASE PROVISIONS OF THE 6 ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO 7 24.328, EXCEPT THAT THE APPLICANT SHALL HAVE THE BURDEN TO ESTAB- 8 LISH BY CLEAR AND CONVINCING EVIDENCE ITS SUITABILITY AS TO MORAL 9 CHARACTER, REPUTATION, INTEGRITY, BUSINESS PROBITY, ABILITY, 10 EXPERIENCE, FINANCIAL ABILITY AND RESPONSIBILITY, AND OTHER CRI- 11 TERIA CONSIDERED APPROPRIATE BY THE BOARD. 12 (C) DECIDING IN A REASONABLE PERIOD OF TIME ALL OTHER MAT- 13 TERS RELATING TO THE ENFORCEMENT OF THIS ACT AND RULES PROMUL- 14 GATED UNDER THIS ACT. ALL PERSONS WHO MAY BE SUBJECT TO ENFORCE- 15 MENT ACTION, INCLUDING THE REVOCATION, SUSPENSION, RESTRICTION, 16 OR IMPOSITION OF PROBATION OF A LICENSE OR REFUSAL TO RENEW A 17 LICENSE, OR IMPOSITION OF A FINE OR OTHER PENALTY, SHALL FIRST BE 18 PROVIDED WITH A NOTICE OF INTENDED ACTION PREPARED BY THE EXECU- 19 TIVE DIRECTOR. THE NOTICE OF INTENDED ACTION SHALL BE SERVED 20 UPON THE PERSON BY EITHER PERSONAL DELIVERY OR CERTIFIED MAIL. 21 SERVICE BY MAIL IS COMPLETE ON THE BUSINESS DAY FOLLOWING THE 22 DATE THE NOTICE WAS MAILED. THE BOARD MAY THEN CONSIDER, ADOPT, 23 OR MODIFY THE NOTICE OF INTENDED ACTION AS ITS FINAL DECISION 24 UNLESS WITHIN 15 DAYS OF SERVICE OF THE NOTICE OF INTENDED ACTION 25 THE AGGRIEVED PERSON REQUESTS A HEARING BEFORE THE BOARD. THE 26 HEARING SHALL BE CONDUCTED PURSUANT TO THE CONTESTED CASE 02697'97 17 1 PROVISIONS OF THE ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 2 306, MCL 24.201 TO 24.328. 3 (D) CONDUCTING ITS PUBLIC MEETINGS IN COMPLIANCE WITH THE 4 OPEN MEETINGS ACT, 1976 PA 267, MCL 15.231 TO 15.246. 5 (E) PROMULGATING THE RULES AS IN ITS JUDGMENT MAY BE NECES- 6 SARY TO IMPLEMENT, ADMINISTER, AND ENFORCE THIS ACT, INCLUDING, 7 BUT NOT LIMITED TO, RULES THAT DO 1 OR MORE OF THE FOLLOWING: 8 (i) GOVERN, RESTRICT, APPROVE, OR REGULATE THE CASINO GAMING 9 AUTHORIZED IN THIS ACT. 10 (ii) PROMOTE THE SAFETY, SECURITY, GROWTH, AND INTEGRITY OF 11 CASINO GAMING AUTHORIZED IN THIS ACT. 12 (iii) LICENSE AND REGULATE PERSONS PARTICIPATING IN, OR 13 HAVING TO DO WITH, CASINO GAMING AUTHORIZED IN THIS ACT. 14 (F) PROVIDING FOR THE ESTABLISHMENT AND COLLECTION OF ALL 15 LICENSE AND REGISTRATION FEES AND TAXES IMPOSED BY THIS ACT AND 16 THE RULES PROMULGATED UNDER THIS ACT. 17 (G) PROVIDING FOR THE LEVY AND COLLECTION OF PENALTIES AND 18 FINES FOR THE VIOLATION OF THIS ACT AND THE RULES PROMULGATED 19 UNDER THIS ACT. 20 (H) BEING PRESENT THROUGH ITS INSPECTORS, AGENTS, AUDITORS 21 AND THE MICHIGAN STATE POLICE OR ATTORNEY GENERAL AT ANY TIME IN 22 ANY CASINO FOR THE PURPOSE OF CERTIFYING THE REVENUE THEREOF, 23 RECEIVING COMPLAINTS FROM THE PUBLIC, AND CONDUCTING OTHER INVES- 24 TIGATIONS INTO THE CONDUCT OF THE GAMBLING GAMES AND THE MAINTE- 25 NANCE OF THE EQUIPMENT AS FROM TIME TO TIME THE BOARD MAY CON- 26 SIDER NECESSARY AND PROPER. 02697'97 18 1 (I) REVIEWING AND RULING UPON ANY COMPLAINT BY A LICENSEE 2 REGARDING ANY INVESTIGATIVE PROCEDURES OF THE STATE WHICH ARE 3 UNNECESSARILY DISRUPTIVE OF GAMBLING OPERATIONS. THE NEED TO 4 INSPECT AND INVESTIGATE SHALL BE PRESUMED AT ALL TIMES. A 5 LICENSEE SHALL ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THAT 6 ITS OPERATIONS WERE DISRUPTED, THE PROCEDURES HAD NO REASONABLE 7 LAW ENFORCEMENT OR REGULATORY PURPOSES, AND THE PROCEDURES WERE 8 SO DISRUPTIVE AS TO UNREASONABLY INHIBIT GAMBLING OPERATIONS. 9 (J) HOLDING AT LEAST 1 PUBLIC MEETING EACH QUARTER OF THE 10 FISCAL YEAR. IN ADDITION, SPECIAL MEETINGS MAY BE CALLED BY THE 11 CHAIRPERSON OR ANY 2 BOARD MEMBERS UPON 72 HOURS' WRITTEN NOTICE 12 TO EACH MEMBER. THREE MEMBERS OF THE BOARD SHALL CONSTITUTE A 13 QUORUM, EXCEPT WHEN MAKING DETERMINATIONS ON CASINO LICENSES WHEN 14 4 MEMBERS SHALL CONSTITUTE A QUORUM. THREE VOTES SHALL BE 15 REQUIRED IN SUPPORT OF FINAL DETERMINATIONS OF THE BOARD. THE 16 BOARD SHALL KEEP A COMPLETE AND ACCURATE RECORD OF ALL ITS MEET- 17 INGS AND HEARINGS. UPON ORDER OF THE BOARD, 1 OF THE BOARD MEM- 18 BERS OR A HEARING OFFICER DESIGNATED BY THE BOARD MAY CONDUCT ANY 19 HEARING PROVIDED FOR UNDER THIS ACT OR BY THE BOARD RULES AND MAY 20 RECOMMEND FINDINGS AND DECISIONS TO THE BOARD. THE BOARD MEMBER 21 OR HEARING OFFICER CONDUCTING THE HEARING SHALL HAVE ALL POWERS 22 AND RIGHTS REGARDING THE CONDUCT OF HEARINGS GRANTED TO THE BOARD 23 UNDER THIS ACT. THE RECORD MADE AT THE TIME OF THE HEARING SHALL 24 BE REVIEWED BY THE BOARD, OR A MAJORITY OF THE BOARD, AND THE 25 FINDINGS AND DECISION OF THE MAJORITY OF THE BOARD SHALL CONSTI- 26 TUTE THE ORDER OF THE BOARD IN THE CASE. 02697'97 19 1 (K) MAINTAINING RECORDS WHICH ARE SEPARATE AND DISTINCT FROM 2 THE RECORDS OF ANY OTHER STATE BOARD. THE RECORDS SHALL BE 3 AVAILABLE FOR PUBLIC INSPECTION SUBJECT TO THE LIMITATIONS OF 4 THIS ACT, AND SHALL ACCURATELY REFLECT ALL BOARD PROCEEDINGS. 5 (l) REVIEWING THE PATTERNS OF WAGERING AND WINS AND LOSSES 6 BY PERSONS IN CASINOS UNDER THIS ACT AND MAKE RECOMMENDATIONS TO 7 THE GOVERNOR AND THE LEGISLATURE IN A WRITTEN ANNUAL REPORT TO 8 THE GOVERNOR EACH YEAR AND ADDITIONAL REPORTS AS THE GOVERNOR MAY 9 REQUEST. THE ANNUAL REPORT SHALL INCLUDE A STATEMENT OF RECEIPTS 10 AND DISBURSEMENTS BY THE BOARD, ACTIONS TAKEN BY THE BOARD, AND 11 ANY ADDITIONAL INFORMATION AND RECOMMENDATIONS THAT THE BOARD 12 CONSIDERS APPROPRIATE OR THAT THE GOVERNOR MAY REQUEST. 13 SEC. 4A. (1) THE BOARD SHALL HAVE JURISDICTION OVER AND 14 SHALL SUPERVISE ALL GAMBLING OPERATIONS GOVERNED BY THIS ACT. 15 THE BOARD SHALL HAVE ALL POWERS NECESSARY AND PROPER TO FULLY AND 16 EFFECTIVELY EXECUTE THIS ACT, INCLUDING, BUT NOT LIMITED TO, THE 17 AUTHORITY TO DO ALL OF THE FOLLOWING: 18 (A) INVESTIGATE APPLICANTS AND DETERMINE THE ELIGIBILITY OF 19 APPLICANTS FOR LICENSES OR REGISTRATION AND TO GRANT LICENSES TO 20 APPLICANTS IN ACCORDANCE WITH THIS ACT AND THE RULES PROMULGATED 21 UNDER THIS ACT. 22 (B) HAVE JURISDICTION OVER AND SUPERVISE CASINO GAMBLING 23 OPERATIONS AUTHORIZED BY THIS ACT AND ALL PERSONS IN CASINOS 24 WHERE GAMBLING OPERATIONS ARE CONDUCTED UNDER THIS ACT. 25 (C) ENTER THROUGH ITS INVESTIGATORS, AGENTS, AUDITORS, AND 26 THE MICHIGAN STATE POLICE AT ANY TIME, WITHOUT A WARRANT AND 27 WITHOUT NOTICE TO THE LICENSEE, THE PREMISES, OFFICES, CASINOS, 02697'97 20 1 FACILITIES, OR OTHER PLACES OF BUSINESS OF A CASINO OR CASINO 2 SUPPLIER LICENSEE, WHERE EVIDENCE OF THE COMPLIANCE OR NONCOMPLI- 3 ANCE WITH THIS ACT OR RULES PROMULGATED BY THE BOARD IS LIKELY TO 4 BE FOUND, FOR THE FOLLOWING PURPOSES: 5 (i) TO INSPECT AND EXAMINE ALL PREMISES WHEREIN CASINO 6 GAMING OR THE BUSINESS OF GAMING OR THE BUSINESS OF A SUPPLIER IS 7 CONDUCTED, OR WHERE ANY RECORDS OF THE ACTIVITIES ARE PREPARED. 8 (ii) TO INSPECT, EXAMINE, AUDIT, IMPOUND, SEIZE, OR ASSUME 9 PHYSICAL CONTROL OF, OR SUMMARILY REMOVE FROM, THE PREMISES ALL 10 BOOKS, LEDGERS, DOCUMENTS, WRITINGS, PHOTOCOPIES, CORRESPONDENCE, 11 RECORDS, VIDEOTAPES, INCLUDING ELECTRONICALLY STORED RECORDS, 12 MONEY RECEPTACLES, OTHER CONTAINERS AND THEIR CONTENTS, EQUIPMENT 13 IN WHICH THE RECORDS ARE STORED, OR OTHER GAMING RELATED EQUIP- 14 MENT AND SUPPLIES IN, ABOUT, UPON, OR AROUND THE PREMISES, 15 INCLUDING COUNTING ROOMS. 16 (iii) TO INSPECT THE PERSON, AND INSPECT, EXAMINE, AND SEIZE 17 PERSONAL EFFECTS PRESENT IN A CASINO FACILITY LICENSED UNDER THIS 18 ACT, OF ANY HOLDER OF A LICENSE OR REGISTRATION ISSUED PURSUANT 19 TO THIS ACT WHILE THAT PERSON IS PRESENT IN A LICENSED CASINO 20 FACILITY. 21 (iv) TO INVESTIGATE AND DETER ALLEGED VIOLATIONS OF THIS ACT 22 OR THE RULES OF THE BOARD. 23 (v) THIS SECTION IS NOT INTENDED TO LIMIT WARRANTLESS 24 INSPECTIONS EXCEPT IN ACCORDANCE WITH CONSTITUTIONAL 25 REQUIREMENTS. 26 (D) INVESTIGATE ALLEGED VIOLATIONS OF THIS ACT OR RULES 27 PROMULGATED BY THE BOARD AND TO TAKE APPROPRIATE DISCIPLINARY 02697'97 21 1 ACTION AGAINST A LICENSEE OR A HOLDER OF AN OCCUPATIONAL LICENSE 2 FOR A VIOLATION, OR INSTITUTE APPROPRIATE LEGAL ACTION FOR 3 ENFORCEMENT, OR BOTH. 4 (E) ADOPT STANDARDS FOR THE LICENSING OF ALL PERSONS UNDER 5 THIS ACT, AS WELL AS FOR ELECTRONIC OR MECHANICAL GAMBLING GAMES, 6 AND TO ESTABLISH FEES FOR THE LICENSES. 7 (F) ADOPT APPROPRIATE STANDARDS FOR ALL CASINO GAMING FACIL- 8 ITIES AND EQUIPMENT. 9 (G) REQUIRE THAT ALL RECORDS OF CASINO AND SUPPLIER LICENS- 10 EES, INCLUDING FINANCIAL OR OTHER STATEMENTS, SHALL BE KEPT ON 11 THE PREMISES OF THE CASINO OR SUPPLIER LICENSEE IN THE MANNER 12 PRESCRIBED BY THE BOARD. 13 (H) REQUIRE THAT EACH CASINO LICENSEE INVOLVED IN THE OWNER- 14 SHIP OR MANAGEMENT OF GAMBLING OPERATIONS SUBMIT TO THE BOARD AN 15 ANNUAL BALANCE SHEET AND PROFIT AND LOSS STATEMENT, LIST OF THE 16 STOCKHOLDERS OR OTHER PERSONS HAVING A 1% OR GREATER BENEFICIAL 17 INTEREST IN THE GAMBLING ACTIVITIES OF EACH LICENSEE IN ADDITION 18 TO ANY OTHER INFORMATION THE BOARD CONSIDERS NECESSARY IN ORDER 19 TO EFFECTIVELY ADMINISTER THIS ACT AND ALL RULES PROMULGATED AND 20 ORDERS AND FINAL DECISIONS MADE UNDER THIS ACT. 21 (I) CONDUCT INVESTIGATIVE AND CONTESTED CASE HEARINGS, ISSUE 22 SUBPOENAS FOR THE ATTENDANCE OF WITNESSES AND SUBPOENAS DUCES 23 TECUM FOR THE PRODUCTION OF BOOKS, LEDGERS, RECORDS, MEMORANDA, 24 ELECTRONICALLY RETRIEVABLE DATA, AND OTHER PERTINENT DOCUMENTS 25 AND TO ADMINISTER OATHS AND AFFIRMATIONS TO THE WITNESSES TO 26 EXERCISE AND DISCHARGE THE POWERS AND DUTIES OF THE BOARD UNDER 27 THIS ACT. THE EXECUTIVE DIRECTOR OR HIS OR HER DESIGNEE IS ALSO 02697'97 22 1 AUTHORIZED TO ISSUE SUBPOENAS AND TO ADMINISTER OATHS AND 2 AFFIRMATIONS TO WITNESSES. 3 (J) PRESCRIBE A FORM TO BE USED BY ANY LICENSEE INVOLVED IN 4 THE OWNERSHIP OR MANAGEMENT OF GAMBLING OPERATIONS AS AN APPLICA- 5 TION FOR EMPLOYMENT FOR THEIR EMPLOYEES. 6 (l) REVOKE OR SUSPEND LICENSES, IMPOSE FINES AND PENALTIES 7 AS THE BOARD CONSIDERS NECESSARY AND IN COMPLIANCE WITH APPLICA- 8 BLE LAWS OF THE STATE REGARDING ADMINISTRATIVE PROCEDURES, AND 9 REVIEW AND DECIDE APPLICATIONS FOR THE RENEWAL OF LICENSES. THE 10 BOARD MAY SUSPEND A CASINO LICENSE, WITHOUT NOTICE OR HEARING 11 UPON A DETERMINATION THAT THE SAFETY OR HEALTH OF PATRONS OR 12 EMPLOYEES IS JEOPARDIZED BY CONTINUING A CASINO'S OPERATION. THE 13 SUSPENSION MAY REMAIN IN EFFECT UNTIL THE BOARD DETERMINES THAT 14 THE CAUSE FOR SUSPENSION HAS BEEN ABATED. THE BOARD MAY REVOKE 15 THE CASINO LICENSE UPON A DETERMINATION THAT THE OWNER HAS NOT 16 MADE SATISFACTORY PROGRESS TOWARD ABATING THE HAZARD. 17 (K) EJECT OR EXCLUDE OR AUTHORIZE THE EJECTION OR EXCLUSION 18 OF A PERSON FROM A CASINO IF THE PERSON VIOLATES THIS ACT, RULES 19 PROMULGATED UNDER THIS ACT, OR FINAL ORDERS OF THE BOARD OR WHEN 20 THE BOARD DETERMINES THAT THE PERSON'S CONDUCT OR REPUTATION IS 21 SUCH THAT HIS OR HER PRESENCE WITHIN THE CASINO GAMBLING FACILI- 22 TIES MAY COMPROMISE THE HONESTY AND INTEGRITY OF THE GAMBLING 23 OPERATIONS OR INTERFERES WITH THE ORDERLY CONDUCT OF THE GAMBLING 24 OPERATIONS. HOWEVER, THE PROPRIETY OF THE EJECTION OR EXCLUSION 25 IS SUBJECT TO A SUBSEQUENT HEARING BY THE BOARD. 