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<section article="gsg" article_name="State Government" number="9-1E-07" title_number="9" title_name="Miscellaneous Executive Agencies" subtitle_number="1E" subtitle_name="Sports Wagering">
  <level label="a">
    <text>An applicant for a license under this subtitle shall submit to the Commission:</text>
    <level label="1">
      <text>an application in the form that the Commission requires; and</text>
    </level>
    <level label="2">
      <text>if the applicant is applying for a sports wagering license, an affidavit attesting to:</text>
      <level label="i">
        <text>the number of minority and women owners of the applicant;</text>
      </level>
      <level label="ii">
        <text>the ownership interest of any minority and women owners of the applicant;</text>
      </level>
      <level label="iii">
        <text>the number of minority and women employees of the applicant;</text>
      </level>
      <level label="iv">
        <text>the number of current contracts the applicant has with minority– and women–owned subcontractors; and</text>
      </level>
      <level label="v">
        <text>any other information considered necessary by the Commission or the Sports Wagering Application Review Commission established under § 9–1E–15 of this subtitle.</text>
      </level>
    </level>
  </level>
  <level label="b">
    <level label="1">
      <text>The findings and evidence relied on by the General Assembly for the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of the State Finance and Procurement Article are incorporated in this subsection.</text>
    </level>
    <level label="2">
      <text>To the extent practicable and authorized by the United States Constitution, a sports wagering licensee shall comply with the State’s Minority Business Enterprise Program.</text>
    </level>
    <level label="3">
      <level label="i">
        <text>On or before 6 months after the issuance of a sports wagering license under this subtitle, the Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General and the sports wagering licensee, shall establish a clear plan for setting reasonable and appropriate minority business enterprise participation goals and procedures for the procurement of goods and services related to sports wagering, including procurement of construction, equipment, and ongoing services.</text>
      </level>
      <level label="ii">
        <text>To the extent practicable, the goals and procedures specified in subparagraph (i) of this paragraph shall be based on the requirements of Title 14, Subtitle 3 of the State Finance and Procurement Article and the regulations implementing that subtitle.</text>
      </level>
    </level>
    <level label="4">
      <text>On or after July 1, 2031, the provisions of this subsection and any regulations adopted under this subsection shall be of no effect and may not be enforced.</text>
    </level>
  </level>
  <level label="c">
    <level label="1">
      <text>This subsection does not apply to the application or license renewal fees for a sports wagering license required under § 9–1E–06 of this subtitle.</text>
    </level>
    <level label="2">
      <level label="i">
        <text>Subject to subparagraph (ii) of this paragraph, the Commission shall adopt regulations that establish an application fee and license renewal fee for a license under this subtitle.</text>
      </level>
      <level label="ii">
        <text>The application fee for an online sports wagering operator license may not be less than $5,000.</text>
      </level>
    </level>
    <level label="3">
      <text>An applicant shall submit the application fee with the application.</text>
    </level>
    <level label="4">
      <text>The term of the license is 5 years.</text>
    </level>
  </level>
  <level label="d">
    <text>On a properly approved transmittal prepared by the Commission, the Comptroller shall pay the following amounts from the application fees and license renewal fees collected by the Commission under this section and § 9–1E–06 of this subtitle:</text>
    <level label="1">
      <text>an amount to the State Lottery and Gaming Control Agency necessary to reimburse the Agency for expenses related to  the issuance and renewal of sports wagering licenses;</text>
    </level>
    <level label="2">
      <text>5% of the fees collected for each Class A–1 and A–2 sports wagering facility license to the Small, Minority–Owned, and Women–Owned Business Sports Wagering Assistance Fund established under § 9–1E–16 of this subtitle; and</text>
    </level>
    <level label="3">
      <text>the remainder to the Blueprint for Maryland’s Future Fund established under § 5–206 of the Education Article.</text>
    </level>
  </level>
  <level label="e">
    <level label="1">
      <text>Applicants and licensees shall have the affirmative responsibility to establish by clear and convincing evidence the applicant’s or licensee’s qualifications.</text>
    </level>
    <level label="2">
      <text>Applicants and licensees shall provide information required by this subtitle and satisfy requests for information relating to qualifications in the form specified by the Commission, if applicable.</text>
    </level>
    <level label="3">
      <level label="i">
        <text>Applicants and licensees shall:</text>
        <level label="1">
          <text>provide assistance or information required by the Commission; and</text>
        </level>
        <level label="2">
          <text>cooperate in an inquiry, an investigation, or a hearing conducted by the Commission.</text>
        </level>
      </level>
      <level label="ii">
        <text>On issuance of a formal request to answer or produce information, evidence, or testimony, if an applicant or a licensee refuses to comply, the application or license may be denied, suspended, or revoked by the Commission.</text>
      </level>
    </level>
    <level label="4">
      <level label="i">
        <text>If the applicant is an individual, the applicant shall be photographed and fingerprinted for identification and investigation purposes.</text>
      </level>
      <level label="ii">
