HOUSE BILL No. 4864


     June 3, 1997, Introduced by Rep. Schauer 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 section 7 (MCL 432.207).

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         SEC. 7.  (1)  Section 7.  Suppliers Licenses.  (a)  The

 2    board shall promulgate rules requiring the licensing of all per-

 3    sons manufacturing, selling, leasing, or distributing equipment

 4    used in conducting casino gaming.

 5         (2)  (b)  The board may issue a  suppliers  SUPPLIER'S

 6    license to such persons or companies  which  THAT apply  therefor

 7     upon  FOR A SUPPLIER'S LICENSE AFTER ALL OF THE FOLLOWING HAVE

 8    OCCURRED:

 9         (A)  (i) the payment of  THE APPLICANT HAS PAID a

10    nonrefundable application fee set by the board.  ; 




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 1         (B)  (ii) a determination by the board  THE BOARD HAS

 2    DETERMINED that the applicant is eligible for a  suppliers 

 3    SUPPLIER'S license pursuant to  regulations which are to be 

 4    RULES promulgated by the board.  ; and 

 5         (C)  (iii) payment of  THE APPLICANT HAS PAID a $5,000.00

 6    annual license fee.

 7         (D) THE APPLICANT HAS SHOWN BY CLEAR AND CONVINCING EVIDENCE

 8    THAT THE APPLICANT POSSESSES THE NECESSARY INTEGRITY, GOOD CHAR-

 9    ACTER AND REPUTATION, PERSONAL AND BUSINESS PROBITY, AND BUSINESS

10    AND FINANCIAL EXPERIENCE AND MEANS TO BE LICENSED.

11         (E) THE APPLICANT HAS SHOWN BY CLEAR AND CONVINCING EVIDENCE

12    THAT EACH PERSON WHO CONTROLS THE APPLICANT, DIRECTLY OR INDI-

13    RECTLY, POSSESSES THE NECESSARY INTEGRITY, GOOD CHARACTER AND

14    REPUTATION, PERSONAL AND BUSINESS PROBITY, AND BUSINESS AND

15    FINANCIAL EXPERIENCE TO BE LICENSED.

16         (3)  (c)  All equipment necessary for implementation of this

17    act shall be purchased from suppliers pursuant to the rules

18    promulgated by the board.

19         (4)  (d)  A city may regulate suppliers through the adoption

20    of an ordinance  which  THAT is not inconsistent with this  Act 

21    ACT.

22         (5)  (e)  Any applicant or any applicant  which  THAT has an

23    affiliate or affiliated company  which has been convicted of  IS

24    INELIGIBLE TO RECEIVE A SUPPLIER'S LICENSE IF ANY OF THE FOLLOW-

25    ING CIRCUMSTANCES EXIST:

26          (a) Any felony in any state; or 





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 1         (A) THE PERSON HAS BEEN CONVICTED OF A FELONY UNDER THE LAWS

 2    OF THIS STATE, ANY OTHER STATE, OR THE UNITED STATES.

 3         (B)  (2) any  THE PERSON HAS BEEN CONVICTED OF A misdemeanor

 4    involving gambling, THEFT, DISHONESTY, or fraud in any state.  ; 

 5          (3) any violation of a local ordinance involving gambling

 6     or fraud which ordinance corresponds to a misdemeanor in any

 7     state; shall be ineligible to receive a suppliers license. 

 8         (C) THE PERSON HAS SUBMITTED AN APPLICATION FOR A LICENSE

 9    UNDER THIS ACT THAT CONTAINS FALSE INFORMATION.

10         (D) A PERSON TO WHOM SUBDIVISION (A), (B), OR (C) APPLIES IS

11    AN OFFICER, DIRECTOR, OR KEY EMPLOYEE OF THE APPLICANT OR IS A

12    PERSON WHO HOLDS GREATER THAN A 1% DIRECT OR INDIRECT INTEREST IN

13    THE APPLICANT.































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