26 (M) SUSPEND, REVOKE, OR RESTRICT LICENSES AND REGISTRATIONS, 27 REQUIRE THE REMOVAL OF A LICENSEE, AN EMPLOYEE OF A LICENSEE, OR 02697'97 23 1 A REGISTERED PERSON FOR A VIOLATION OF THIS ACT OR A RULE 2 PROMULGATED BY THE BOARD OR FOR ENGAGING IN A FRAUDULENT PRAC- 3 TICE, AND IMPOSE CIVIL PENALTIES OF UP TO $5,000.00 AGAINST INDI- 4 VIDUALS AND UP TO $10,000.00 OR AN AMOUNT EQUAL TO THE DAILY 5 GROSS RECEIPTS, WHICHEVER IS GREATER, AGAINST CASINO LICENSEES 6 FOR EACH VIOLATION OF THIS ACT, ANY RULES PROMULGATED BY THE 7 BOARD, ANY ORDER OF THE BOARD, OR FOR ANY OTHER ACTION WHICH THE 8 BOARD DETERMINES IS A DETRIMENT OR IMPEDIMENT TO CASINO GAMBLING 9 OPERATIONS. 10 (N) CONDUCT PERIODIC AUDITS OF CASINOS AUTHORIZED UNDER THIS 11 ACT. 12 (O) ESTABLISH MINIMUM LEVELS OF INSURANCE TO BE MAINTAINED 13 BY LICENSEES. 14 (P) DELEGATE THE EXECUTION OF ANY OF ITS POWERS UNDER THIS 15 ACT FOR THE PURPOSE OF ADMINISTERING AND ENFORCING THIS ACT AND 16 THE RULES PROMULGATED UNDER THIS ACT. 17 (Q) TAKE ANY OTHER ACTION AS MAY BE REASONABLE OR APPROPRI- 18 ATE TO ENFORCE THIS ACT AND RULES PROMULGATED UNDER THIS ACT. 19 (2) THE BOARD MAY SEEK AND SHALL RECEIVE THE COOPERATION AND 20 ASSISTANCE OF THE DEPARTMENT OF STATE POLICE AND DEPARTMENT OF 21 ATTORNEY GENERAL IN CONDUCTING BACKGROUND INVESTIGATIONS OF 22 APPLICANTS AND IN FULFILLING ITS RESPONSIBILITIES UNDER THIS 23 ACT. COSTS INCURRED BY THE DEPARTMENT OF STATE POLICE AND 24 DEPARTMENT OF ATTORNEY GENERAL AS A RESULT OF THE COOPERATION 25 SHALL BE REIMBURSED BY THE BOARD. 02697'97 24 1 SEC. 4B. THERE IS APPROPRIATED FOR THE FISCAL YEAR ENDING 2 SEPTEMBER 30, 1997, $5,000,000.00 FOR THE PURPOSE OF FUNDING THE 3 OPERATIONS OF THE BOARD. 4 SEC. 4C. (1) EXCEPT AS OTHERWISE PROVIDED IN THIS SECTION, 5 ALL INFORMATION, RECORDS, INTERVIEWS, REPORTS, STATEMENTS, MEMO- 6 RANDA, OR OTHER DATA SUPPLIED TO OR USED BY THE BOARD SHALL BE 7 SUBJECT TO THE FREEDOM OF INFORMATION ACT, 1976 PA 442, MCL 8 15.231 TO 15.246, EXCEPT FOR THE FOLLOWING: 9 (A) UNLESS PRESENTED DURING A PUBLIC HEARING, ALL THE INFOR- 10 MATION, RECORDS, INTERVIEWS, REPORTS, STATEMENTS, MEMORANDA, OR 11 OTHER DATA SUPPLIED TO, CREATED BY, OR USED BY THE BOARD RELATED 12 TO BACKGROUND INVESTIGATION OF APPLICANTS OR LICENSEES AND TO 13 TRADE SECRETS, INTERNAL CONTROLS, AND SECURITY MEASURES OF THE 14 LICENSEES OR APPLICANTS. 15 (B) ALL INFORMATION, RECORDS, INTERVIEWS, REPORTS, STATE- 16 MENTS, MEMORANDA, OR OTHER DATA SUPPLIED TO OR USED BY THE BOARD 17 THAT HAVE BEEN RECEIVED FROM ANOTHER JURISDICTION OR LOCAL, 18 STATE, OR FEDERAL AGENCY UNDER A PROMISE OF CONFIDENTIALITY IF 19 THE RELEASE OF THE INFORMATION IS BARRED BY THE STATUTES, RULES, 20 OR REGULATIONS OF THAT JURISDICTION OR AGENCY OR BY AN INTERGOV- 21 ERNMENTAL AGREEMENT. 22 (C) ALL INFORMATION PROVIDED IN AN APPLICATION FOR LICENSE 23 REQUIRED UNDER THIS ACT. 24 (2) NOTWITHSTANDING SUBSECTION (1), THE BOARD SHALL, UPON 25 WRITTEN REQUEST FROM ANY PERSON, PROVIDE THE FOLLOWING INFORMA- 26 TION CONCERNING THE APPLICANT OR LICENSEE, HIS OR HER PRODUCTS, 02697'97 25 1 SERVICES OR GAMBLING ENTERPRISES, AND HIS OR HER BUSINESS 2 HOLDINGS IF THE BOARD HAS THE INFORMATION IN ITS POSSESSION: 3 (A) THE NAME, BUSINESS ADDRESS, AND BUSINESS TELEPHONE 4 NUMBER. 5 (B) AN IDENTIFICATION OF ANY APPLICANT OR LICENSEE INCLUD- 6 ING, IF AN APPLICANT OR LICENSEE IS NOT AN INDIVIDUAL, ITS STATE 7 OF INCORPORATION OR REGISTRATION, ITS CORPORATE OFFICERS, AND THE 8 IDENTITY OF ITS SHAREHOLDERS. IF AN APPLICANT OR LICENSEE HAS A 9 PENDING REGISTRATION STATEMENT FILED WITH THE SECURITIES AND 10 EXCHANGE COMMISSION, ONLY THE NAMES OF THOSE PERSONS OR ENTITIES 11 HOLDING INTEREST OF 5% OR MORE SHALL BE PROVIDED. 12 (C) AN IDENTIFICATION OF ANY BUSINESS, INCLUDING, IF APPLI- 13 CABLE, THE STATE OF INCORPORATION OR REGISTRATION, IN WHICH AN 14 APPLICANT OR LICENSEE OR AN APPLICANT'S OR LICENSEE'S SPOUSE OR 15 CHILDREN HAVE EQUITY INTEREST OF MORE THAN 5%. 16 (D) WHETHER AN APPLICANT OR LICENSEE HAS BEEN INDICTED, CON- 17 VICTED, PLEADED GUILTY OR NOLO CONTENDERE, OR FORFEITED BAIL CON- 18 CERNING ANY CRIMINAL OFFENSE UNDER THE LAWS OF ANY JURISDICTION, 19 EITHER FELONY OR MISDEMEANOR, NOT INCLUDING TRAFFIC VIOLATIONS, 20 INCLUDING THE NAME AND LOCATION OF THE COURT, THE DATE, AND DIS- 21 POSITION OF THE OFFENSE. 22 (E) WHETHER AN APPLICANT OR LICENSEE HAS HAD ANY LICENSE OR 23 CERTIFICATION ISSUED BY A LICENSING AUTHORITY IN MICHIGAN OR ANY 24 OTHER JURISDICTION DENIED, RESTRICTED, SUSPENDED, REVOKED, OR NOT 25 RENEWED AND, IF KNOWN BY THE BOARD, A STATEMENT DESCRIBING THE 26 FACTS AND CIRCUMSTANCES CONCERNING THE DENIAL, RESTRICTION, 27 SUSPENSION, REVOCATION, OR NONRENEWAL, INCLUDING THE NAME OF THE 02697'97 26 1 LICENSING AUTHORITY, THE DATE EACH ACTION WAS TAKEN, AND THE 2 REASON FOR EACH ACTION. 3 (F) WHETHER AN APPLICANT OR LICENSEE HAS EVER FILED, OR HAD 4 FILED AGAINST IT, A PROCEEDING FOR BANKRUPTCY OR HAS EVER BEEN 5 INVOLVED IN ANY FORMAL PROCESS TO ADJUST, DEFER, SUSPEND, OR OTH- 6 ERWISE WORK OUT THE PAYMENT OF ANY DEBT, INCLUDING THE DATE OF 7 FILING, THE NAME AND LOCATION OF THE COURT, THE CASE, AND NUMBER 8 OF THE DISPOSITION. 9 (G) WHETHER AN APPLICANT OR LICENSEE HAS FILED, OR BEEN 10 SERVED WITH, A COMPLAINT OR OTHER NOTICE FILED WITH ANY PUBLIC 11 BODY REGARDING THE DELINQUENCY IN THE PAYMENT OF ANY TAX REQUIRED 12 UNDER FEDERAL, STATE, OR LOCAL LAW, INCLUDING THE AMOUNT OF THE 13 TAX, TYPE OF TAX, THE TAXING AGENCY, AND TIME PERIODS INVOLVED. 14 (H) A STATEMENT LISTING THE NAMES AND TITLES OF ALL PUBLIC 15 OFFICIALS OR OFFICERS OF ANY CITY, STATE, OR FEDERAL BODY, 16 AGENCY, OR ENTITY AND RELATIVES OF THE OFFICIALS WHO, DIRECTLY OR 17 INDIRECTLY, OWN ANY FINANCIAL INTEREST IN, HAVE ANY BENEFICIAL 18 INTEREST IN, ARE THE CREDITORS OF, OR HOLD OR HAVE ANY INTEREST 19 IN, OR ANY CONTRACTUAL OR SERVICE RELATIONSHIP WITH, AN APPLICANT 20 OR LICENSEE UNDER THIS ACT. 21 (I) WHETHER AN APPLICANT OR LICENSEE HAS MADE, DIRECTLY OR 22 INDIRECTLY, ANY POLITICAL CONTRIBUTION, OR ANY LOANS, DONATIONS, 23 OR OTHER PAYMENTS TO ANY CANDIDATE OR OFFICEHOLDER ELECTED IN 24 THIS STATE, WITHIN 5 YEARS PRIOR TO THE DATE OF FILING THE APPLI- 25 CATION, INCLUDING THE AMOUNT AND THE METHOD OF PAYMENT. 02697'97 27 1 (J) THE NAME AND BUSINESS TELEPHONE NUMBER OF ANY ATTORNEY, 2 COUNSEL, LOBBYIST, OR AGENT REPRESENTING AN APPLICANT OR LICENSEE 3 IN MATTERS BEFORE THE BOARD. 4 (K) A SUMMARY OF THE APPLICANT'S DEVELOPMENT AGREEMENT WITH 5 THE CITY, INCLUDING THE APPLICANT'S PROPOSED LOCATION, THE SQUARE 6 FOOTAGE OF ANY PROPOSED CASINO, THE TYPE OF ADDITIONAL FACILI- 7 TIES, RESTAURANTS, OR HOTELS PROPOSED BY THE APPLICANT, THE 8 EXPECTED ECONOMIC BENEFIT TO THE CITY, ANTICIPATED OR ACTUAL 9 NUMBER OF EMPLOYEES, ANY STATEMENT FROM THE APPLICANT REGARDING 10 COMPLIANCE WITH FEDERAL AND STATE AFFIRMATIVE ACTION GUIDELINES, 11 PROJECTED OR ACTUAL ADMISSIONS, AND PROJECTED OR ACTUAL ADJUSTED 12 GROSS RECEIPTS. 13 (l) A DESCRIPTION OF THE PRODUCT OR SERVICE TO BE SUPPLIED 14 BY, OR OCCUPATION TO BE ENGAGED IN BY, A LICENSEE. 15 (3) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, ALL 16 INFORMATION PROVIDED IN A RESPONSE TO A REQUEST FOR PROPOSALS FOR 17 DEVELOPMENT AGREEMENTS ISSUED BY THE CITY AND ALL DRAFT DEVELOP- 18 MENT AGREEMENTS BEING NEGOTIATED BY THE CITY SHALL BE EXEMPT FROM 19 DISCLOSURE UNDER THE FREEDOM OF INFORMATION ACT, 1976 PA 442, MCL 20 15.231 TO 15.246. HOWEVER, THE CITY SHALL, UPON REQUEST, DIS- 21 CLOSE THE FOLLOWING INFORMATION CONCERNING THE RESPONSE TO A 22 REQUEST FOR PROPOSALS FOR DEVELOPMENT AGREEMENTS: 23 (A) THE NAME, BUSINESS ADDRESS, AND BUSINESS TELEPHONE 24 NUMBER OF THE PERSON FILING THE RESPONSE. 25 (B) AN IDENTIFICATION OF A PERSON FILING A RESPONSE INCLUD- 26 ING, IF THE PERSON IS NOT AN INDIVIDUAL, THE STATE OF 27 INCORPORATION OR REGISTRATION, THE CORPORATE OFFICERS, AND THE 02697'97 28 1 IDENTITY OF ALL SHAREHOLDERS OR PARTICIPANTS. IF A PERSON FILING 2 A RESPONSE HAS A PENDING REGISTRATION STATEMENT FILED WITH THE 3 SECURITIES AND EXCHANGE COMMISSION, THE CITY SHALL ONLY PROVIDE 4 THE NAMES OF THOSE PERSONS OR ENTITIES HOLDING INTEREST OF 5% OR 5 MORE. 6 (C) AN IDENTIFICATION OF ANY BUSINESS, INCLUDING, IF APPLI- 7 CABLE, THE STATE OF INCORPORATION OR REGISTRATION, IN WHICH A 8 PERSON FILING A RESPONSE OR HIS OR HER SPOUSE OR CHILDREN HAVE 9 EQUITY INTEREST OF MORE THAN 5%. 10 (D) WHETHER PERSON FILING A RESPONSE HAS BEEN INDICTED, CON- 11 VICTED, PLEADED GUILTY OR NOLO CONTENDERE, OR FORFEITED BAIL CON- 12 CERNING ANY CRIMINAL OFFENSE UNDER THE LAWS OF ANY JURISDICTION, 13 EITHER FELONY OR MISDEMEANOR, EXCEPT FOR TRAFFIC VIOLATIONS, 14 INCLUDING THE NAME AND LOCATION OF THE COURT, THE DATE, AND DIS- 15 POSITION OF THE OFFENSE. 16 (E) WHETHER A PERSON FILING A RESPONSE HAS HAD ANY LICENSE 17 OR CERTIFICATION ISSUED BY A LICENSING AUTHORITY IN MICHIGAN OR 18 ANY OTHER JURISDICTION DENIED, RESTRICTED, SUSPENDED, REVOKED, OR 19 NOT RENEWED AND, IF KNOWN BY THE CITY, A STATEMENT DESCRIBING THE 20 FACTS AND CIRCUMSTANCES CONCERNING THE DENIAL, RESTRICTION, SUS- 21 PENSION, REVOCATION, OR NONRENEWAL, INCLUDING THE NAME OF THE 22 LICENSING AUTHORITY, THE DATE EACH ACTION WAS TAKEN, AND THE 23 REASON FOR EACH ACTION. 24 (F) WHETHER A PERSON FILING A RESPONSE HAS EVER FILED, OR 25 HAD FILED AGAINST IT, A PROCEEDING FOR BANKRUPTCY OR HAS EVER 26 BEEN INVOLVED IN ANY FORMAL PROCESS TO ADJUST, DEFER, SUSPEND, OR 27 OTHERWISE WORK OUT THE PAYMENT OF ANY DEBT, INCLUDING THE DATE OF 02697'97 29 1 FILING, THE NAME AND LOCATION OF THE COURT, THE CASE, AND NUMBER 2 OF THE DISPOSITION. 3 (G) WHETHER A PERSON FILING A RESPONSE HAS FILED, OR BEEN 4 SERVED WITH, A COMPLAINT OR OTHER NOTICE FILED WITH ANY PUBLIC 5 BODY REGARDING THE DELINQUENCY IN THE PAYMENT OF ANY TAX REQUIRED 6 UNDER FEDERAL, STATE, OR LOCAL LAW, INCLUDING THE AMOUNT, TYPE OF 7 TAX, THE TAXING AGENCY, AND TIME PERIODS INVOLVED. 8 (H) A STATEMENT LISTING THE NAMES AND TITLES OF ALL PUBLIC 9 OFFICIALS OR OFFICERS OF ANY CITY, STATE, OR FEDERAL BODY, 10 AGENCY, OR ENTITY AND RELATIVES OF THE OFFICIALS WHO, DIRECTLY OR 11 INDIRECTLY, OWN ANY FINANCIAL INTEREST IN, HAVE ANY BENEFICIAL 12 INTEREST IN, ARE THE CREDITORS OF, OR HOLD OR HAVE ANY INTEREST 13 IN OR HAVE ANY CONTRACTUAL OR SERVICE RELATIONSHIP WITH, A PERSON 14 FILING A RESPONSE. 15 (I) WHETHER A PERSON FILING A RESPONSE HAS MADE, DIRECTLY OR 16 INDIRECTLY, ANY POLITICAL CONTRIBUTION, OR ANY LOANS, DONATIONS, 17 OR OTHER PAYMENTS TO ANY BOARD MEMBER OR ANY CANDIDATE OR OFFICE- 18 HOLDER ELECTED IN THIS STATE, WITHIN 5 YEARS FROM THE DATE OF 19 FILING THE APPLICATION, INCLUDING THE AMOUNT AND THE METHOD OF 20 PAYMENT. 21 (J) THE NAME AND BUSINESS TELEPHONE NUMBER OF THE COUNSEL 22 REPRESENTING A PERSON FILING A RESPONSE. 