Plain Text Law

Title 03 — Subtitle 10. Miscellaneous Administration

Chapter 01. Slot Machines for Nonprofit Organizations

Regulation .01 Definitions.Copy Citation

A.
In this chapter, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
Charity.
(a)
“Charity” means a charitable organization that:
(i)
Is or holds itself out to be a benevolent, educational, philanthropic, humane, patriotic, religious, or eleemosynary organization and solicits or obtains contributions solicited from the public for charitable purposes; and
(ii)
Is in possession of an effective Internal Revenue Service determination letter evidencing the organization’s charitable status under §501(c) of the Internal Revenue Code.
(b)
“Charity” includes a chapter, branch, area, office, or similar affiliate soliciting contributions within the State of Maryland for a charitable organization which has its principal place of business outside the State.
(c)
“Charity” does not include a political party, political committee, political club, or an agency of the State government, or of a political subdivision.
(d)
“Charity” does not include an organization licensed to operate slot machines at any time during the reporting year or an affiliate, a subordinate, an auxiliary unit, or a society related to the organization licensed to operate slot machines.
(2)
“Eligible organization” has the meaning stated in Criminal Law Article, §12-304(a), Annotated Code of Maryland.
(3)
“Fraternal organization” means an organization in possession of an effective Internal Revenue Service determination letter evidencing the organization’s exempt status under §501(c)(8) or (10) of the Internal Revenue Code.
(4)
“Religious organization” means a nonprofit organization which is organized and operated exclusively for religious purposes and is in possession of an effective Internal Revenue Service determination letter evidencing the organization’s exempt status under §501(c)(3) of the Internal Revenue Code.
(5)
“Reporting year” means July 1 through June 30.
(6)
“Slot machine” has the meaning stated in Criminal Law Article, §12-301, Annotated Code of Maryland.
(7)
War Veterans’ Organization.
(a)
“War veterans’ organization” means an organization in possession of an effective Internal Revenue Service determination letter evidencing the organization’s exempt status under §501(c)(4) or (19) of the Internal Revenue Code.
(b)
“War veterans’ organization” does not include an auxiliary unit or a society of a war veterans’ organization, or a trust or foundation for a veterans’ organization.

Regulation .02 License Requirements.Copy Citation

A.
An eligible organization shall submit an application to the Comptroller for an initial license or renewal license for each slot machine it proposes to operate.
B.
Each license application, whether initial or renewal, shall:
(1)
Satisfy all requirements set forth in the application as provided by the Comptroller;
(2)
Be signed by a principal officer of the organization applying for the license under penalty of perjury, as provided by Criminal Law Article, Title 9, Subtitle 1, Annotated Code of Maryland; and
(3)
Include a license fee, the amount of which shall be determined by the Comptroller for the reporting year.
C.
An eligible organization may submit one application for licenses for up to five slot machines.
D.
A licensee shall promptly notify and amend the license application upon the principal officer’s separation from the licensed organization. The amended license application shall be signed by a principal officer of the organization under penalty of perjury, as provided by Criminal Law Article, Title 9, Subtitle 1, Annotated Code of Maryland.
E.
A license is renewed annually on or before June 30 of each year. The license renewal fee shall be determined by the Comptroller.
F.
A license is not transferrable.
G.
A licensee is subject to:
(1)
The requirements of Criminal Law Article, §12-305(a), Annotated Code of Maryland;
(2)
The operation requirements under Regulation .03 of this chapter;
(3)
The annual report and record-keeping requirements under Regulation .04 of this chapter; and
(4)
The inspection authority under Regulation .05 of this chapter.
H.
The Comptroller may suspend or revoke the license for each slot machine of a licensee if a licensee violates any regulation of this chapter.