        <text>If the applicant is not an individual, the Commission by regulation may establish the categories of individuals who shall be photographed and fingerprinted for identification and investigation purposes.</text>
      </level>
    </level>
    <level label="5">
      <level label="i">
        <text>Applicants and licensees shall inform the Commission of an act or omission that the person knows or should know constitutes a violation of this subtitle or the regulations adopted under this subtitle.</text>
      </level>
      <level label="ii">
        <text>Applicants and licensees may not discriminate against a person who in good faith informs the Commission of an act or omission that the person believes constitutes a violation of this subtitle or the regulations adopted under this subtitle.</text>
      </level>
    </level>
    <level label="6">
      <text>Applicants and licensees shall produce information, documentation, and assurances to establish the following qualification criteria by clear and convincing evidence:</text>
      <level label="i">
        <text>the financial stability, integrity, and responsibility of the applicant or licensee;</text>
      </level>
      <level label="ii">
        <text>the integrity of any financial backers, investors, mortgagees, bondholders, and holders of other evidences of indebtedness that bear a relation to the application;</text>
      </level>
      <level label="iii">
        <text>the applicant’s or licensee’s good character, honesty, and integrity;</text>
      </level>
      <level label="iv">
        <text>sufficient business ability and experience of the applicant or licensee; and</text>
      </level>
      <level label="v">
        <text>that:</text>
        <level label="1">
          <text>unless the applicant or licensee already has a collective bargaining agreement, the applicant or licensee has entered into a labor peace agreement with each labor organization that is actively engaged in representing or attempting to represent sports wagering industry workers in the State;</text>
        </level>
        <level label="2">
          <text>the labor peace agreement is valid and enforceable under 29 U.S.C. § 158;</text>
        </level>
        <level label="3">
          <text>the labor peace agreement protects the State’s revenues by prohibiting the labor organization and its members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the operation of sports wagering within the first 5 years of the effective date of a sports wagering license; and</text>
        </level>
        <level label="4">
          <text>the labor peace agreement applies to all operations conducted by the applicant or licensee at a facility or location where sports wagering is conducted.</text>
        </level>
      </level>
    </level>
  </level>
  <level label="f">
    <level label="1">
      <text>On the filing of an application for any license required under this subtitle and any supplemental information required by the Commission, the Commission shall conduct a background investigation on the qualifications of the applicant and any person who is required to be qualified under this subtitle as a condition of a license.</text>
    </level>
    <level label="2">
      <text>The Commission may refer an application for a license to an approved vendor under § 9–1A–20 of this title to conduct the background investigation for the Commission.</text>
    </level>
  </level>
  <level label="g">
    <level label="1">
      <text>After receiving the results of the background investigation, the Commission may either grant a license to an applicant whom the Commission determines to be qualified or deny the license to an applicant whom the Commission determines to be not qualified or disqualified.</text>
    </level>
    <level label="2">
      <text>If an application for a license is denied, the Commission shall prepare and file an order denying the license with a statement of the reasons for the denial, including the specific findings of fact.</text>
    </level>
  </level>
  <level label="h">
    <level label="1">
      <text>An individual may not knowingly give false information or make a material misstatement in an application required for any license under this subtitle or in any supplemental information required by the Commission.</text>
    </level>
    <level label="2">
      <text>An individual who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding $5,000 or both.</text>
    </level>
  </level>
  <level label="i">
    <level label="1">
      <text>The holder of a Class B–1 or B–2 sports wagering facility license or a mobile sports wagering license may only sell or transfer ownership of the license if the licensee was actively engaged in operating sports wagering in the State for at least 3 years immediately preceding the sale or transfer of the ownership of the license.</text>
    </level>
    <level label="2">
      <text>Nothing in paragraph (1) of this subsection may be construed to limit the ability of the Commission to enforce this subtitle.</text>
    </level>
  </level>
  <level label="j">
    <level label="1">
      <text>A sports wagering facility licensee issued a license under § 9–1E–06(a)(2)(ii) of this subtitle may submit a written request to the Commission to relocate a Class B sports wagering facility.</text>
    </level>
    <level label="2">
      <text>The Commission may grant a request submitted under paragraph (1) of this subsection only if:</text>
      <level label="i">
        <text>the sports wagering facility licensee was originally issued a Class B sports wagering facility license on or before September 30, 2023; and</text>
      </level>
      <level label="ii">
        <text>the new location for the sports wagering facility:</text>
        <level label="1">
          <text>is within the same county;</text>
        </level>
        <level label="2">
          <text>complies with the location requirements under § 9–1E–06 of this subtitle; and</text>
        </level>
        <level label="3">
          <text>subject to § 9–1E–15(q) of this subtitle, is approved by the Sports Wagering Application Review Commission.</text>
        </level>
      </level>
    </level>
  </level>
</section>