23 (K) A SUMMARY OF THE DEVELOPMENT AGREEMENT PROPOSAL WITH THE 24 CITY, INCLUDING THE APPLICANT'S PROPOSED LOCATION, THE SQUARE 25 FOOTAGE OF ANY PROPOSED CASINO, THE TYPE OF ADDITIONAL FACILI- 26 TIES, RESTAURANTS, OR HOTELS PROPOSED BY THE PERSON FILING A 27 RESPONSE, THE EXPECTED ECONOMIC BENEFIT TO THE CITY, ANTICIPATED 02697'97 30 1 OR ACTUAL NUMBER OF EMPLOYEES, ANY STATEMENT FROM THE APPLICANT 2 REGARDING COMPLIANCE WITH FEDERAL AND STATE AFFIRMATIVE ACTION 3 GUIDELINES, PROJECTED OR ACTUAL ADMISSIONS, AND PROJECTED OR 4 ACTUAL ADJUSTED GROSS RECEIPTS. 5 (4) NOTWITHSTANDING THE PROVISIONS OF THIS SECTION, THE 6 BOARD MAY COOPERATE WITH AND PROVIDE ALL INFORMATION, RECORDS, 7 INTERVIEWS, REPORTS, STATEMENTS, MEMORANDA, OR OTHER DATA SUP- 8 PLIED TO OR USED BY THE BOARD TO OTHER JURISDICTIONS OR LAW 9 ENFORCEMENT AGENCIES. 10 SEC. 5. (1)Section 5. Application for Casino License.A 11 PERSON MAY APPLY TO THE BOARD FOR A CASINO LICENSE TO CONDUCT A 12 CASINO GAMBLING OPERATION AS PROVIDED IN THIS ACT. THE APPLICA- 13 TION SHALL BE MADE UNDER OATH ON FORMS PROVIDED BY THE BOARD AND 14 SHALL CONTAIN INFORMATION THE BOARD PRESCRIBES, INCLUDING BUT NOT 15 LIMITED TO ALL OF THE FOLLOWING: 16 (a)An applicant shall submit an application to the board17to operate a casino in which gaming is conducted as provided in18this act. The application shall contain such information as the19board prescribes, including, but not limited to, detailed infor-20mation regarding the ownership and management of the applicant.21Information provided on the application shall be used as a basis22for a thorough background investigation which the board shall23conduct with respect to each applicant. An application contain-24ing false statements shall be cause for denial of a license by25the board.THE NAME, BUSINESS ADDRESS, BUSINESS TELEPHONE 26 NUMBER, SOCIAL SECURITY NUMBER, AND, WHERE APPLICABLE, THE 27 FEDERAL TAX IDENTIFICATION NUMBER OF ANY APPLICANT. 02697'97 31 1 (b)Each applicant shall disclose theTHE identity of 2 every person, association, partnership, limited liability com-3pany, trust or corporationhaving a greater than 1% direct or 4 indirect pecuniary interest in thecasino gaming operation5 APPLICANT with respect to which the license is sought. If the 6 disclosed entity is a trust, the application shall disclose the 7 names and addresses of the beneficiaries; if a corporation, the 8 names and addresses of all stockholders and directors; if a part- 9 nership, the names and addresses of all partners, both general 10 and limited; if a limited liability company, the names and 11 addresses of all members. 12 (c)The board shall make applications available within 6013days of its appointment. An application fee of $50,000.00 shall14be paid to the board at the time of filing to defray the costs of15the background investigation conducted by the board.AN IDENTI- 16 FICATION OF ANY BUSINESS, INCLUDING, IF APPLICABLE, THE STATE OF 17 INCORPORATION OR REGISTRATION, IN WHICH AN APPLICANT OR AN 18 APPLICANT'S SPOUSE OR CHILDREN HAVE AN EQUITY INTEREST OF MORE 19 THAN 5%. IF AN APPLICANT IS A CORPORATION, PARTNERSHIP, OR OTHER 20 BUSINESS ENTITY, THE APPLICANT SHALL IDENTIFY ANY OTHER CORPORA- 21 TION, PARTNERSHIP, OR OTHER BUSINESS ENTITY IN WHICH IT HAS AN 22 EQUITY INTEREST OF 5% OR MORE, INCLUDING, IF APPLICABLE, THE 23 STATE OF INCORPORATION OR REGISTRATION. THIS INFORMATION NEED 24 NOT BE PROVIDED BY A CORPORATION, PARTNERSHIP, OR OTHER BUSINESS 25 ENTITY THAT HAS A PENDING REGISTRATION STATEMENT FILED WITH THE 26 SECURITIES AND EXCHANGE BOARD. 02697'97 32 1 (d)The board shall act on any application submitted to it2within 90 days of the date of submission.WHETHER AN APPLICANT 3 HAS BEEN INDICTED, CHARGED, ARRESTED, CONVICTED, PLEADED GUILTY 4 OR NOLO CONTENDERE, OR FORFEITED BAIL CONCERNING ANY CRIMINAL 5 OFFENSE UNDER THE LAWS OF ANY JURISDICTION, EITHER FELONY OR MIS- 6 DEMEANOR, NOT INCLUDING TRAFFIC VIOLATIONS, REGARDLESS OF WHETHER 7 THE OFFENSE HAS BEEN EXPUNGED, PARDONED, OR REVERSED ON APPEAL OR 8 OTHERWISE, INCLUDING THE DATE, THE NAME AND LOCATION OF THE 9 COURT, ARRESTING AGENCY AND PROSECUTING AGENCY, THE CASE CAPTION, 10 THE DOCKET NUMBER, THE OFFENSE, THE DISPOSITION, AND THE LOCATION 11 AND LENGTH OF INCARCERATION. 12 (e)The holder of a casino license may transfer such13license but only with the approval of the board and the city in14which the casino is located.WHETHER AN APPLICANT HAS EVER 15 APPLIED FOR OR HAS BEEN GRANTED ANY LICENSE OR CERTIFICATE ISSUED 16 BY A LICENSING AUTHORITY IN MICHIGAN OR ANY OTHER JURISDICTION 17 THAT HAS BEEN DENIED, RESTRICTED, SUSPENDED, REVOKED, OR NOT 18 RENEWED AND A STATEMENT DESCRIBING THE FACTS AND CIRCUMSTANCES 19 CONCERNING THE APPLICATION, DENIAL, RESTRICTION, SUSPENSION, 20 REVOCATION, OR NONRENEWAL, INCLUDING THE LICENSING AUTHORITY, THE 21 DATE EACH ACTION WAS TAKEN, AND THE REASON FOR EACH ACTION. 22 (F) WHETHER AN APPLICANT HAS EVER FILED OR HAD FILED AGAINST 23 IT A CIVIL OR ADMINISTRATIVE ACTION OR PROCEEDING IN BANKRUPTCY 24 OR HAS EVER BEEN INVOLVED IN ANY FORMAL PROCESS TO ADJUST, DEFER, 25 SUSPEND, OR OTHERWISE WORK OUT THE PAYMENT OF ANY DEBT INCLUDING 26 THE DATE OF FILING, THE NAME AND LOCATION OF THE COURT, THE CASE 27 CAPTION, THE DOCKET NUMBER, AND THE DISPOSITION. 02697'97 33 1 (G) WHETHER AN APPLICANT HAS FILED, OR BEEN SERVED WITH, A 2 COMPLAINT OR OTHER NOTICE FILED WITH ANY PUBLIC BODY, REGARDING 3 THE DELINQUENCY IN THE PAYMENT OF, OR A DISPUTE OVER THE FILINGS 4 CONCERNING THE PAYMENT OF, ANY TAX REQUIRED UNDER FEDERAL, STATE, 5 OR LOCAL LAW, INCLUDING THE AMOUNT, TYPE OF TAX, THE TAXING 6 AGENCY, AND TIME PERIODS INVOLVED. 7 (H) A STATEMENT LISTING THE NAMES AND TITLES OF ALL PUBLIC 8 OFFICIALS OR OFFICERS OF ANY UNIT OF GOVERNMENT, AND THE SPOUSES 9 AND CHILDREN OF THOSE PUBLIC OFFICIALS OR OFFICERS WHO, DIRECTLY 10 OR INDIRECTLY, OWN ANY FINANCIAL INTEREST IN, HAVE ANY BENEFICIAL 11 INTEREST IN, ARE THE CREDITORS OF OR HOLD ANY DEBT INSTRUMENT 12 ISSUED BY, OR HOLD OR HAVE ANY INTEREST IN ANY CONTRACTUAL OR 13 SERVICE RELATIONSHIP WITH, AN APPLICANT. 14 (I) WHETHER AN APPLICANT HAS MADE, DIRECTLY OR INDIRECTLY, 15 ANY POLITICAL CONTRIBUTION, OR ANY LOANS, DONATIONS, OR OTHER 16 PAYMENTS TO ANY BOARD MEMBER OR ANY TOWNSHIP, CITY, COUNTY, 17 STATE, OR FEDERAL CANDIDATE OR OFFICEHOLDER ELECTED IN THIS 18 STATE, WITHIN 5 YEARS PRIOR TO THE DATE OF FILING THE APPLICA- 19 TION, INCLUDING THE IDENTITY OF THE BOARD MEMBER, CANDIDATE, OR 20 OFFICEHOLDER, THE DATE, THE AMOUNT, AND THE METHOD OF PAYMENT. 21 (J) THE NAME AND BUSINESS TELEPHONE NUMBER OF ANY ATTORNEY, 22 COUNSEL, LOBBYIST, OR AGENTS REPRESENTING AN APPLICANT IN MATTERS 23 BEFORE THE BOARD. 24 (K) A DESCRIPTION OF ANY PROPOSED OR APPROVED CASINO GAMING 25 OPERATION AND RELATED CASINO ENTERPRISES, INCLUDING THE ECONOMIC 26 BENEFIT TO THE COMMUNITY, ANTICIPATED OR ACTUAL NUMBER OF 27 EMPLOYEES, ANY STATEMENT FROM AN APPLICANT REGARDING COMPLIANCE 02697'97 34 1 WITH FEDERAL AND STATE AFFIRMATIVE ACTION GUIDELINES, PROJECTED 2 OR ACTUAL ADMISSIONS, PROJECTED OR ACTUAL GROSS RECEIPTS, AND 3 SCIENTIFIC MARKET RESEARCH. 4 (l) A DESCRIPTION OF THE PRODUCT OR SERVICE TO BE SUPPLIED 5 BY AN APPLICANT FOR A SUPPLIER'S LICENSE AND A LIST OF CUSTOMERS 6 KNOWN BY THE APPLICANT TO BE LICENSED UNDER THIS ACT. 7 (M) FINANCIAL INFORMATION IN THE MANNER AND FORM PRESCRIBED 8 BY THE BOARD. 9 (2) INFORMATION PROVIDED ON THE APPLICATION SHALL BE USED AS 10 A BASIS FOR A THOROUGH BACKGROUND INVESTIGATION WHICH THE BOARD 11 SHALL CONDUCT ON EACH APPLICANT. A FALSE OR INCOMPLETE APPLICA- 12 TION SHALL BE CAUSE FOR DENIAL OF A LICENSE BY THE BOARD. 13 (3) APPLICANTS SHALL SUBMIT WITH THEIR APPLICATION ALL 14 REQUIRED DEVELOPMENT AGREEMENTS AND DOCUMENTS, CERTIFICATIONS, 15 RESOLUTIONS, AND LETTERS OF SUPPORT FROM THE GOVERNING BODY THAT 16 REPRESENTS THE MUNICIPALITY IN WHICH THE APPLICANT PROPOSES TO 17 OPERATE A CASINO. 18 (4) APPLICANTS SHALL CONSENT IN WRITING TO BEING SUBJECT TO 19 THE SEARCHES PROVIDED FOR IN SECTION 4A(1)(C)(i) TO (v) AND TO 20 DISCLOSURE TO THE BOARD AND ITS AGENTS OF OTHERWISE CONFIDENTIAL 21 RECORDS, INCLUDING TAX RECORDS HELD BY ANY FEDERAL, STATE, OR 22 LOCAL AGENCY, OR CREDIT BUREAU OR FINANCIAL INSTITUTION, WHILE 23 APPLYING FOR OR HOLDING A LICENSE UNDER THIS ACT. 24 (5) A NONREFUNDABLE APPLICATION FEE OF $50,000.00 SHALL BE 25 PAID AT THE TIME OF FILING TO DEFRAY THE COSTS ASSOCIATED WITH 26 THE BACKGROUND INVESTIGATION CONDUCTED BY THE BOARD. IF THE 27 COSTS OF THE INVESTIGATION EXCEED $50,000.00, THE APPLICANT SHALL 02697'97 35 1 PAY THE ADDITIONAL AMOUNT TO THE BOARD. ALL INFORMATION, 2 RECORDS, INTERVIEWS, REPORTS, STATEMENTS, MEMORANDA, OR OTHER 3 DATA SUPPLIED TO OR USED BY THE BOARD IN THE COURSE OF ITS REVIEW 4 OR INVESTIGATION OF AN APPLICATION FOR A LICENSE UNDER THIS ACT 5 SHALL ONLY BE DISCLOSED IN ACCORDANCE WITH THIS ACT. THE INFOR- 6 MATION, RECORDS, INTERVIEWS, REPORTS, STATEMENTS, MEMORANDA, OR 7 OTHER DATA SHALL NOT BE ADMISSIBLE AS EVIDENCE, NOR DISCOVERABLE 8 IN ANY ACTION OF ANY KIND IN ANY COURT OR BEFORE ANY TRIBUNAL, 9 BOARD, AGENCY, OR PERSON, EXCEPT FOR ANY ACTION CONSIDERED NECES- 10 SARY BY THE BOARD. 11 SEC. 6.Section 6. Casino Licenses.12(a) The board shall issue a license to operate a casino to13an applicant upon a determination by the board that the applicant14is eligible for a casino license. The board shall find that an15applicant is eligible for a casino license if all of the follow-16ing criteria are met:17 (1)Prior to the date of application: (i) the applicant or18its affiliates or affiliated companies was the initiator of any19casino gaming proposal submitted for voter approval in the city20in which the casino will be located and the voters approved the21proposal; or (ii) the applicant was selected by the city pursuant22to a competitive bidding process.THE BOARD MAY ISSUE A CASINO 23 LICENSE TO A PERSON WHO APPLIES FOR A LICENSE, WHO PAYS THE NON- 24 REFUNDABLE APPLICATION FEE REQUIRED UNDER SECTION 5(5) AND A 25 $25,000.00 LICENSE FEE FOR THE FIRST YEAR OF OPERATION, AND WHO 26 THE BOARD DETERMINES IS ELIGIBLE AND SUITABLE TO RECEIVE A CASINO 27 LICENSE UNDER THIS ACT AND THE RULES PROMULGATED BY THE BOARD. 02697'97 36 1 IT IS THE BURDEN OF THE APPLICANT TO ESTABLISH BY CLEAR AND 2 CONVINCING EVIDENCE ITS SUITABILITY AS TO CHARACTER, REPUTATION, 3 INTEGRITY, BUSINESS PROBITY, EXPERIENCE, AND ABILITY, FINANCIAL 4 ABILITY AND RESPONSIBILITY, AND OTHER CRITERIA AS MAY BE CONSID- 5 ERED APPROPRIATE BY THE BOARD. A PERSON IS ELIGIBLE TO APPLY FOR 6 A CASINO LICENSE IF ALL OF THE FOLLOWING CRITERIA ARE MET: 7 (A)(2)The applicant proposes to locate the casino in a 8 city where the local legislative body enacted an ordinance 9 approving casino gaming, which ordinanceTHAT may include 10 localregulationsORDINANCES governing casino operations, occu- 11 pational licensees and suppliers which are consistent with the 12 rules promulgated by the board. 