Regulation .03 Operation Requirements.Copy Citation

A.
License Sticker.
(1)
Each slot machine shall have a valid license sticker issued by the Comptroller affixed to the machine.
(2)
A renewed license sticker must be affixed to a slot machine on or before July 1 of the license’s reporting year.
B.
A licensee shall immediately report to the Comptroller:
(1)
Information about any slot machine’s meter or counter that is not operational, is in need of repair, or is not repairable;
(2)
Subject to Criminal Law Article, §12-307, Annotated Code of Maryland, any transfer of a slot machine and the reason for the transfer; or
(3)
Physical loss of a slot machine or monies from a slot machine.
C.
A licensee shall notify the Comptroller of any repair of a slot machine that may affect any meter reading of the slot machine prior to the initiation of such repair.
D.
A licensee must:
(1)
Record and make available for inspection weekly meter readings of any electrical and mechanical meter which records the coin-in, coin-out, and jackpot of every licensed slot machine; and
(2)
Maintain a maintenance log for each licensed slot machine.
E.
Tamperproof Meter or Counter.
(1)
A slot machine must have a tamperproof meter or counter.
(2)
Before a licensed slot machine may be operated, all meter or counter components, electrical or mechanical, must be sealed in a manner approved by the Comptroller.
F.
Only members or guests of a licensee may play a slot machine.

Regulation .04 Annual Report and Record-Keeping Requirements.Copy Citation

A.
Annual Report.
(1)
On or before August 1 of each year, a licensee shall file an annual report with the Comptroller for the preceding reporting year.
(2)
The annual report shall be submitted by mail or electronically in a form approved by the Comptroller.
(3)
Charitable Disbursements.
(a)
The annual report shall show that the licensee has made and met the charitable disbursement requirement under Criminal Law Article, §12-304(c), Annotated Code of Maryland, on or before the due date of the report.
(b)
Information regarding each charitable disbursement shall include the name and address of the charitable organization receiving the disbursement, the charitable organization’s federal employer identification number, and a copy of a receipt from or a cancelled check to the charitable organization receiving the disbursement identifying the date and the amount of the disbursement.
(4)
Filing Requirements.
(a)
If a licensee fails to file a full and complete annual report by August 1, the Comptroller shall mail a notice within 30 days demanding that the report be filed within 10 days of the date on the notice.
(b)
The Comptroller may suspend or revoke the license of each slot machine licensed to the licensee for a licensee’s failure to file a complete annual report.
B.
Audits.
(1)
The Comptroller may examine or audit an annual report filed by a licensee.
(2)
To determine whether an annual report is correct or otherwise to enforce this chapter, the Comptroller may:
(a)
Examine any records, data, or other documents that may support the information included in the annual report;
(b)
Conduct an investigation; and
(c)
Hold a hearing.
C.
Record-Keeping Requirements.
(1)
A licensee shall keep the records substantiating the information required for the annual report for a period of 4 years or for a shorter time as determined by the Comptroller.
(2)
A licensee shall make the records available for inspection and examination by the Comptroller at any time during business hours.
(3)
A licensee must keep a separate accounting of proceeds and disbursements from its slot machines.
(4)
Except as otherwise provided in this regulation, a licensee shall comply with the record-keeping requirements of COMAR 03.01.03.

Regulation .05 Inspections.Copy Citation

A.
The Comptroller, or the Comptroller’s duly authorized designee, shall be fully authorized to inspect and search, without warrant, at reasonable hours, any place of business in which slot machines are authorized to be kept and operated by a licensee.
B.
If the Comptroller, or the Comptroller’s duly authorized designee, finds during an inspection or investigation that the operation of a slot machine may be in violation of Criminal Law Article, Title 12, Subtitle 3, Annotated Code of Maryland, or a regulation in this chapter, the Comptroller may seal the slot machine rendering it inoperable, subject to the hearing requirements under Regulation .06 of this chapter. Only the Comptroller, or the Comptroller’s duly authorized designee, may remove the seal from a slot machine.
C.
The Comptroller may suspend or revoke the license of any licensed slot machine if the seal placed on a slot machine is removed by someone other than the Comptroller or the Comptroller’s duly authorized designee.

Regulation .06 Hearings and Appeals.Copy Citation

Except as provided in this chapter, the Comptroller shall follow the hearings and appeals procedure set forth in COMAR 03.01.01.04 and .05 before a denial, suspension, or revocation of a license is issued under Criminal Law Article, §12-304, Annotated Code of Maryland.