13 (B)(3)The applicant entered into a CERTIFIED development 14 agreement with the city where the local legislative body enacted 15 an ordinance approving casino gaming.; and16 (C)(4)The applicant or its affiliates or affiliated com- 17 panies has a history of, or a bona fide plan for, either invest- 18 ment or community involvement in the city where the casino will 19 be located. 20(b) No more than three (3) licenses shall be issued by the21board in any city. In the event that more than three (3) appli-22cants meet the criteria provided for in Section 6(a) of this Act,23licenses shall first be issued to applicants which submitted any24casino gaming proposal for voter approval prior to January 1,251995, in the city in which the casino will be located and the26voters approved the proposal.02697'97 37 1(c) An applicant which is licensed by the board shall pay an2annual license fee of $25,000.00.3(d) Any applicant or any applicant which has an affiliate or4affiliated company which has been convicted of:5(1) Any felony in any state; or6(2) any misdemeanor involving gambling or fraud in any7state;8(3) any violation of a local ordinance involving gambling or9fraud which ordinance corresponds to a misdemeanor in any state;10shall be ineligible to receive a casino license.11 (2) A CITY SHALL NOT CERTIFY OR SUBMIT AND HAVE PENDING 12 BEFORE THE BOARD MORE THAN 3 CERTIFIED DEVELOPMENT AGREEMENTS. 13 IF AN APPLICANT IS DENIED A CASINO LICENSE BY THE BOARD, THE CITY 14 MAY THEN CERTIFY A DEVELOPMENT AGREEMENT WITH ANOTHER APPLICANT 15 AND SUBMIT THE CERTIFIED DEVELOPMENT AGREEMENT TO THE BOARD. 16 NOTHING IN THIS ACT SHALL BE CONSTRUED TO PREVENT THE CITY FROM 17 ENTERING INTO MORE THAN 3 DEVELOPMENT AGREEMENTS. 18 (3) NO MORE THAN 3 LICENSES SHALL BE ISSUED BY THE BOARD IN 19 ANY CITY. 20 (4) AN APPLICANT IS INELIGIBLE TO RECEIVE A CASINO LICENSE 21 IF ANY OF THE FOLLOWING CIRCUMSTANCES EXIST: 22 (A) THE APPLICANT HAS BEEN CONVICTED OF A FELONY UNDER THE 23 LAWS OF THIS STATE, ANY OTHER STATE, OR THE UNITED STATES. 24 (B) THE APPLICANT HAS BEEN CONVICTED OF A MISDEMEANOR 25 INVOLVING GAMBLING, THEFT, DISHONESTY, OR FRAUD IN ANY STATE. 26 (C) THE APPLICANT HAS SUBMITTED AN APPLICATION FOR A LICENSE 27 UNDER THIS ACT WHICH CONTAINS FALSE INFORMATION. 02697'97 38 1 (D) THE APPLICANT IS A MEMBER OF THE BOARD. 2 (E) A PERSON TO WHOM SUBDIVISION (A), (B), (C), OR (D) 3 APPLIES IS AN OFFICER, DIRECTOR, OR KEY EMPLOYEE OF THE APPLICANT 4 OR IS A PERSON WHO HOLDS GREATER THAN 1% DIRECT OR INDIRECT 5 INTEREST IN THE APPLICANT. 6 (F) THE APPLICANT OWNS MORE THAN A 10% OWNERSHIP INTEREST IN 7 ANY ENTITY HOLDING A CASINO LICENSE ISSUED UNDER THIS ACT. 8 (G) THE BOARD CONCLUDES THAT THE APPLICANT LACKS THE REQUI- 9 SITE INTEGRITY, GOOD MORAL CHARACTER AND REPUTATION, PERSONAL AND 10 BUSINESS PROBITY, AND BUSINESS AND FINANCIAL EXPERIENCE AND ABIL- 11 ITY, OR MEANS TO DEVELOP, CONSTRUCT, OPERATE, OR MAINTAIN THE 12 CASINO PROPOSED IN THE CERTIFIED DEVELOPMENT AGREEMENT. 13 (5) IN DETERMINING WHETHER TO GRANT A CASINO LICENSE TO AN 14 APPLICANT, THE BOARD SHALL ALSO CONSIDER ALL OF THE FOLLOWING: 15 (A) THE INTEGRITY, MORAL CHARACTER AND REPUTATION, PERSONAL 16 AND BUSINESS PROBITY, AND BUSINESS AND FINANCIAL EXPERIENCE AND 17 ABILITY OR MEANS OF THE APPLICANT AND OF ANY OTHER PERSON THAT 18 EITHER: 19 (i) CONTROLS, DIRECTLY OR INDIRECTLY, THE APPLICANT. 20 (ii) IS CONTROLLED, DIRECTLY OR INDIRECTLY, BY THE APPLICANT 21 OR BY A PERSON WHO CONTROLS, DIRECTLY OR INDIRECTLY, THE 22 APPLICANT. 23 (B) THE PROSPECTIVE TOTAL REVENUE TO BE DERIVED BY THE STATE 24 FROM THE CONDUCT OF CASINO GAMBLING. 25 (C) THE FINANCIAL ABILITY OF THE APPLICANT TO PURCHASE AND 26 MAINTAIN ADEQUATE LIABILITY AND CASUALTY INSURANCE AND TO PROVIDE 27 AN ADEQUATE SURETY BOND. 02697'97 39 1 (D) THE SOURCES AND TOTAL AMOUNT OF THE APPLICANT'S 2 CAPITALIZATION TO DEVELOP, CONSTRUCT, MAINTAIN, AND OPERATE THE 3 PROPOSED CASINO. 4 (E) WHETHER THE APPLICANT HAS ADEQUATE CAPITALIZATION TO 5 DEVELOP, CONSTRUCT, MAINTAIN, AND OPERATE, FOR THE DURATION OF A 6 LICENSE AND ANY RENEWALS OF THE LICENSE, THE PROPOSED CASINO IN 7 ACCORDANCE WITH THE REQUIREMENTS OF THIS ACT AND RULES PROMUL- 8 GATED BY THE BOARD, AND TO RESPONSIBLY PAY OFF ITS SECURED AND 9 UNSECURED DEBTS IN ACCORDANCE WITH ITS FINANCING AGREEMENT AND 10 OTHER CONTRACTUAL OBLIGATIONS. 11 (F) THE EXTENT AND ADEQUACY OF ANY COMPULSIVE GAMBLING PRO- 12 GRAMS THAT THE APPLICANT WILL ADOPT AND IMPLEMENT IF LICENSED. 13 (G) THE EXTENT TO WHICH THE APPLICANT EXCEEDS OR MEETS OTHER 14 STANDARDS FOR THE ISSUANCE OF A CASINO LICENSE WHICH THE BOARD 15 MAY ADOPT BY RULE. 16 (H) THE PAST AND PRESENT COMPLIANCE OF THE APPLICANT AND ITS 17 AFFILIATES OR AFFILIATED COMPANIES WITH CASINO OR CASINO-RELATED 18 LICENSING REQUIREMENTS, CASINO-RELATED AGREEMENTS, OR COMPACTS 19 WITH THE STATE OF MICHIGAN OR ANY OTHER JURISDICTION. 20 (I) WHETHER THE APPLICANT HAS BEEN CONVICTED OF A MISDE- 21 MEANOR UNDER THE LAWS OF THIS STATE, ANY OTHER STATE, THE UNITED 22 STATES, OR A MISDEMEANOR OR FELONY UNDER THE LAWS OF ANY OTHER 23 COUNTRY OR JURISDICTION. 24 (6) EACH APPLICANT SHALL SUBMIT WITH ITS APPLICATION, ON 25 FORMS PROVIDED BY THE BOARD, A PHOTOGRAPH AND 2 SETS OF FINGER- 26 PRINTS FOR EACH PERSON HAVING A GREATER THAN 1% DIRECT OR 02697'97 40 1 INDIRECT PECUNIARY INTEREST IN THE CASINO, AND EACH PERSON WHO IS 2 AN OFFICER, DIRECTOR, OR MANAGERIAL EMPLOYEE OF THE APPLICANT. 3 (7) A LICENSE SHALL BE ISSUED FOR A 1-YEAR PERIOD. ALL 4 LICENSES ARE RENEWABLE ANNUALLY UPON PAYMENT OF THE LICENSE FEE 5 AND UPON THE TRANSMITTAL TO THE BOARD OF AN ANNUAL REPORT TO 6 INCLUDE INFORMATION REQUIRED UNDER RULES PROMULGATED BY THE 7 BOARD. 8 (8) ALL APPLICANTS AND LICENSEES SHALL CONSENT TO INSPEC- 9 TIONS, SEARCHES, AND SEIZURES AND THE PROVIDING OF HANDWRITING 10 EXEMPLAR, FINGERPRINTS, PHOTOGRAPHS, AND INFORMATION AS AUTHO- 11 RIZED IN THIS ACT AND IN RULES PROMULGATED BY THE BOARD. 12 (9) APPLICANTS AND LICENSEES SHALL BE UNDER A CONTINUING 13 DUTY TO PROVIDE INFORMATION REQUESTED BY THE BOARD AND TO COOPER- 14 ATE IN ANY INVESTIGATION, INQUIRY, OR HEARING CONDUCTED BY THE 15 BOARD. 16 (10) FAILURE TO PROVIDE INFORMATION REQUESTED BY THE BOARD 17 TO ASSIST IN ANY INVESTIGATION, INQUIRY, OR HEARING OF THE BOARD, 18 OR FAILURE TO COMPLY WITH THIS ACT OR RULES OF THE BOARD, MAY 19 RESULT IN DENIAL, SUSPENSION, OR REVOCATION OF A LICENSE. 20 (11) A CASINO LICENSEE OR ANY OTHER PERSON SHALL APPLY FOR 21 AND RECEIVE THE BOARD'S APPROVAL BEFORE A CASINO LICENSE IS 22 TRANSFERRED, SOLD, OR PURCHASED OR BEFORE A VOTING TRUST AGREE- 23 MENT OR SIMILAR AGREEMENT IS ESTABLISHED WITH RESPECT TO A CASINO 24 LICENSE. 25 (12) A LICENSE TO OPERATE A CASINO UNDER THIS ACT IS A REVO- 26 CABLE PRIVILEGE GRANTED BY THE STATE AND IS NOT A PROPERTY RIGHT. 02697'97 41 1 SEC. 6A. THIS ACT DOES NOT PROHIBIT A PERSON LICENSED TO 2 OPERATE A CASINO FROM OPERATING A SCHOOL FOR THE TRAINING OF ANY 3 OCCUPATIONAL LICENSEE. 4 SEC. 7A. (1) THE BOARD MAY ISSUE A SUPPLIER'S LICENSE TO A 5 PERSON WHO APPLIES FOR A LICENSE AND PAYS A NONREFUNDABLE APPLI- 6 CATION FEE SET BY THE BOARD, IF THE BOARD DETERMINES THAT THE 7 APPLICANT IS ELIGIBLE AND SUITABLE FOR A SUPPLIER'S LICENSE AND 8 THE APPLICANT PAYS A $5,000.00 ANNUAL LICENSE FEE. IT IS THE 9 BURDEN OF THE APPLICANT TO ESTABLISH BY CLEAR AND CONVINCING EVI- 10 DENCE ITS SUITABILITY AS TO INTEGRITY, GOOD CHARACTER AND REPUTA- 11 TION, PERSONAL AND BUSINESS PROBITY, AND BUSINESS AND FINANCIAL 12 EXPERIENCE AND ABILITY, AND OTHER CRITERIA AS MAY BE CONSIDERED 13 APPROPRIATE BY THE BOARD. ALL APPLICATIONS SHALL BE MADE UNDER 14 OATH. 15 (2) A PERSON WHO HOLDS A SUPPLIER'S LICENSE IS AUTHORIZED TO 16 SELL OR LEASE, AND TO CONTRACT TO SELL OR LEASE, EQUIPMENT AND 17 SUPPLIES TO ANY LICENSEE INVOLVED IN THE OWNERSHIP OR MANAGEMENT 18 OF GAMBLING OPERATIONS. 19 (3) GAMBLING SUPPLIES AND EQUIPMENT SHALL NOT BE DISTRIBUTED 20 UNLESS SUPPLIES AND EQUIPMENT CONFORM TO STANDARDS ADOPTED BY 21 RULES OF THE BOARD. 22 (4) AN APPLICANT IS INELIGIBLE TO RECEIVE A SUPPLIER'S 23 LICENSE IF ANY OF THE FOLLOWING CIRCUMSTANCES EXIST: 24 (A) THE APPLICANT HAS BEEN CONVICTED OF A FELONY UNDER THE 25 LAWS OF THIS STATE, ANY OTHER STATE, OR THE UNITED STATES. 26 (B) THE APPLICANT HAS BEEN CONVICTED OF A MISDEMEANOR 27 INVOLVING GAMBLING, THEFT, FRAUD, OR DISHONESTY IN ANY STATE. 02697'97 42 1 (C) THE APPLICANT HAS VIOLATED A LOCAL ORDINANCE INVOLVING 2 GAMBLING, THEFT, FRAUD, OR DISHONESTY THAT IS SUBSTANTIALLY SIMI- 3 LAR TO A MISDEMEANOR DESCRIBED IN SUBDIVISION (B). 4 (D) THE APPLICANT HAS SUBMITTED AN APPLICATION FOR LICENSE 5 UNDER THIS ACT WHICH CONTAINS FALSE INFORMATION. 6 (E) THE PERSON IS A MEMBER OF THE BOARD. 7 (F) A PERSON TO WHOM SUBDIVISION (A), (B), (C), OR (D) 8 APPLIES IS AN OFFICER, DIRECTOR, OR KEY EMPLOYEE OF THE FIRM OR 9 HOLDS A GREATER THAN 1% DIRECT OR INDIRECT INTEREST IN THE 10 APPLICANT. 11 (G) THE APPLICANT OWNS MORE THAN A 10% OWNERSHIP INTEREST IN 12 ANY ENTITY HOLDING A CASINO LICENSE ISSUED UNDER THIS ACT. 13 (5) IN DETERMINING WHETHER TO GRANT A SUPPLIER'S LICENSE TO 14 AN APPLICANT, THE BOARD SHALL CONSIDER ALL OF THE FOLLOWING: 15 (A) THE APPLICANT'S PAST AND PRESENT COMPLIANCE WITH CASINO 16 LICENSING REQUIREMENTS OF THIS STATE OR ANY OTHER JURISDICTION 17 PERTAINING TO CASINO GAMING OR ANY OTHER REGULATED ACTIVITIES. 18 (B) WHETHER THE APPLICANT POSSESSES THE REQUISITE INTEGRITY, 19 GOOD MORAL CHARACTER AND REPUTATION, PERSONAL AND BUSINESS PROBI- 20 TY, AND BUSINESS AND FINANCIAL EXPERIENCE AND ABILITY. 21 (C) WHETHER THE APPLICANT MEETS OTHER STANDARDS THAT THE 22 BOARD MAY ESTABLISH BY RULE. 23 (6) ANY PERSON, INCLUDING A JUNKET ENTERPRISE, THAT SUPPLIES 24 EQUIPMENT, DEVICES, SUPPLIES, OR SERVICES TO A LICENSED CASINO 25 SHALL FIRST OBTAIN A SUPPLIER'S LICENSE. A SUPPLIER SHALL FUR- 26 NISH TO THE BOARD A LIST OF ALL EQUIPMENT, DEVICES, AND SUPPLIES 27 OFFERED FOR SALE OR LEASE TO CASINO LICENSEES LICENSED UNDER THIS 02697'97 43 1 ACT. A SUPPLIER SHALL KEEP BOOKS AND RECORDS OF ITS BUSINESS 2 ACTIVITIES WITH A CASINO OPERATOR, INCLUDING ITS FURNISHING OF 3 EQUIPMENT, DEVICES, SUPPLIES, AND SERVICES TO GAMBLING OPERATIONS 4 SEPARATE AND DISTINCT FROM ANY OTHER BUSINESS THAT THE SUPPLIER 5 MIGHT OPERATE. A SUPPLIER SHALL FILE A QUARTERLY RETURN WITH THE 6 BOARD LISTING ALL SALES, LEASES, AND SERVICES. A SUPPLIER SHALL 7 PERMANENTLY AFFIX ITS NAME TO ALL ITS EQUIPMENT, DEVICES, AND 8 SUPPLIES FOR GAMBLING OPERATIONS. ANY SUPPLIER'S EQUIPMENT, 9 DEVICES, OR SUPPLIES THAT ARE USED BY ANY PERSON IN AN UNAUTHO- 10 RIZED GAMBLING OPERATION SHALL BE FORFEITED TO THE STATE. A 11 CASINO LICENSEE WHO OWNS ITS OWN EQUIPMENT, DEVICES, AND SUPPLIES 12 IS NOT REQUIRED TO OBTAIN A SUPPLIER'S LICENSE. 13 (7) ANY GAMBLING EQUIPMENT, DEVICES, AND SUPPLIES PROVIDED 14 BY ANY LICENSED SUPPLIER MAY BE EITHER REPAIRED IN THE CASINO OR 15 REMOVED FROM THE CASINO TO A LICENSED AREA. THE EQUIPMENT, 16 DEVICES, AND SUPPLIES MAY BE REPAIRED ONLY BY PERSONS WHO ARE 17 LICENSED BY THE BOARD AND ONLY IN A FACILITY THAT IS LICENSED BY 18 THE BOARD AND IS SUBJECT TO STATE INSPECTION. 19 (8) ANY LICENSE ISSUED PURSUANT TO THIS SECTION SHALL BE 20 VALID FOR A PERIOD OF 1 YEAR FROM THE DATE OF ISSUANCE. 21 (9) ALL APPLICANTS AND LICENSEES SHALL CONSENT TO INSPEC- 22 TIONS, SEARCHES, AND SEIZURES PROVIDED FOR IN SECTION 4A(1)(C)(i) 23 TO (v) AND TO THE DISCLOSURE TO THE BOARD AND ITS AGENTS OF CON- 24 FIDENTIAL RECORDS, INCLUDING TAX RECORDS, HELD BY ANY FEDERAL, 25 STATE, OR LOCAL AGENCY, FOREIGN GOVERNMENT OR AGENCY, CREDIT 26 BUREAU, OR FINANCIAL INSTITUTION AND TO PROVIDE HANDWRITING 02697'97 44 1 EXEMPLARS, PHOTOGRAPHS, FINGERPRINTS, AND INFORMATION AS 2 AUTHORIZED IN THIS ACT AND IN RULES PROMULGATED BY THE BOARD. 3 (10) APPLICANTS AND LICENSEES SHALL BE UNDER A CONTINUING 4 DUTY TO PROVIDE INFORMATION REQUESTED BY THE BOARD AND TO COOPER- 5 ATE IN ANY INVESTIGATION, INQUIRY, OR HEARING CONDUCTED BY THE 6 BOARD. 7 (11) FAILURE TO PROVIDE INFORMATION REQUESTED BY THE BOARD 8 TO ASSIST IN ANY INVESTIGATION, INQUIRY, OR HEARING OF THE BOARD, 9 OR FAILURE TO COMPLY WITH THIS ACT OR RULES PROMULGATED BY THE 10 BOARD, MAY RESULT IN DENIAL, SUSPENSION, OR, UPON REASONABLE 11 NOTICE, REVOCATION OF A LICENSE. 12 (12) A LICENSE GRANTED PURSUANT TO THIS ACT IS A REVOCABLE 13 PRIVILEGE GRANTED BY THE STATE AND NOT A PROPERTY RIGHT. 14 (13) A SUPPLIER'S LICENSEE OR ANY OTHER PERSON SHALL APPLY 15 FOR AND RECEIVE THE BOARD'S APPROVAL BEFORE A SUPPLIER'S LICENSE 16 IS TRANSFERRED, SOLD, OR PURCHASED, OR BEFORE A VOTING TRUST 17 AGREEMENT OR SIMILAR AGREEMENT IS ESTABLISHED WITH RESPECT TO A 18 SUPPLIER'S LICENSE. 19 (14) A SUPPLIER'S LICENSEE OR ANY OTHER PERSON MAY NOT 20 LEASE, PLEDGE, OR BORROW OR LOAN MONEY AGAINST A SUPPLIER'S 21 LICENSE. 22 SEC. 7B. (1) EACH LABOR ORGANIZATION, UNION, OR AFFILIATE 23 OF A LABOR ORGANIZATION SEEKING TO REPRESENT EMPLOYEES WHO ARE 24 EMPLOYED IN A LICENSED CASINO OR CASINO ENTERPRISE OR BY A 25 LICENSED CASINO SUPPLIER SHALL REGISTER WITH THE BOARD ANNUALLY 26 AND SHALL DISCLOSE INFORMATION TO THE BOARD AS THE BOARD MAY 27 REQUIRE. THIS INFORMATION SHALL DISCLOSE THE NAMES OF ALL 02697'97 45 1 AFFILIATED ORGANIZATIONS, PENSION AND WELFARE SYSTEMS, AND ALL 2 OFFICERS AND AGENTS OF THE ORGANIZATIONS AND SYSTEMS. HOWEVER, A 3 LABOR ORGANIZATION, UNION, OR AFFILIATE OF A LABOR ORGANIZATION 4 OR UNION SHALL NOT BE REQUIRED TO FURNISH INFORMATION TO THE 5 EXTENT THE INFORMATION IS INCLUDED IN A REPORT FILED BY ANY LABOR 6 ORGANIZATION, UNION, OR AFFILIATE OF A LABOR ORGANIZATION OR 7 UNION WITH THE SECRETARY OF LABOR PURSUANT TO THE 8 LABOR-MANAGEMENT REPORTING AND DISCLOSURE ACT OF 1959, PUBLIC LAW 9 86-257, IF A COPY OF THE REPORT, OR OF THE PORTION OF THE REPORT 10 CONTAINING THE INFORMATION, IS FURNISHED TO THE BOARD PURSUANT TO 11 THE AFORESAID FEDERAL PROVISIONS. THE BOARD MAY IN ITS DISCRE- 12 TION EXEMPT ANY LABOR ORGANIZATION, UNION, OR AFFILIATE OF A 13 LABOR ORGANIZATION OR UNION FROM THE REGISTRATION REQUIREMENTS OF 14 THIS SUBSECTION IF THE BOARD FINDS THAT THE LABOR ORGANIZATION, 15 UNION, OR AFFILIATE OF A LABOR ORGANIZATION OR UNION IS NOT AND 16 IS NOT SEEKING TO BE THE CERTIFIED BARGAINING REPRESENTATIVE OF 17 ANY EMPLOYEE WHO IS EMPLOYED IN A LICENSED CASINO OR A LICENSED 18 CASINO SUPPLIER OR INVOLVED ACTIVELY, DIRECTLY, OR SUBSTANTIALLY 19 IN THE CONTROL OR DIRECTION OF THE REPRESENTATION OF ANY 20 EMPLOYEE. 21 (2) A PERSON SHALL NOT ACT AS AN OFFICER, AGENT, OR PRINCI- 22 PAL EMPLOYEE OF A LABOR ORGANIZATION, UNION, OR AFFILIATE OF A 23 LABOR ORGANIZATION OR UNION REGISTERED OR REQUIRED TO BE REGIS- 24 TERED PURSUANT TO THIS SECTION IF THE PERSON HAS BEEN FOUND DIS- 25 QUALIFIED BY THE BOARD BECAUSE THE PERSON LACKS THE REQUISITE 26 INTEGRITY, GOOD MORAL CHARACTER, AND REPUTATION, PURSUANT TO 27 RULES PROMULGATED BY THE BOARD. THE BOARD MAY, FOR PURPOSES OF 02697'97 46 1 THIS SUBSECTION, WAIVE ANY DISQUALIFICATION CRITERION CONSISTENT 2 WITH THE PUBLIC POLICY OF THIS ACT AND UPON A FINDING THAT THE 3 INTERESTS OF JUSTICE SO REQUIRE. 4 (3) A LABOR ORGANIZATION, UNION, AN AFFILIATE OF A LABOR 5 ORGANIZATION OR UNION, OR THE OFFICERS AND AGENTS OF A LABOR 6 ORGANIZATION, UNION, OR AFFILIATE OF A LABOR ORGANIZATION OR 7 UNION NOT OTHERWISE INDIVIDUALLY LICENSED OR REGISTERED UNDER 8 THIS ACT AND EMPLOYED BY A CASINO LICENSEE, CASINO SUPPLIER, OR 9 CASINO ENTERPRISE MAY NOT HOLD ANY FINANCIAL INTEREST IN THE 10 LICENSED CASINO, CASINO ENTERPRISE, OR CASINO SUPPLIER WHOSE 11 EMPLOYEES THEY REPRESENT. 12 (4) THE BOARD MAY MAINTAIN A CIVIL ACTION AGAINST ANY 13 PERSON, INCLUDING ANY LABOR ORGANIZATION, UNION, OR AFFILIATE OF 14 A LABOR ORGANIZATION OR UNION, TO COMPEL COMPLIANCE WITH THIS 15 SECTION, OR TO PREVENT ANY VIOLATION, THE AIDING AND ABETTING 16 THEREOF, OR ANY ATTEMPT OR CONSPIRACY TO VIOLATE THIS SECTION. 17 (5) IN ADDITION TO ANY OTHER REMEDIES PROVIDED IN THIS SEC- 18 TION, A LABOR ORGANIZATION, UNION, OR AFFILIATE OF A LABOR ORGAN- 19 IZATION OR UNION REGISTERED OR REQUIRED TO BE REGISTERED PURSUANT 20 TO THIS SECTION MAY BE PROHIBITED BY THE BOARD FROM RECEIVING 21 DUES FROM AN EMPLOYEE LICENSED OR REGISTERED UNDER THIS ACT AND 22 EMPLOYED BY A CASINO LICENSEE OR ITS AGENT, IF ANY OFFICER, 23 AGENT, OR PRINCIPAL EMPLOYEE OF THE LABOR ORGANIZATION, UNION, OR 24 AFFILIATE OF A LABOR ORGANIZATION OR UNION HAS BEEN FOUND DIS- 25 QUALIFIED UNDER RULES PROMULGATED BY THE BOARD AND IF THE DIS- 26 QUALIFICATION HAS NOT BEEN WAIVED BY THE BOARD IN ACCORDANCE WITH 27 SUBSECTION (2). THE BOARD MAY PROCEED IN THE MANNER PROVIDED BY 02697'97 47 1 SUBSECTION (4) TO ENFORCE AN ORDER OF THE BOARD PROHIBITING THE 2 RECEIPT OF DUES. 3 SEC. 7C. (1) AS USED IN THIS SECTION: 4 (A) "CANDIDATE" MEANS BOTH OF THE FOLLOWING: 5 (i) THAT TERM AS DEFINED IN SECTION 3 OF THE MICHIGAN CAM- 6 PAIGN FINANCE ACT, 1976 PA 388, MCL 169.203. 7 (ii) THE HOLDER OF ANY STATE, LEGISLATIVE, OR LOCAL ELECTIVE 8 OFFICE. 9 (B) "COMMITTEE" MEANS ANY OF THE FOLLOWING: 10 (i) A CANDIDATE COMMITTEE AS THAT TERM IS DEFINED IN 11 SECTION 3 OF THE MICHIGAN CAMPAIGN FINANCE ACT, 1976 PA 388, MCL 12 169.203. 13 (ii) A POLITICAL PARTY COMMITTEE AS THAT TERM IS DEFINED IN 14 SECTION 11 OF THE MICHIGAN CAMPAIGN FINANCE ACT, 1976 PA 388, MCL 15 169.211. 16 (iii) AN INDEPENDENT COMMITTEE AS THAT TERM IS DEFINED IN 17 SECTION 8 OF THE MICHIGAN CAMPAIGN FINANCE ACT, 1976 PA 388, MCL 18 169.208. 19 (iv) A COMMITTEE ORGANIZED BY A LEGISLATIVE CAUCUS OF A 20 CHAMBER OF THE LEGISLATURE. 21 (C) "LICENSE" MEANS EITHER A CASINO LICENSE ISSUED UNDER 22 THIS ACT OR A SUPPLIER'S LICENSE ISSUED UNDER THIS ACT. 23 (D) "LICENSEE" MEANS A PERSON WHO HOLDS A LICENSE ISSUED 24 PURSUANT TO THIS ACT, HAS APPLIED FOR A LICENSE ISSUED PURSUANT 25 TO THIS ACT, OR HAS RESPONDED TO A REQUEST FOR PROPOSALS FOR A 26 DEVELOPMENT AGREEMENT. 02697'97 48 1 (E) "OFFICER" MEANS EITHER OF THE FOLLOWING: 2 (i) AN INDIVIDUAL LISTED AS AN OFFICER OF A CORPORATION, 3 LIMITED LIABILITY COMPANY, OR LIMITED LIABILITY PARTNERSHIP, OR 4 IN THE PARTNERSHIP'S MOST RECENT ANNUAL REPORT. 5 (ii) AN INDIVIDUAL WHO IS A SUCCESSOR TO AN INDIVIDUAL 6 DESCRIBED IN SUBPARAGRAPH (i). 7 (2) FOR PURPOSES OF THIS SECTION, A PERSON IS CONSIDERED TO 8 HAVE AN INTEREST IN A LICENSEE OR CASINO ENTERPRISE IF ANY OF THE 9 FOLLOWING CIRCUMSTANCES EXIST: 10 (A) THE PERSON HOLDS AT LEAST A 1% INTEREST IN THE LICENSEE 11 OR CASINO ENTERPRISE. 12 (B) THE PERSON IS AN OFFICER OR A KEY EMPLOYEE OF THE 13 LICENSEE OR CASINO ENTERPRISE AS DEFINED BY RULES PROMULGATED BY 14 THE BOARD. 15 (C) THE PERSON IS AN OFFICER OF THE PERSON WHO HOLDS AT 16 LEAST A 1% INTEREST IN THE LICENSEE OR CASINO ENTERPRISE. 17 (D) THE PERSON IS AN INDEPENDENT COMMITTEE OF THE LICENSEE 18 OR CASINO ENTERPRISE. 19 (3) A LICENSEE IS CONSIDERED TO HAVE MADE A CONTRIBUTION IF 20 A CONTRIBUTION IS MADE BY A PERSON WHO HAS AN INTEREST IN THE 21 LICENSEE. 22 (4) A LICENSEE OR PERSON WHO HAS AN INTEREST IN A LICENSEE 23 OR CASINO ENTERPRISE, OR THE SPOUSE OR CHILDREN OF A LICENSEE OR 24 PERSON WHO HAS AN INTEREST IN A LICENSEE OR CASINO ENTERPRISE, 25 MAY NOT MAKE A CONTRIBUTION TO A CANDIDATE OR A COMMITTEE DURING 26 THE FOLLOWING PERIODS: 02697'97 49 1 (A) THE TIME PERIOD DURING WHICH A CASINO LICENSEE OR 2 DEVELOPMENT AGREEMENT IS BEING CONSIDERED BY A CITY OR THE 3 BOARD. 4 (B) THE TERM DURING WHICH THE LICENSEE HOLDS A LICENSE. 5 (C) THE 3 YEARS FOLLOWING THE FINAL EXPIRATION OR TERMINA- 6 TION OF THE LICENSEE'S LICENSE. 7 (D) DURING EITHER OF THE FOLLOWING, WHICHEVER IS SHORTER: 8 (i) THE PERIOD BEGINNING ON OR AFTER THE EFFECTIVE DATE OF 9 THIS ACT. 10 (ii) THE PERIOD BEGINNING 1 YEAR PRIOR TO APPLYING FOR A 11 LICENSE. 12 SEC. 8. (1)Section 8. Occupational Licenses. (a)The 13 board may issue an occupational license to an applicantupon14 AFTER ALL OF THE FOLLOWING HAVE OCCURRED: 15 (A)(i) the payment ofTHE APPLICANT HAS PAID a 16non-refundableNONREFUNDABLE APPLICATION fee set by the board. 17;18 (B)(ii) a determination by theTHE board HAS DETERMINED 19 that the applicant is eligible for an occupational license pursu- 20 ant toregulations which are to beRULES promulgated by the 21 board.; and22 (C)(iii) payment of an annualTHE APPLICANT HAS PAID THE 23 BIENNIAL license fee in an amount to be established BY THE 24 BOARD. 25 (2) IT IS THE BURDEN OF THE APPLICANT TO ESTABLISH BY CLEAR 26 AND CONVINCING EVIDENCE HIS OR HER ELIGIBILITY AND SUITABILITY 27 AND HIS OR HER HAVING THE REQUISITE INTEGRITY, GOOD MORAL 02697'97 50 1 CHARACTER AND REPUTATION, PERSONAL AND BUSINESS PROBITY, AND 2 BUSINESS AND FINANCIAL EXPERIENCE AND ABILITY, AND OTHER CRITERIA 3 AS MAY BE CONSIDERED APPROPRIATE BY THE BOARD. ALL APPLICATIONS 4 SHALL BE MADE UNDER OATH. 5 (3)(b)To be eligible for an occupational license, an 6 applicant shall: 7 (A)(1) beBE at least 21 years of age if the applicant 8 will perform any function involved in gaming by patrons.;9 (B)(2) beBE at least 18 years of age if the applicant 10 will perform onlynon-gamingNONGAMING functions.; and11 (C)(3) notNOT have been convicted ofanyA felonyor12any misdemeanor involving gaming in the state or any other13jurisdictionUNDER THE LAWS OF THIS STATE, ANY OTHER STATE, OR 14 THE UNITED STATES. 15(c) A city may regulate occupational licenses through the16adoption of an ordinance which is not inconsistent with this17Act.18(d) Any applicant or any applicant which has an affiliate or19affiliated company which has been convicted of:20(1) Any felony in any state; or21(2) any misdemeanor involving gambling or fraud in any22state;23(3) any violation of a local ordinance involving gambling or24fraud which ordinance corresponds to a misdemeanor in any state;25shall be ineligible to receive an occupational license.26 (D) NOT HAVE BEEN CONVICTED OF A MISDEMEANOR INVOLVING 27 GAMBLING, DISHONESTY, THEFT, OR FRAUD IN ANY STATE. 02697'97 51 1 (4) EACH APPLICATION FOR AN OCCUPATIONAL LICENSE SHALL BE ON 2 A FORM PRESCRIBED BY THE BOARD AND SHALL CONTAIN ALL INFORMATION 3 REQUIRED BY THE BOARD. THE APPLICANT SHALL SET FORTH IN THE 4 APPLICATION WHETHER HE OR SHE HAS BEEN ISSUED PRIOR GAMBLING 5 RELATED LICENSES; WHETHER HE OR SHE HAS BEEN LICENSED IN ANY 6 OTHER STATE UNDER ANY OTHER NAME, AND, IF SO, THE NAME UNDER 7 WHICH THE LICENSE WAS ISSUED AND HIS OR HER AGE AT THE TIME THE 8 LICENSE WAS ISSUED; AND WHETHER OR NOT A PERMIT OR LICENSE ISSUED 9 TO HIM OR HER IN ANY OTHER STATE HAS BEEN SUSPENDED, RESTRICTED, 10 OR REVOKED, AND, IF SO, THE CAUSE AND THE DURATION OF EACH 11 ACTION. 12 (5) EACH APPLICANT SHALL SUBMIT WITH HIS OR HER APPLICATION, 13 ON A FORM PROVIDED BY THE BOARD, 2 SETS OF HIS OR HER FINGER- 14 PRINTS AND A PHOTOGRAPH. THE BOARD SHALL CHARGE EACH APPLICANT 15 AN APPLICATION FEE SET BY THE BOARD. 16 (6) THE BOARD MAY IN ITS DISCRETION DENY AN OCCUPATIONAL 17 LICENSE TO A PERSON WHO IS OR DOES ANY OF THE FOLLOWING: 18 (A) UNQUALIFIED TO PERFORM THE DUTIES REQUIRED OF THE 19 LICENSE. 20 (B) FAILS TO DISCLOSE OR STATES FALSELY ANY INFORMATION 21 REQUESTED IN THE APPLICATION. 22 (C) HAS BEEN FOUND GUILTY OF A VIOLATION OF THIS ACT. 23 (D) HAS HAD A PRIOR GAMBLING RELATED LICENSE OR LICENSE 24 APPLICATION SUSPENDED, RESTRICTED, REVOKED, OR DENIED FOR JUST 25 CAUSE IN ANY OTHER JURISDICTION. 26 (E) FAILED TO MEET ANY STANDARDS CONTAINED IN A RULE 27 PROMULGATED BY THE BOARD. 02697'97 52 1 (7) THE BOARD MAY SUSPEND, REVOKE, OR RESTRICT ANY 2 OCCUPATIONAL LICENSEE FOR ANY OF THE FOLLOWING: 3 (A) VIOLATION OF THIS ACT. 4 (B) VIOLATION OF ANY OF THE RULES PROMULGATED BY THE BOARD. 5 (C) ANY CAUSE WHICH, IF KNOWN TO THE BOARD, WOULD HAVE DIS- 6 QUALIFIED THE APPLICANT FROM RECEIVING THE LICENSE. 7 (D) DEFAULT IN THE PAYMENT OF ANY OBLIGATION OR DEBT DUE TO 8 THE STATE OF MICHIGAN. 9 (E) ANY OTHER JUST CAUSE. 10 (8) A LICENSE ISSUED PURSUANT TO THIS SECTION SHALL BE VALID 11 FOR A PERIOD OF 2 YEARS FROM THE DATE OF ISSUANCE. 12 (9) ALL APPLICANTS AND LICENSEES SHALL CONSENT TO THE 13 SEARCHES, EXAMINATIONS, AND SEIZURES OF THEIR PERSON AND PERSONAL 14 EFFECTS AS PROVIDED IN SECTION 4A(1)(C)(iii) AND THE PROVIDING OF 15 HANDWRITING EXEMPLARS, PHOTOGRAPHS, FINGERPRINTS, AND INFORMATION 16 AS AUTHORIZED IN THIS ACT AND IN RULES PROMULGATED BY THE BOARD. 17 (10) AN APPLICANT OR LICENSEE SHALL BE UNDER A CONTINUING 18 DUTY TO PROVIDE INFORMATION REQUESTED BY THE BOARD AND TO COOPER- 19 ATE IN ANY INVESTIGATION, INQUIRY, OR HEARING CONDUCTED BY THE 20 BOARD. 21 (11) FAILURE TO PROVIDE INFORMATION REQUESTED BY THE BOARD, 22 TO ASSIST IN ANY INVESTIGATION, INQUIRY, OR HEARING OF THE BOARD, 23 OR TO COMPLY WITH THIS ACT OR RULES OF THE BOARD MAY RESULT IN 24 DENIAL, SUSPENSION, OR, UPON REASONABLE NOTICE, REVOCATION OF A 25 LICENSE. 26 SEC. 8A. BEFORE A CASINO LICENSE IS ISSUED, THE LICENSEE 27 SHALL POST A BOND IN THE SUM OF $1,000,000.00 TO THE STATE OF 02697'97 53 1 MICHIGAN. THE BOND SHALL BE USED TO GUARANTEE THAT THE LICENSEE 2 FAITHFULLY MAKES THE PAYMENTS, KEEPS HIS OR HER BOOKS AND 3 RECORDS, MAKES REPORTS, AND CONDUCTS HIS OR HER CASINO GAMING IN 4 CONFORMITY WITH THIS ACT AND THE RULES PROMULGATED BY THE BOARD. 5 THE BOND SHALL NOT BE CANCELED BY A SURETY ON LESS THAN 30 DAYS' 6 NOTICE IN WRITING TO THE BOARD. IF A BOND IS CANCELED AND THE 7 LICENSEE FAILS TO FILE A NEW BOND WITH THE BOARD IN THE REQUIRED 8 AMOUNT ON OR BEFORE THE EFFECTIVE DATE OF CANCELLATION, THE 9 LICENSEE'S LICENSE SHALL BE REVOKED. THE TOTAL AND AGGREGATE 10 LIABILITY OF THE SURETY ON THE BOND IS LIMITED TO THE AMOUNT 11 SPECIFIED IN THE BOND. 12 SEC. 9.Section 9. Conduct of Gaming.13(a) Gaming shall be conducted by the holder of a casino14license subject to the following standards:15 (1) Minimum and maximum wagers on games shall be set by the 16licensee within overall guidelines set by theboard. 17 (2) EMPLOYEES OF THE BOARD, THE DEPARTMENT OF STATE POLICE, 18 AND THE DEPARTMENT OF ATTORNEY GENERAL MAY INSPECT ANY CASINO AT 19 ANY TIME, WITHOUT NOTICE, FOR THE PURPOSE OF DETERMINING WHETHER 20 THIS ACT OR RULES PROMULGATED BY THE BOARD ARE BEING COMPLIED 21 WITH. 22 (3) EMPLOYEES OF THE BOARD, THE DEPARTMENT OF STATE POLICE, 23 AND THE DEPARTMENT OF ATTORNEY GENERAL, AND THEIR AUTHORIZED 24 AGENTS SHALL HAVE THE RIGHT TO BE PRESENT, AT ANY TIME, IN THE 25 CASINO OR ON ADJACENT FACILITIES UNDER THE CONTROL OF THE 26 LICENSEE. 02697'97 54 1 (4) GAMBLING EQUIPMENT AND SUPPLIES CUSTOMARILY USED IN 2 CONDUCTING CASINO GAMBLING SHALL BE PURCHASED OR LEASED ONLY FROM 3 SUPPLIERS WHO ARE LICENSED UNDER THIS ACT. 4 (5) PERSONS LICENSED UNDER THIS ACT SHALL PERMIT NO FORM OF 5 WAGERING ON GAMBLING GAMES EXCEPT AS PERMITTED BY THIS ACT. 6 (6)(2)Wagers may be received only from a person present 7 in a LICENSED casino.NoA person present in a licensed casino 8 shall NOT place or attempt to place a wager on behalf of another 9 person who is not present in the casino. 10 (7)(3)Wagering shall not be conducted with money or 11 other negotiable currency. 12 (8)(4)All tokens, chips, or electronic cards used to 13 make wagersmustSHALL be purchased from a licensed owner in 14 the casino. The tokens, chips, or electronic cards may be pur- 15 chased by means of an agreement under which the owner extends 16 credit to the patron. Such tokens, chips, or electronic cards 17 may be used only while in a casino and only for the purpose of 18 making wagers on gaming games. 19(5) Persons licensed under this act shall permit no form of20wagering on gaming except as permitted by this act.21 (9)(6)A person under age 21 shall not be permitted in an 22 area of a casino where gaming is being conducted, except for a 23 person at least 18 years of age who is an employee of the gaming 24 operation.NoAN EMPLOYEE UNDER THE AGE OF 21 SHALL NOT PER- 25 FORM ANY FUNCTION INVOLVED IN GAMBLING BY THE PATRONS. A person 26 under age 21 shall NOT be permitted to make a wager under this 27 act. 02697'97 55 1(7) Employees of the board shall have the right to be2present at the casino or on adjacent facilities under the control3of the licensee.4(8) Agents of the board and the Department of State Police5may inspect any casino at any time for the purpose of determining6whether this act is being complied within regulations promulgated7by the board.8(b) Gaming may take place in licensed casinos 24 hours per9day on each and every day of the year.10 (10) CASINOS LICENSED PURSUANT TO THIS ACT SHALL BE UNDER AN 11 AFFIRMATIVE DUTY TO REPORT TO THE BOARD, AND THE MICHIGAN STATE 12 POLICE, IN WRITING, WITHIN 24 HOURS, ILLEGAL OR SUSPECTED ILLEGAL 13 ACTIVITY OR ACTIVITY WHICH IS IN VIOLATION OF THIS ACT OR OF 14 RULES PROMULGATED BY THE BOARD. 15 (11) IN ADDITION TO THE ABOVE, GAMBLING SHALL BE CONDUCTED 16 IN ACCORDANCE WITH THE RULES PROMULGATED BY THE BOARD. 17 SEC. 10.Section 10. Alcoholic Beverages.Alcoholic bev- 18 erages shall only be sold or distributed in a casino pursuant to 19 the MichiganLiquor Control Act, Act No. 8 of the Public Acts of201933, being sections 436.1 to 436.58 of the Michigan Compiled21LawsLIQUOR CONTROL ACT, 1933 (EX SESS) PA 8, MCL 436.1 TO 22 436.58. 23 SEC. 11.Section 11. Collection of Amounts under Credit24Agreements.Notwithstanding any applicable statutory provision 25 to the contrary, a licensed owner who extends credit to a casino 26 gaming patron pursuant to this act isexpresslyauthorized to 27 institute a cause of action to collect any amounts dueand02697'97 56 1owingas well as the owner's costs, expenses, and reasonable 2 attorney's fees incurred in collection. 3 SEC. 12. (1)Section 12. Wagering Tax; Rate;4Distribution.IN ADDITION TO APPLICATION AND LICENSE FEES 5 DESCRIBED IN THIS ACT, ALL OF THE ORDINARY, NECESSARY, AND REA- 6 SONABLE EXPENSES OF OPERATING THE BOARD, AS WELL AS THE 7 CASINO-RELATED LEGAL SERVICES PROVIDED BY THE ATTORNEY GENERAL 8 AND THE CASINO-RELATED EXPENSES OF THE DEPARTMENT OF STATE POLICE 9 SHALL BE PAID BY CASINO LICENSEES ON A PRO RATA BASIS ACCORDING 10 TO THE TOTAL ADJUSTED GROSS RECEIPTS PRODUCED BY EACH LICENSEE IN 11 EACH QUARTER. AMOUNTS DUE UNDER THIS SECTION SHALL BE REMITTED 12 TO THE DEPARTMENT OF TREASURY ON A QUARTERLY BASIS AND SHALL BE 13 DISTRIBUTED TO THE BOARD, THE DEPARTMENT OF ATTORNEY GENERAL, AND 14 THE DEPARTMENT OF STATE POLICE. SUCH EXPENSES ARE NOT INCLUDED 15 IN OR DEDUCTED FROM ANY TAX PROVIDED FOR UNDER THIS ACT. 16 (2)(a)A wagering tax is imposed on the ADJUSTED gross 17revenueRECEIPTS received by the licensee from gaming autho- 18 rized under this act at the rate of 18%. 19 (3)(b)THE STATE CASINO GAMING FUND IS CREATED IN THE 20 DEPARTMENT OF TREASURY. THE FUND IS TO BE ADMINISTERED BY THE 21 DEPARTMENT IN ACCORDANCE WITH THIS ACT. The wagering tax plus all 22 other fees, fines, and charges COLLECTED UNDER THIS ACT shall be 23 deposited into the state casino gaming fund.in the department24of treasury. SuchTHE WAGERING tax is to be remitted daily by 25 the holder of a casino license to the department of treasury by 26 electronic wire transfer of funds.All of the ordinary,27necessary and reasonable expenses of operating the board shall be02697'97 57 1deducted from the fund.The fund shall be distributed 2 periodically in accordance withthe provisions ofthis act pur- 3 suant to a schedule and methodology which shall be mutually 4 agreeable to the department of treasury and the city. 5 (4)(c)The state casino gaming fund shall be allocated as 6 follows: 7 (A)(1)55% to the city in which a casino is located for 8 use in connection with the following: 9 (i)(i) theTHE hiring, training, and deployment of street 10 patrol officers.;11 (ii)(ii) neighborhoodNEIGHBORHOOD and downtown economic 12 development programs designed to create local jobs.;13 (iii)(iii) publicPUBLIC safety programs such as emer- 14 gency medical services, fire department programs, and street 15 lighting.;16 (iv)(iv) antigangANTI-GANG and youth development 17 programs.; and18 (v)(v) otherOTHER programswhichTHAT are designed to 19 contribute to the improvement of the quality of life in the 20 city. 21 (B)(2)45% to the state to be deposited in theState22School Aid FundSTATE SCHOOL AID FUND to provide additional 23 funds for K-12 classroom education. 24 (5)(d)Funds from this act shall not be used to supplant 25 existing state appropriations or local expenditures. 26 SEC. 13.Section 13. Municipal Services Fee.In addition 27 to payment of the wagering tax as set forth in this act, each 02697'97 58 1 licensee shall pay to the city a municipal services fee of the 2 greater ofone and one-quarter (1.25%) percentof gross 3 revenue orFour Million and 00/100 ($4,000,000.00) Dollars4 in order to assist the city in defraying the cost of hosting 5 casinos.No other cost for police, fire or EMS protection may6be imposed in a Development Agreement. SuchTHE MUNICIPAL 7 SERVICES fee shall be paid annually.commencing onTHE FIRST 8 PAYMENT SHALL BE DUE 1 YEAR FROM the firstanniversary of the9 DAY ON WHICH A casinoopeningIS OPEN for operations. The 10 municipal services fee shall be deposited by the city in its gen- 11 eral fund for disbursementas it sees fitin accordance with 12 applicable municipal ordinances. 13 SEC. 13A. IN ADDITION TO OTHER FEES IMPOSED UNDER THIS ACT, 14 THERE IS IMPOSED AN ANNUAL ASSESSMENT OF $1,500.00 FOR EACH SLOT 15 MACHINE IN A LICENSED CASINO. THE BOARD SHALL PROMULGATE RULES 16 REGARDING THE IMPOSITION AND COLLECTION OF THIS ASSESSMENT. THE 17 ASSESSMENT IMPOSED BY THIS SECTION SHALL BE DEPOSITED INTO THE 18 STATE GENERAL FUND. 19 SEC. 13B. A LICENSEE SHALL NOT BE SUBJECT TO ANY EXCISE 20 TAX, LICENSE TAX, PERMIT TAX, OR OCCUPATION TAX, WHICH IS IMPOSED 21 EXCLUSIVELY UPON THE LICENSEE BY THE STATE OR ANY POLITICAL SUB- 22 DIVISION THEREOF, EXCEPT AS PROVIDED IN THIS ACT. NOTHING IN 23 THIS SECTION SHALL PROHIBIT THE CITY FROM ASSESSING A PROCESSING 24 FEE IN AN AMOUNT TO BE DETERMINED BY THE CITY ON RESPONSES TO 25 REQUESTS FOR PROPOSALS FOR DEVELOPMENT AGREEMENTS. 26 SEC. 13C. (1) EACH CASINO LICENSEE SHALL POST SIGNS 27 PRESCRIBED BY THE BOARD ADVISING WHERE AND HOW TO OBTAIN 02697'97 59 1 ASSISTANCE WITH GAMBLING PROBLEMS AT THE FOLLOWING LOCATIONS IN 2 EACH FACILITY: 3 (A) EACH ENTRANCE AND EXIT. 4 (B) NEAR EACH CREDIT LOCATION. 5 (2) EACH CASINO LICENSEE SHALL PRINT A STATEMENT REGARDING 6 OBTAINING ASSISTANCE WITH GAMBLING PROBLEMS. 7 SEC. 14.Section 14. Audit of License Operations.Within 89030 days after the end of each quarter of each fiscal year 9 EACH CASINO LICENSEE SHALL TRANSMIT TO THE BOARD AND TO THE CITY 10 an audit of the financialtransactions and conditionsCONDITION 11 of the licensee's total operations. ALL AUDITS shall be con- 12 ducted bythe legislative auditor general. The cost of the13audit shall be paid for by the licensee. Additionally, the city14may audit through its' own personnel.A CERTIFIED PUBLIC ACCOUN- 15 TANT IN A MANNER AND FORM PRESCRIBED BY THE BOARD. EACH CERTI- 16 FIED PUBLIC ACCOUNTANT SHALL BE REGISTERED IN THE STATE OF 17 MICHIGAN UNDER ARTICLE 7 OF THE OCCUPATIONAL CODE, 1980 PA 299, 18 MCL 339.701 TO 339.715. THE COMPENSATION FOR EACH CERTIFIED 19 PUBLIC ACCOUNTANT SHALL BE PAID DIRECTLY BY THE LICENSEE TO THE 20 CERTIFIED PUBLIC ACCOUNTANT. 21 SEC. 15.Section 15. Annual Report of Board.The board 22 shall make an annual report to the governor, for the period 23 ending December 31, of each year. THE REPORT SHALL BE FILED WITH 24 THE GOVERNOR ON OR BEFORE APRIL 15 OF THE YEAR FOLLOWING THE YEAR 25 THAT THE REPORT COVERS. THE REPORT SHALL INCLUDE AN ACCOUNT OF 26 THE BOARD ACTIONS, ITS FINANCIAL POSITION AND RESULTS OF 02697'97 60 1 OPERATION UNDER THIS ACT, AND ANY RECOMMENDATIONS FOR LEGISLATION 2 THAT THE BOARD CONSIDERS ADVISABLE. 3 SEC. 17. ALL CONTESTED CASES SHALL BE APPEALABLE PURSUANT 4 TO THE ADMINISTRATIVE PROCEDURES ACT OF 1969, 1969 PA 306, MCL 5 24.201 TO 24.328. APPEALS FROM THE GRANT OR DENIAL OF A CASINO 6 LICENSE SHALL BE MADE TO THE COURT OF APPEALS. ALL OTHER CON- 7 TESTED CASE APPEALS SHALL BE TO THE CIRCUIT COURT. 8 SEC. 18. (1) A PERSON IS GUILTY OF A FELONY PUNISHABLE BY 9 IMPRISONMENT FOR NOT MORE THAN 10 YEARS OR A FINE OF NOT MORE 10 THAN $100,000.00, OR BOTH, AND SHALL BE BARRED FROM RECEIVING A 11 LICENSE FOR DOING ANY OF THE FOLLOWING: 12 (A) CONDUCTING A GAMBLING OPERATION WHERE WAGERING IS USED 13 OR TO BE USED WITHOUT A LICENSE ISSUED BY THE BOARD. 14 (B) CONDUCTING A GAMBLING OPERATION WHERE WAGERING IS PER- 15 MITTED OTHER THAN IN THE MANNER SPECIFIED IN SECTION 9. 16 (C) KNOWINGLY MAKING A FALSE STATEMENT ON AN APPLICATION FOR 17 ANY LICENSE PROVIDED IN THIS ACT OR A WRITTEN DOCUMENT PROVIDED 18 UNDER OATH IN SUPPORT OF A PROPOSAL FOR A DEVELOPMENT AGREEMENT. 19 (D) KNOWINGLY PROVIDING FALSE TESTIMONY TO THE BOARD OR ITS 20 AUTHORIZED REPRESENTATIVE WHILE UNDER OATH. 21 (E) WILLFULLY FAILING TO REPORT, PAY, OR TRUTHFULLY ACCOUNT 22 FOR ANY LICENSE FEE OR TAX IMPOSED BY THIS ACT OR WILLFULLY 23 ATTEMPT IN ANY WAY TO EVADE OR DEFEAT THE LICENSE FEE, TAX, OR 24 PAYMENT. A PERSON CONVICTED UNDER THIS SUBSECTION SHALL ALSO BE 25 SUBJECT TO A PENALTY OF 3 TIMES THE AMOUNT OF THE LICENSEE FEE OR 26 TAX NOT PAID. 02697'97 61 1 (F) MAKING OR KNOWINGLY ACCEPTING A POLITICAL CONTRIBUTION 2 IN VIOLATION OF SECTION 7C OF THIS ACT. 3 (2) A PERSON COMMITS A FELONY PUNISHABLE BY IMPRISONMENT FOR 4 NOT MORE THAN 10 YEARS OR A FINE OF NOT MORE THAN $100,000.00, OR 5 BOTH, AND, IN ADDITION, SHALL BE BARRED FOR LIFE FROM A GAMBLING 6 OPERATION UNDER THE JURISDICTION OF THE BOARD IF THE PERSON DOES 7 ANY OF THE FOLLOWING: 8 (A) OFFERS, PROMISES, OR GIVES ANYTHING OF VALUE OR BENEFIT 9 TO A PERSON WHO IS CONNECTED WITH A LICENSEE OR AFFILIATED COM- 10 PANY, INCLUDING, BUT NOT LIMITED TO, AN OFFICER OR EMPLOYEE OF A 11 LICENSED OWNER OR HOLDER OF AN OCCUPATIONAL LICENSE PURSUANT TO 12 AN AGREEMENT OR ARRANGEMENT OR WITH THE INTENT THAT THE OFFER, 13 PROMISE, OR THING OF VALUE OR BENEFIT WILL INFLUENCE THE ACTIONS 14 OF THE PERSON TO WHOM THE OFFER, PROMISE, OR GIFT WAS MADE IN 15 ORDER TO AFFECT OR ATTEMPT TO AFFECT THE OUTCOME OF A GAMBLING 16 GAME, OR TO INFLUENCE OFFICIAL ACTION OF A MEMBER OF THE BOARD. 17 (B) SOLICITS OR KNOWINGLY ACCEPTS OR RECEIVES A PROMISE OF 18 ANYTHING OF VALUE OR BENEFIT WHILE THE PERSON IS EMPLOYED BY OR 19 CONNECTED WITH A LICENSEE, INCLUDING, BUT NOT LIMITED TO, AN 20 OFFICER OR EMPLOYEE OF A LICENSED OWNER, OR HOLDER OF AN OCCUPA- 21 TIONAL LICENSE, PURSUANT TO AN UNDERSTANDING OR ARRANGEMENT OR 22 WITH THE INTENT THAT THE PROMISE OR THING OF VALUE OR BENEFIT 23 WILL INFLUENCE THE ACTIONS OF THE PERSON TO AFFECT OR ATTEMPT TO 24 AFFECT THE OUTCOME OF A GAMBLING GAME. 25 (C) OFFERS, PROMISES, OR GIVES ANYTHING OF VALUE OR BENEFIT 26 TO A MEMBER, EMPLOYEE, OR AGENT OF THE BOARD OR AN OFFICIAL OF 27 ANY STATE OR LOCAL AGENCY OR GOVERNMENTAL BODY WITH THE INTENT 02697'97 62 1 THAT THE OFFER, PROMISE, OR THING OF VALUE OR BENEFIT WILL 2 INFLUENCE THE OFFICIAL ACTION OF THE PERSON TO WHOM THE OFFER, 3 PROMISE, OR GIFT WAS MADE PERTAINING TO A CITY DEVELOPMENT AGREE- 4 MENT, OR ADMINISTRATING, LICENSING, REGULATING, OR ENFORCING THIS 5 ACT. 6 (D) SOLICITS OR KNOWINGLY ACCEPTS OR RECEIVES A PROMISE OF 7 ANYTHING OF VALUE OR BENEFIT WHILE THE PERSON IS A MEMBER, 8 EMPLOYEE, OR AGENT OF THE BOARD, OR AN OFFICIAL OF ANY STATE OR 9 LOCAL AGENCY OR GOVERNMENTAL BODY, PURSUANT TO AN UNDERSTANDING 10 OR ARRANGEMENT OR WITH THE INTENT THAT THE PROMISE OR THING OF 11 VALUE OR BENEFIT WILL INFLUENCE THE OFFICIAL ACTION OF THE 12 MEMBER, EMPLOYEE, OR AGENT OF THE BOARD OR OFFICIAL OF THE STATE 13 OR LOCAL GOVERNMENTAL BODY PERTAINING TO A CITY DEVELOPMENT 14 AGREEMENT, OR ENFORCING THIS ACT. 15 (E) USES OR POSSESSES WITH THE INTENT TO USE A DEVICE TO 16 ASSIST IN DOING ANY OF THE FOLLOWING: 17 (i) PROJECTING THE OUTCOME OF THE GAME. 18 (ii) KEEPING TRACK OF THE CARDS PLAYED. 19 (iii) ANALYZING THE PROBABILITY OF THE OCCURRENCE OF AN 20 EVENT RELATING TO THE GAMBLING GAME. 21 (iv) ANALYZING THE STRATEGY FOR PLAYING OR BETTING TO BE 22 USED IN THE GAME EXCEPT AS PERMITTED BY THE BOARD. 23 (F) CHEATS AT A GAMBLING GAME. 24 (G) MANUFACTURES, SELLS, OR DISTRIBUTES CARDS, CHIPS, DICE, 25 A GAME, OR A DEVICE THAT IS INTENDED TO BE USED TO VIOLATE THIS 26 ACT. 02697'97 63 1 (H) ALTERS OR MISREPRESENTS THE OUTCOME OF A GAMBLING GAME 2 ON WHICH WAGERS HAVE BEEN MADE AFTER THE OUTCOME IS DETERMINED 3 BUT BEFORE IT IS REVEALED TO THE PLAYERS. 4 (I) PLACES A BET AFTER ACQUIRING KNOWLEDGE, NOT AVAILABLE TO 5 ALL PLAYERS, OF THE OUTCOME OF THE GAMBLING GAME THAT IS THE 6 SUBJECT OF THE BET OR TO AID A PERSON IN ACQUIRING THE KNOWLEDGE 7 FOR THE PURPOSE OF PLACING A BET CONTINGENT ON THAT OUTCOME. 8 (J) CLAIMS, COLLECTS, TAKES, OR ATTEMPTS TO CLAIM, COLLECT, 9 OR TAKE MONEY OR ANYTHING OF VALUE IN OR FROM THE GAMBLING GAMES, 10 WITH INTENT TO DEFRAUD, WITHOUT HAVING MADE A WAGER CONTINGENT ON 11 WINNING A GAMBLING GAME, OR CLAIMS, COLLECTS, OR TAKES AN AMOUNT 12 OF MONEY OR THING OF VALUE OF GREATER VALUE THAN THE AMOUNT WON. 13 (K) USES COUNTERFEIT CHIPS OR TOKENS IN A GAMBLING GAME. 14 (l) POSSESSES A KEY OR DEVICE DESIGNED FOR THE PURPOSE OF 15 OPENING, ENTERING, OR AFFECTING THE OPERATION OF A GAMBLING GAME, 16 DROP BOX, OR AN ELECTRONIC OR MECHANICAL DEVICE CONNECTED WITH 17 THE GAMBLING GAME OR FOR REMOVING COINS, TOKENS, CHIPS, OR OTHER 18 CONTENTS OF A GAMBLING GAME. THIS SUBDIVISION DOES NOT APPLY TO 19 A GAMBLING LICENSEE OR EMPLOYEE OF A GAMBLING LICENSEE ACTING IN 20 FURTHERANCE OF THE EMPLOYEE'S EMPLOYMENT. 21 (3) A PERSON, INCLUDING A LABOR ORGANIZATION, UNION, OR 22 AFFILIATE, IS GUILTY OF A MISDEMEANOR PUNISHABLE BY IMPRISONMENT 23 FOR NOT MORE THAN 1 YEAR IN A COUNTY JAIL OR A $10,000.00 FINE, 24 OR BOTH, FOR DOING ANY OF THE FOLLOWING: 25 (A) KNOWINGLY MAKING A WAGER IF THE PERSON IS UNDER 21 YEARS 26 OF AGE OR PERMITTING A PERSON UNDER 21 YEARS TO MAKE A WAGER. 02697'97 64 1 (B) WILLFULLY FAILING TO APPEAR BEFORE OR PROVIDE AN ITEM TO 2 THE BOARD AT THE TIME AND PLACE SPECIFIED IN A SUBPOENA OR 3 SUMMONS ISSUED BY THE BOARD OR EXECUTIVE DIRECTOR. 4 (C) WILLFULLY REFUSING, WITHOUT JUST CAUSE, TO TESTIFY OR 5 PROVIDE ITEMS IN ANSWER TO A SUBPOENA, SUBPOENA DUCES TECUM OR 6 SUMMONS ISSUED BY THE BOARD OR EXECUTIVE DIRECTOR. 7 (D) CONDUCTING OR PERMITTING A PERSON WHO IS NOT LICENSED 8 PURSUANT TO THIS ACT TO CONDUCT ACTIVITIES REQUIRED TO BE 9 LICENSED UNDER THE CASINO, OCCUPATIONAL, AND SUPPLIERS LICENSEE 10 PROVISIONS IN THIS ACT OR IN RULES PROMULGATED BY THE BOARD. 11 (E) KNOWINGLY VIOLATES OR AIDS OR ABETS IN THE VIOLATION OF 12 THE PROVISIONS OF SECTION 7C OF THIS ACT. 13 (F) LEASING, PLEDGING, BORROWING, OR LOANING MONEY AGAINST A 14 CASINO LICENSE. 15 (4) THE POSSESSION OF MORE THAN 1 OF THE DEVICES DESCRIBED 16 IN SUBSECTION (2)(E) PERMITS A REBUTTABLE PRESUMPTION THAT THE 17 POSSESSOR INTENDED TO USE THE DEVICES FOR CHEATING. 18 (5) AN ACTION TO PROSECUTE ANY CRIME DESCRIBED IN THIS SEC- 19 TION MAY, IN THE DISCRETION OF THE ATTORNEY GENERAL OR COUNTY 20 PROSECUTING ATTORNEY, BE TRIED IN THE COUNTY IN WHICH THE CRIME 21 OCCURRED OR IN THE COUNTY OF INGHAM. 22 SEC. 19. ANY EQUIPMENT, GAMBLING DEVICE, MONEY, APPARATUS, 23 MATERIAL OF GAMING, PROCEEDS, SUBSTITUTED PROCEEDS, OR REAL OR 24 PERSONAL PROPERTY USED, OBTAINED, OR RECEIVED IN VIOLATION OF 25 THIS ACT SHALL BE SUBJECT TO SEIZURE, CONFISCATION, DESTRUCTION, 26 OR FORFEITURE. 02697'97 65 1 SEC. 20. IN ADDITION TO OTHER PENALTIES PROVIDED FOR UNDER 2 THIS ACT, A PERSON WHO CONDUCTS A GAMBLING OPERATION WITHOUT 3 FIRST OBTAINING A LICENSE TO DO SO, OR A LICENSEE WHO CONTINUES 4 TO CONDUCT THE GAMES AFTER REVOCATION OF THE LICENSEE'S LICENSE, 5 OR ANY LICENSEE WHO CONDUCTS OR ALLOWS TO BE CONDUCTED ANY UNAU- 6 THORIZED GAMBLING GAMES IN A CASINO IN WHICH THE LICENSEE IS 7 AUTHORIZED TO CONDUCT ITS GAMBLING OPERATION IS SUBJECT TO A 8 CIVIL PENALTY EQUAL TO THE AMOUNT OF GROSS RECEIPTS DERIVED FROM 9 WAGERING ON THE GAMBLING GAMES, WHETHER UNAUTHORIZED OR AUTHO- 10 RIZED, CONDUCTED ON THAT DAY AS WELL AS CONFISCATION AND FORFEI- 11 TURE OF ALL GAMBLING GAME EQUIPMENT USED IN THE CONDUCT OF UNAU- 12 THORIZED GAMBLING GAMES. 13 SEC. 21. WHEN THE BOARD IS AUTHORIZED OR REQUIRED BY LAW TO 14 CONSIDER SOME ASPECT OF CRIMINAL HISTORY RECORD INFORMATION FOR 15 THE PURPOSE OF CARRYING OUT ITS STATUTORY POWERS AND RESPONSIBIL- 16 ITIES, THE BOARD SHALL, IN THE FORM AND MANNER REQUIRED BY THE 17 DEPARTMENT OF STATE POLICE AND THE FEDERAL BUREAU OF INVESTIGA- 18 TION, CAUSE TO BE CONDUCTED A CRIMINAL HISTORY RECORD INVESTIGA- 19 TION TO OBTAIN ANY INFORMATION CURRENTLY OR SUBSEQUENTLY CON- 20 TAINED IN THE FILES OF THE DEPARTMENT OF STATE POLICE OR THE FED- 21 ERAL BUREAU OF INVESTIGATION. THE DEPARTMENT OF STATE POLICE 22 SHALL PROVIDE ALL CRIMINAL RECORD INFORMATION REQUESTED BY THE 23 BOARD FOR ANY PERSON WHO IS AN APPLICANT FOR OR A HOLDER OF A 24 LICENSE. 25 SEC. 22. PURSUANT TO SECTION 2 OF CHAPTER 1194, 64 26 STAT. 1134, 15 U.S.C. 1172, APPROVED JANUARY 2, 1951, THE STATE 27 OF MICHIGAN, ACTING BY AND THROUGH DULY ELECTED AND QUALIFIED 02697'97 66 1 MEMBERS OF THE LEGISLATURE, DOES DECLARE AND PROCLAIM THAT THE 2 STATE IS EXEMPT FROM CHAPTER 1194, 64 STAT. 1134, 15 U.S.C. 1171 3 TO 1178. 4 SEC. 23. ALL SHIPMENTS OF GAMBLING DEVICES, INCLUDING SLOT 5 MACHINES, TO LICENSED CASINOS IN THIS STATE, THE REGISTERING, 6 RECORDING, AND LABELING OF WHICH HAVE BEEN COMPLETED BY THE MANU- 7 FACTURER OR DEALER THEREOF IN ACCORDANCE WITH CHAPTER 1194, 64 8 STAT. 1134, 15 U.S.C. 1171 TO 1178, ARE LEGAL SHIPMENTS OF GAMBL- 9 ING DEVICES INTO THE STATE OF MICHIGAN. 10 SEC. 24. (1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS 11 ACT, WHEN THE BOARD REVOKES A CASINO LICENSE, OR SUSPENDS A 12 CASINO LICENSE FOR A PERIOD IN EXCESS OF 120 DAYS, OR REFUSES TO 13 RENEW A CASINO LICENSE, WHETHER OR NOT AN APPEAL IS PENDING, THE 14 BOARD SHALL APPOINT A CONSERVATOR TO, AMONG OTHER THINGS, TAKE 15 INTO HIS OR HER POSSESSION AND CONTROL ALL THE PROPERTY AND BUSI- 16 NESS OF THE LICENSEE RELATING TO THE CASINO. HOWEVER, THIS SUB- 17 SECTION SHALL NOT APPLY IN ANY INSTANCE IN WHICH THE CASINO FOR 18 WHICH THE CASINO LICENSE HAD BEEN ISSUED HAS NOT BEEN IN OPERA- 19 TION AND OPEN TO THE PUBLIC. A PERSON SHALL NOT BE APPOINTED AS 20 CONSERVATOR UNLESS THE BOARD IS SATISFIED THAT HE OR SHE IS INDI- 21 VIDUALLY QUALIFIED. 22 (2) THE BOARD MAY PROCEED IN A CONSERVATORSHIP ACTION IN A 23 SUMMARY MANNER AND SHALL HAVE THE POWER TO APPOINT AND REMOVE 1 24 OR MORE CONSERVATORS AND TO ENJOIN THE FORMER OR SUSPENDED 25 LICENSEE FROM EXERCISING ANY OF ITS PRIVILEGES FROM COLLECTING 26 ANY DEBTS AND FROM SELLING, ASSIGNING, OR TRANSFERRING ANY OF ITS 27 PROPERTY TO A PERSON OTHER THAN A CONSERVATOR, EXCEPT AS THE 02697'97 67 1 BOARD MAY ORDER. THE BOARD SHALL HAVE THE FURTHER POWERS 2 NECESSARY FOR FULFILLING THE PURPOSES OF THIS ACT. 3 (3) EVERY CONSERVATOR SHALL, BEFORE ASSUMING HIS OR HER 4 DUTIES, EXECUTE AND FILE A BOND FOR THE FAITHFUL PERFORMANCE OF 5 HIS OR HER DUTIES PAYABLE TO THE BOARD IN THE OFFICE OF THE BOARD 6 WITH THE SURETY OR SURETIES AND IN THE FORM THAT THE BOARD SHALL 7 APPROVE AND IN THE AMOUNT PRESCRIBED BY THE BOARD. 8 (4) WHEN MORE THAN 1 CONSERVATOR IS APPOINTED PURSUANT TO 9 THIS SECTION, EACH CONSERVATOR IS SUBJECT TO THIS ACT. EACH CON- 10 SERVATOR MAY COLLECT THE DEBTS AND PROPERTY OF THE FORMER OR SUS- 11 PENDED LICENSEE. THE POWERS AND RIGHTS CONFERRED UPON THE CON- 12 SERVATORS SHALL BE EXERCISED ONLY WHEN A MAJORITY OF THE CONSER- 13 VATORS HAVE AGREED TO THE PROPOSED ACTION. 14 (5) UPON HIS OR HER APPOINTMENT, THE CONSERVATOR SHALL 15 BECOME VESTED WITH THE TITLE OF ALL THE PROPERTY OF THE FORMER OR 16 SUSPENDED LICENSEE RELATING TO THE CASINO. SUBJECT TO ANY AND 17 ALL VALID LIENS, CLAIMS, AND ENCUMBRANCES, THE CONSERVATOR SHALL 18 HAVE THE DUTY TO CONSERVE AND PRESERVE THE ASSETS TO ENSURE THAT 19 THE ASSETS SHALL CONTINUE TO BE OPERATED ON A SOUND AND BUSINESS- 20 LIKE BASIS. 21 (6) SUBJECT TO THE GENERAL SUPERVISION OF THE BOARD AND PUR- 22 SUANT TO ANY SPECIFIC ORDER IT MAY CONSIDER APPROPRIATE, A CON- 23 SERVATOR SHALL HAVE POWER TO DO ALL OF THE FOLLOWING: 24 (A) TAKE INTO HIS OR HER POSSESSION ALL THE PROPERTY OF THE 25 FORMER OR SUSPENDED LICENSEE RELATING TO THE CASINO AND THE 26 APPROVED HOTEL, INCLUDING ITS BOOKS, RECORDS, AND PAPERS. 02697'97 68 1 (B) INSTITUTE AND DEFEND ACTIONS BY OR ON BEHALF OF THE 2 FORMER OR SUSPENDED LICENSEE. 3 (C) SETTLE OR COMPROMISE WITH ANY DEBTOR OR CREDITOR OF THE 4 FORMER OR SUSPENDED LICENSEE, INCLUDING ANY TAXING AUTHORITY. 5 (D) CONTINUE THE BUSINESS OF THE FORMER OR SUSPENDED 6 LICENSEE INCLUDING ENTERING INTO CONTRACTS, BORROWING MONEY, AND 7 PLEDGING, MORTGAGING, OR OTHERWISE ENCUMBERING THE PROPERTY OF 8 THE FORMER OR SUSPENDED LICENSEE AS SECURITY FOR THE REPAYMENT OF 9 THE CONSERVATOR'S LOANS. HOWEVER, THE POWER SHALL BE SUBJECT TO 10 ANY PROVISIONS AND RESTRICTIONS IN ANY EXISTING CREDIT 11 DOCUMENTS. 12 (E) HIRE, FIRE, AND DISCIPLINE EMPLOYEES. 13 (F) REVIEW ALL OUTSTANDING AGREEMENTS TO WHICH THE FORMER OR 14 SUSPENDED LICENSEE IS A PARTY THAT FALL WITHIN THE PURVIEW OF 15 THIS ACT AND ADVISE THE BOARD ON WHICH, IF ANY, OF THE AGREEMENTS 16 SHOULD BE THE SUBJECT OF SCRUTINY, EXAMINATION, OR INVESTIGATION 17 BY THE BOARD. 18 (G) DO ALL ACTS THAT BEST FULFILL THE PURPOSES OF THIS ACT. 19 (7) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (8), THE CON- 20 SERVATOR SHALL SELL, ASSIGN, OR OTHERWISE TRANSFER OWNERSHIP OF 21 ALL OF THE PROPERTY, IN BULK, OF A FORMER LICENSEE THAT WAS PART 22 OF THE CASINO OR AN APPROVED HOTEL TO A PERSON WHO MEETS ALL OF 23 THE REQUIREMENTS OF THIS ACT AND RULES PROMULGATED UNDER THIS ACT 24 TO RECEIVE A CASINO LICENSE UNDER THIS ACT SUBJECT TO ALL OF THE 25 FOLLOWING: 26 (A) PRIOR APPROVAL OF THE BOARD. 02697'97 69 1 (B) PRIOR CONSULTATION WITH THE FORMER LICENSEE ABOUT THE 2 REASONABLENESS OF THE TERMS AND CONDITIONS OF THE SALE, 3 ASSIGNMENT, OR TRANSFER. 4 (C) PRIOR WRITTEN NOTICE TO ALL CREDITORS AND OTHER PERSONS 5 REQUIRED TO BE NOTIFIED PURSUANT TO COURT RULE OR STATUTE. 6 (8) THE CONSERVATOR SHALL NOT CONDUCT A SALE, ASSIGNMENT, OR 7 TRANSFER UNDER SUBSECTION (7) UNDER ANY OF THE FOLLOWING 8 CIRCUMSTANCES: 9 (A) A SUSPENSION OF THE CASINO LICENSE IS PENDING. 10 (B) AN APPEAL FROM AN ACTION THAT PRECIPITATED THE CONSERVA- 11 TORSHIP IS PENDING. 12 (C) THE BOARD HAS NOT APPROVED A SALE, ASSIGNMENT, OR 13 TRANSFER. 14 (9) UPON THE REQUEST OF THE CONSERVATOR, PRIOR TO A SALE, 15 ASSIGNMENT, OR TRANSFER UNDER SUBSECTION (7), THE BOARD SHALL 16 CONDUCT A SUMMARY REVIEW OF THE PROPOSED SALE, ASSIGNMENT, OR 17 TRANSFER OF OWNERSHIP. 18 (10) THE BOARD MAY DIRECT THAT THE CONSERVATOR RETAIN THE 19 PROPERTY AND CONTINUE THE BUSINESS OF THE FORMER OR SUSPENDED 20 LICENSEE RELATING TO THE CASINO AND THE APPROVED HOTEL FOR AN 21 INDEFINITE PERIOD OF TIME. WITHOUT BEING PERSONALLY LIABLE, 22 DURING ANY PERIOD OF OPERATION BY THE CONSERVATOR, THE CONSERVA- 23 TOR SHALL PAY WHEN DUE ALL SECURED OBLIGATIONS. THE CONSERVATOR 24 IS NOT IMMUNE FROM FORECLOSURE OR OTHER LEGAL PROCEEDINGS TO COL- 25 LECT THE SECURED DEBT. THE CONSERVATOR SHALL HAVE ALL OF THE 26 LEGAL RIGHTS, CLAIMS, OR DEFENSES THAT WOULD HAVE BEEN AVAILABLE 27 TO THE FORMER OR SUSPENDED LICENSEE. 02697'97 70 1 (11) IN A PROCEEDING DESCRIBED IN SUBSECTION (10), THE BOARD 2 SHALL ALLOW A REASONABLE COMPENSATION FOR THE SERVICES, COSTS, 3 AND EXPENSES FOR THE CONSERVATOR, THE ATTORNEY FOR THE CONSERVA- 4 TOR, THE APPRAISER, THE AUCTIONEER, THE ACCOUNTANT, AND THE OTHER 5 PERSONS AS THE BOARD MAY APPOINT IN CONNECTION WITH THE 6 CONSERVATORSHIP. 7 (12) AS AN INCIDENT OF ITS PRIOR APPROVAL OF THE SALE, 8 ASSIGNMENT, OR OTHER TRANSFER, IN BULK, OF ALL PROPERTY OF THE 9 FORMER LICENSEE THAT WAS A PART OF THE CASINO, THE BOARD MAY 10 REQUIRE THAT THE PURCHASER OF THE PROPERTY ASSUME IN A FORM 11 ACCEPTABLE TO THE BOARD ALL OF THE OUTSTANDING DEBTS OF THE 12 FORMER LICENSEE THAT ARISE FROM OR WERE BASED UPON THE OPERATION 13 OF THE CASINO. 14 (13) THE CONSERVATOR SHALL NOT MAKE A PAYMENT OF NET EARN- 15 INGS DURING THE PERIOD OF THE CONSERVATORSHIP WITHOUT THE PRIOR 16 APPROVAL OF THE BOARD, WHICH MAY DIRECT THAT ALL OR ANY PART OF 17 THE NET EARNINGS BE PAID EITHER TO THE SUSPENDED OR FORMER 18 LICENSEE OR TO THE STATE CASINO GAMING FUND IN ACCORDANCE WITH 19 RULES PROMULGATED BY THE BOARD. THE FORMER OR SUSPENDED LICENSEE 20 IS ENTITLED TO A FAIR RATE OF RETURN OUT OF NET EARNINGS, IF ANY, 21 DURING THE PERIOD OF THE CONSERVATORSHIP ON THE PROPERTY RETAINED 22 BY THE CONSERVATOR. 23 (14) FOLLOWING ANY SALE, ASSIGNMENT, OR OTHER TRANSFER, IN 24 BULK, OF ALL THE PROPERTY SUBJECT TO THE CONSERVATORSHIP, THE 25 CONSERVATOR SHALL PAY THE NET PROCEEDS FROM THE SALE THAT REMAIN 26 AFTER PAYMENT OF ALL OBLIGATIONS OWING TO THE STATE OF MICHIGAN 27 AND ANY POLITICAL SUBDIVISIONS OF THE STATE AND OF THOSE 02697'97 71 1 ALLOWANCES SET FORTH IN THIS ACT TO THE FORMER OR SUSPENDED 2 LICENSEE. 3 (15) A CONSERVATOR APPOINTED PURSUANT TO THIS ACT SHALL AT 4 ALL TIMES BE SUBJECT TO THIS ACT AND THE RULES, LIMITATIONS, 5 RESTRICTIONS, TERMS, AND CONDITIONS AS THE BOARD MAY PRESCRIBE. 6 EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, DURING THE PERIOD OF 7 ANY CONSERVATORSHIP IMPOSED BY THIS ACT, THE CASINO OPERATION IN 8 THE FORM OF THE CONSERVATORSHIP SHALL BE CONSIDERED A LICENSED 9 CASINO OPERATION SUBJECT TO THIS ACT. 10 (16) THE BOARD SHALL DIRECT THE DISCONTINUATION OF A CONSER- 11 VATORSHIP WHEN THE CONSERVATOR HAS, WITH THE PRIOR APPROVAL OF 12 THE BOARD, CONSUMMATED THE SALE, ASSIGNMENT, OR OTHER TRANSFER, 13 IN BULK, OF ALL OF THE PROPERTY OF THE FORMER LICENSEE THAT WAS 14 PART OF THE CASINO. 15 (17) THE BOARD MAY DIRECT THE DISCONTINUATION OF ANY CONSER- 16 VATORSHIP WHEN IT DETERMINES THAT THE REASON FOR WHICH THE ACTION 17 WAS INSTITUTED NO LONGER EXISTS. 18 (18) UPON THE DISCONTINUATION OF THE CONSERVATORSHIP AND 19 WITH THE APPROVAL OF THE BOARD, THE CONSERVATOR SHALL TAKE THE 20 STEPS NECESSARY TO EFFECT AN ORDERLY TRANSFER OF THE PROPERTY OF 21 THE FORMER OR SUSPENDED LICENSEE. 22 (19) THE SALE, ASSIGNMENT, TRANSFER, PLEDGE, OR OTHER DISPO- 23 SITION OF THE SECURITIES ISSUED BY A FORMER OR SUSPENDED LICENSEE 24 DURING THE PENDENCY OF A CONSERVATORSHIP INSTITUTED PURSUANT TO 25 THIS ACT DOES NOT DIVEST OR OTHERWISE AFFECT THE POWERS CONFERRED 26 UPON A CONSERVATOR BY THIS ACT. 02697'97 72 1 (20) A CONSERVATOR APPOINTED PURSUANT TO THIS ACT SHALL FILE 2 WITH THE BOARD REPORTS ON THE ADMINISTRATION OF THE 3 CONSERVATORSHIP IN THE FORM AND AT THE INTERVALS THE BOARD SHALL 4 PRESCRIBE. SUCH REPORTS SHALL BE AVAILABLE FOR EXAMINATION AND 5 INSPECTION BY ANY CREDITOR OR PARTY IN INTEREST AND, IN ADDITION, 6 THE BOARD MAY DIRECT THAT COPIES OF THE REPORTS BE MAILED TO DES- 7 IGNATED CREDITORS OR OTHER PERSONS AND THAT SUMMARIES OF ANY 8 REPORTS BE PUBLISHED IN DESIGNATED NEWSPAPERS OF GENERAL 9 CIRCULATION. 10 Enacting section 1. Sections 7 and 16 of the Initiated Law 11 of 1996, MCL 432.207 and 432.216, are repealed. 02697'97 Final page. VPW